JDSU will handily beat the estimates this quarter, IMO. More evidence of growth in fiber optics:
Digital Lightwave Reports Record Revenues and Earnings for Third-Quarter 1999
$14.2 Million Revenues, $0.09 EPS; Company Reports Other Matters
CLEARWATER, Fla., Oct. 14 /PRNewswire/ -- Digital Lightwave(R), Inc. (Nasdaq: DIGL), a leading provider of innovative optical networking products and technology, today announced record revenues and earnings for the third quarter ended September 30, 1999.
Third-quarter revenues were $14.2 million, more than double the $6.9 million reported a year ago and up 32 percent sequentially from revenues of $10.7 million for the second quarter of 1999. Net income was $2.6 million, or $0.09 earnings per share (diluted), up from $0.1 million, or just above break-even per share, for the second quarter and compared with a net loss of $4.5 million, or a loss of $0.17 per share, for the third quarter of 1998.
"The Internet and other multimedia services are driving increases in bandwidth demands that require the deployment of optical networking technologies," said Gerry Chastelet, chairman, president and chief executive officer of Digital Lightwave. "By providing products that enable the cost-effective installation, maintenance and management of optical networks, Digital Lightwave is playing a significant role in helping to optimize network performance and meet these demands. This trend, and the strength of our high-speed optical monitoring technology, has spurred Digital Lightwave's operating growth and profitability to date."
Revenues for the nine months of 1999 were $33.0 million, more than double the revenues of $15.9 million reported for the nine months of 1998. Net income for the nine months of 1999 was $1.1 million, or $0.04 per share, compared with a pro forma net loss of $14.1 million, or a loss of $0.53, for the same period a year ago. The pro forma net loss excludes $9.5 million, or $0.36 per share, of special charges related to a litigation settlement and a restructuring recognized in the first half of fiscal 1998.
During the third quarter, Digital Lightwave added several new customers, including 2nd Century Communications, Cellular South, KMC Telecom, Motorola, Progress Telecommunications (an affiliate of Florida Power), and World Wide Technology. Existing customers taking product deliveries during the quarter included Alcatel, Ameritech, AT&T Local Services, BellSouth, Cerent, CIENA, Cisco Systems, IXC, Level 3, MCI WorldCom, Nortel Networks, and Tellabs.
Other highlights of the quarter included the introduction of a new product in the Network Access Agent(TM) (NAA(TM)) product family, the NAA IV, designed for Dense Wave Division Multiplexing (DWDM). The NAA IV was developed in response to customers' needs for a centralized test and monitoring system, which enables communications service providers to more easily, cost-effectively and rapidly monitor, test and resolve network issues for both new and existing optical networks.
Other Matters
The company and Dr. Bryan J. Zwan, the company's majority stockholder and a director, entered into an agreement which provides that (i) the board size will be increased from four to five members, (ii) two new outside directors will be appointed to the board upon the approval of Dr. Zwan and a majority of the current board and one current outside director will step down, (iii) the newly formed board will stay in place at least until the company's annual meeting in 2001 and (iv) the company will enter into agreements containing provisions with respect to change of control, severance and non-compete with current senior management. With respect to the Company's current financing needs, the company is considering financing alternatives including the conversion of the pending registration statement on file with the Securities and Exchange Commission into an equity offering. There can be no assurance that the company will be successful in completing a public offering or obtaining alternative financing on a timely basis, if at all. The company is unable to predict the impact that these events will have on the company's business, results of operations or its financial condition.
About Digital Lightwave
Digital Lightwave serves the growing optical networking industry -- high-speed telecommunications networks based on fiber-optic technology -- with products that monitor, maintain and manage voice, data and multimedia communication networks. Digital Lightwave customers include leading telecommunications service providers and equipment manufacturers. The company is headquartered in Clearwater, Florida, and can be located on the Internet at lightwave.com .
Except for the historical statements made herein, this release contains certain forward-looking statements that may involve a number of risks and uncertainties. Factors that could cause actual results or events to differ materially from these forward-looking statements include: the company's limited operating history; quarterly fluctuations in its operating results; control by a majority shareholder; dependence on a limited number of products; rapid technological changes; the company's ability to compete effectively with other companies; its dependence on a limited number of major customers; its dependence on contract manufacturing and limited source suppliers; delays in product development and delivery schedules; the company's success in relocating its production and assembly operations; its ability to manage its growth; its ability to enter into strategic relationships; its dependence on key personnel; its dependence on proprietary technology; its success in defending significant litigation; liquidity risk and future capital needs; general business conditions; and other factors described in the company's filings with the Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. The company assumes no obligation to update information contained in this release.
NOTE: Digital Lightwave(R), Network Access Agent(TM) and NAA(TM) are registered trademarks and trademarks of Digital Lightwave, Inc.
Digital Lightwave, Inc.
Consolidated Statements of Operations
(Unaudited)
(In thousands, except share and per-share data)
Three Months Ended Nine Months Ended
September 30, September 30,
1999 1998 1999 1998
Sales $14,162 $6,915 $33,002 $15,864
Cost of goods sold 4,851 2,620 11,729 6,057
Gross profit 9,311 4,295 21,273 9,807
Operating expenses:
Engineering and development 2,325 4,290 7,746 11,291
Sales and marketing 3,147 3,526 9,006 8,562
General and administrative 1,187 1,096 3,511 4,639
Reorganization charges -- -- -- 1,018
Litigation settlement -- -- -- 8,500
Total operating expenses 6,659 8,912 20,263 34,010
Operating income (loss) 2,652 (4,617) 1,010 (24,203)
Other income (11) 102 63 547
Income (loss) before
income tax 2,641 (4,515) 1,073 (23,656)
Provision for income taxes -- -- -- --
Net income (loss) $2,641 ($4,515) $1,073 ($23,656)
Per share of common stock:
Net income (loss) per share $0.10 ($0.17) $0.04 ($0.89)
Diluted income (loss)
per share $0.09 ($0.17) $0.04 ($0.89)
Weighted average common
shares outstanding 26,863,115 26,484,670 26,656,797 26,463,408
Weighted average
common and common
equivalent shares
outstanding 28,590,833
26,484,670 27,517,832
26,463,408
Digital Lightwave, Inc.
Consolidated Balance Sheets
(In thousands)
September 30, December 31,
1999 1998
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $4,779 $3,848
Accounts receivable, net 11,533 7,152
Inventories 5,396 5,476
Prepaid expenses and other current assets 1,720 748
Total current assets 23,428 17,224
Property and equipment, net 8,938 9,274
Other assets 925 1,060
Total assets $33,291 $27,558
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $8,506 $6,468
Accrued settlement charges 6,305 8,489
Notes payable, net of discount 2,996 --
Interest payable 132 --
Total current liabilities 17,939 14,957
Long-term liabilities 189 281
Total liabilities 18,128 15,238
Stockholders' equity:
Preferred stock -- --
Common stock 3 3
Additional paid-in capital 59,697 57,927
Accumulated deficit (44,537) (45,610)
Total stockholders' equity 15,163 12,320
Total liabilities and
stockholders' equity $33,291 $27,558
SOURCE Digital Lightwave, Inc.
/CONTACT: Steven Grant, Chief Financial Officer, or William Rooney,
Corporate Communications Director, both of Digital Lightwave, Inc.,
727-442-6677/ |
