Premisys Announces Shortfall in Quarterly Revenues and Earnings
Part of the shortfall was due to failure to obtain large orders of Slimlines from Nortel
FREMONT, Calif., June 23 /PRNewswire/ -- Premisys
(NASDAQ:PRMS) today announced that it will report
lower than anticipated revenues and earnings for the quarter
ending June 30, 1999. The Company expects to report
revenues of between $14 and $15 million and a loss of
between $0.05 and $0.08 per share. For the quarter ended March 31, 1999, the Company reported revenues of $26.7 million and earnings per share of $0.10.
These estimates are based upon information currently available to the Company. There will be a conference call to discuss these estimates held at 2:00 p.m. PDT today. The access number is 719-457-2645. The call will also be broadcast live over the internet at www.vcall.com. Premisys will report its complete financial results for the quarter ending June 30, 1999 on July 22, 1999.
The Company believes that substantially all of the shortfall in revenues and earnings resulted from a failure to obtain large orders expected in June from three of its major OEM partners -- Paradyne, Nortel and XEL. The Paradyne order did not materialize because of the
slowdown in a large project in Saudi Arabia into which its customer, Lucent Technologies, has been deploying hundreds of IMACS over several quarters going back to the beginning of 1998. Nortel did not place orders for additional SlimLines because it had not shipped out of its inventory a significant portion of the 3,000 units stocked with its initial order last quarter. Orders for StreamLines and IMACS, anticipated from Nortel in June were not received because Nortel did not receive orders from two large CLECs who had approved Premisys products as access solutions in some of their major markets. In the case of XEL, new orders and backlog scheduled for shipment in June were held up because of software upgrades that occurred during the quarter which delayed deployment schedules.
Premisys Communications, Inc. designs, manufactures and markets integrated access products for telecommunications service providers. The Company pioneered the integrated access device market with the introduction of the Integrated Multiple Access Communications Server ("IMACS") products in 1991. The IMACS products enable public carriers to provide their business customers with flexible, cost-effective and reliable access to telecommunications services. In 1998, the Company introduced two new integrated access products, the SlimLine and the StreamLine, which address simpler, single T1 access applications. The Company's principal offices are at 48664 Milmont Drive, Fremont, CA 94538.
This press release contains forward-looking statements regarding the Company's expected revenues and earnings for the fourth quarter of fiscal 1999 and the reasons for the expected shortfall between current and earlier expectations for such financial results. These forward
looking statements involve risks and uncertainties that may cause actual results to differ from current expectations, including risks related to confirmation of sales levels and expenses for the quarter, and the ability to obtain orders and ship additional products prior
to the end of the quarter. Certain of these and other risks are detailed in the Company's reports filed with the SEC, including the Company's Form 10-K for the year ended June 20, 1998 and its Forms 10-Q for the subsequent quarters.
Contact: John J. Hagedorn, CFO of Premisys Communications, Inc., 510-353-7600
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