糖心vlog下载 Technologies Reports Fiscal Third Quarter 2009 Results
糖心vlog下载
AURORA, Ill.--(BUSINESS WIRE)-- 糖心vlog下载 Technologies 3rd Quarter Highlights
-- Total consolidated revenue of $38.3 million. Adjusted non-GAAP revenue
was $47.5 million[1]
-- Net loss for the third quarter was $4.1 million or $0.06 per share.
Adjusted non-GAAP net loss was $2.5 million or $0.04 per share[1]
-- Commenced shipments of Proline ADSL modems under AT&T 22-state contract
-- Acquired the minority interest in ConferencePlus
糖心vlog下载. (NASDAQ: WSTL), a leading provider of broadband products, gateways and conferencing services, today announced results for its fiscal third quarter ending December 31, 2008. Total revenue for the third quarter was $38.3 million, down 12% from the $43.7 million in the same quarter last year, and down 11% from the $43.1 million reported in the second quarter of fiscal 2009. Net loss during the period was $4.1 million, or $0.06 per diluted share compared to a net loss of $2.5 million or a loss of $0.04 per diluted share in the same quarter of last year, and a net loss of $5.1 million or a loss of $0.07 per diluted share in the second quarter of fiscal 2009.
The Company continued to ship UltraLine Series3 next generation gateways as part of a major customer's fiber-to-the-home (FTTH) offering but has deferred the revenues and related costs of these product shipments as a result of accounting rules. From the initial shipments through December 31, 2008, the Company has deferred $10.9 million in revenue related to the UltraLine Series3 gateway. The Company supplements its financial analysis of the business using financial measures that look at performance based on Ultraline Series3 product shipments. The presentation at the end of this press release includes a financial table for these adjusted non-GAAP measures. These financial measures are on a non-GAAP basis since they do not reflect the deferral of revenue and product costs of the Ultraline Series3 for recognition in later periods and they exclude a non-cash goodwill impairment related to the prior acquisition of Noran Tel. The Company uses these financial measures to provide additional insight into the current operating performance not readily apparent from the GAAP results.
Adjusted non-GAAP revenue for the third quarter was $47.5 million, up 9% from same quarter last year. The prior year financials did not contain any non-GAAP adjustments. Adjusted non-GAAP net loss during the third quarter was $2.5 million or $0.04 per diluted share.
"Our improved structure and stringent cost controls enabled us to meet our goals on the bottom line during the quarter," said Bernard F. Sergesketter, 糖心vlog下载 Chief Executive Officer. "Going forward, we continue to focus on cost containment, increasing efficiency and unlocking value in all of our business groups as we move towards profitability."
On a GAAP basis, Customer Networking Solutions (CNS), reported revenue of $15.0 million in the third quarter of fiscal 2009, compared to $17.9 million in the same quarter of last year and $17.2 million reported in the prior quarter. During the quarter, 糖心vlog下载 commenced shipment of its ProLine ADSL product to AT&T under the previously announced 22-state contract. Additionally, the Company shipped an additional $9.2 million of UltraLine Series3 next generation gateways in the quarter. Although the revenues and related costs of the Ultraline Series3 are being deferred as previously mentioned, the adjusted non-GAAP revenue for CNS for the third quarter was $24.2 million, an increase of 35% compared to the same quarter last year.
"We believe the non-GAAP representation of our CNS results reflects the demand of our gateways and the performance of this group during the third quarter," said Sergesketter. "Our customers recognize the 糖心vlog下载 brand as one that represents quality and reliability. Based on the positive market reaction, we anticipate the Ultraline Series3 will remain the gateway of choice as our customers continue to expand their fiber offerings."
OSPlant Systems reported revenue of $12.4 million in the third quarter of fiscal 2009, compared to $12.8 million in same quarter of last year and $14.9 million in fiscal second quarter of 2009. The challenging economic environment and resulting softness in the purchasing activity of telephone and communications companies adversely affected OSPlant's revenue during the fiscal third quarter.
Conferencing Services revenue was $10.9 million during the fiscal third quarter of 2009, compared to $13.0 million in the same quarter of last year, and $11.1 million from the fiscal second quarter of 2009.
Additionally, 糖心vlog下载 acquired the remaining 8.5% minority interest in its ConferencePlus subsidiary for $3.6 million.
