糖心vlog下载 Technologies Reports Fiscal 2010 Second Quarter Profit

糖心vlog下载

糖心vlog下载 Technologies Fiscal 2010 Second Quarter Highlights

    --  Fiscal second quarter consolidated revenue of $47.4 million.

    --  Fiscal second quarter net income of $2.9 million, or $0.04 per diluted
        share - 糖心vlog下载's second consecutive profitable quarter.

    --  Cash and cash equivalents increased by $4.7 million in the quarter to
        $53.9 million.

    --  Retrospective adoption of new accounting standards permits the
        recognition of previously deferred revenue for UltraLine Series3
        gateways.

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 second quarter ended September 30, 2009. Total revenue for the fiscal second quarter was $47.4 million, up 9.8% from $43.1 million in the same quarter last year. Net income during the quarter was $2.9 million, or $0.04 per diluted share, compared to a net loss of $5.1 million, or a loss of $0.07 per diluted share, in the same period last year. Total cash and cash equivalents were $53.9 million at September 30, 2009, up $4.7 million compared to the balance at June 30, 2009.

In the quarter ended September 30, 2009, 糖心vlog下载 elected to early adopt new accounting standards1 on revenue recognition. The adoption of these standards allows 糖心vlog下载 to recognize substantially all of the revenue from its UltraLine Series3 gateways when the product is delivered to the customer. Such revenue and related direct costs previously had been deferred in the financial results for prior quarters. The UltraLine Series3 gateways are sold predominantly under a single contract, which is the only 糖心vlog下载 contract affected by the adoption of these new accounting standards.

As a result of the retrospective adoption of these new accounting standards, 糖心vlog下载's reported results in each quarter since June 30, 2008, have been adjusted. The cumulative impact of the adoption through June 30, 2009 resulted in additional revenue and gross profit of $37.8 million and $0.5 million, respectively. The effects of the adoption of the accounting standards are summarized in Supplemental Tables 1 and 2. As demonstrated on Supplemental Table 3, the adjustments to prior periods substantially match reported non-GAAP adjustments for revenue deferrals.

"We have moved quickly to implement these accounting changes," said Chairman and Chief Executive Officer Rick Gilbert. "We feel the changes allow us to present a more straight-forward and accurate picture of the performance of our business."

The Customer Networking Solutions division, which was the beneficiary of the newly adopted accounting standards, reported revenue of $24.0 million in the second quarter of fiscal 2010. This was up 40.0% compared to $17.2 million in the same quarter of last year. OSPlant Systems revenue declined 12.2% to $13.0 million in the second quarter of fiscal 2010, compared to $14.9 million in the same quarter of last year. ConferencePlus revenue declined 7.2% to $10.3 million in the second quarter of fiscal 2010, compared to $11.1 million in the same quarter of last year.

"We are very pleased to have delivered two strong quarters for this fiscal year," commented Rick Gilbert. "Looking forward, however, we anticipate a more challenging profit picture for the second half of the year. All three of our businesses are experiencing top-line softness, reflecting lower consumer demand, careful inventory management by our customers, and seasonal factors. Therefore, we remain keenly focused on expense control and excellent business execution to maintain our profitability and positive cash flow."

Conference Call Information

Management will address financial and business results during 糖心vlog下载's second quarter fiscal 2010 earnings conference call on Thursday, October 22, at 9:30 AM Eastern Time. Conference Plus, Inc. (ConferencePlus), 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 October 22, 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 October 22, by dialing ConferencePlus at 1-877-875-0056 no later than 9:15 AM, Eastern Time and using confirmation number 25506819. 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 third fiscal 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 6061531#.

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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, 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. ConferencePlus, 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 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.

1 On September 23, 2009, the Financial Accounting Standards Board ratified Emerging Issues Task Force (EITF) Issue 08-1 and EITF Issue 09-3, creating new accounting standard updates ASU 2009-13 and ASU 2009-14.

