糖心vlog下载 Technologies Reports Fiscal Fourth Quarter and Full Year 2009 Results
糖心vlog下载
糖心vlog下载 Technologies Fiscal Fourth Quarter and Full Year 2009 Highlights
Fiscal fourth quarter consolidated revenue of $41.7 million. Non-GAAP fiscal fourth quarter consolidated revenue of $56.3 million[1]. Fiscal fourth quarter net loss of $2.0 million, or a loss of $0.03 per share. Non-GAAP net loss during the fiscal fourth quarter of $0.7 million[1], or a loss of $0.01 per share[1]. Non-GAAP fiscal year consolidated revenue of $186.5 million[1] and non-GAAP net loss of $13.0 million[1], or a loss of $0.19 per share[1]. Appointed Richard S. Gilbert as President and CEO. Added two independent board directors: James M. Froisland and Martin H. Singer. Appointed Brian S. Cooper as CFO.
AURORA, Ill.--(BUSINESS WIRE)-- 糖心vlog下载. (NASDAQ: WSTL), a leading provider of broadband products, gateways and conferencing services, today announced results for its fiscal fourth quarter and full year ending March 31, 2009. Total revenue for the fiscal fourth quarter was $41.7 million, down 5.6% from $44.2 million in the same quarter last year. Net loss during the quarter was $2.0 million, or a loss of $0.03 per share, compared to a net loss of $72.1 million or a loss of $1.02 per share in the same period last year.
On a non-GAAP basis, revenue for the fiscal fourth quarter was $56.3 million[1], up 27.5%[1] from the same quarter last year and up 18.7%[1] from the fiscal third quarter of 2009. The increase in the current quarter compared to prior quarters is due primarily to shipments of UltraLine Series3 gateways which started in the fiscal third quarter of 2009. Non-GAAP net loss during the fiscal fourth quarter was $0.7 million[1], or a loss of $0.01 per share[1], compared to a non-GAAP net loss of $5.4 million[1], or a loss of $0.08 per share[1], in the prior year. The lower non-GAAP loss per share was positively impacted by increased shipments and by lower operating expenses resulting from recent restructuring activities and cost containment initiatives.
"In the fourth quarter of fiscal year 2009, 糖心vlog下载 produced improving results in the face of a very difficult economic environment," said Rick Gilbert, President and Chief Executive Officer of 糖心vlog下载 Technologies. "However, we clearly recognize that losses, albeit small, are not acceptable. In our plan for fiscal year 2010, we have focused on structuring the business to address our losses and lay a foundation for building long-term value."
The Company supplements its financial analysis of the business using non-GAAP measures which may provide additional insight into current operating performance. The presentation at the end of this press release includes financial tables that reconcile non-GAAP measures to GAAP measures. There are two non-GAAP adjustments affecting the fiscal fourth quarter. First, during the quarter, the Company continued to ship UltraLine Series3 next-generation gateways which support a major customer's fiber-to-the-home (FTTH) offering. Fiscal fourth quarter revenues totaling $14.6 million and certain related direct costs for these product shipments are deferred, and not recognized in the quarter, based on the required accounting for related software deliverables. This adjustment increases non-GAAP net income for the quarter by $0.4 million. Second, gross profit and operating expenses are adjusted to exclude $0.9 million of incremental non-cash lease expense that was accrued in the fiscal fourth quarter. This accrual corrects cumulative lease expense that was under-recorded by small amounts over multiple prior periods.
Fiscal Fourth Quarter Division Results
Customer Networking Solutions (CNS) reported revenue of $16.7 million in the fourth quarter of fiscal 2009, compared to $16.9 million in the same quarter of last year. On a non-GAAP basis, revenue was $31.3 million[1] for the quarter, compared to $16.9 million in the same quarter of last year and $24.2 million[1] in the fiscal third quarter of 2009. The increase in current quarter non-GAAP revenue compared to prior quarters is due primarily to shipments of UltraLine Series3 gateways which started in the third fiscal quarter of 2009.
OSPlant Systems reported revenue of $14.4 million in the fourth quarter of fiscal 2009, compared to $13.2 million in same quarter of last year and $12.4 million in the fiscal third quarter of 2009.
