MILPITAS, Calif.--(BUSINESS WIRE)--Jan. 13, 2000--Com21, Inc.
(Nasdaq:CMTO) today reported financial results for the three and 12-month period
ended December 31, 1999.
For the fourth quarter ended December 31, 1999, revenues were $29.7 million, up 59%
from $18.7 million in the same quarter a year ago. On a sequential basis, the Company's
revenues increased 18% from $25.3 million in the third quarter of 1999. Com21
reported a net loss for the fourth quarter of $4.0 million, or $0.19 per share, compared
to a net loss of $2.4 million or $0.13 per share in the fourth quarter of 1998, and $2.5
million or $0.12 per share in the third quarter of 1999.
Revenues for the 12-month period ended December 31, 1999 were $95.7 million nearly
double last year's revenues. The Company reported a net loss for fiscal year 1999 of
$10.3 million, or $0.49 per share, compared to a net loss of $13.4 million, or $1.10 per
share, during fiscal year 1998.
Peter D. Fenner, president and chief executive officer, commented, "I am extremely
pleased to report the results for the fiscal year ended 1999. Com21 achieved record
revenue both for the fourth quarter of 1999 as well as for the year, and we enter the first
quarter of 2000 with a very healthy book to bill. For the fourth quarter, bookings were
up 235% over the prior year's fourth quarter. Unit sales during the year rose to 280,000
from 77,000 and we increased the number of households passed by 4.8, bringing the
number up to 14.0 worldwide. While the overall market for cable modems doubled in
1999, Com21's sales of cable modems tripled, which makes a very strong statement
about the quality of our products. Moving forward in 2000, we feel that the convergence
of data, voice and video presents tremendous opportunities for Com21."
"Financial achievements aside, 1999 was an outstanding year for Com21. During the
year, the Company achieved many important milestones, including receiving
CableLabs(R) DOCSIS certification, and, being one of the first to achieve both Cisco
interoperability and Excite@Home Level 2 approval. This quarter we also announced
the appointment of Ron Foster to the newly created position of chief operating officer
and we are delighted to welcome him aboard. Ron's background and experience in
business operations will enable Com21 to better execute and expand our global
footprint. These accomplishments illustrate Com21's commitment to meet our customers'
needs while positioning ourselves to take advantage of the dramatic growth of our
industry," concluded Fenner.
Ron Foster, chief operating officer added, "I am excited to be joining the Company at
this significant juncture. I believe my presence will allow Pete to focus his energies on our
customers and new business efforts, while Com21 continues to enhance our products
with the latest features and to leverage our technological superiority into the broadband
access market."
A live broadcast and an audio replay of Com21's fourth quarter and year-end
conference call will be available on the Investor Relations page of the Company's web
site, www.com21.com.
About Com21, Inc.
Com21, Inc., is a leading global provider of system solutions for the broadband access
market. The Company's DOCSIS, DVB and ATM-based products enable cable
operators and service providers with the ability to deliver high-speed, cost-effective
Internet and telephony applications to corporate telecommuters, small businesses, home
offices and residential users. Com21 has shipped 370,000 cable modems worldwide
through December 31, 1999.
Com21 is an ISO 9001 registered company headquartered in Milpitas, California, USA,
and maintains domestic and international sales and support locations in the United States,
Canada, Europe, Asia, and Latin America.
Safe Harbor Clause
This press release contains forward-looking information within the meaning of Section
27A of the Securities Act of 1933 and Section21E of the Securities Exchange Act of
1934, and is subject to the safe harbors created by those sections. Those
forward-looking statements include statements related to: the ability of Com21, Inc. to
continue to meet marketing, technology and customer demands as it relates to its
products within the broadband market. Actual results may differ materially due to a
number of factors, including numerous technological, operational and financial challenges
associated with deploying, manufacturing, marketing, distributing and servicing
broadband products. The matters discussed in this press release also involve risks and
uncertainties concerning Com21's products and services described in Com21's filings
with the Securities and Exchange Commission (SEC). In particular see the risk factors
described in the Company's Form 10K for the fiscal year ended December 31, 1998,
and Form 10Q for the fiscal quarter ended September 30, 1999. Com21 assumes no
obligation to update the forward-looking information contained in this press release.
Note to Editors: Com21, Inc.,(R) is a registered trademark or trademark of Com21,
Inc., Milpitas, California, U.S.A. All other brands are trademarks or registered
trademarks of their respective owners. -0-
*T
COM21, INC.
CONDENSED BALANCE SHEETS
(In thousands)
(Unaudited)
December 31, December 31,
1999 1998
ASSETS
Current assets:
Cash and cash equivalents $ 16,499 $ 7,135
Short-term investments 89,524 58,609
Accounts receivable 19,207 4,834
Inventories 4,518 5,282
Prepaid expenses and other 2,931 586
Total current assets 132,679 76,446
Property and equipment, net 8,146 6,247
Other assets 296 255
Total Assets $ 141,121 $ 82,948
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 11,396 $ 4,033
Accrued compensation and
related benefits 3,732 1,739
Deferred revenue 317 238
Other current liabilities 4,428 1,232
Current portion of capital
lease obligations 538 1,120
Total current liabilities 20,411 8,362
Deferred rent 304 284
Capital lease obligations 345 936
Total liabilities 21,060 9,582
Stockholders' equity: 120,061 73,366
Total Liabilities and
Stockholders' Equity $ 141,121 $ 82,948
COM21, INC.
CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
1999 1998 1999 1998
Revenues $ 29,718 $ 18,697 $ 95,743 $ 48,114
Cost of revenues 20,741 10,633 60,918 29,573
Gross profit 8,977 8,064 34,825 18,541
Operating expenses:
Research and development 8,164 6,574 29,821 19,936
Sales and marketing 4,931 3,551 16,250 10,273
General and
administrative 1,248 1,190 4,104 3,871
Total operating
expenses 14,343 11,315 50,175 34,080
Loss from operations (5,366) (3,251) (15,350) (15,539)
Total other income, net 1,380 802 5,104 2,190
Loss before income taxes (3,986) (2,449) (10,246) (13,349)
Provision for
income taxes 0 0 55 14
Net loss $ (3,986) $ (2,449) $ (10,301) $ (13,363)
Net loss per share,
basic and diluted $ (0.19) $ (0.13) $ (0.49) $ (1.10)
Shares used in
computation,
basic and diluted 21,532 18,467 20,932 12,150
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CONTACT: Com21, Inc
David Robertson, 408/953-9100 (CFO/VP Finance)
Judith Yoakum, 408/953-9100 (Investor Relations)
judy@com21.com
or
Morgen-Walke Associates
Carolyn Bass, Ty George, 415-296-7383 (Agency Contact)
Alicia Nieva-Woodgate, 415-296-7383 (Media Contact)
cbass@mwa-sf.com
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