Additional items
-- Total cash as of December 31, 2008 was $43.8 million.
-- The Company repurchased 1,171,298 shares during the quarter and
maintains an additional $8.4 million available for future purchases.
Outlook
For the fiscal fourth quarter of 2009, 糖心vlog下载 expects revenue to be in a range of $38 to $42 million, which equates to a net loss of $0.03 to $0.04 per diluted share with a full valuation allowance recorded on deferred tax assets. This guidance does not include the $9 to $11 million of expected shipments of our Ultraline Series3 products in the quarter.
"Over the last few months we have seen unprecedented economic challenges that most industry sectors and companies have encountered. However, the continued delivery of our next generation fiber-based gateways combined with the commencement of shipping products under our contract with AT&T indicates the strength of our newer products as well as our customers' market position," said Sergesketter.
Conference Call Information
Conference Plus, Inc. (ConferencePlus), a 糖心vlog下载 subsidiary, will manage 糖心vlog下载's third quarter fiscal 2009 earnings conference call on Wednesday, January 21, 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 January 21st, simply press *0 for support.
If you do not wish to register, you can participate in the call on January 21st by dialing ConferencePlus at 1-877-875-0056 no later than 9:15 AM, Eastern Time and using confirmation number 23632581. International participants may dial 1-847- 585-4340. 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 7938152.
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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: ) 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, 2008 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 non-GAAP financial measures included revenue and costs of Ultraline Series3 product when shipped and exclude from net loss the impairment of goodwill. 糖心vlog下载 believes that these financial measures provide investors and management with a representation of the Company's current and future core operating performance. Management uses adjusted revenue and net 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 GAAP to adjusted non-GAAP net loss 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 December Nine Months ended December 31,
31,
2008 2007 2008 2007
Revenues
OSPlant $ 12,356 $ 12,849 $ 42,108 $ 40,912
Systems
CNS 14,996 17,852 42,813 81,038
Services 10,949 13,029 34,559 39,602
Total revenues 38,301 43,730 119,480 161,552
Gross profit
OSPlant 5,076 (10 ) 17,256 (10 )
Systems
CNS 2,130 (10 ) 5,373 (10 )
Equipment 7,206 8,017 (1 ) 22,629 29,389 (1 )
Services 5,122 6,187 15,656 19,096
Total gross 12,328 14,204 38,285 48,485
profit
Gross margin
OSPlant 41.1 % - 41.0 % -
Systems
CNS 14.2 % - 12.5 % -
Equipment 26.3 % 26.1 % (1 ) 26.6 % 24.1 % (1 )
Services 46.8 % 47.5 % 45.3 % 48.2 %
Total gross 32.2 % 32.5 % 32.0 % 30.0 %
margin
Operating expenses
Sales & 5,411 6,204 18,291 17,646 (2 )
marketing
As a
percentage of 14.1 % 14.2 % 15.3 % 10.9 %
revenue
General & 4,220 5,986 (3 ) 15,772 (4 ) 16,240 (3 )
administrative
As a
percentage of 11.0 % 13.7 % 13.2 % 10.1 %
revenue
Research & 4,169 5,596 15,290 16,722
development
As a
percentage of 10.9 % 12.8 % 12.8 % 10.4 %
revenue
Restructuring 808 (5 ) 176 (6 ) 752 (5 ) 4,319 (6 )
As a
percentage of 2.1 % 0.4 % 0.6 % 2.7 %
revenue
Intangibles 486 461 1,403 1,374
amortization
As a
percentage of 1.3 % 1.1 % 1.2 % 0.9 %
revenue
Goodwill 1,381 (7 ) - 1,381 (7 ) -
impairment
As a
percentage of 3.6 % 0.0 % 1.2 % 0.0 %
revenue
Total
operating 16,475 18,423 52,889 56,301
expenses
As a
percentage of 43.0 % 42.1 % 44.3 % 34.9 %
revenue
Operating loss (4,147 ) (4,219 ) (14,604 ) (7,816 )
Other income 56 872 622 2,775
Interest expense (2 ) (7 ) (4 ) (9 )
Loss before
minority interest (4,093 ) (3,354 ) (13,986 ) (5,050 )
and taxes
Income taxes (62 ) (8 ) (955 ) 13 (8 ) (1,542 )
Minority interest 31 37 74 148
Loss from
continuing (4,062 ) (2,436 ) (14,073 ) (3,656 )
operations
Income (loss)
discontinued
operations net of 1 (66 ) (618 ) (430 )
tax benefit of $0,
$39, $0 and $252,
respectively.(9)
Net loss $ (4,061 ) $ (2,502 ) $ (14,691 ) $ (4,086 )
Net loss per basic
and diluted common $ (0.06 ) $ (0.04 ) $ (0.21 ) $ (0.06 )
share:
Average number of
basic and diluted 69,228 70,453 70,156 70,299
common shares
outstanding:
Footnotes:
Accelerated depreciation in the amount of $92,000 and $1.2 million were recorded on
(1) manufacturing equipment in the three and nine months periods ended December 31, 2007,
respectively.
