Com21 Reports Record Revenues of $41.6 Million In First Quarter of 2000
MILPITAS, Calif.--(BUSINESS WIRE)--April 13, 2000--Com21, Inc. (Nasdaq:CMTO) today reported financial results for the quarter ended March 31, 2000.
Revenues for the first quarter of 2000 were $41.6 million, an increase of 116% from $19.2 million recorded in the first quarter of 1999, and a 40% increase sequentially. Com21 reported a net loss for the quarter of $2.4 million, or $0.11 per share, compared to a net loss of $1.6 million, or $0.08 per share, in the comparable period of 1999. This is a sequential improvement of $0.08 per share compared to the fourth quarter of 1999, in which Com21 reported a net loss of $4.0 million, or $0.19 per share.
Peter D. Fenner, president and chief executive officer, commented, "This has been an exceptional quarter for Com21. We achieved record revenue during the three month period and our bottom line far exceeded expectations. Modem unit sales for the first quarter increased by over 52% and we have a very strong book to bill going into the second quarter. We have seen widespread approval of our CableLabs(R) Certified(TM) modems and continued worldwide demand for our proprietary solutions."
"As a key strategic element of our broadband voice strategy, we announced our cable telephony solution at the CeBIT Trade Show in Hannover, Germany in March. The ComUNITY VoX(TM) solution is one of the first end-to-end systems to integrate toll-quality voice with broadband data over the cable infrastructure. The ComUNITY VoX system uses our existing ComUNITYAccess(R) System with Tdsoft's voice access gateway to offer broadband voice services today over ATM. Products such as the ComUNITY VoX, established for the E1 V5.2 public switched telephone network (PSTN) standard will allow service providers to maintain simplified and cost efficient converged networks. Overall, we believe that Com21 is well positioned to excel in the new voice-over-cable market," commented Mr. Fenner.
"On the customer acquisition front, Com21 signed on important new customers during the quarter, including Westman Communications Group, a cable operator, in Canada, and NEO Telecom, a Korean System Integrator serving Korea Thrunet, a large cable operator. In fact, the strength of our international, as well as our domestic, sales efforts were recently highlighted in a new report by the market research firm, Dell'Oro Group. Dell'Oro's report, 'Q4'99, Routers, Access & Voice Worldwide,' stated that Com21 is first in cable modem sales to Europe, second in all international markets, and third in North America for the year 1999. It is our goal to increase our market share by leveraging both our renowned dedication to customer service as well as our cutting edge, feature rich products. Also during the first quarter, we began volume shipment of our new DOXport(TM)111 CableLabs(R) Certified(TM) cable modem," concluded Fenner.
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 524,000 cable modems worldwide through March 31, 2000.
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 most recent Form 10K. Com21 assumes no obligation to update the forward-looking information contained in this press release.
Note to Editors: Com21(R), DOXport(TM) and ComUNITY Access(R) System are registered trademarks or trademarks of Com21, Inc., Milpitas, California, U.S.A. All other brands are trademarks or registered trademarks of their respective owners.
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COM21, INC
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
March 31,
2000 1999
-------- --------
Revenues $ 41,556 $ 19,214
Cost of Product Revenues 28,992 10,746
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Gross Profit 12,564 8,468
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Operating Expenses:
Research and development 8,483 6,900
Sales and marketing 6,121 3,230
General and administrative 1,800 840
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Total operating expenses 16,404 10,970
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Loss From Operations (3,840) (2,502)
Other Income, Net 1,439 918
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Loss Before Income Taxes (2,401) (1,584)
Income Taxes 22 37
Net Loss $ (2,423) $ (1,621)
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Net loss per share, basic
and diluted $ (0.11) $ (0.08)
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Shares used in computation,
basic and diluted 21,763 19,472
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COM21, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
March 31, December 31,
2000 1999
-------- --------
ASSETS
Current assets:
Cash and cash equivalents $ 50,840 $ 16,499
Short-term investments 44,230 89,524
Accounts receivable 26,216 19,207
Inventories 6,363 4,518
Prepaid expenses and other 5,759 2,924
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Total current assets 133,408 132,672
Investments 3,991 --
Property and equipment, net 8,793 8,198
Other assets 296 296
-------- --------
Total Assets $146,488 $141,166
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 18,057 $ 12,870
Accrued compensation and
related benefits 3,686 3,732
Deferred revenue 305 317
Other current liabilities 3,747 2,982
Current portion of capital lease 513 538
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Total current liabilities 26,308 20,439
Deferred rent 273 304
Capital lease obligations 211 345
-------- --------
Total liabilities 26,792 21,088
-------- --------
Stockholders' equity 119,696 120,078
-------- --------
Total Liabilities and
Stockholders' Equity $146,488 $141,166
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CONTACT: Com21
David Robertson, 408/953-9100 (CFO/VP Finance)
Judith Yoakum, 408/953-9100 (IR)
judy@com21.com
or
Morgen-Walke Associates
Ty George/Jason Golz, 415/296-7383
Michelle Ochoa, 415-296-7383 (Media)
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