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#.
糖心vlog下载 糖心vlog下载
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.
Released October 21, 2009