smra's 10 cents beat the street by 3 cents... thats an almost 50% upside surprise if im doing the math right... lets hope this stock finally gets the attention it deserves!!
Thursday January 27, 4:12 pm Eastern Time
Company Press Release
Somera Communications, Inc. Reports Record Results for the Fourth Quarter and Year End 1999
FY 99 Q4 Revenues Up 82 Percent Versus FY 98 Q4
SANTA BARBARA, Calif.--(BUSINESS WIRE)--Jan. 27, 2000--Somera Communications, Inc. (Nasdaq: SMRA - news), a leading provider of new, de-installed and refurbished telecommunications equipment and related services, today announced record financial results for its fourth quarter and year ended December 31, 1999.
Revenue for the fourth quarter of 1999 was a record $38.1 million, up 82 percent from the $20.9 million reported for the fourth quarter of 1998. For the year ended December 31, 1999, the Company reported record revenues of $125.1 million, up 73 percent from revenue of $72.2 million for 1998.
Adjusted net income for the quarter was $4.4 million, or $0.10 per share on 43.4 million shares, compared with adjusted net income of $3.4 million, or $0.09 per share on 38.1 million shares, for the fourth quarter of 1998. Adjusted net income for the year was $14.8 million, or $0.38 per share on 39.4 million shares, compared with adjusted net income of $11.5 million, or $0.30 per share on 38.1 million shares, in 1998. (1)
''We are extremely pleased with our performance during the fourth quarter and for the entire year. Our strong business model, combined with the growing demand for our services, has enabled us to increase our annual revenue 73 percent over 1998,'' said Dan Firestone, CEO and president. ''During the quarter we continued to focus on meeting our customers' needs while expanding our product and service offerings to meet the growing requirements of carriers in this expanding industry.''
Adjusted net income for 1999 and 1998 reflect a pro forma tax charge of 40 percent and excludes a $19.0 million deferred tax credit arising in the fourth quarter of 1999 as a result of the conversion of the company from a limited liability company to a 'C' Corporation. As a limited liability company, Somera Communications was not subject to federal and state income taxes. Adjusted net income for 1999 also excludes a one-time charge of $1.1 million arising in the fourth quarter from the repayment of debt and $774,000 of non-cash stock-based compensation charges, of which $122,000 relates to the fourth quarter.
Net income for the fourth quarter of 1999, based upon actual taxation charges, including the deferred tax credit, one-time debt repayment charges and non-cash stock-based compensation was $23.5 million, or $0.54 per share, on 43.4 million shares and net income for the year was $40.2 million, or $1.02 per share on 39.4 million shares.
On November 12, 1999 the Company closed an initial public offering of 9,775,000 shares of its common stock at $12 per share. The Company raised approximately $107 million in net proceeds from the sale of these shares.
Conference Call
Somera will make its fourth quarter earnings conference call available to the general public. The call, hosted by Dan Firestone, CEO and president of Somera, can be accessed by dialing (712) 271-0916. The replay of the call can be accessed by dialing (402) 530-7663, using access code 6986224 and will be available beginning today, Thursday, January 27th until Thursday, February 3rd, at 12:00 Midnight (PT).
About Somera Communications
Somera Communications is a leading provider of a broad range of telecommunications infrastructure equipment and services designed to meet the needs of the carriers in this expanding industry. Somera offers its customers a unique combination of new, de-installed, and refurbished equipment from a variety of manufacturers allowing customers to make multi-vendor purchases from a single cost-effective source.
In addition to supplying equipment, Somera offers its customers a suite of customized, value-added services that enables telecom operators to build out their networks more rapidly and cost effectively, allowing them to focus on their core business model. The Company prides itself on its strong commitment to customer service with its sales teams working individually with each carrier to understand and meet their ongoing equipment requirements, just-in-time delivery and competitive prices to wireless and landline service providers around the world. Visit Somera on the web at www.somera.com.
