(PR NEWSWIRE) Alteon WebSystems Reports Results for Fiscal First Quarter
Alteon WebSystems Reports Results for Fiscal First Quarter
FY 00 Q1 Revenues up 62 Percent vs FY 99 Q4
SAN JOSE, Calif., Oct. 26 /PRNewswire/ -- Alteon WebSystems, Inc.
(Nasdaq: ATON) today reported financial results for the quarter ended Sept.
30, 1999, which is the first quarter of our fiscal 2000 and our first quarter
as a public company.
Revenues for the first quarter of fiscal 2000 were a record $12.7 million,
up 62 percent from the $7.9 million reported in the fourth quarter of fiscal
1999, and up 149 percent from $5.1 million in revenues reported in the
comparable period of fiscal 1999.
Net loss for the quarter was $12.1 million, or a loss of $1.20 per share,
based on 10.1 million shares.* Net loss for the quarter included a one-time,
non-cash compensation expense of $7.6 million resulting from stock options
granted to consultants. Excluding the non-cash compensation expense, net loss
for the first quarter was $4.5 million, or a loss of $0.45 per share. This
compares with a net loss of $3.9 million, or a loss of $0.45 per share on 8.7
million shares for the fourth quarter of fiscal 1999, and net loss of $2.5
million, or a loss of $0.39 per share on 6.5 million shares, for the
comparable period of fiscal 1999.
* The weighted average 10.1 million shares for the first quarter includes
only 445,000 weighted average shares associated with the preferred stock
due to the timing of the IPO closing in the quarter. If the preferred
conversion had occurred on the first day of the quarter, weighted
average shares would have been 30.3 million for the quarter.
The company closed an initial public offering of 4,600,000 shares of its
common stock on Sept. 29, 1999, including 600,000 shares sold as the result of
the exercise of the over allotment option, raising approximately $79.6 million
in net proceeds. The outstanding shares of Alteon preferred stock converted
into common stock on that date.
"We are pleased to report record revenues; up 149 percent over last year
and up 62 percent sequentially," said Dominic Orr, president and CEO of Alteon
WebSystems. "We added 135 new customers this quarter, including such
prominent companies as Buy.com, CMP Media and DLJdirect.
"Also during the quarter, we made great strides in increasing our sales
staff and marketing programs worldwide. Today we are excited to announce that
we recruited Steve Wood to be vice president of our Asia Pacific Operations.
Mr. Wood, who was formerly Nortel's president of the Carrier Packet Solutions
business unit in the Asia Pacific, joins us with more than 10 years of direct
networking industry experience in sales and marketing in the Asia Pacific
region. We are pleased to have Mr. Wood join our team and know that Alteon
will benefit greatly from his experience."
Alteon WebSystems is a leading provider of next generation Internet
infrastructure solutions that are designed to enable e-businesses to meet the
demands resulting from the rapid growth of the internet. Our web data center
products, which include switches, server adapters and software, are optimized
to meet the specific challenges of managing web traffic and provide the high
performance and availability of leading networking infrastructure solutions.
These Web systems are now deployed in Internet data centers around the world
by premiere portals, online destinations, Web hosters and ISPs such as Yahoo!,
Concentric Network, DIGEX, WebTV, Frontier Global Center and many others.
Founded in May of 1996, Alteon WebSystems employs a staff of over 200 around
the world and is publicly traded on The Nasdaq Stock Market(R) under the
symbol "ATON." Visit Alteon WebSystems on the World Wide Web at
alteon.com.
This release may contain forward-looking statements that are subject to
risks and uncertainties. Factors that could cause actual results to differ
materially include, but are not limited to, risks related to market acceptance
of our products and product enhancements, changes in the fundamental
technology underlying computer networking, the interoperability of our
products with our customers' networks or with the products of other vendors,
the release of competitive products and other actions by competitors, need to
maintain and expand our sales channels and our relationships with key
participants in the Internet marketplace, economic downturns in either
domestic or foreign markets. Please see the risks set forth in our
Registration Statement on Form S-1 (file no. 333-82605).
(Condensed Consolidated Statements of Operations and Balance Sheets to follow)
ALTEON WEBSYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
September 30, June 30,
1999 1999
ASSETS
Current assets:
Cash and equivalents $107,103 $29,766
Receivables - net 4,934 3,853
Inventory 4,550 2,632
Prepaid expenses and other current assets 866 397
Total current assets 117,453 36,648
Property and equipment - net 4,861 3,931
Other long-term assets 41 42
Total $122,355 $40,621
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $6,292 $3,561
Accrued liabilities 9,283 5,888
Current portion of long-term obligations 1,757 1,711
Total current liabilities 17,332 11,160
Long-term obligations 1,663 2,012
Total liabilities 18,995 13,172
Stockholders' equity:
Convertible preferred stock -- 58,294
Common stock 153,220 3,224
Notes receivable from stockholders (6,133) (2,465)
Deferred compensation (183) (196)
Accumulated deficit (43,544) (31,408)
Total stockholders' equity 103,360 27,449
Total $122,355 $40,621
ALTEON WEBSYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Quarter Ended
September 30, June 30,
1999 1999
Net sales $12,750 $7,866
Cost of sales 5,447 4,004
Gross profit 7,303 3,862
Operating expenses:
Sales and marketing 6,820 4,127
Research and development 3,989 2,918
General and administrative 1,283 725
Stock compensation to consultants 7,638 --
Total operating expenses 19,730 7,770
Loss from operations (12,427) (3,908)
Other income (expense), net 331 75
Loss before income taxes (12,096) (3,833)
Income tax expense 40 73
Net loss $(12,136) $(3,906)
Basic and diluted net loss per common share $(1.20) $(0.45)
Basic and diluted shares used in computation 10,095 8,697
SOURCE Alteon WebSystems, Inc.
-0- 10/26/1999
/CONTACT: Jim Burke, Chief Financial Officer of Alteon WebSystems, Inc.,
408-360-5500; or Kristine Mozes of Stapleton Communications Inc.,
408-470-4225, for Alteon WebSystems, Inc./
/Web site: alteon.com
(ATON) |
