糖心vlog下载 Technologies Reports $0.04 EPS
糖心vlog下载
AURORA, Ill.--(BUSINESS WIRE)-- 糖心vlog下载 Technologies Fiscal 2011 Third Quarter Highlights:
-- Fiscal third quarter revenue of $48.3 million was up 13% compared with
the same quarter of the prior year.
-- Fiscal third quarter net income was $2.9 million, compared with $2.7
million in the same quarter of the prior year.
-- Earnings per share were $0.04 per share for each of the current and
prior-year quarters.
-- Cash and short-term investments increased by $16.4 million during the
quarter, to $86.4 million.
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 2011 third quarter ended December 31, 2010. Total revenue for the quarter was $48.3 million, up 13% from $42.8 million in the fiscal third quarter of the prior year. Net income during the quarter was $2.9 million, or $0.04 per diluted share, compared to net income of $2.7 million, or $0.04 per diluted share, in the same quarter of the prior year. Total cash and short-term investments were $86.4 million at December 31, 2010, up $16.4 million during the quarter.
"I am pleased to report that we produced year-over-year increases in consolidated revenue, earnings and cash flow, despite the expected seasonal slowdown in our Outside Plant business," said Chairman and CEO Rick Gilbert. "All three business units contributed positive net income. In particular, Customer Networking Solutions delivered significant software revenue which boosted margins and profit."
Fiscal Third Quarter Division and Consolidated Results
The Customer Networking Solutions (CNS) division reported revenue of $26.2 million in the third quarter of fiscal 2011, up 28% compared to $20.5 million in the same quarter of the prior year. Continuing recent trends, VersaLink gateway product revenue increased in the current quarter while revenue from modems decreased, compared to the same quarter of the prior year. UltraLine Series3 revenues of $4.5 million in the quarter included the recognition of $1.1 million of revenue related to software projects. UltraLine Series3 revenues were approximately $3.8 million in the prior-year quarter. CNS gross profit benefited from the software revenue and increased by $1.2 million, with gross margin increasing to 18.1%, compared with 17.4% in the prior-year quarter. Operating expenses were $4.1 million, essentially in line with the prior-year quarter, in spite of higher spending on the company's HomeCloudTM initiative. As a result, CNS operating income improved to approximately $0.7 million for the third quarter of fiscal 2011, up $1.3 million, compared with an operating loss of $0.6 million in the same quarter of the prior year.
Revenue in the Outside Plant Systems (OSP) division was $11.8 million in the quarter, down 5% compared to $12.4 million in the same quarter of the prior year. Demand for OSP products was reduced in the latest quarter by tight customer management of year-end inventory and by an influx of refurbished equipment in the marketplace. Fiscal 2011 third quarter gross profit was $5.1 million, compared to $5.6 million in the same quarter of the prior year. Gross margins were 43.2%, compared with 44.8% in the prior-year quarter. Operating expenses increased $0.7 million versus the prior-year quarter, reflecting an increased focus on marketing and development of new Ethernet-based products for the cellular backhaul market. Resulting operating income for OSP in the quarter was $2.1 million, down $1.1 million compared with operating income of $3.2 million in the same quarter of the prior year.
Conference Plus (CP) revenue was up 5% to $10.3 million in the quarter, compared to $9.9 million in the same quarter of the prior year. Gross profit increased by $0.4 million on higher gross margins, and operating expenses were $0.4 million higher than in the same quarter of the prior year. Operating income therefore was unchanged from the same quarter of the prior year at $1.0 million.
On a consolidated basis, fiscal third quarter revenue of $48.3 million was up 13%, or $5.5 million, compared with $42.8 million in the same quarter of the prior year. Gross profit increased $1.1 million, and gross margins were 30.7%, compared with 32.2% in the same quarter of the prior year. Operating expenses for the quarter were up $0.1 million compared with the prior-year quarter. These expenses reflect increased spending on the HomeCloud and Ethernet initiatives. Unallocated expenses for the prior-year quarter included $0.7 million of expense to correct an understatement of stock-based compensation. Income tax expense in the current period was $26,000, compared to an income tax benefit of $0.7 million in the same quarter of the prior year. Reflecting all of the above factors, net income was $2.9 million in the current quarter versus $2.7 million in the same quarter of the prior year.
Cash and short-term investments increased $16.4 million during the quarter. The increase was driven primarily by an increase in accounts payable as a result of timing and terms for inventory purchases. A large portion of this payables increase is expected to be temporary.
