糖心vlog下载 Technologies Reports Fiscal Second Quarter 2009 Results

糖心vlog下载

AURORA, Ill.--(BUSINESS WIRE)--

糖心vlog下载. (NASDAQ: WSTL):

              糖心vlog下载 Technologies 2nd Quarter Highlights

    --  Total revenue of $43.1 million

    --  Increased orders for DSL-based gateways bolster Customer
        Networking Solutions revenue

    --  OSPlant Systems announced new orders with a major cable
        company and energy utility

    --  ConferencePlus records stronger than expected results due to
        an overall increase in corporate conferencing services

    --  The Company repurchased 1.4 million shares of stock

糖心vlog下载. (NASDAQ: WSTL), a leading provider of broadband products, gateways and conferencing services, today announced results for its fiscal second quarter ending September 30, 2008. Total revenue for the second quarter was $43.1 million compared to $59.4 million in the same quarter last year and $38.1 million reported in the first quarter of fiscal 2009. The decrease from the prior year quarter was primarily due to the previously announced loss of a broadband customer. Net loss during the period was $5.1 million, or $0.07 per diluted share, compared to a net loss of $668,000 or a loss of $0.01 per diluted share in the same quarter of last year and compared to a $5.5 million, or a loss of $0.08 per diluted share in the first quarter of fiscal 2009.

"The improved results during the quarter compared to the prior quarter indicate the inherent value in the Company," said Bernard F. Sergesketter, 糖心vlog下载 Chief Executive Officer. "Going forward, our goal is to further unlock this value and capitalize on the strong potential of the sectors in which we operate."

Customer Networking Solutions (CNS), formerly Customer Networking Equipment (CNE), reported revenue of $17.2 million in the second quarter of fiscal 2009, compared to $32.1 million in the same quarter of last year and $10.7 million reported in the prior quarter. During the quarter, a major customer announced it was running a special campaign to promote its DSL offering. As a result, they increased their orders for ProLine and Versalink DSL gateways. Additionally, although revenue was deferred, the company commenced shipping on orders worth $14 million for its UltraLine Series3 next generation gateway.

OSPlant Systems reported revenue of $14.9 million in the second quarter of fiscal 2009, compared to $14.3 million in same quarter of last year and $14.9 million in fiscal first quarter of 2009. The Company continues to enter new market segments as demonstrated by orders from a major cable company as well as a major energy utility for its SHADE cabinet enclosure and VirtualEdge SwingRack products, respectively. These wins improve the customer diversification of this group.

The Conferencing Services segment revenue decreased to $11.1 million in the second quarter of fiscal 2009 from $13.0 million in the same quarter of last year and $12.5 million in the first quarter of fiscal 2009. The loss of business from one large customer during the fiscal first quarter continued to adversely impact this segment's results. ConferencePlus experienced a positive increase in business during September compared to expectations as a result of the increased conference calls due to the current economic environment.

    Additional News

    --  Total cash as of September 30, 2008 was $50.3 million.

    --  Cost reduction initiatives initiated in the fiscal second and
        third quarters of 2009 are expected to generate $4 million in
        savings annually.

    --  On October 12, 2008, Roger Plummer announced his resignation
        from the Board of Directors, citing the pressing demands of
        his schedule.

    Outlook

For the third quarter of fiscal 2009, 糖心vlog下载 expects revenue to be in a range of $53 to $57 million, which equates to a loss of $0.04 to $0.06 per diluted share.

"Our guidance for the upcoming quarter is based on a combination of increased revenues associated with our UltraLine Series3 gateway device and our ongoing cost reduction initiatives," said Sergesketter. "We continue to focus on opportunities that will maximize our results."

Conference Call Information

Conference Plus, Inc. (ConferencePlus), a 糖心vlog下载 subsidiary, will manage 糖心vlog下载's second quarter fiscal 2009 earnings conference call on Thursday, October 23, 9:30 AM ET using its EventManager(TM) Service.

