糖心vlog下载 Technologies Reports Fourth Quarter and Fiscal 2008 Results

糖心vlog下载

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

糖心vlog下载. (NASDAQ: WSTL):

              糖心vlog下载 Technologies 4th Quarter Highlights

    --  Net loss for the fourth quarter was $61.5 million or $0.87 per
        share. Adjusted net loss was $3.4 million or $0.05 per
        share(1)

    --  Recorded non-cash expenses related to an increased valuation
        allowance on deferred tax assets and goodwill impairment of
        $47.3 million and $9.7 million respectively

    --  Officially selected by a major service provider to supply
        gateways in a key segment of the fiber-to-the-home market

糖心vlog下载. (NASDAQ: WSTL), a leading provider of broadband products, gateways and conferencing services, today announced results for its fourth quarter and fiscal year 2008, ending March 31, 2008. Total revenue for the fourth quarter was $44.7 million, a decrease from the $60.0 million reported in the prior year period. Net loss during the period was $61.5 million, or $0.87 per diluted share, compared to net income of $0.6 million, or $0.01 per diluted share in the same period last year.

Adjusted non-GAAP net loss during the fourth quarter was $3.4 million or $0.05 per diluted share compared to adjusted non-GAAP net income of $0.8 million or $0.01 per diluted share in the prior year period. During the quarter, 糖心vlog下载 incurred a non-cash charge of $47.3 million, or $0.67 per share, related to an increase in the Company's deferred tax asset valuation allowance that was recorded in accordance with Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes". Additionally, the Company reported a non-cash goodwill impairment charge of $9.7 million, or $0.14 per share, related to the prior acquisitions of Teltrend Inc. and HyperEdge Inc. During the quarter, the Company also recognized additional restructuring expenses of $1.9 million. See the attached schedule for a reconciliation of GAAP net loss to adjusted non-GAAP net loss.

"The non-cash charges we incurred during the quarter had no impact on our revenue or cash flow, and unfortunately drew attention away from a productive fourth quarter operationally" said Thomas Mader, Chief Executive Officer of 糖心vlog下载 Technologies. "A revised cost structure is now in place for fiscal year 2009 and we are encouraged by success with new product offerings over the past quarter. We are particularly pleased to have won approval from a major service provider for our UltraLine Series3 gateway as a next generation home router. This opportunity adds single-family unit (SFU) applications to 糖心vlog下载's position in the fiber-to-the-home market."

Customer Networking Equipment (CNE) reported revenue of $16.9 million in the fourth quarter of fiscal 2008 that was slightly lower on a sequential basis compared to the $17.9 million reported in the fiscal third quarter. OSPlant Systems, formerly Network Service Access (NSA), revenue of $13.7 million in the fourth quarter of fiscal 2008 was relatively flat compared to fiscal third quarter revenue of $13.5 million. Conferencing Services revenue increased to $14.1 million in the quarter of fiscal 2008 from $13.0 million sequentially from the fiscal third quarter.

Full Year Results

Revenue was $208.4 million for the fiscal year ended March 31, 2008 compared with $260.1 million in fiscal 2007. Net loss in fiscal 2008 was $65.6 million, or $0.93 per diluted share, compared to net income of $8.7 million or $0.12 per diluted share in fiscal 2007. On an adjusted non-GAAP basis, net loss for fiscal 2008 was $4.8 million or $0.07 per diluted share, compared to adjusted non-GAAP net income of $8.9 million or $0.13 per diluted share in fiscal 2007.

CNE revenue was $98.1 million in fiscal 2008 compared to $153.8 million in fiscal 2007. OSPlant Systems revenue was $56.6 million in fiscal 2008 compared to $57.7 million in fiscal 2007. Conferencing Service revenue reported $53.7 million in fiscal 2008 from the $48.5 million reported in fiscal 2007.

    Other Activity

    --  Announced the approval by the Company's Board of Directors to
        repurchase up to an aggregate of $10 million of its common
        stock by March 2010.

    --  ConferencePlus was named "2007 Reseller of the Year" by
        Streamlogics Inc, for its outstanding sales performance and
        commitment to service excellence.

    Outlook

"The Company is expecting fiscal 2009 to be a revenue growth year in its equipment segment. We expect the combination of our contracts in the growing fiber-to-the-home segment, along with our AT&T 22-state contract, to generate increased revenue starting in the third quarter of fiscal 2009," added Mader. "We remain committed to our cost cutting initiatives, including our outsourcing strategy, and are following a well defined path toward profitability. Additionally, as part of our ongoing restructuring efforts, we continue to discuss the potential sale of our ConferencePlus business segment."

