糖心vlog下载 Technologies Reports $2.7 Million Fiscal 2010 Third Quarter Profit

糖心vlog下载

糖心vlog下载 Technologies Fiscal 2010 Third Quarter Highlights

    --  Fiscal third quarter consolidated revenue of $42.8 million.
    --  Fiscal third quarter net income of $2.7 million, or $0.04 per diluted
        share - 糖心vlog下载's third consecutive profitable quarter.
    --  Gross margin improved to 32.2% in the quarter, compared with 25.4% in
        the prior-year quarter.
    --  Cash and cash equivalents increased by $4.1 million during the quarter
        to $58.1 million.
    --  Acquired 1.3 million shares for $1.4 million under the stock repurchase
        program.

AURORA, Ill.--(BUSINESS WIRE)-- 糖心vlog下载. (NASDAQ: WSTL), a leading provider of broadband products, outside plant telecommunications equipment and conferencing services, today announced results for its fiscal third quarter ended December 31, 2009. Total revenue for the quarter was $42.8 million, down 12.2% from $48.8 million in the fiscal third quarter last year. Net income during the quarter was $2.7 million, or $0.04 per diluted share, compared to a net loss of $4.0 million, or a loss of $0.06 per diluted share, in the same period last year. Total cash and cash equivalents were $58.1 million at December 31, 2009, up $4.1 million during the quarter and up $14.2 million compared to December 31, 2008.

"In our fiscal third quarter, we again delivered good bottom-line results and healthy cash flow, despite the expected top-line softness which we experienced," commented Chairman and CEO Rick Gilbert. "Our strong cash position allowed us to use $1.4 million to repurchase an additional 1.3 million 糖心vlog下载 shares during the quarter, and we were still able to grow our cash reserves by over $4 million."

The Customer Networking Solutions division reported revenue of $20.5 million in the fiscal third quarter, down 19.4% compared to $25.5 million in the same quarter of last year, with the largest impact coming from lower sales of the Company's UltraLine Series3 gateway product. UltraLine Series3 revenues were $3.8 million in the quarter, compared with $10.5 million in the fiscal third quarter last year. Revenue at the OSPlant Systems division was $12.4 million in the quarter, unchanged from the same quarter of last year. ConferencePlus revenue was $9.9 million in the quarter, down 9.8% compared to $10.9 million in the same quarter of last year.

Consolidated gross profit for the quarter increased $1.4 million, compared with the fiscal third quarter last year, as a result of improved product mix in the Customer Networking Solutions and OSPlant Systems divisions. Gross margins were 32.2% in the quarter, compared with 25.4% in the same quarter of last year, with improvement in all three divisions. Operating expenses also improved across the divisions, with total operating expenses for the quarter being $4.8 million lower than in last year's quarter.

"The combination of significant margin improvement and our ongoing expense controls drove very solid earnings for the quarter," said Gilbert. "The 糖心vlog下载 team has done a terrific job of maintaining its focus on the bottom line."

Two specific items had notable impacts on earnings for the fiscal third quarter. First, a tax refund contributed $767,000, or approximately $0.01 per share, to earnings. This discrete tax benefit derives from a refund of alternative minimum tax credits that the Company claimed on a tax return filed in December 2009 pursuant to stimulus provisions of the Housing and Economic Recovery Act of 2008 and the American Recovery and Reinvestment Act of 2009.

Second, the Company recorded $730,000 of additional stock-based compensation expense to correct an understatement of that expense in prior years. The correction reduced earnings by $730,000, or approximately $0.01 per share. The Company discovered in January 2010 that its third-party equity program administration software incorrectly calculated equity award forfeitures, resulting in the understatement. As stock-based compensation expense is a non-cash item, there was no impact to net cash provided by operations in any period.

Conference Call Information

Management will address financial and business results during 糖心vlog下载's third quarter fiscal 2010 earnings conference call on Thursday, January 28, at 9:30 AM Eastern Time. Conference Plus, Inc. (ConferencePlus(TM)), a 糖心vlog下载 subsidiary, will manage 糖心vlog下载's earnings conference call 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 call on January 28, he or she can press *0 for support.

If a participant does not wish to register, he or she can participate in the call on January 28, by dialing ConferencePlus at 1-877-875-0056 no later than 9:15 AM, Eastern Time and using confirmation number 26131183. International participants may dial 1-847-585-4340. 糖心vlog下载's press release on earnings and related information that may be discussed on the earnings conference will be posted on the Investor Relations' section of 糖心vlog下载's website, . An archive of the entire conference will be available on 糖心vlog下载's website or via Digital Audio Replay following the conclusion of the conference until the fiscal fourth quarter results are released. The replay of the conference can be accessed by dialing 1-888-843-8996 or 1-630-652-3044 and entering 7703344.