ConferencePlus revenue was $10.6 million during the fiscal fourth quarter of 2009, compared to $14.1 million in the same quarter of last year, and $10.9 million in the fiscal third quarter of 2009. The decrease in revenue from the fiscal fourth quarter of 2009 compared to the same period in the prior year was due primarily to the previously announced loss of revenue from a large customer.
Fiscal Year 2009 Results
Revenue was $161.2 million for the fiscal year ended March 31, 2009, compared to $205.7 million in fiscal 2008. Net loss in fiscal 2009 was $16.7 million, or a loss of $0.24 per share, compared to a net loss of $76.2 million or a loss of $1.08 per share in fiscal 2008. On a non-GAAP basis, revenue for fiscal 2009 was $186.5 million[1], with a net loss for fiscal 2009 of $13.0 million[1] or a loss of $0.19 per share[1]. This compares to a non-GAAP net loss of $6.8 million[1] or a loss of $0.10 per share[1] in fiscal 2008.
Total cash and short term investments as of March 31, 2009 was $46.1 million, compared to $68.3 million at March 31, 2008 and $43.8 million at December 31, 2008.
Board and Officer Appointments
On February 23, 2009, Richard S. Gilbert joined 糖心vlog下载 as President and Chief Executive Officer.
The Company appointed James M. Froisland and Martin H. Singer Ph.D. to the Board of Directors on March 19th and March 25th, respectively. Mr. Froisland serves on the finance and audit committees and Mr. Singer serves on the compensation and technology committees.
Effective April 20, 2009, the Company appointed Brian S. Cooper as Chief Financial Officer and reassigned Amy T. Forster as Chief Accounting Officer.
Fiscal Year 2010 Objectives
"We have set aggressive but realistic plans for fiscal year 2010, with an objective for the year of break-even operating profit on a consolidated basis," said Gilbert. "Given the current economic environment, we are also focused on conserving our cash and achieving positive cash flow for the year."
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 2009 earnings conference call on Thursday, May 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 May 21st, he may simply press *0 for support.
If you do not wish to register, you can participate in the call on May 21st by dialing ConferencePlus at 1-877-875-0056 no later than 9:15 AM, Eastern Time and using confirmation number 24461152. 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 9783733.
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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 leading global provider of audio, web, video and IP conferencing 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. 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", "plan", "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] This is non-GAAP information. A reconciliation of these items to the most comparable GAAP measures is presented as an exhibit to this news release. Except as noted, all references to financial results within this news release are presented in accordance with U.S. Generally Accepted Accounting Principles (GAAP). Non-GAAP financial measures adjust results to remove the effects of certain unusual or one-time items. 糖心vlog下载 believes that non-GAAP measures provide investors and management with a useful representation of the Company's underlying financial performance. Non-GAAP information should not be considered superior to or a substitute for data prepared in accordance with GAAP.
Financial Tables to Follow:
糖心vlog下载.
Financial Results
(Amounts in thousands except per share amounts)
Three Months ended March Twelve Months ended March
31, 31,
2009 2008 2009 2008
Revenues
OSPlant $ $ 13,196 $ 56,506 $ 54,108
Systems 14,397
CNS 16,683 16,885 59,495 97,923
ConferencePlus 10,644 14,096 45,203 53,698
Total revenues 41,724 44,177 161,204 205,729
Gross profit
OSPlant 5,551 (1) 22,808 (1)
Systems
CNS 2,669 (1) 8,042 (1)
Equipment 8,220 5,230 30,850 34,619 (2)
ConferencePlus 4,568 (3) 6,725 20,224 (3) 25,821