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 Sept. 30,  Six Months ended Sept. 30,

                     2009        2008              2009              2008

Revenues

    OSPlant Systems  $ 13,049    $ 14,870          $ 26,825          $ 29,752

    CNS              24,002      17,150            52,626            27,816

    ConferencePlus   10,302      11,100            21,415            23,610

Total revenues       47,353      43,120            100,866           81,178

Gross profit

    OSPlant Systems  5,481       6,280             11,475            12,189

    CNS              4,189       1,909             8,026             2,849

    ConferencePlus   4,902       4,944             10,351            10,534

    Total gross      14,572      13,133            29,852            25,572
    profit

Gross margin

    OSPlant Systems  42.0     %  42.2     %        42.8     %        41.0      %

    CNS              17.5     %  11.1     %        15.3     %        10.2      %

    ConferencePlus   47.6     %  44.5     %        48.3     %        44.6      %

    Total gross      30.8     %  30.5     %        29.6     %        31.5      %
    margin

Operating expenses

    Sales &          4,458       6,391             9,396             12,880
    marketing

    General &        3,580       6,067             7,352             11,552
    administrative

    Research &       3,390       5,487             7,077             11,121
    development

    Restructuring    -           2                 609         (2 )  (56       )

    Intangibles      160         458               317               917
    amortization

    Total operating  11,588      18,405            24,751            36,414
    expenses

Operating income     2,984       (5,272   )        5,101             (10,842   )
(loss)

Other income         (20      )  219               71                566
(expense)

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

Income (loss)
before minority      2,962       (5,055   )        5,168             (10,278   )
interest and taxes

Income taxes         75          65                230               93

Minority interest    -           7                 -                 43

Income (loss) from
continuing           2,887       (5,127   )        4,938             (10,414   )
operations

Income (loss) from
discontinued         -           24                -                 (619      )
operations net of
tax (3)

Net income (loss)    $ 2,887     $ (5,103 )        $ 4,938           $ (11,033 )

Net income (loss)
per common share:

    Basic            $ 0.04      $ (0.07  )        $ 0.07            $ (0.16   )

    Diluted          $ 0.04      $ (0.07  )        $ 0.07            $ (0.16   )

Average number of
common shares
outstanding:

    Basic            68,374      70,518            68,365            70,620

    Diluted          69,069      70,518            68,858            70,620

     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.

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

(3)  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)

                                             Sept. 30,  March 31,  Sept. 30,

                                             2009       2009       2008

Assets:

Cash and cash equivalents                    $ 53,936   $ 46,058   $ 50,318

Accounts receivable, net                     18,745     20,827     19,077

Inventories                                  17,728     20,105     25,887

Prepaids and other current assets            5,017      7,487      3,548

 Total current assets                        95,426     94,477     98,830

Property and equipment, net                  6,055      6,895      8,622

Goodwill                                     2,120      2,009      3,776

Intangibles, net                             4,273      4,333      5,429

Deferred income taxes and other assets       7,032      7,777      7,793

 Total assets                                $ 114,906  $ 115,491  $ 124,451

Liabilities and Stockholders' Equity:

Accounts payable                             $ 13,722   $ 17,883   $ 16,030

Accrued liabilities                          8,487      9,490      11,434

Deferred revenue                             29         2,119      2,772

 Total current liabilities                   22,238     29,492     30,236

Deferred revenue, long-term                  938        546        -

Other long-term liabilities                  9,408      9,079      8,240

 Total liabilities                           32,584     39,117     38,476

 Minority interest                           -          -          3,353

 Total stockholders' equity                  82,322     76,374     82,622

 Total liabilities and stockholders' equity  $ 114,906  $ 115,491  $ 124,451

      On September 23, 2009, the Financial Accounting Standards Board
      ratified Emerging Issues Task Force (EITF) Issue 08-1 and EITF Issue
      09-3, creating Accounting Standards Update (ASU) 2009-13
 (1)  "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)

                                                      Six Months ended Sept. 30,

                                                      2009        2008

Cash flows from operating activities:

  Net income (loss)                                   $ 4,938     $ (11,033 )

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

       Depreciation and amortization                  1,967       2,990

       Stock-based compensation                       288         1,392

       Restructuring                                  609         158

       Other, net                                     (175     )  63

  Changes in assets and liabilities:

