Symmetricom Reports Third Quarter FY2006 Financial Results
Thursday April 27, 4:03 pm ET
SAN JOSE, Calif.--(BUSINESS WIRE)--April 27, 2006--Symmetricom, Inc. (NASDAQ:SYMM - News), a leading worldwide supplier of network synchronization and timing solutions, today reported financial results for its fiscal third quarter ended March 31, 2006.
ADVERTISEMENT
Fiscal third quarter revenue was $45.5 million, compared with $47.9 million in the prior quarter and $43.8 million in the third fiscal quarter in the prior year. For the nine-month period ended March 31, 2006, revenue was $137.7 million, compared with $143.7 million for the same period of the prior year.
Net loss for the fiscal third quarter was $5.2 million or a net loss of $0.11 per share on a fully diluted basis, compared with net earnings of $2.7 million or $0.06 per share on a fully diluted basis in the prior quarter and net earnings of $2.8 million or $0.06 per share on a fully diluted basis in the prior year period. The current quarter includes a $7.0 million or $0.15 per share charge for the impairment of $6.2 million in goodwill and $0.8 million in other intangibles principally related to the company's wireless business segment purchased in connection with the Datum acquisition in October 2002, which was determined in accordance with SFAS 142 for goodwill and SFAS 144 for other intangibles.
For the nine-month period ended March 31, 2006, net loss was $1.2 million or a net loss of $0.03 per share on a fully diluted basis, compared with net earnings of $12.0 million or $0.26 per share on a fully diluted basis in the prior year period. In addition to the impairment charges noted above, the current quarter and nine-month period include expenses of $0.02 and $0.06 per share respectively for expenses incurred for stock-based compensation following the adoption of FAS123R.
Non-GAAP net earnings for the fiscal third quarter, which excludes certain items related to non-cash compensation, impairment charges for goodwill and other intangibles, amortization of acquired intangibles, integration and restructuring charges, and unusual and non-recurring items, were $2.8 million or $0.06 per share on a fully diluted basis. This compares with non-GAAP net earnings in the prior quarter of $4.4 million or $0.09 per share on a fully diluted basis and non-GAAP net earnings of $4.3 million or $0.09 per share on a fully diluted basis in the prior year period. For the nine-month period ended March 31, 2006, non-GAAP net earnings were $10.5 million or $0.22 per share on a fully diluted basis, compared with $14.8 million or $0.32 per share on a fully diluted basis for the same period of the prior year.
Telecom Solutions Division revenue for the quarter was $32.2 million, compared with $30.6 million in the prior quarter and $29.1 million in the prior year period. Telecom Solutions Division revenue for the nine-month period ended March 31, 2006, was $92.6 million, compared with $99.7 million in the same period of the prior year.
Timing, Test & Measurement Division revenue for the quarter was $13.3 million, compared with $17.4 million in the prior quarter and $14.7 million in the prior year period. Timing, Test & Measurement Division revenue for the nine-month period ended March 31, 2006, was $45.2 million, compared with $44.1 million in the same period of the prior year. In the third quarter Timing, Test & Measurement Division revenue was affected by funding delays for a number of government programs.
"In the quarter, we had our first success in selling directly into program specific next-generation network deployments at Verizon and BT. The order from Verizon is specifically tied to its fiber-to-the-premise (FTTP) program and the order from BT is in support of its 21st Century Network (21CN) deployment," said Thomas Steipp, president and CEO of Symmetricom. "Additionally, we received initial regional modernization orders from BellSouth and Verizon, which we expect to deliver throughout the calendar year.
"Over the past several quarters, one of our goals has been to position Symmetricom's synchronization products as an integral part of the overall next-generation network upgrade and as a result, we are now seeing orders from regional, corporate and next-generation network deployment budgets," Steipp said.
Outlook for Q4 FY06
Symmetricom expects fourth quarter FY06 revenue to grow to a range of $47.0 million and $52.0 million. The company expects GAAP earnings to be between $0.01 and $0.05 per share on a fully diluted basis, and non-GAAP earnings to be between $0.06 and $0.11 per share on a fully diluted basis.
Investor Conference Call
As previously announced, management will hold a conference call to discuss these results today, April 27 at 1:30 p.m. Pacific time. Those wishing to join should dial 415-228-4834 and reference the passcode "Symmetricom." A live webcast of the conference call will also be available via the company's website at www.symmetricom.com or www.vcall.com. A replay of the call will be available until May 12 at 11:59 p.m. Pacific time. To access the replay, please dial 203-369-1975.
About Symmetricom, Inc.
As a worldwide leader in precise time and frequency products and services, Symmetricom provides "Perfect Timing" to customers around the world, including communications service providers, U.S. Department of Defense (DOD), aerospace contractors, enterprises, governments and research facilities. Since 1985, the company's timing, frequency and synchronization solutions have helped define the world's standards, delivering precision, reliability and efficiency to wireless and wireline networks, instrumentation and testing applications and network time management. Deployed in more than 90 countries, products include atomic clocks, cesium and rubidium standards, time synchronization solutions, VME, PCI cards and Global Positioning System (GPS) solutions for instrumentation applications, as well as network time servers for Network Time Protocol (NTP) synchronization. In 2002, Symmetricom acquired TrueTime and Datum, strengthening its leading position in the world time and frequency markets. Symmetricom is based in San Jose, Calif., with offices worldwide. For more information, visit www.symmetricom.com.
Non-GAAP Information
Certain non-GAAP financial information is included in this press release. In the non-GAAP Statements of Operations, Symmetricom excludes certain items related to non-cash compensation, amortization of acquired intangibles, impairment of goodwill and other intangibles, integration and restructuring charges and unusual and non-recurring items. Symmetricom believes that excluding such items provides investors and management with a representation of the company's core operating performance and with information useful in assessing our prospects for the future and underlying trends in Symmetricom's operating performance. Management uses such non-GAAP information to evaluate financial results and to establish operational goals. Non-GAAP information is not determined using GAAP and should not be considered superior to or as a substitute for data prepared in accordance with GAAP. A reconciliation of the non-GAAP results to the GAAP results is provided in the "Consolidated Statements of Operations (non-GAAP)" schedule provided in the press release. |
