January 27, 2000 04:35 PM
SAN JOSE, Calif.--(BUSINESS WIRE)--Jan. 27, 2000--Netro Corp. NTRO , a market leader in broadband wireless access systems, today reported its fourth quarter and annual results for the period ended Dec. 31, 1999.
Revenues for the fourth quarter of 1999 were $7.7 million, compared with $1.6 million for the fourth quarter of 1998, an increase of 381 percent.
On a sequential basis, compared with the third quarter of 1999, revenues increased 49 percent. The net loss for the fourth quarter of 1999 was $7.5 million or a pro forma $(0.17) per share, compared with $6.5 million or a pro forma $(0.18) per share for the fourth quarter of 1998.
Revenues for the year 1999 were $18.2 million, compared with $5.4 million for the year 1998. The net loss was $28.8 million or a pro forma $(0.71) per share for the year ended Dec. 31, 1999, compared with $28.8 million or a pro forma $(0.84) per share for the year 1998.
Gideon Ben-Efraim, president and chief executive officer, commented, "We are pleased to see the growing acceptance of broadband wireless equipment as a solution for the last mile bottleneck with 40 Netro AirStar deployments, with some covering multiple cities worldwide."
Separately, Netro today announced that it has signed an agreement with NEC America to manufacture digital elements of the AirStar system. "Adding an additional manufacturing partner is part of our strategy to ramp up capacity to support the volumes required for mass deployments," said Ben-Efraim. "We are excited about working with a company as strong as NEC America."
About Netro Corp.
Netro Corp. NTRO is a leading provider of intelligent broadband wireless access solutions for Internet and telecom service providers worldwide. Netro's broadband wireless access system, AirStar, derives its price performance benefit from its proprietary packet-based technology that maximizes spectrum usage through dynamic bandwidth allocation.
AirStar is one of the first commercially available broadband wireless access systems, carrying IP and voice traffic using a point-to-multipoint architecture.
For more information, contact Netro Corp., 3860 North First Street, San Jose, Calif. 95134-1702; 408/216-1500; netro-corp.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements involving risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. Potential risks and uncertainties include, but are not limited to, Netro's historical and future losses, limited operating history, dependence on a single product, fluctuations in quarterly operating results and limited manufacturing experience. Further information regarding these and other risks is included in Netro's prospectus dated Aug. 18, 1999, and in its other filings with the Securities and Exchange Commission.
NETRO CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
Dec. 31, Dec. 31,
1999 1998
ASSETS
Cash, cash equivalents
and short term investments $ 45,337 $ 15,128
Trade accounts
receivable, net 6,925 1,150
Inventory 7,909 4,315
Other assets 1,074 561
Equipment and leasehold
improvements, net 4,569 5,634
Total assets $ 65,814 $ 26,788
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of
long-term debt and
capital leases $ 6,764 $ 3,872
Trade accounts payable 5,064 1,327
Accrued liabilities 4,740 3,114
Total current liabilities 16,568 8,313
LONG-TERM DEBT AND
CAPITAL LEASES,
NET OF CURRENT PORTION 3,690 4,582
Total liabilities 20,258 12,895
Total shareholders' equity 45,556 13,893
Total liabilities and
shareholders' equity $ 65,814 $ 26,788
-0-
NETRO CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three months ended Twelve months ended
Dec. 31, Dec. 31,
1999 1998 1999 1998
(unaudited)
REVENUES $ 7,691 $ 1,599 $ 18,185 $ 5,438
COST OF REVENUES 6,626 2,844 14,874 9,640
GROSS PROFIT (LOSS) 1,065 (1,245) 3,311 (4,202)
OPERATING EXPENSES:
Research and
development 5,032 2,944 19,307 16,143
Sales and marketing 1,899 1,227 5,794 4,819
General and
administrative 1,706 1,078 6,259 3,968
Amortization of
deferred stock
compensation 297 -- 1,104 --
Total operating
expenses 8,934 5,249 32,464 24,930
LOSS FROM OPERATIONS (7,869) (6,494) (29,153) (29,132)
Other income
and expense, net 349 (52) 353 304
NET LOSS $ (7,520) $ (6,546) $(28,800) $(28,828)
Basic and diluted
net loss per share $ (0.17) $ (0.83) $ (1.31 ) $ (4.07)
Shares used to
compute basic
and diluted net 44,896 7,851 21,988 7,087
loss per share
Pro forma basic and
diluted net loss
per share(a) $ (0.17) $ (0.18) $ (0.71) $ (0.84)
Shares used to compute
pro forma basic
and diluted net
loss per share 44,896 35,580 40,616 34,391
(a) Pro forma basic and diluted net loss per share includes the
effect of the conversion of convertible preferred stock in all
periods.
CONTACT: Netro Corp., San Jose Michael T. Everett, 408/216-1520 mikee@netro-corp.com or Roni Floman, 408/216-1575 (investor relations) ronif@netro-corp.com
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