Except for historical information contained herein, the matters discussed in this news release may contain ''forward-looking statements'' that involve risks and uncertainties. These statements may differ materially from actual future events or results. Factors that could cause actual results to differ include, but are not limited to, general conditions in the telecommunications industry, the impact of competition and a shortage of product supply. Readers are referred to the documents filed by Somera with the Securities and Exchange Commission, specifically, Somera's final prospectus, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements.
(1) Earnings per share are reported as basic EPS figures.
SOMERA COMMUNICATIONS, INC.
STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Quarter Ended Year Ended
December 31, December 31,
1999 1998 1999 1998
------- ------- ------- -------
Net revenue $38,087 $20,915 $125,121 $72,186
Cost of net revenue 24,343 12,242 81,021 43,132
------- ------- ------- -------
Gross profit 13,744 8,673 44,100 29,054
Operating expenses:
Sales and marketing 3,082 1,852 10,320 5,747
General and
administrative 2,897 1,017 7,982 3,939
Stock-based compensation 122 -- 774 --
------- ------- ------- -------
Total operating expenses 6,101 2,869 19,076 9,686
Income from operations 7,643 5,804 25,024 19,368
Interest expense, net 1,537 70 2,193 187
------- ------- ------- -------
Income before
income taxes 6,106 5,734 22,831 19,181
Income tax benefit (17,403) -- (17,403) --
------- ------- ------- -------
Net income $23,509 $5,734 $40,234 $19,181
======= ======= ======= =======
Earnings per share - basic $0.54 $0.15 $1.02 $0.50
======= ======= ======= =======
Earnings per share - diluted $0.53 $0.15 $1.02 $0.50
======= ======= ======= =======
Computation of adjusted
earnings per share:
Income before income taxes $6,106 $5,734 $22,831 $19,181
One-time charge
on debt payoff 1,096 -- 1,096 --
Stock-based compensation 122 -- 774 --
------- ------- ------- -------
Adjusted income
before taxes 7,324 5,734 24,701 19,181
Pro forma income
taxes at 40% 2,930 2,294 9,880 7,672
------- ------- ------- -------
Adjusted net income $4,394 $3,440 $14,821 $11,509
======= ======= ======= =======
Adjusted earnings
per share - basic $0.10 $0.09 $0.38 $0.30
======= ======= ======= =======
Adjusted earnings
per share - diluted $0.10 $0.09 $0.38 $0.30
======= ======= ======= =======
Weighted average number
of shares outstanding:
Basic 43,443 38,063 39,408 38,063
Diluted 44,034 38,063 39,484 38,063
SOMERA COMMUNICATIONS, INC.
CONDENSED BALANCE SHEETS
(in thousands)
December 31, December 31,
ASSETS 1999 1998
Current Assets: ----------- -----------
Cash and cash equivalents $54,492 $1,930
Accounts receivable, net 19,592 10,237
Inventories 18,386 4,067
Other current assets 2,407 186
----------- -----------
Total current assets 94,877 16,420
Property and equipment, net 1,505 547
Deferred tax asset 18,726 --
Other assets 643 42
----------- -----------
Total assets $115,751 $17,009
=========== ===========
LIABILITIES AND
STOCKHOLDERS'/MEMBERS' EQUITY
Current Liabilities:
Accounts payable $23,636 $5,901
Accrued commissions & wages 1,707 496
Other accrued liabilities 2,199 541
Income taxes payable 508 --
Capital lease
obligations - current portion 830 --
----------- -----------
Total current liabilities 28,880 6,938
Long-Term Liabilities:
Notes payable - net of
current portion -- 3,457
----------- -----------
Total liabilities 28,880 10,395
Stockholders'/Members' Equity 86,871 6,614
----------- -----------
Total liabilities and
stockholders'/members' equity $115,751 $17,009
=========== ===========
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Contact:
Somera Communications, Inc.
Gary Owen, 805/681-3322 (Chief Financial Officer)
or
Stapleton Communications Inc.
Bob Okunski, 650/470-4204
somera@stapleton.com
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