Participants can register for the 糖心vlog下载 conference by going to the URL:

With EventManager, participants can quickly register online in advance of the conference through a customizable web page that can be used to gather multiple pieces of information from each participant, as specified by the event arranger. After registering, participants receive dial-in numbers, a passcode, and a personal identification number (PIN) that is used to uniquely identify their presence and automatically join them into the audio conference. If a participant experiences any technical difficulties after joining the conference on July 24, simply press *0 for support.

If you do not wish to register, you can participate in the call on October 23rd by dialing ConferencePlus at 1-877-875-0056 no later than 9:15 AM, Eastern Time and using confirmation number 22970708#. International participants may dial 1-847- 585-4340. The Company's earnings press release and any related earnings information to be discussed on the earnings conference will be posted on the Investor Relations section of the Company's website at . An archive of the entire conference will be available on 糖心vlog下载's website or via Digital Audio Replay one hour following the conclusion of the conference. The replay of the conference can be accessed by dialing 1- 888-843-8996 or 1-630- 652-3044 and entering 7670630#.

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糖心vlog下载., headquartered in Aurora, Illinois, is a holding company for 糖心vlog下载, Inc. and ConferencePlus, Inc. 糖心vlog下载, Inc. designs and develops broadband telecommunications access products. ConferencePlus, Inc. is a collaborative Application Service Provider that manages and hosts voice, video, IP applications and back-office services. Additional information can be obtained by visiting 糖心vlog下载's Web site at .

糖心vlog下载 ConferencePlus

ConferencePlus, a 糖心vlog下载. (NASDAQ: WSTL) subsidiary, is a leading global provider of audio, web, video and IP conferencing services. ConferencePlus is dedicated to providing high quality, innovative conferencing solutions to its domestic and international clients and telecommunications resellers. ConferencePlus is recognized for outstanding customer service and support to help clients meet their business objectives. The company is headquartered in Schaumburg, Illinois, with an international headquarters in Dublin, Ireland. Additional information can be obtained by visiting the ConferencePlus web site at .

    "Safe Harbor" statement under the Private Securities Litigation
                           Reform Act 1995:

Certain statements contained herein that are not historical facts or that contain the words "believe", "expect", "intend", "anticipate", "estimate", "may", "will", "should", or derivatives thereof and other words of similar meanings are forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those expressed in or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, product demand and market acceptance risks, need for financing, an economic downturn in the U.S. economy and telecom market, the impact of competitive products or technologies, competitive pricing pressures, new product development, excess and obsolete inventory, commercialization and technological delays or difficulties (including delays or difficulties in developing, producing, testing and selling new products and technologies), the effect of 糖心vlog下载's accounting policies, the need for additional capital, the effect of economic conditions and trade, legal social and economic risks (such as import, licensing and trade restrictions) and other risks more fully described in the Company's Form 10-K for the fiscal year ended March 31, 2008 under the section Risk Factors. The Company undertakes no obligation to publicly update these forward-looking statements to reflect current events or circumstances after the date hereof or to reflect the occurrence of unanticipated events or otherwise.

                      Financial Tables to Follow:

                      糖心vlog下载.
                          Financial Results

           (Dollars in thousands except per share amounts)

                          Three Months ended      Six Months ended
                              September 30,         September 30,
                           2008       2007       2008        2007
                         --------   --------   ---------   --------

Revenues
  OSPlant Systems        $14,870    $14,306     $29,752    $28,062
  CNS                     17,150     32,089      27,816     63,186
  Services                11,100     13,026      23,610     26,573


                         --------   --------   ---------   --------
  Total revenues          43,120     59,421      81,178    117,821
                         --------   --------   ---------   --------

Gross profit
    Equipment              8,166     10,236 (1)  15,423     21,372 (1)
    Services               4,944      6,098      10,534     12,909

                         --------   --------   ---------   --------
  Total gross profit      13,110     16,334      25,957     34,281
                         --------   --------   ---------   --------

Gross margin
    Equipment               25.5%      22.1%       26.8%      23.4%
    Services                44.5%      46.8%       44.6%      48.6%