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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 Conference Plus, Inc. 糖心vlog下载, Inc. designs, distributes, markets and services a broad range of broadband customer-premises equipment, digital transmission, remote monitoring, power distribution and demarcation products used by telephone companies and other telecommunications service providers. Conference Plus, Inc. is a leading global provider of audio, web, video and IP conferencing services. Additional information can be obtained by visiting and .

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

Certain statements contained herein that are not historical facts or that contain the words "believe", "expect", "intend", "anticipate", "estimate", "may", "will", "plan", "should", or derivatives thereof and other words of similar meaning 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, economic weakness in the United States economy and telecommunications market, the impact of competitive products or technologies, competitive pricing pressures, product cost increases, 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), retention of key personnel and other risks more fully described in the Company's SEC filings, including the Company's Form 10-K for the fiscal year ended March 31, 2009 under the section entitled 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.

Condensed Consolidated Statement of Operations(1)

(Amounts in thousands except per share amounts)

(Unaudited)

                   Three Months ended Dec. 31,     Nine Months ended Dec.
                                                   31,

                   2009           2008             2009          2008

Revenue            $ 42,796       $ 48,755         $             $ 129,934
                                                   143,662

Gross profit       13,771         12,372           43,550        38,329

Gross margin       32.2     %     25.4     %       30.3    %     29.5      %

Operating
expenses:

    Sales &        3,996          5,411            13,392        18,291
    marketing

    Research &     3,202          4,169            10,279        15,290
    development

    General &      4,345      (2) 4,220            11,697    (2) 15,772
    administrative

    Restructuring  -              808          (3) 609       (4) 752         (3)

    Intangibles    161            486              478           1,403
    amortization

    Goodwill       -              1,381        (5) -             1,381       (5)
    impairment

    Total
    operating      11,704         16,475           36,455        52,889
    expenses

Operating income   2,067          (4,103   )       7,095         (14,560   )
(loss)

Other income       (4       )     56               67            622
(expense)

Interest (expense) -              (2       )       (4      )     (4        )

Income (loss)
before minority    2,063          (4,049   )       7,158         (13,942   )
interest and taxes

Income taxes       (673     ) (6) (57      )       (443    ) (6) 18

Minority interest  -              31               -             74

Income (loss) from
continuing         2,736          (4,023   )       7,601         (14,034   )
operations

Income (loss) from
discontinued       -              1                -             (618      )
operations net of
tax (7)

Net income (loss)  $ 2,736        $ (4,022 )       $ 7,601       $ (14,652 )

Net income (loss)
per common share:

    Basic          $ 0.04         $ (0.06  )       $ 0.11        $ (0.21   )

    Diluted        $ 0.04         $ (0.06  )       $ 0.11        $ (0.21   )

Average number of
common shares
outstanding:

    Basic          67,912         69,228           68,214        70,156

    Diluted        68,551         69,228           68,778        70,156

    On September 23, 2009, the Financial Accounting Standards Board ratified
    Emerging Issues Task Force (EITF) Issue 08-1 and EITF Issue 09-3, creating
(1) Accounting Standards Update (ASU) 2009-13 "Multiple-Deliverable Revenue
    Arrangements" and ASU 2009-14 "Certain Revenue Arrangements That Include
    Software Elements". The Company early adopted these standards on a
    retrospective basis in the second quarter of fiscal 2010.

(2) Includes a non-cash charge of $730,000 to correct errors in stock-based
    compensation expense related to prior fiscal years.

(3) Restructuring costs are for severance and related costs resulting from the
    actions taken to align costs in all segments of the Company.

    The Company terminated approximately 50 employees primarily in the Customer
(4) Net Solutions (CNS) and ConferencePlus (CP) segments as a cost reduction
    action in the first quarter of fiscal 2010.

(5) Impairment of goodwill related to the January 2007 acquisition of NoranTel,
    Inc. which is part of the Outside Plant Systems (OSP) operating segment.

(6) The Company recorded a $767,000 income taxed benefit derived from a refund
    of alternative minimum tax credits.

(7) The Company discontinued the operations of its 糖心vlog下载 Limited entity
    located in the United Kingdom in the first quarter of fiscal 2009.




糖心vlog下载.

