WFII
Wireless Facilities Announces Strong Third Quarter 1999 Results; Company
Achieves Significant
Top-Line Growth and Continues Earnings Gains
Business & Technology Editors
SAN DIEGO--(BUSINESS WIRE)--Dec. 2, 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 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.
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