Conference Call Information
Management will address financial and business results during 糖心vlog下载's fiscal third quarter 2011 earnings conference call on Thursday, January 20, at 9:30 AM Eastern Time. Conference Plus, Inc. (ConferencePlus(R)), 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 20, 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 20, by dialing ConferencePlus at 1-888-206-4073 no later than 9:15 AM, Eastern Time and using confirmation number 28624109. International participants may dial 1-847-413-9014.
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 1-888-843-7419 or 1-630-652-3042 and entering 7702527#.
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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, a further economic weakness in the United States economy and telecommunications market, the impact of competitive products or technologies, competitive pricing pressures, customer product selection decisions, product cost increases, component supply shortages, 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, 2010 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
(Amounts in thousands, except per share amounts)
(Unaudited)
Three Months ended December Nine Months ended December
31, 31,
2010 2009 2010 2009
Revenue $ 48,267 $ 42,796 $ 140,593 $ 143,662
Gross profit 14,833 13,771 46,926 43,550
Gross margin 30.7 % 32.2 % 33.4 % 30.3 %
Operating
expenses:
Sales & 4,599 3,996 13,758 13,392
marketing
Research & 3,611 3,202 10,613 10,279
development
General & 3,467 4,345 (1) 10,065 11,697 (1)
administrative
Restructuring - - - 609 (2)
Intangibles 165 161 491 478
amortization
Total
operating 11,842 11,704 34,927 36,455
expenses
Operating 2,991 2,067 11,999 7,095
income
Other income (26 ) (4 ) (1 ) 67
Interest (2 ) - (5 ) (4 )
(expense)
Income before 2,963 2,063 11,993 7,158
taxes
Income taxes (26 ) 673 (3) 309 443 (3)
Net income $ 2,937 $ 2,736 $ 12,302 $ 7,601
Net income per
common share:
Basic $ 0.04 $ 0.04 $ 0.18 $ 0.11
Diluted $ 0.04 $ 0.04 $ 0.18 $ 0.11
Average number
of common
shares
outstanding:
Basic 68,280 67,912 67,616 68,214
Diluted 70,282 68,551 69,014 68,778
(1) Includes a non-cash charge of $730,000 to correct errors in stock-based
compensation expense related to prior fiscal years.
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 recorded a $767,000 income tax benefit derived from a refund of
alternative minimum tax credits.
糖心vlog下载.
Condensed Consolidated Balance Sheet
(Dollars in thousands)
(Unaudited)
Dec. 31, March 31,
2010 2010
Assets:
Cash and cash equivalents $ 85,691 $ 61,315
Short-term investments 735 -
Accounts receivable, net 21,737 17,683
Inventories 20,813 21,258
Prepaids and other current assets 4,650 4,276
Total current assets 133,626 104,532
Property and equipment, net 3,517 4,665
Goodwill 2,178 2,162
Intangibles, net 3,603 4,063
Deferred income taxes and other assets 6,107 6,412
Total assets $ 149,031 $ 121,834
Liabilities and Stockholders' Equity:
Accounts payable $ 28,147 $ 15,195
Accrued liabilities 9,278 9,203
Deferred revenue 325 860
Total current liabilities 37,750 25,258
Deferred revenue, long-term 151 174
Other long-term liabilities 7,866 8,671
Total liabilities 45,767 34,103
Total stockholders' equity 103,264 87,731
Total liabilities and stockholders' equity $ 149,031 $ 121,834
糖心vlog下载.
Condensed Consolidated Statement of Cash Flows
(Dollars in thousands)
(Unaudited)
Nine Months ended Dec. 31,
2010 2009
Cash flows from operating activities:
Net income $ 12,302 $ 7,601
Reconciliation of net income to net cash provided
by (used in) operating activities:
Depreciation and amortization 2,067 2,942
Stock-based compensation 889 1,355
Restructuring - 609
Other, net (17 ) (182 )
Changes in assets and liabilities:
Accounts receivable (4,040 ) 3,195
Inventory 476 2,014
Accounts payable and accrued liabilities 12,738 (5,726 )
Deferred revenue (558 ) (1,575 )
Prepaid and other current assets (375 ) 3,916
Other 81 (60 )
Net cash provided by (used in) operating 23,563 14,089
activities
Cash flows from investing activities:
Purchases of property and equipment (485 ) (800 )
Purchases of short-term investments (735 ) -
Net cash (used in) provided by investing (1,220 ) (800 )
activities
Cash flows from financing activities:
Borrowing (repayment) of debt and leases payable - (42 )
Proceeds from stock options exercised 2,591 -
Payment for subsidiary options tendered (36 ) -
Purchase of treasury stock (555 ) (1,430 )
Net cash (used in) provided by financing 2,000 (1,472 )
activities
Effect of exchange rate changes on cash 33 198
Net increase in cash 24,376 12,015
Cash and cash equivalents, beginning of period 61,315 46,058
Cash and cash equivalents, end of period $ 85,691 $ 58,073
糖心vlog下载.
