Can you say WFII?
OH BOYYYYYYYY
WFII KICKED (_i_)
Thursday December 2, 6:47 pm Eastern Time
Company Press Release
Wireless Facilities Announces Strong
Third Quarter 1999 Results
Company Achieves Significant Top-Line Growth and Continues Earnings
Gains
SAN DIEGO--(BUSINESS WIRE)--Dec. 2, 1999--Wireless Facilities, Inc. (WFI)
(Nasdaq:WFII - news), a global leader in the design, deployment and management of wireless
telecommunications networks for wireless service providers and equipment suppliers, today
reported record results for the third quarter ended Sept. 30, 1999.
Revenue for the third quarter of 1999 was $23.8 million, an increase of 70% over the $14.0 million
reported in the third quarter last year. Operating income grew 167% to $5.6 million from $2.1
million in the comparable period a year ago.
''Our third quarter performance confirmed the strength of our position in telecom outsourcing as
we continued to experience robust demand for network planning, design and deployment services
within our traditional wireless mobility markets, while setting the stage for future sales in the
wireless broadband space,'' said Massih Tayebi, CEO of WFI.
Net income was $2.8 million, compared with a net loss of $1.4 million in the third quarter of 1998.
The $4.2 million increase was primarily due to revenue and margin increases on new contracts,
offset in part by an increase in selling, general and administrative expenses.
Net income for the third quarter of 1998 was also impacted by a one-time charge of $2.1 million
to establish a deferred income tax liability upon the company's change from an S corporation to a
C corporation.
Diluted earnings per share for the third quarter of 1999 rose to $0.08 per share based on 33.5
million weighted average shares outstanding. This compares with a diluted loss per share of $0.05
on 31.3 million weighted average shares outstanding for the same period in 1998.
On a pro forma basis, the Company would have reported diluted earnings per share of $0.03 for
the third quarter of 1998 if the Company had been a C corporation for that period.
For the nine months ended Sept. 30, 1999, the Company reported a 60% increase in revenues of
$56.9 million from $35.6 million for the same period a year ago. Net income for the nine months
ended Sept. 30, 1999, increased 15% to $5.4 million, or $0.17 per diluted share, compared with
$4.7 million, or $0.15 per diluted share, in the same period last year.
Gross profit margins for the three months ended Sept. 30, 1999 increased to 45%, compared to
43% for the same period in 1998. For the nine months ended Sept. 30, 1999, gross margins were
40%, compared to 48% for the nine months ended Sept. 30, 1998.
Tayebi added, ''We announced several contracts during the quarter which place us firmly in the
wireless mobility and high-speed data markets. In addition to extending our relationship with
Telecorp PCS, an AT&T Wireless Services' affiliate, WFI was selected by Telephia, Inc. to
conduct ongoing benchmarking of the nationwide cellular and PCS industry on a market level.
''We have also been chosen to provide services to BroadStream, formerly Commco Tec, in
connection with their build-out of a nationwide broadband wireless network that provides small
and midsize enterprises with high-speed Internet access to voice, video and data services.''
''The positive results for the third quarter reflect a growing depth in our service offering as we
expand to meet the needs of the wireless communications market,'' said Masood Tayebi, President
of WFI. ''We offer turnkey network deployment services that position us to provide our
customers with a comprehensive solution for outsourcing their networking deployment and
management needs.
''Our success is dependent upon our ability to enhance our current service offerings to keep pace
with technological developments and to address increasingly sophisticated customer needs. We
have developed a proven methodology for planning and deploying wireless networks that allows us
to deliver reliable, scalable network solutions.
''In outsourcing this function, our customers are better able to focus on their core competencies
and rely on us for planning, deploying and managing their networks. As a result, we believe this
enables our customers to more reliably forecast the costs and timing of network deployment and
management, representing a true value proposition.''
Wireless Facilities, Inc.
A global leader in telecommunications outsourcing, Wireless Facilities plans, designs, deploys and
manages wireless networks for some of the largest telecom carriers and equipment suppliers
worldwide.
With in-depth experience in all forms of wireless technology, WFI provides a complete range of
network services -- from business and market planning to fixed network engineering, radio
frequency engineering, geographic information systems, site development, installation, optimization
and maintenance.
Headquartered in San Diego, Calif., WFI has grown to more than 725 employees working in 26
countries since the firm was founded in late 1994. The Company also has offices in Washington,
D.C., Mexico City, Sao Paulo, New Delhi and London. News and information are available at
www.wfinet.com. |