For the fiscal first quarter of 2009, 糖心vlog下载 expects revenue to be in a range of $39 to $41 million. 糖心vlog下载 expects EPS on a GAAP basis to be in a range of $0.08 to $0.09 loss per share with a full valuation allowance recorded on tax benefits generated during the quarter.

Conference Call Information

Conference Plus, Inc. (ConferencePlus), a 糖心vlog下载 subsidiary, will manage 糖心vlog下载's fourth quarter fiscal 2008 earnings conference call on Thursday, May 22, 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 May 22, simply press *0 for support.

If you do not wish to register, you can participate in the call on May 22 by dialing ConferencePlus at 1-888-771-4350 no later than 9:15 AM, Eastern Time and using confirmation number 21661666#. International participants may dial 1-847-585-4343. 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 8637352#.

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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, 2007 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.


    (1) Adjusted net income/loss is a non-GAAP financial measure that
excludes from net income/loss certain items related to the impairment
of goodwill, a non-cash charge to increase the valuation allowance on
the Company's deferred tax assets, and restructuring charges. 糖心vlog下载
believes that excluding such items provides investors and management
with a representation of the Company's current and future core
operating performance. Management uses adjusted net income/loss to
evaluate financial results and establish operational goals. Non-GAAP
information should not be considered superior to or a substitute for
data prepared in accordance with GAAP. A reconciliation of non-GAAP
adjusted net income (loss) to GAAP is attached as an exhibit to this
press release.

                      Financial Tables to Follow:


                      糖心vlog下载.
                          Financial Results

           (Dollars in thousands except per share amounts)

                             Three Months ended   Twelve Months ended
                                   March 31,            March 31,
                               2008       2007      2008       2007
                             ---------   -------- ---------   --------

Revenues
   OSPlant Systems            $13,744    $14,187   $56,618    $57,702
   CNE                         16,908     32,111    98,095    153,844
   Services                    14,096     13,355    53,698     48,544


                             ---------   -------- ---------   --------
Total revenues                 44,748     59,653   208,411    260,090
                             ---------   -------- ---------   --------

Gross profit
    Equipment                   5,541     12,850    36,208 (1) 61,816
    Services                    6,725      6,764    25,821     24,108

                             ---------   -------- ---------   --------
   Total gross profit          12,266     19,614    62,029     85,924
                             ---------   -------- ---------   --------

Gross margin
    Equipment                    18.1%      27.8%     23.4%(1)   29.2%
    Services                     47.7%      50.6%     48.1%      49.7%

                             ---------   -------- ---------   --------
   Total gross margin            27.4%      32.9%     29.8%      33.0%
                             ---------   -------- ---------   --------

Operating expenses
   Sales & marketing            6,637      7,151    25,053 (2) 29,786
    As a percentage of
     revenue                     14.8%      12.0%     12.0%      11.5%

   General &
    administrative              5,492      4,972    22,688 (3) 18,064
    As a percentage of
     revenue                     12.3%       8.3%     10.9%       6.9%

   Research &
    development                 5,708      6,188    22,705     24,387
    As a percentage of
     revenue                     12.8%      10.4%     10.9%       9.4%

   Restructuring (4)            1,902        343     6,221        343
    As a percentage of
     revenue                      4.3%       0.6%      3.0%       0.1%

   Intangibles
    amortization                  460        453     1,834      1,699
    As a percentage of
     revenue                      1.0%       0.8%      0.9%       0.7%

   Goodwill Impairment          9,651 (5)      -     9,651 (5)      -
    As a percentage of
     revenue                     21.6%                 4.6%
                             ---------   -------- ---------   --------
   Total operating
    expenses                   29,850 (6) 19,107    88,152 (6) 74,279
                             ---------   -------- ---------   --------
    As a percentage of
     revenue                     66.7%      32.0%     42.3%      28.6%

Operating income
 (loss)                       (17,584)       507   (26,123)    11,645

Other income                    1,052        872     3,868      3,183
Interest expense                   (3)        (4)      (12)        (7)

                             ---------   -------- ---------   --------
Income (loss) before minority
 interest and taxes           (16,535)     1,375   (22,267)    14,821
                             ---------   -------- ---------   --------