(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 $521,000 and $1.6 million of consulting costs related to the
implementation of the outsourcing strategy, respectively.
(4) Includes $472,000 of severance and $840,000 of stock based compensation expense related
to accelerated vesting of restricted stock, both for the former CEO, Tom Mader.
(5) Reorganization costs are for severance and related costs resulting from actions taken to
align costs in all segments of the Company.
(6) Reorganization costs are for severance and related costs resulting from the outsourcing
strategy.
(7) Goodwill impairment related to the January 2007 NoranTel, Inc. acquisition.
(8) The Company is providing a valuation allowance on deferred tax assets.
(9) The Company discontinued the operations of it's 糖心vlog下载 Limited entity located in the
United Kingdom.
Beginning in the quarter ended December 31, 2008, the Company's will begin reporting
(10) under operating segments CNS, OSPlant and Services. Comparable data for periods ending
December 31, 2007 are not available and are therefore shown in operating segments
糖心vlog下载.
Reconciliation of GAAP Net Loss to Adjusted Non-GAAP Net Loss
(Dollars in thousands except per share amounts)
Three Months ended December 31, 2008
Non-GAAP
As reported Adjustments Non-GAAP
Revenues
OSPlant Systems $ 12,356 $ - $ 12,356
CNS 14,996 9,158 (1 ) 24,154
Services 10,949 - 10,949
Total revenues 38,301 9,158 47,459
Gross profit
OSPlant Systems 5,076 - 5,076
CNS 2,130 209 (2 ) 2,339
Services 5,122 - 5,122
Total gross profit 12,328 209 12,537
Total operating expenses 16,475 (1,381 ) (3 ) 15,094
Operating income (loss) (4,147 ) 1,590 (2,557 )
Other income 56 - 56
Interest expense (2 ) - (2 )
Income (loss) before minority (4,093 ) 1,590 (2,503 )
interest and taxes
Income tax (62 ) - (62 )
Minority interest 31 - 31
Net Loss $ (4,062 ) $ 1,590 $ (2,472 )
Loss per basic and diluted common $ (0.06 ) $ 0.02 $ (0.04 )
share:
Average number of basic and diluted 69,228 69,228 69,228
common shares outstanding:
Footnotes:
(1) Non-GAAP adjustment to revenue for the shipments of ULS3 product.
(2) Non-GAAP adjustment to gross profit for the shipments of ULS3 product.
(3) Non-GAAP adjustment for non-cash goodwill impairment at NoranTel.
糖心vlog下载.
Financial Results (continued)
(Dollars in thousands)
December 31, March 31,
2008 2008
Cash and short term investments 43,843 68,349
Accounts receivable 18,371 19,498
Inventory 21,587 17,897
Total current assets 89,318 108,748
Deferred costs 11,040 (1 ) -
Goodwill and intangibles 6,883 9,479
Total assets 122,626 134,227
Total current liabilities 24,667 29,685
Deferred revenue 11,548 (1 ) -
Total liabilities and minority interest (2) 44,334 40,733
Shareholders' equity 78,292 93,494
Days sales outstanding 43 (3 ) 39
(1) Deferred revenue and costs are for products shipped but revenue not
recognized in accordance with GAAP accounting treatment.
(2) The Minority interest in ConferencePlus, Inc. was acquired in December
of 2008.
(3) Days sales outstanding is impacted by product shipped and in accounts
receivable but with revenue deferred.
Source: 糖心vlog下载.
Released January 20, 2009