Condensed Consolidated Balance Sheet(1)

(Dollars in thousands)

(unaudited)

                                            Dec. 31,   March 31,  Dec. 31,

                                            2009       2009       2008

Assets:

Cash and cash equivalents                   $ 58,073   $ 46,058   $ 43,843

Accounts receivable, net                    17,880     20,827     18,371

Inventories                                 18,398     20,178     21,587

Prepaids and other current assets           3,613      7,487      5,517

 Total current assets                       97,964     94,550     89,318

Property and equipment, net                 5,270      6,895      7,720

Goodwill                                    2,139      2,009      2,028

Intangibles, net                            4,151      4,333      4,856

Deferred costs                              -          -          630

Deferred income taxes and other assets      7,739      7,777      7,664

 Total assets                               $ 117,263  $ 115,564  $ 112,216

Liabilities and Stockholders' Equity:

Accounts payable                            $ 13,137   $ 17,883   $ 14,489

Accrued liabilities                         8,872      9,489      9,946

Deferred revenue                            462        2,119      237

 Total current liabilities                  22,471     29,491     24,672

Deferred revenue, long-term                 628        546        1,093

Other long-term liabilities                 9,386      9,079      8,120

 Total liabilities                          32,485     39,116     33,885

 Total stockholders' equity                 84,778     76,448     78,331

 Total liabilities and stockholders' equity $ 117,263  $ 115,564  $ 112,216

     On September 23, 2009, the Financial Accounting Standards Board ratified
     Emerging Issues Task Force (EITF) Issue 08-1 and EITF Issue 09-3,
 (1) creating Accounting Standards Update (ASU) 2009-13 "Multiple-Deliverable
     Revenue Arrangements" and ASU 2009-14 "Certain Revenue Arrangements That
     Include Software Elements". The Company early adopted these standards on
     a retrospective basis in the second quarter of fiscal 2010.




糖心vlog下载.

Condensed Consolidated Statement of Cash Flows(1)

(Dollars in thousands)

(Unaudited)

                                                     Nine Months ended Dec. 31,

                                                     2009        2008

Cash flows from operating activities:

  Net income (loss)                                  $ 7,601     $ (14,652 )

  Reconciliation of net income (loss) to net cash
  provided by (used in) operating activities:

      Depreciation and amortization                  2,942       4,421

      Goodwill and intangible impairment             -           1,381

      Stock-based compensation                       1,355       1,996

      Restructuring                                  609         966

      Other, net                                     (182     )  323

  Changes in assets and liabilities:

      Accounts receivable                            3,195       794

      Inventory                                      2,014       (3,982    )

      Accounts payable and accrued liabilities       (5,762   )  (5,721    )

      Deferred revenue and deferred costs            (1,575   )  423

      Prepaid and other current assets               3,916       (2,574    )

      Other long-term assets                         (24      )  (509      )

 Net cash provided by (used in) operating activities 14,089      (17,134   )

Cash flows from investing activities:

      Purchases of property and equipment            (800     )  (2,089    )

      Proceeds from the sale of equipment            -           90

      Sale of investments                            -           2,602

      Acquisition of a business                      -           (175      )

      Acquisition of minority interest               -           (3,650    )

 Net cash (used in) provided by investing activities (800     )  (3,222    )

Cash flows from financing activities:

      Borrowing (repayment) of debt and leases       (42      )  155
      payable

      Proceeds from stock options exercised          -           121

      Purchase of treasury stock                     (1,430   )  (1,537    )

 Net cash (used in) provided by financing activities (1,472   )  (1,261    )

Effect of exchange rate changes on cash              198         (287      )

Net increase (decrease) in cash                      12,015      (21,904   )

Cash and cash equivalents, beginning of period       46,058      65,747

Cash and cash equivalents, end of period             $ 58,073    $ 43,843

      On September 23, 2009, the Financial Accounting Standards Board ratified
      Emerging Issues Task Force (EITF) Issue 08-1 and EITF Issue 09-3,
  (1) creating Accounting Standards Update (ASU) 2009-13 "Multiple-Deliverable
      Revenue Arrangements" and ASU 2009-14 "Certain Revenue Arrangements That
      Include Software Elements". The Company early adopted these standards on
      a retrospective basis in the second quarter of fiscal 2010.




糖心vlog下载.