                         --------   --------   ---------   --------
  Total gross margin        30.4%      27.5%       32.0%      29.1%
                         --------   --------   ---------   --------

Operating expenses
  Sales & marketing        6,391      6,916      12,880     11,442 (2)
    As a percentage of
     revenue                14.8%      11.6%       15.9%       9.7%

  General &
   administrative          6,067 (3)  5,096 (4)  11,552 (3) 10,254 (4)
    As a percentage of
     revenue                14.1%       8.6%       14.2%       8.7%

  Research & development   5,487      5,388      11,121     11,126
    As a percentage of
     revenue                12.7%       9.1%       13.7%       9.4%

  Restructuring (5)            2        286         (56)     4,143
    As a percentage of
     revenue                 0.0%       0.5%       -0.1%       3.5%

  Intangibles
   amortization              458        457         917        913
    As a percentage of
     revenue                 1.1%       0.8%        1.1%       0.8%

                         --------   --------   ---------   --------
  Total operating
   expenses               18,405     18,143      36,414     37,878
                         --------   --------   ---------   --------
    As a percentage of
     revenue                42.7%      30.5%       44.9%      32.1%

Operating loss            (5,295)    (1,809)    (10,457)    (3,597)

Other income                 219        924         566      1,903
Interest expense              (2)         -          (2)        (2)

                         --------   --------   ---------   --------
Loss before minority
 interest and taxes       (5,078)      (885)     (9,893)    (1,696)
                         --------   --------   ---------   --------

Income taxes                  48 (6)   (326)         75 (6)   (587)

Minority interest              7         48          43        111

                         --------   --------   ---------   --------
Loss from continuing
 operations               (5,133)      (607)    (10,011)    (1,220)
                         --------   --------   ---------   --------

Gain/(Loss) discontinued
 operations net of tax
 benefit
 of $0,$36,$0 and $213,
  respectively.(7)            24        (61)       (619)      (364)

                         --------   --------   ---------   --------
Net loss                 $(5,109)     $(668)   $(10,630)   $(1,584)
                         ========   ========   =========   ========



Net loss per common
 share:
    Basic                 $(0.07)    $(0.01)     $(0.15)    $(0.02)
    Diluted               $(0.07)    $(0.01)     $(0.15)    $(0.02)

Average number of common
  shares outstanding:
    Basic                 70,518     70,321      70,620     70,223
    Diluted               70,518     70,321      70,620     70,223



Footnotes:

(1) Accelerated depreciation in the amount of $598,000 and $1.1
 million were recorded on manufacturing equipment in the three and six
 months periods, respectively.

(2) The Company recorded a $3.3 million gain relating to a vendor
 settlement and $600,000 in associated expenses for a net gain of $2.7
 million.

(3) Includes $472,000 of serverance and $840,000 of stock based
 compensation expense related to the accelerated vesting of restricted
 stock, both for the former CEO.

(4) The Company recorded $552,000 and $1.1 million of consulting costs
 related to the implementation of the outsourcing strategy in the
 three and six months periods, respectively.

(5) Reorganization costs are for serverance and related costs
 resulting from the outsourcing strategy.

(6) The Company is providing a valuation allowance on deferred tax
 assets.

(7) The Company discontinued the operations of it's 糖心vlog下载 Limited
 entity located in the United Kingdom.
                      糖心vlog下载.
                    Financial Results (continued)
                        (Dollars in thousands)

                                            September 30,    March 31,
                                                2008           2008
                                            -------------    ---------



Cash and short term investments                    50,318       68,349
Accounts receivable                                19,077       19,498
Inventory                                          26,272       17,897
Total current assets                               99,215      108,748
Goodwill and intangibles                            9,206        9,479
Total assets                                      124,836      134,227
Total current liabilities                          30,218(1)    29,685
Total liabilities and minority interest            41,811       40,733
Shareholders' equity                               83,025       93,494

Days sales outstanding                                 40           39


(1) Includes $2.7 million of deferred revenue for Ultraline Series3
 and wireless router products

Source: 糖心vlog下载.