** SMRA ** Somera Reports Record Results for Q1 2000
Q1 Revenues Up 73 Percent Over Q1 1999
SANTA BARBARA, Calif.--(BUSINESS WIRE)--April 25, 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 first quarter 2000.
Revenue for the first quarter of 2000 was $40.2 million, up 73 percent from the $23.2 million reported in the first
quarter of 1999. Net income for the quarter was $5.1 million, or $0.11 per share on 47.8 million shares, compared
with adjusted net income of $3.1 million, or $0.08 per share on 38.1 million shares, in the first quarter of 1999.(1)
``We are extremely pleased with our record performance in the first quarter. We saw last year's momentum carry into
2000, with strong carrier spending in all market segments, enabling us to increase our revenue 73 percent over the
comparable quarter for 1999,'' said Dan Firestone, President and CEO. ``We continue to leverage our strong customer
relationships and market knowledge to meet the growing needs of telecommunications carriers worldwide.''
He also said the company was pleased with the advances in all of its new strategic areas, in particular its B2B
e-commerce strategy as well as international expansion efforts. He cited the company's first quarter announcements
including its agreement with Viant, a premier Internet consulting firm, the appointment of a new vice president in charge
of Internet technology, and the award of a $20 million contract with a major international carrier to de-install and
procure digital wireless equipment as examples of this progress.
Adjusted net income for 1999 reflects a pro forma tax charge of 40 percent 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.
Conference Call
Today's first quarter earnings conference call is available to everyone. It begins at 1:45 p.m. Pacific time, and can be
accessed by dialing (312) 470-7044. The replay of the call can be accessed by dialing (402) 220-0332, and will be
available beginning today, Tuesday, April 25th, for one week.
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 telecommunications 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.
This news release contains forward-looking statements regarding Somera's customer relationships, Somera's market
knowledge, the future needs of telecommunications providers worldwide, and Somera's strategic efforts relating to B2B
e-commerce and international expansion. Forward-looking statements involve a number of risks and uncertainties,
including, but not limited to, general conditions in the telecommunications industry; the impact of competition in the
market for supplying equipment to telecommunications carriers; the risk of a potential shortage of product supply;
market acceptance of Somera's B2B e-commerce sales strategy; Somera's ability to expand its international
operations; and other factors more fully described in the Company's reports to the Securities and Exchange
Commission, including, but not limited to, the report on Form 10-K for the fiscal year ended December 31, 1999.
Actual results may differ materially from the statements contained in this news release. The Company does not
undertake to update any oral or written forward-looking statements that may be made by or on behalf of the Company.
(1) Earnings per share are reported as basic EPS figures.
SOMERA COMMUNICATIONS, INC.
CONDENSED BALANCE SHEETS
(in thousands)
(unaudited)
March 31, December 31,
ASSETS 2000 1999
-------- --------
Current Assets:
Cash and cash equivalents $42,566 $54,492
Accounts receivable, net 21,703 19,592
Inventories 18,450 18,386
Deferred tax asset -
current portion 2,236 2,236
Other current assets 8,392 2,147
-------- --------
Total current assets 93,347 96,853
Property and equipment, net 1,508 1,505
Deferred tax asset 15,740 16,490
Other assets 872 903
-------- --------
Total assets $111,467 $115,751
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $14,286 $23,636
Accrued compensation 1,281 1,707
Other accrued liabilities 1,169 2,284
Income taxes payable 2,727 508
Capital lease obligations -
current portion - 830
-------- --------
Total current liabilities 19,463 28,965
Stockholders' Equity 92,004 86,786
-------- --------
Total liabilities and
stockholders' equity $111,467 $115,751
======== ========
SOMERA COMMUNICATIONS, INC.
STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Quarter Ended March 31,
2000 1999
-------- --------
Net revenue $40,172 $23,248
Cost of net revenue 24,842 14,609
-------- --------
Gross profit 15,330 8,639
Operating expenses:
Sales and marketing 4,246 1,967
General and administrative 2,767 1,420
Stock compensation 122 -
-------- --------
Total operating expenses 7,135 3,387
Income from operations 8,195 5,252
Interest (income) expense, net (662) 59
-------- --------
Income before income taxes 8,857 5,193
Income tax provision 3,761 -
-------- --------
Net income $5,096 $5,193
======== ========
Earnings per share - basic $0.11 $0.14
======== ========
Earnings per share - diluted $0.11 $0.14
======== ========
Computation of 1999 adjusted
earnings per share:
Income before income taxes $5,193
Pro forma income taxes at 40% 2,077
--------
Adjusted net income $3,116
========
Adjusted earnings per share
- basic $0.08
========
Adjusted earnings per share
- diluted $0.08
========
Weighted average number of shares
outstanding:
Basic 47,838 38,063
Diluted 48,475 38,063
Contact:
Somera Communications, Inc.
Gary Owen, 805/681-3322
or
Stapleton Communications Inc.
Deborah Stapleton, 650/470-4204
somera@stapleton.com |