Total gross 12,788 11,955 51,074 60,440
profit
Gross margin
OSPlant 38.6 % (1) 40.4 % (1)
Systems
CNS 16.0 % (1) 13.5 % (1)
Equipment 26.4 % 17.4 % 26.6 % 22.8 % (2)
ConferencePlus 42.9 % (3) 47.7 % 44.7 % (3) 48.1 %
Total gross 30.6 % 27.1 % 31.7 % 29.4 %
margin
Operating
expenses
Sales & 5,862 6,421 24,153 24,067 (4)
marketing
As a
percentage of 14.0 % 14.5 % 15.0 % 11.7 %
revenue
General & 4,264 5,297 20,036 (5) 21,537 (6)
administrative
As a
percentage of 10.2 % 12.0 % 12.4 % 10.5 %
revenue
Research & 4,563 5,628 19,854 22,350
development
As a
percentage of 10.9 % 12.7 % 12.3 % 10.9 %
revenue
Restructuring - 1,398 (7) 752 (8) 5,717 (7)
As a
percentage of 0.0 % 3.2 % 0.5 % 2.8 %
revenue
Intangibles 478 460 1,882 1,834
amortization
As a
percentage of 1.1 % 1.0 % 1.2 % 0.9 %
revenue
Goodwill - 9,651 (9) 1,381 (10) 9,651 (9)
impairment
As a
percentage of 0.0 % 21.8 % 0.9 % 4.7 %
revenue
Total
operating 15,167 28,855 68,058 85,156
expenses
As a
percentage of 36.4 % 65.3 % 42.2 % 41.4 %
revenue
Operating (2,379 ) (11) (16,900 ) (16,984 ) (11) (24,716 )
income (loss)
Other income 39 934 662 3,709
Interest (11 ) (3 ) (15 ) (12 )
expense
Income (loss)
before
minority (2,351 ) (15,969 ) (16,337 ) (21,019 )
interest and
taxes
Income taxes 54 55,707 (12) 67 54,165 (12)
Minority - 111 74 260
interest
Income (loss)
from (2,405 ) (71,787 ) (16,478 ) (75,444 )
continuing
operations
Income (loss)
from
discontinued
operations net
of tax of $0, 412 (357 ) (206 ) (786 )
$(209),
$0 and $(462),
respectively
(13)
Net income $ ) $ ) $ ) $ )
(loss) (1,993 (72,144 (16,684 (76,230
Net income
(loss) per
basic and $ (0.03 ) $ (1.02 ) $ (0.24 ) $ (1.08 )
diluted common
share:
Average number
of basic and
diluted common 68,492 70,605 69,740 70,376
shares
outstanding:
Footnotes:
Beginning in the quarter ended December 31, 2008, the Company began
(1) reporting under operating segments OSPlant, CNS and ConferencePlus.
Comparable data for periods ending March 31, 2008 are not available and
are therefore shown in reporting segments of equipment and ConferencePlus.
(2) Accelerated depreciation in the amount of $1.2 million was recorded on
manufacturing equipment in the twelve month period ended March 31, 2008.
(3) The Company recorded a $700,000 loss contingency for a contractual dispute
in the three and twelve month periods ended March 31, 2009.
The Company recorded a $3.3 million gain relating to a vendor settlement
(4) and $600,000 in associated expenses for a net gain of $2.7 million in the
twelve month period ended March 31, 2008.
Includes $472,000 of severance and $840,000 of stock-based compensation
(5) expense related to accelerated vesting of restricted stock, both for the
former CEO, Tom Mader in the twelve month period ended March 31, 2009.
The Company recorded $1.6 million of consulting costs related to the
(6) implementation of the outsourcing strategy in the twelve month period
ended March 31, 2008.
Restructuring costs are for severance and related costs resulting from the
(7) outsourcing strategy in the three and twelve month periods ended March 31,
2008.
Restructuring costs are for severance and related costs resulting from
(8) actions taken to align costs in all segments of the Company in the twelve
month period ended March 31, 2009.
(9) Goodwill impairment related to equipment segment acquisitions in the three
and twelve month periods ended March 31, 2008.
(10) Goodwill impairment related to the January 2007 NoranTel, Inc. acquisition
in the twelve month period ended March 31, 2009.
Includes a non-cash charge of $925,000 for a correction in the Company's
(11) lease accounting policy from prior years of which $148,000 impacted cost
of goods sold and $777,000 impacted operating expenses in the three and
twelve month periods ended March 31, 2009.
(12) Includes income tax expense resulting from increased valuation allowance
in the three and twelve month periods ended March 31, 2008.
(13) 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.