       Accounts receivable and inventory              4,906       (7,758    )

       Accounts payable and accrued liabilities       (5,528   )  (2,091    )

       Long-term deferred revenue and deferred costs  (1,698   )  2,476

       Prepaid and other current assets               2,515       (562      )

       Other long-term assets                         650         (729      )

 Net cash provided by (used in) operating activities  8,472       (15,094   )

Cash flows from investing activities:

       Purchases of property and equipment            (769     )  (1,993    )

       Proceeds from the sale of equipment            -           90

       Sale (purchase) of investments                 -           2,602

 Net cash (used in) provided by investing activities  (769     )  699

Cash flows from financing activities:

       Borrowing (repayment) of debt and leases       (29      )  166
       payable

       Proceeds from stock options exercised          -           121

       Purchase of Treasury Stock                     -           (1,202    )

 Net cash (used in) provided by financing activities  (29      )  (915      )

Effect of exchange rate changes on cash               204         (119      )

Net increase (decrease) in cash                       7,878       (15,429   )

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

Cash and cash equivalents, end of period              $ 53,936    $ 50,318

       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.

Supplemental Table 1

Income Statement Impact of Adopting ASU 2009-13 and ASU 2009-14(1)

(Amounts in thousands except per share amounts)

(Unaudited)

                                                                     Twelve     Six

            Three Months Ended                                       Months     Months
                                                                     Ended      Ended

            June 30,  Sept.     Dec. 31,  March     June    Sept.    March 31,  Sept.
                      30,                 31,       30,     30,                 30,

            2008      2008      2008      2009      2009    2009     2009       2009

Revenue:

 Revenue    $         $         $         $         $       $        $          $
 prior to   38,058    43,120    38,301    41,725    40,474  41,691   161,204    82,165
 adoption

 Revenue
 resulting  -         -         10,454    14,258    13,039  5,662    24,712     18,701
 from the
 adoption

 Revenue
 after      38,058    43,120    48,755    55,983    53,513  47,353   185,916    100,866
 adoption

Gross
profit:

 Gross
 profit     12,847    13,110    12,328    12,789    14,779  14,495   51,074     29,274
 prior to
 adoption

 Gross
 profit
 resulting  (408   )  23        142       270       501     77       27         578
 from the
 adoption

 Gross
 profit     12,439    13,133    12,470    13,059    15,280  14,572   51,101     29,852
 after
 adoption

Operating
income
(loss):

 Operating
 income
 (loss)     (5,162 )  (5,295 )  (4,147 )  (2,380 )  1,616   2,907    (16,984 )  4,523
 prior to
 adoption

 Operating
 income
 (loss)     (408   )  23        142       270       501     77       27         578
 resulting
 from the
 adoption

 Operating
 income
 (loss)     (5,570 )  (5,272 )  (4,005 )  (2,110 )  2,117   2,984    (16,957 )  5,101
 after
 adoption

Net income
(loss) per
common
share:

 Diluted
 per share  $      )  $      )  $      )  $      )  $ 0.02  $ 0.04   $ (0.24 )  $ 0.06
 prior to   (0.08     (0.07     (0.06     (0.03
 adoption

 Diluted
 per share
 resulting  $ 0.00    $ 0.00    $ 0.00    $ 0.00    $ 0.01  $ 0.00   $ 0.00     $ 0.01
 from the
 adoption

 Diluted
 per share  $      )  $      )  $      )  $      )  $ 0.03  $ 0.04   $ (0.24 )  $ 0.07
 after      (0.08     (0.07     (0.06     (0.03
 adoption

      On September 23, 2009, the Financial Accounting Standards Board ratified Emerging
      Issues Task Force (EITF) Issue 08-1 and EITF Issue 09-3, creating Accounting
 (1)  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.

