SLNK ($11-$16*New Yearly High) P/E 44..Earnings growth 83%
Thursday July 19, 4:02 pm Eastern Time
Press Release
SOURCE: SpectraLink Corporation
SpectraLink Reports Outstanding Earnings Growth of 83% With Record High Revenue for Second Quarter 2001
BOULDER, Colo., July 19 /PRNewswire/ -- SpectraLink Corporation (Nasdaq: SLNK - news) today reported outstanding earnings growth with record-high revenue for the second quarter of 2001. Earnings for the quarter were $2.1 million, or $0.11 per diluted share, compared to earnings of $1.3 million, or $0.06 per diluted share, in the second quarter of 2000. This represents an 83% increase in earnings per share, quarter-over-quarter, year-over-year. Quarterly revenue reached record levels at $16.6 million. This represents a 30% increase over second quarter 2000 revenue of $12.8 million.
For the six months ended June 30, 2001, earnings per diluted share were $0.19 on net income of $3.9 million resulting in an exceptional 75% increase in net income over this time last year. Revenue for the six months ended June 30, 2001, was $30.6 million compared to $24.4 million for the same period a year ago.
``We've started the year with very strong growth in our business,'' said Bruce Holland, SpectraLink's president and CEO. ``This is the second quarter in a row where earnings per share have grown at 80% or more over the prior year. In spite of these difficult economic times, our revenue growth has significantly accelerated over the first quarter of this year. When I reflect on the fundamentals of our business, I am particularly pleased with our strong positive cash flow, noteworthy strategic partnerships, and superior earnings growth with record high revenue. This outstanding performance was recently highlighted by Fortune Magazine when SpectraLink Corporation was recognized as the fastest growing small business in Colorado, and the 15th fastest growing small business in the U.S.!''
SpectraLink continues to form top-tier relationships in North America and Europe to further expand sales into a huge potential market for workplace wireless voice solutions that remains largely under-penetrated. This quarter we had two significant announcements that will help us grow sales for years to come. The first announcement was the expansion of Siemens as a global distributor of our products. Siemens has been distributing our Link system in North America for more than a year, but beginning this quarter, they will also distribute our NetLink system globally. The second noteworthy announcement is a partnering with Avaya to offer SpectraLink's NetLink system to Avaya's current and future customers. We view these two developments as key growth opportunities for our 802.11 compatible NetLink product.
Webcast Information
SpectraLink will hold an audio webcast to discuss second quarter 2001 earnings results, as well as guidance for the remainder of 2001 and 2002, today, July 19th, at 4:15 p.m. Eastern Time. You can access the webcast and replay at spectralink.com.
About SpectraLink
SpectraLink Corporation (Nasdaq: SLNK - news) is the leading manufacturer and provider of wireless telephone systems for the workplace in North America. Headquartered in Boulder, Colo., SpectraLink has more installed systems and accumulated more experience and application knowledge than any other provider. SpectraLink distributes its products through industry-leading service, equipment and application providers, cultivating a vast customer base among industries including retail, education, healthcare, manufacturing, finance, information systems and telecommunications. For more information, call 1-800-676-5465, or visit spectralink.com.
This release, as it relates to revenues and other company matters, contains forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements involve risks and uncertainties. Investors are directed to the Risk Factors section and other information contained in the company's most recent 10-Q and 10-K filings with the Securities and Exchange Commission for a more complete description of the risks and uncertainties relating to the material in this release as well as to other aspects of the company's business.
All trademarks, trade names, registered trademarks, or registered trade names are property of their respective holders. For more information, visit the SpectraLink website at www.spectralink.com.
SPECTRALINK CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(In thousands)
ASSETS
June 30, December 31,
2001 2000
(Unaudited)
CURRENT ASSETS:
Cash and cash equivalents $25,686 $20,793
Short-term investments in
marketable securities 5,000 10,976
Trade accounts receivable,
net allowance of $364 and $308,
respectively 16,966 14,481
Inventory, net of allowance of
$437 and $283, respectively 8,070 9,029
Deferred income taxes - current portion 1,336 1,336
Other 974 1,037
Total current assets 58,032 57,652
PROPERTY AND EQUIPMENT, at cost
Furniture and fixtures 1,539 1,461
Equipment 5,748 5,173
Leasehold improvements 847 805
8,134 7,439
Less - Accumulated depreciation (5,947) (5,420)
Net Property and equipment 2,187 2,019
DEFERRED INCOME TAXES - NON CURRENT 236 236
OTHER 168 163
TOTAL ASSETS $60,623 $60,070
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $867 $1,549
Accrued payroll, commissions,
and employee benefits 2,197 2,519
Income taxes payable 73 62
Accrued sales, use and property taxes 277 266
Accrued warranty expenses 254 290
Other accrued expenses 609 695
Deferred revenue 3,093 2,932
Total current liabilities 7,370 8,313
LONG-TERM LIABILITIES 246 263
TOTAL LIABILITIES 7,616 8,576
STOCKHOLDERS' EQUITY
Preferred stock -- --
Common stock 209 207
Additional paid-in capital 55,070 53,855
Retained earnings 9,847 5,996
Treasury stock, at cost (12,119) (8,564)
TOTAL STOCKHOLDERS' EQUITY 53,007 51,494
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $60,623 $60,070
SPECTRALINK CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(In thousands except per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2001 2000 2001 2000
NET SALES $16,562 $12,767 $30,625 $24,370
TOTAL COST OF SALES 5,586 4,553 10,081 8,941
GROSS PROFIT 10,976 8,214 20,544 15,429
OPERATING EXPENSES:
Research and
Development 1,327 1,118 2,602 2,196
Marketing and
Selling 5,730 4,846 10,881 9,183
General and
Administrative 895 743 1,700 1,426
Total Operating
Expenses 7,952 6,707 15,183 12,805
INCOME FROM OPERATIONS 3,024 1,507 5,361 2,624
INVESTMENT INCOME
AND OTHER, net 359 504 800 901
INCOME BEFORE
INCOME TAXES 3,383 2,011 6,161 3,525
INCOME TAX EXPENSE (1,269) (754) (2,310) (1,322)
NET INCOME $2,114 $1,257 $3,851 $2,203
BASIC EARNINGS
PER SHARE $0.11 $0.06 $0.20 $0.11
BASIC WEIGHTED
AVERAGE SHARES
OUTSTANDING 18,890 19,720 18,980 19,220
DILUTED EARNINGS
PER SHARE $0.11 $0.06 $0.19 $0.11
DILUTED WEIGHTED
AVERAGE SHARES
OUTSTANDING 19,680 20,700 19,870 20,690
SOURCE: SpectraLink Corporation |