Reconciliation of GAAP Net Loss to Adjusted Non-GAAP Net Loss
(Amounts in thousands except per share amounts)
Three Months ended March 31, 2009 Three Months ended March 31, 2008
As Non-GAAP Non-GAAP As Non-GAAP Non-GAAP
reported Adjustments reported Adjustments
Revenues
OSPlant Systems $ $ - $ $ $ - $
14,397 14,397 13,196 13,196
CNS 16,683 14,589 (1) 31,272 16,885 - 16,885
ConferencePlus 10,644 - 10,644 14,096 - 14,096
Total revenues 41,724 14,589 56,313 44,177 - 44,177
Gross profit
OSPlant Systems 5,551 44 (2) 5,595 - - -
CNS 2,669 491 (2) 3,160 - - -
(3)
Equipment 8,220 535 8,755 5,230 - 5,230
ConferencePlus 4,568 - 4,568 6,725 - 6,725
Total gross 12,788 535 13,323 11,955 - 11,955
profit
Sales &
marketing;
general &
administrative; 14,689 (777 ) (2) 13,912 17,346 - 17,346
research &
development
expenses
Restructuring - - - 1,398 (1,398 ) (4) -
Intangibles 478 - 478 460 - 460
amortization
Goodwill - - - 9,651 (9,651 ) (5) -
impairment
Total operating 15,167 (777 ) 14,390 28,855 (11,049 ) 17,806
expenses
Operating (2,379 ) 1,312 (1,067 ) (16,900 ) 11,049 (5,851 )
income (loss)
Other income 39 - 39 934 - 934
Interest (11 ) - (11 ) (3 ) - (3 )
expense
Income (loss)
before minority (2,351 ) 1,312 (1,039 ) (15,969 ) 11,049 (4,920 )
interest and
taxes
Income tax 54 - 54 55,707 (55,649 ) (6) 58
Minority - - - 111 - 111
interest
Income (loss)
from
discontinued 412 - 412 (357 ) - (357 )
operations net
of tax
Net income $ ) $ $ (681 ) $ ) $ $ )
(loss) (1,993 1,312 (72,144 66,698 (5,446
Income (loss)
per basic and $ ) $ 0.02 $ ) $ (1.02 ) $ 0.94 $ )
diluted common (0.03 (0.01 (0.08
share:
Average number
of basic and
diluted common 68,492 68,492 68,492 70,605 70,605 70,605
shares
outstanding:
Footnotes:
(1) Adjustment to revenue to include the shipments of UltraLine Series3 (ULS3)
product, which are deferred under GAAP software accounting rules.
Adjustment to exclude a non-cash correction in the Company's lease
(2) accounting policy from prior years of $925,000 of which $44,000 is in
OSPlant gross profit, $104,000 is in CNS gross profit and $777,000 is in
operating expenses.
(3) Adjustment to gross profit to include the shipments of ULS3 product, which
are deferred under GAAP software accounting rules.
(4) Adjustment to exclude non-recurring restructuring expenses.
(5) Adjustment to exclude non-cash goodwill impairment expense.
Adjustment to income tax expense resulting from a valuation allowance
(6) provided to tax benefits generated in the period and for the valuation
allowance to reserve deferred tax assets generated in prior years.
糖心vlog下载.
Reconciliation of GAAP Net Loss to Adjusted Non-GAAP Net Loss
(Amounts in thousands except per share amounts)
Twelve Months ended March 31, 2009 Twelve Months ended March 31, 2008
As Non-GAAP Non-GAAP As Non-GAAP Non-GAAP
reported Adjustments reported Adjustments
Revenues
OSPlant Systems $ $ - $ $ $ - $
56,506 56,506 54,108 54,108
CNS 59,495 25,258 (1) 84,753 97,923 - 97,923
ConferencePlus 45,203 - 45,203 53,698 - 53,698
Total revenues 161,204 25,258 186,462 205,729 - 205,729
Gross profit
OSPlant Systems 22,808 44 (2) 22,852 - - -
CNS 8,042 750 (2) 8,792 - - -
(3)
30,850 794 31,644 34,619 - 34,619
ConferencePlus 20,224 - 20,224 25,821 - 25,821
Total gross 51,074 794 51,868 60,440 - 60,440
profit
Sales &
marketing;
general &
administrative; 64,043 (777 ) (2) 63,266 67,954 - 67,954
research &
development
expenses
Restructuring 752 (752 ) (4) - 5,717 (5,717 ) (4) -
Intangibles 1,882 - 1,882 1,834 - 1,834
amortization
Goodwill 1,381 (1,381 ) (5) - 9,651 (9,651 ) (5) -
impairment
Total operating 68,058 (2,910 ) 65,148 85,156 (15,368 ) 69,788
expenses
Operating (16,984 ) 3,704 (13,280 ) (24,716 ) 15,368 (9,348 )
income (loss)
Other income 662 - 662 3,709 - 3,709
Interest (15 ) - (15 ) (12 ) - (12 )
expense
Income (loss)
before minority (16,337 ) 3,704 (12,633 ) (21,019 ) 15,368 (5,651 )
interest and
taxes
Income tax 67 - 67 54,165 (54,084 ) (6) 81
Minority 74 - 74 260 - 260
interest
Income (loss)
from
discontinued (206 ) - (206 ) (786 ) - (786 )
operations net
of tax
Net income $ ) $ $ ) $ ) $ $ )
(loss) (16,684 3,704 (12,980 (76,230 69,452 (6,778
Income (loss)
per basic and $ (0.24 ) $ 0.05 $ (0.19 ) (1.08 ) $ 0.98 $ (0.10 )
diluted common
share:
Average number
of basic and
diluted common 69,740 69,740 69,740 70,376 70,376 70,376
shares
outstanding:
Footnotes:
(1) Adjustment to revenue to include the shipments of UltraLine Series3 (ULS3)
product, which are deferred under GAAP software accounting rules.
