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.