Segment Statement of Operations(1)

(Amounts in thousands)

(Unaudited)

                  Three months ended December 31, 2009

                  CNS         OSP            CP          Unallocated  Total

Revenue           $ 20,512    $ 12,407       $ 9,877     $ -          $ 42,796

Gross profit      3,566       5,563          4,642       -            13,771

Gross margin      17.4     %  44.8     %     47.0     %               32.2     %

Operating         4,204       2,282          3,676       1,542        11,704
expenses (2)

Operating income  (638     )  3,281          966         (1,542 )     2,067
(loss)

Other income      -           -              -           (4     )     (4       )
(loss)

Interest          -           -              -           -            -
(expense)

Income taxes      -           -              -           (673   )     (673     )

Net income (loss) (638     )  3,281          966         (873   )     2,736

                  Three months ended December 31, 2008

                  CNS         OSP            CP          Unallocated  Total

Revenue           $ 25,450    $ 12,356       $ 10,949    $ -          $ 48,755

Gross profit      2,183       5,067          5,122       -            12,372

Gross margin      8.6      %  41.0     %     46.8     %               25.4     %

Operating         6,182       4,258      (4) 5,047       988          16,475
expenses (3)

Operating income  (3,999   )  809            75          (988   )     (4,103   )
(loss)

Other income      -           -              -           56           56
(loss)

Interest          -           -              -           (2     )     (2       )
(expense)

Income taxes      -           -              -           (57    )     (57      )

Minority interest -           -              -           31           31

Discontinued                                             1            1
operations

Net income (loss) (3,999   )  809            75          (907   )     (4,022   )

    On September 23, 2009, the Financial Accounting Standards Board ratified
    Emerging Issues Task Force (EITF) Issue 08-1 and EITF Issue 09-3, creating
(1) Accounting Standards Update (ASU) 2009-13 "Multiple-Deliverable Revenue
    Arrangements" and ASU 2009-14 "Certain Revenue Arrangements That Include
    Software Elements". The Company early adopted these standards on a
    retrospective basis in the second quarter of fiscal 2010.

(2) Includes $318,000, $265,000 and $392,000 of depreciation and amortization
    expense in the CNS, OSP and CP divisions, respectively.

(3) Includes $385,000, $585,000 and $461,000 of depreciation and amortization
    expense in the CNS, OSP and CP divisions, respectively.

(4) Includes $1.4 million of goodwill impairment related to the
    NoranTel entity.




糖心vlog下载.

Segment Statement of Operations(1)

(Amounts in thousands)

(Unaudited)

                 Nine months ended December 31, 2009

                 CNS         OSP            CP          Unallocated  Total

Revenue          $ 73,138    $ 39,232       $ 31,292    $ -          $ 143,662

Gross profit     11,519      17,038         14,993      -            43,550

Gross margin     15.7     %  43.4     %     47.9     %               30.3      %

Operating        13,954      7,376          12,070      3,055        36,455
expenses (2)

Operating income (2,435   )  9,662          2,923       (3,055 )     7,095
(loss)

Other income     -           -              -           67           67
(loss)

Interest         -           -              -           (4     )     (4        )
(expense)

Income taxes     -           -              -           (443   )     (443      )

Net income       (2,435   )  9,662          2,923       (2,549 )     7,601
(loss)

                 Nine months ended December 31, 2008

                 CNS         OSP            CP          Unallocated  Total

Revenue          $ 53,267    $ 42,108       $ 34,559    $ -          $ 129,934

Gross profit     5,417       17,256         15,656      -            38,329

Gross margin     10.2     %  41.0     %     45.3     %               29.5      %

Operating        22,055      10,905     (4) 15,270      4,659        52,889
expenses (3)

Operating income (16,638  )  6,351          386         (4,659 )     (14,560   )
(loss)

Other income     -           -              -           622          622
(loss)

Interest         -           -              -           (4     )     (4        )
(expense)

Income taxes     -           -              -           18           18

Minority         -           -              -           74           74
interest

Discontinued                                            (618   )     (618      )
operations

Net income       (16,638  )  6,351          386         (4,751 )     (14,652   )
(loss)

    On September 23, 2009, the Financial Accounting Standards Board ratified
    Emerging Issues Task Force (EITF) Issue 08-1 and EITF Issue 09-3, creating
(1) Accounting Standards Update (ASU) 2009-13 "Multiple-Deliverable Revenue
    Arrangements" and ASU 2009-14 "Certain Revenue Arrangements That Include
    Software Elements". The Company early adopted these standards on a
    retrospective basis in the second quarter of fiscal 2010.

(2) Includes $1.0 million, $0.8 million and $1.1 million of depreciation and
    amortization expense in the CNS, OSP and CP divisions, respectively.

(3) Includes $1.3 million, $1.8 million and $1.3 million of depreciation and
    amortization expense in the CNS, OSP and CP divisions, respectively.

(4) Includes $1.4 million of goodwill impairment related to the NoranTel entity.




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