Wednesday April 23 4:18 PM EDT
Larscom Incorporated Reports First Quarter Results
Revenues and Earnings Increase 39% and 274%, respectively, in the First Quarter
SANTA CLARA, Calif.--(BUSINESS WIRE)--April 23, 1997-- Larscom Inc today reported its financial results for the first quarter ended March 31, 1997.
Revenues for the first quarter of 1997 increased 39% to $16,410,000 compared to $11,848,000 for the first quarter of 1996. Net income for the first quarter grew 274% to $1,334,000, or $0.07 per share, compared to $357,000, or $0.03 per share, for the first quarter of 1996.
"We are pleased with our revenue and income growth for the first quarter of 1997," commented Deborah Soon, President and Chief Executive Officer of Larscom Incorporated. "Our solid financial performance for the quarter reflects growth, year over year, in both broadband and digital access products."
"Gross margins improved in the quarter to 54.9% compared to 54.2% in the first quarter of last year, and 54.3% in the immediately preceding fourth quarter, as we achieved cost-efficiencies on the broadband product side of our business. Broadband sales grew 157% to $5,554,000, or 34% of total sales, compared to $2,162,000, or 18% of total sales, in the first quarter of 1996. We continued to invest heavily in R&D, at a rate of 13.5% of sales during the period, as we focused on developing additional application modules for the Orion 4000 for the broadband market," added Deborah Soon.
Larscom Incorporated is a leading provider of high-speed wide area network (WAN) access equipment. Its customers include carriers, Internet service providers, corporate users, and government agencies worldwide. Its products cover a wide range of transmission rates and services, including full and fractional T1, E1, NxT1, NxE1 and T3, as well as frame relay and ATM inverse multiplexing. To help ensure optimum network performance, Larscom's products feature advanced monitoring, diagnostic and management functions, including SNMP. The Company's headquarters are located at 4600 Patrick Henry Drive, Santa Clara, California 95054.
Any forward looking statements in this news release are based on current expectations and beliefs and are subject to risks and uncertainties that could cause the actual results to differ materially. Factors that could cause actual results to differ materially include customer concentration, dependence on recently introduced products and products under development, rapid technological change, no recent independent operating history, fluctuations in quarterly operating results; absence of significant backlog, as well as additional risk factors as discussed in the "Risk Factors" section of Larscom's prospectus, dated December 18, 1996, and Larscom's annual report on Form 10-K filed with the U.S. Securities Exchange Commission.
LARSCOM INCORPORATED
STATEMENTS OF OPERATIONS (Unaudited)
(In thousands, except per share amounts)
Quarter Ended
March 31,
1997 1996
Revenues $16,410 $11,848
Cost of revenues 7,394 5,426
Gross profit 9,016 6,422
Operating expenses:
Research and development 2,216 1,756
Selling, general and administrative 5,180 4,060
Total operating expenses 7,396 5,816
Income from operations 1,620 606
Interest income/(expense), net 432
Income before income taxes 2,052 606
Provision for income taxes 718 249
Net income $1,334 $357
Net income per share $0.07 $0.03
Shares used in per share calculation 17,996 14,193
CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands)
Mar. 31, Dec. 31,
1997 1996
Assets
Current assets:
Cash and cash equivalents $50,832 $46,403
Accounts receivable, net 9,079 9,478
Inventories 11,079 8,654
Other current assets 2,863 2,748
Total current assets 73,853 67,283
Property and equipment 5,194 5,530
Other assets 210 230
Total assets $79,257 $73,043
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $3,664 $2,569
Accrued expenses and other current
liabilities 5,460 7,441
Income taxes payable 570 --
Due to Axel Johnson 2,392 1,329
Total current liabilities 12,086 11,339
Deferred income taxes 259 259
Stockholders' equity:
Class A and B Common Stock 181 177
Additional paid-in capital 80,521 76,392
Retained earnings (accumulated deficit) (13,790) (15,124)
Total stockholders' equity 66,912 61,445
Total liabilities and
stockholders' equity $79,257 $73,043
CONTACT: Larscom Incorporated
Bruce Horn, 408/988-6600
or
Morgen-Walke Associates
Chris Danne, Alex Williamson, Douglas Sherk, 415/296-7383
David Sasso, Josh Passman, 212/850-5600 or 212/850-5698 |