Segment Statement of Operations
(Amounts in thousands)
(Unaudited)
Three months ended December 31, 2010
CNS OSP CP Unallocated Total
Revenue $ 26,168 $ 11,768 $ 10,331 $ - $ 48,267
Gross profit 4,744 5,087 5,002 - 14,833
Gross margin 18.1 % 43.2 % 48.4 % 30.7 %
Operating
expenses:
Sales & 1,292 1,413 1,894 - 4,599
marketing
Research & 2,005 945 661 - 3,611
development
General & 803 452 1,463 749 3,467
administrative
Restructuring - - - - -
Intangibles 2 135 28 - 165
amortization
Operating 4,102 2,945 4,046 749 11,842
expenses (1)
Operating 642 2,142 956 (749 ) 2,991
income (loss)
Other income - - - (26 ) (26 )
Interest - - - (2 ) (2 )
(expense)
Income taxes - - - (26 ) (26 )
Net income $ 642 $ 2,142 $ 956 $ (803 ) $ 2,937
(loss)
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
expenses:
Sales & 1,284 1,128 1,584 - 3,996
marketing
Research & 2,099 557 546 - 3,202
development
General & 821 464 1,518 1,542 (2) 4,345
administrative
Restructuring - - - - -
Intangibles - 133 28 - 161
amortization
Operating 4,204 2,282 3,676 1,542 11,704
expenses (3)
Operating (638 ) 3,281 966 (1,542 ) 2,067
income (loss)
Other income - - - (4 ) (4 )
Interest - - - -
(expense)
Income taxes - - - 673 673
Net income $ (638 ) $ 3,281 $ 966 $ (873 ) $ 2,736
(loss)
(1) Includes $0.1 million, $0.2 million and $0.4 million of depreciation and
amortization expense in the CNS, OSP and CP segments, respectively.
(2) Includes a non-cash charge of $730,000 to correct errors in stock-based
compensation expense related to prior fiscal years.
(3) Includes $0.3 million, $0.3 million and $0.4 million of depreciation and
amortization expense in the CNS, OSP and CP segments, respectively.
糖心vlog下载.
Segment Statement of Operations
(Amounts in thousands)
(Unaudited)
Nine months ended December 31, 2010
CNS OSP CP Unallocated Total
Revenue $ 65,788 $ 43,609 $ 31,196 $ - $ 140,593
Gross profit 12,343 19,324 15,259 - 46,926
Gross margin 18.8 % 44.3 % 48.9 % 33.4 %
Operating
expenses:
Sales & 3,871 4,363 5,524 - 13,758
marketing
Research & 5,881 2,847 1,885 - 10,613
development
General & 2,231 1,545 4,260 2,029 10,065
administrative
Restructuring - - - - -
Intangibles 4 403 84 - 491
amortization
Operating 11,987 9,158 11,753 2,029 34,927
expenses (1)
Operating 356 10,166 3,506 (2,029 ) 11,999
income (loss)
Other income - - - (1 ) (1 )
Interest - - - (5 ) (5 )
(expense)
Income taxes - - - 309 309
Net income $ 356 $ 10,166 $ 3,506 $ (1,726 ) $ 12,302
(loss)
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
expenses:
Sales & 4,193 3,659 5,540 - 13,392
marketing
Research & 6,865 1,745 1,669 - 10,279
development
General & 2,482 1,532 4,628 3,055 (2) 11,697
administrative
Restructuring 414 46 149 609
Intangibles - 394 84 - 478
amortization
Operating 13,954 7,376 12,070 3,055 36,455
expenses (3)
Operating (2,435 ) 9,662 2,923 (3,055 ) 7,095
income (loss)
Other income - - - 67 67
Interest - - - (4 ) (4 )
(expense)
Income taxes - - - 443 443
Net income $ (2,435 ) $ 9,662 $ 2,923 $ (2,549 ) $ 7,601
(loss)
(1) Includes $0.4 million , $0.6 million and $1.1 million of depreciation and
amortization expense in the CNS, OSP and CP segments, respectively.
(2) Includes a non-cash charge of $730,000 to correct errors in stock-based
compensation expense related to prior fiscal years.
(3) Includes $1.0 million, $0.8 million and $1.1 million of depreciation and
amortization expense in the CNS, OSP and CP segments, respectively.
Source: 糖心vlog下载.
Released January 19, 2011