Income tax expense             44,901 (7)    718    43,106 (7)  5,892

Minority interest                 111         85       260        235

                             ---------   -------- ---------   --------
Net income (loss)            $(61,547)      $572  $(65,633)    $8,694
                             =========   ======== =========   ========


Income (loss) per
 common share:
                      Basic    $(0.87)     $0.01    $(0.93)     $0.12
                      Diluted  $(0.87)     $0.01    $(0.93)     $0.12

Non-GAAP adjusted income (loss) per
 common share (8):
                      Basic    $(0.05)     $0.01    $(0.07)     $0.13
                      Diluted  $(0.05)     $0.01    $(0.07)     $0.13

Average number of
 common
   shares outstanding:
                      Basic    70,605     70,019    70,376     69,946
                      Diluted  70,605     70,908    70,376     71,144



Footnotes:
(1) Accelerated depreciation in the amount of $1.2 million was
     recorded on manufacturing equipment in the twelve month period.
(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) The Company recorded $1.6 million of consulting costs related to
     the implementation of the outsourcing strategy in the twelve
     month period.
(4) Restructuring costs are for severance and related costs.
(5) Goodwill impairment related to the Teltrend, Inc. and HyperEdge,
     Inc. acquisitions.
(6) Includes $439,000 and $896,000 in operating expenses related to
     the investment and consolidation of Contineo Systems for the
     three and twelve month periods, respectively.
(7) Includes $47.3 million of income tax expense resulting from
     increased valuation allowance
(8) Non-GAAP adjusted loss per share excludes goodwill impairment,
     restructuring and incremental tax valuation allowance reserves.

                      糖心vlog下载.
  Reconcilation of GAAP Net Income (Loss) to Non-GAAP Adjusted Net
                             Income (Loss)

           (Dollars in thousands except per share amounts)

                                      Three Months     Twelve Months
                                     ended March 31,   ended March 31,
                                      2008     2007     2008     2007
                                    --------- ------- --------- ------

GAAP net income (loss)              $(61,547)    $572 $(65,633) $8,694
Adjustments:
  Goodwill impairment, net of tax      9,651        -    9,651       -
  Income tax expense resulting from
   increased valuation allowance      47,290        -   47,290       -
  Restructuring expense, net of tax    1,200      216    3,925     216
                                    --------- ------- --------- ------
Non-GAAP adjusted net income (loss)  $(3,406)    $788  $(4,767) $8,910
                                    ========= ======= ========= ======


Reconciliation of Basic EPS:
GAAP income (loss) per basic common
 share                                $(0.87)   $0.01   $(0.93)  $0.12
Per basic common share adjustments:
  Goodwill impairment, net of tax       0.14        -     0.14       -
  Income tax expense resulting from
   increased valuation allowance        0.67        -     0.67       -
  Restructuring Expense, net of tax     0.01     0.00     0.05    0.01
                                    --------- ------- --------- ------
Non-GAAP adjusted income (loss) per
 basic common share                   $(0.05)   $0.01   $(0.07)  $0.13
                                    ========= ======= ========= ======


Reconciliation of Diluted EPS:
GAAP income (loss) per diluted
 common share                         $(0.87)   $0.01   $(0.93)  $0.12
Per diluted common share
 adjustments:
  Goodwill impairment, net of tax       0.14        -     0.14       -
  Income tax expense resulting from
   increased valuation allowance        0.67        -     0.67       -
  Restructuring expense, net of tax     0.01     0.00     0.05    0.01
                                    --------- ------- --------- ------
 Non-GAAP adjusted income (loss)
  per diluted common share            $(0.05)   $0.01   $(0.07)  $0.13
                                    ========= ======= ========= ======
                      糖心vlog下载.
                    Financial Results (continued)
                        (Dollars in thousands)

                                                   March 31, March 31,
                                                     2008      2007
                                                   --------- ---------



Cash and short term investments                       68,349    72,167
Accounts receivable                                   19,498    25,700
Inventory                                             17,897    18,604
Total current assets                                 112,071   124,585
Goodwill and intangibles                               9,479    20,383
Total assets                                         144,825   207,350
Total current liabilities                             29,685    36,154
Total liabilities and minority interest               40,733    40,011
Shareholders' equity                                 104,092   167,339

Days sales outstanding                                    39        39

Source: 糖心vlog下载.