Adjustment to exclude a non-cash correction in the Company's lease
(2) accounting policy from prior years of $925,000 of which $44,000 is in
OSPlant gross profit, $104,000 is in CNS gross profit and $777,000 is in
operating expenses.
(3) Adjustment to gross profit to include the shipments of ULS3 product, which
are deferred under GAAP software accounting rules.
(4) Adjustment to exclude non-recurring restructuring expenses.
(5) Adjustment to exclude non-cash goodwill impairment expense.
Adjustment to income tax expense resulting from a valuation allowance
(6) provided to tax benefits generated in the period and for the valuation
allowance to reserve deferred tax assets generated in prior years.
糖心vlog下载.
Reconciliation of GAAP Net Loss to Adjusted Non-GAAP Net Loss
(Amounts in thousands except per share amounts)
Three Months ended March 31, Twelve Months ended March 31,
2009 2008 2009 2008
GAAP net income $ (1,993 ) $ (72,144 ) $ (16,684 ) $ (76,230 )
(loss)
Adjustments:
UltraLine Series 3 387 - 646 -
shipments
Non-cash lease 925 - 925 -
expense
Restructuring - 1,398 752 5,717
Goodwill impairment - 9,651 1,381 9,651
Tax valuation - 55,649 - 54,084
allowance reserve
Total adjustments 1,312 66,698 3,704 69,452
Non-GAAP net income $ (681 ) $ (5,446 ) $ (12,980 ) $ (6,778 )
(loss)
Reconciliation of Basic and Diluted EPS:
GAAP net income $ (0.03 ) $ (1.02 ) $ (0.24 ) $ (1.08 )
(loss)
Adjustments:
UltraLine Series 3 0.01 - 0.01 -
shipments
Non-cash lease 0.01 - 0.01 -
expense
Restructuring - 0.02 0.01 0.08
Goodwill impairment - 0.13 0.02 0.13
Tax valuation - 0.79 - 0.77
allowance reserve
Total adjustments 0.02 0.94 0.05 0.98
Non-GAAP net income $ (0.01 ) $ (0.08 ) $ (0.19 ) $ (0.10 )
(loss)
糖心vlog下载.
Financial Results (continued)
(Dollars in thousands)
March 31, March 31,
2009 2008
Cash and short term investments $ 46,058 $ 68,349
Accounts receivable 20,827 19,498
Inventory 21,705 17,897
Total current assets 95,430 108,749
Deferred costs 24,612 (1) -
Goodwill and intangibles 6,342 9,479
Total assets 140,176 134,228
Total current liabilities 29,481 29,685
Deferred revenue 25,258 (1) -
Total liabilities and minority interest (2) 63,818 40,733
Shareholders' equity 76,358 93,495
Deferred revenue and costs are for products shipped, but revenue not
(1) recognized, based on the required accounting for related software
deliverables.
(2) The remaining minority interest in ConferencePlus, Inc. was acquired by the
Company in December of 2008.
Source: 糖心vlog下载.
Released May 20, 2009