WFII reports. Looks good
WIRELESS FACILITIES ANNOUNCES STRONG THIRD QUARTER 1999 RESULTS
Company Achieves Significant Top-Line Growth and Continues Earnings Gains
SAN DIEGO, CA, December 1, 1999 ? Wireless Facilities, Inc. (WFI) (NASDAQ: WFII), 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 September 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 proforma 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 September 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 September 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 September 30, 1999 increased to 45%, compared to 43% for the same period in 1998. For the nine months ended September 30, 1999, gross margins were 40%, compared to 48% for the nine months ended September 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." |