      These new accounting rules were approved for use as of September 23, 2009. The
      rules allow products that contain software which is essential to overall product
      functionality to be excluded from software revenue recognition accounting. Such
      products are now to be accounted for under new rules pertaining to revenue
      arrangements with multiple deliverables. The UltraLine Series3 gateway sold by
      糖心vlog下载's CNS division is such a product. Because of undelivered software
      elements, 糖心vlog下载 had previously been required to defer all of the revenue
      related to that product until the second fiscal quarter fiscal 2010. Under the
      new rules, most of the revenue from UltraLine Series3 will be recognized upon
      shipment of the product.

      Retrospective adoption means that 糖心vlog下载 has adjusted all prior periods to
      reflect the results as though the new rules had been adopted at the inception of
      UltraLine Series3 sales. On this basis, 糖心vlog下载 recognized a total of $37.8
      million of revenue for prior periods, of which $13.0 million related to the first
      quarter of fiscal year 2010 and $24.8 million related to the combined third and
      fourth quarters of fiscal year 2009.




糖心vlog下载.

Supplemental Table 2

Balance Sheet Impact of Adopting ASU 2009-13 and ASU 2009-14(1)

(Amounts in thousands except per share amounts)

(Unaudited)

               June 30,  Sept. 30,  Dec. 31,   March 31,  June 30,    Sept. 30,

               2008      2008       2008       2009       2009        2009

Long-term
deferred
revenue:

 Long-term
 deferred                           $          $
 revenue       $ -       $ 1,573    10,669     25,258     $ 38,587    $ 44,352
 prior to
 adoption

 Reduction in
 long-term
 deferred
 revenue       -         -          (10,454 )  (24,712 )  (37,752  )  (43,414  )
 resulting
 from
 adoption

 Long-term
 deferred
 revenue       -         1,573      215        546        835         938
 after
 adoption

Long-term
deferred
costs:

 Long-term
 deferred      $ -       $ 1,490    $          $          $ 37,207    $ 42,589
 cost prior                         10,410     24,612
 to adoption

 Reduction in
 long-term
 deferred
 cost          -         -          (10,410 )  (24,612 )  (37,207  )  (42,589  )
 resulting
 from
 adoption

 Long-term
 deferred      -         1,490      -          -          -           -
 cost after
 adoption

Inventory:

 Inventory     $         $          $          $
 prior to      16,843    26,272     21,587     20,178     $ 16,971    $ 17,948
 adoption

 Impact of
 adoption on   (408   )  (385    )  (287    )  (73     )  (16      )  (220     )
 inventory
 reserves

 Inventory
 after         16,435    25,887     21,300     20,105     16,955      17,728
 adoption

      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.




糖心vlog下载.

Supplemental Table 3

Non-GAAP Revenue and Gross Profit Compared to Post-Adoption Revenue and Gross
Profit(1)

(Amounts in thousands except per share amounts)

(Unaudited)

                         Three Months Ended

                         June 30,  Sept. 30,  Dec. 31,    March 31,   June 30,

                         2008      2008       2008        2009        2009

Revenue:

 Revenue resulting from  $ -       $ -        $ 10,454    $ 14,258    $ 13,039
 the adoption

 Non-GAAP (2) revenue
 previously reported
                         -         -          9,158       14,589      13,329
 related to ULS3
 shipments

 Difference (3)          -         -          1,296       (331     )  (290     )

Gross profit:

 Gross profit resulting  $ (408 )  $ 23       $ 142       $ 270       $ 501
 from the adoption

 Non-GAAP (2) gross
 profit adjustment
 previously              -         -          209         387         734

 reported related to
 ULS3 shipments

 Difference (4)          (408   )  23         (67      )  (117     )  (233     )

      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)  Non-GAAP information should not be considered superior to or a substitute
      for data prepared in accordance with GAAP.

      The difference in revenue in the December 2008 quarter includes UltraLine
      Series3 product shipped in the September 2008 quarter that was deferred
 (3)  pending warranty determinations and that was recognized in the December
      2008 quarter. Other post-adoption differences relate to revenue attributed
      to undelivered elements that continue to be deferred.

      The difference in post-adoption gross profit compared to non-GAAP gross
 (4)  profit is due to revenue attributed to undelivered elements that continue
      to be deferred and adjustments to net realizable value inventory reserves.




    Source: 糖心vlog下载.