DIGL Beats Earnings Estimates:-)
<<http://moneycentral.msn.com/investor/news/allpress.asp?NoTopStories=1&Symbol=DIGL>>
<<Digital Lightwave Reports Record First-Quarter Results; Revenues up 129% Year over Year; EPS of $0.14
April 18, 2000 04:15 PM Eastern Time
CLEARWATER, Fla.--(BUSINESS WIRE)--April 18, 2000--Digital Lightwave(R), Inc. DIGL , a leading provider of innovative optical networking products and technology, today announced financial results for the first quarter ended March 31, 2000.
First-quarter revenues were $18.6 million, up 129 percent from revenues of $8.1 million for the first quarter of 1999 and up 6 percent sequentially from $17.5 million reported for the fourth quarter. Net income was $4.3 million, or $0.14 per share (diluted), compared with a net loss of $1.6 million, or a loss of $0.06 per share for the year-earlier quarter and up from $3.9 million, or $0.13 per share (diluted), for the fourth quarter.
"We are pleased with the first-quarter results, particularly with sales during the quarter of our high-speed OC-48 products, and order flow for new products like the portable Network Information Computer(R) 10-G (NIC(TM) 10-G), designed for OC-192 fiber optic network performance analysis," said Gerry Chastelet, chairman, president and chief executive officer of Digital Lightwave. "Although the first quarter has historically been the slowest in our industry, sales exceeded our expectations, and we sustained profitable revenue growth for the fourth consecutive quarter. With our Network Information Computers (NICs) and network monitoring systems -- Network Access Agents(TM) (NAAs(TM)) -- Digital Lightwave is uniquely positioned to benefit from increasing deployment of faster transmission speeds, as well as the growing size and complexity of the optical network infrastructure."
During the first quarter, Digital Lightwave continued to broaden its customer base, adding several new accounts in optical networking, broadband services, metropolitan-area networks, and Internet services segments. Key customers taking product deliveries during the quarter included Cisco Systems, Electro Rent, GTE, Level 3, Lucent Technologies, MCI WorldCom, Nortel Networks, and Qwest.
Quarterly Business Highlights
Quarterly business highlights during the quarter included:
-- Nortel Networks' selection of the NIC as product of choice for high-speed fiber-optic network testing
-- Strong initial market acceptance of NIC 10-G, the industry's first portable OC-192 optical network diagnostic product, launched in January 2000
-- The largest single order for OC-48 NICs from Nortel, as part of its build-out plans in North America
-- Significant orders for NIC 10-G by Technology Rentals & Services, Electro Rent and others.
About Digital Lightwave, Inc.
Digital Lightwave serves the growing fiber-optic networking industry--high-speed telecommunications networks based on fiber-optic technology--with products and technology that monitor, maintain and facilitate the management of voice, data and multimedia communications networks. Digital Lightwave customers include leading telecommunications service providers and equipment manufacturers. The company is headquartered in Clearwater, Florida, and can be located on the Internet at lightwave.com.
Except for the historical statements made herein, this release contains certain forward-looking statements that may involve a number of risks and uncertainties. Factors that could cause actual results or events to differ materially from these forward-looking statements include: the company's limited operating history; quarterly fluctuations in our operating results; control by a majority shareholder; dependence on a limited number of products; rapid technological changes; our ability to compete effectively with other companies; our dependence on a limited number of major customers; our dependence on contract manufacturing and limited source suppliers; delays in product development and delivery schedules; our ability to expand our production and assembly operations; our ability to manage our growth; our ability to enter into strategic relationships; our dependence on key personnel; our dependence on proprietary technology; our success in defending significant litigation; liquidity risk and future capital needs; general business conditions; and other factors described in our filings with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We assume no obligation to update information contained in this release.
Editor's Note: Digital Lightwave(R), Network Information Computer(R), NIC(TM), Network Access Agent(TM) and NAA(TM) are registered trademarks and trademarks of Digital Lightwave, Inc.
- Financial Statements Attached -
Digital Lightwave, Inc.
Consolidated Statements of Operations
(Unaudited)
(In thousands, except share and per-share data)
Three Months Ended March 31,
2000 1999
-------------------- -------------------
Net sales $18,558 $8,112
Cost of goods sold 6,566 3,186
-------------------- -------------------
Gross profit 11,992 4,926
Operating expenses:
Engineering and development 3,360 2,748
Sales and marketing 3,124 2,741
General and administrative 1,316 1,116
-------------------- -------------------
Total operating expenses 7,800 6,605
Operating income (loss) 4,192 (1,679)
Other income, net 81 45
-------------------- -------------------
Income (loss) before
income tax 4,273 (1,634)
Provision for income taxes --- ---
-------------------- -------------------
Net income (loss) $4,273 ($1,634)
==================== ===================
Per share of common stock:
Basic income (loss) per share $0.15 ($0.06)
==================== ===================
Diluted income
(loss) per share $0.14 n/a
==================== ===================
Weighted average common
shares outstanding 28,405,400 26,539,760
==================== ===================
Weighted average common
and common equivalent
shares outstanding 31,349,165 26,914,618
==================== ===================
Digital Lightwave, Inc.
Consolidated Balance Sheets
(In thousands)
March 31, December 31,
2000 1999
-------------------- -------------------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents,
including restricted cash of
$2,340 and $2,341, respectively $7,488 $7,466
Accounts receivable, less
allowance of $170 and $215,
respectively 19,163 15,397
Inventories 7,468 6,407
Prepaid expenses and
other current assets 1,376 990
-------------------- -------------------
Total current assets 35,495 30,260
Property and equipment, net 9,223 9,424
Other assets 291 314
-------------------- -------------------
Total assets $45,009 $39,998
==================== ===================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and
accrued liabilities $7,841 $8,048
Accrued settlement charges 5,569 6,231
Notes payable - 3,000
Interest payable - 68
-------------------- -------------------
Total current liabilities 13,410 17,347
Long-term liabilities 580 498
-------------------- -------------------
Total liabilities 13,990 17,845
-------------------- -------------------
Stockholders' equity:
Preferred stock --- ---
Common stock 3 3
Additional paid-in capital 67,400 62,807
Accumulated deficit (36,384) (40,657)
-------------------- -------------------
Total stockholders' equity 31,019 22,153
-------------------- -------------------
Total liabilities and
stockholders' equity $45,009 $39,998
==================== ===================
CONTACT: Digital Lightwave Steven Grant, Chief Financial Officer or William Rooney, Corporate Communications Director, 727/442-6677 lightwave.com >>
:-))))))
JD |
