Thursday April 27, 8:15 am Eastern Time
Company Press Release
Blue Wave Systems Inc. Announces 38% Revenue Growth For Third Quarter Ended March 31, 2000
Strong Growth in ComStruct(TM) Line of Telecommunications Products Fuels Significant Revenue and Profit Growth
DALLAS--(BUSINESS WIRE)--April 27, 2000-- Blue Wave Systems Inc. (Nasdaq:BWSI - news), a leading DSP solutions provider to the telecommunications industry, today announced net sales for its third fiscal quarter ended March 31, 2000 were $9,271,000, a 38% increase when compared to $6,700,000 during the comparable period last year.
The company reported third quarter net income of $817,000, or $.05 per diluted share, as compared to a net loss of $(456,000), or $(.03) per share, during the comparable period last year.
For the nine months ended March 31, 2000, the company reported net sales of $25,115,000, an 18% increase when compared to $21,303,000 during the comparable period last year. Net income for the nine months ended March 31, 2000 was $1,687,000, or $.11 per diluted share, as compared to a net loss of $(1,197,000), or $(.09) per share, during the comparable period last year. The company's backlog of customer orders was $16,800,000 at March 31, 2000, as compared to $16,200,000 at December 31, 1999 and $16,100,000 at March 31, 1999.
Revenues from the company's ComStruct line of telecommunications products represented 34% of revenues during the third fiscal quarter. When compared to the same quarter last fiscal year, ComStruct revenues grew 254%. On a sequential basis, ComStruct revenues grew 36%. Revenues from our mil/aero and industrial businesses combined represented 66% of revenues during the third fiscal quarter. When compared to the same quarter last fiscal year, revenues from these combined businesses grew 5% while remaining flat sequentially.
On a nine-month fiscal year to date basis, revenues from the ComStruct line of telecommunications products grew 300% and represented 24% of revenues. Revenues from our mil/aero and industrial businesses declined 4% and represented 76% of revenues on a fiscal year to date basis.
``We are pleased to report another quarter of strong revenue and profit growth, fueled by increasing revenues from ComStruct products,'' said Rob Shaddock, president and chief executive officer of Blue Wave Systems. ``We are still in the early stages of the ComStruct product line and are encouraged by the level of new design wins that we have achieved and the progress of existing design wins to pre-production stages. This quarter we were able to publicly announce the first production order resulting from early design wins.'' Shaddock continued, ``2.5G and 3G wireless applications continue to be a strong focus for ComStruct highlighted by the recent UbiNetics announcement. In fact, wireless applications currently account for approximately two-thirds of ComStruct revenues. With products recently launched we expect to see an increasing amount of revenues from voice/data over IP applications as the infrastructure is regenerated.''
``We continue to see a strong outsourcing trend in all high-density application areas of the telecommunications industry,'' commented Mr. Shaddock. ``The company is committed to being the leading supplier of these high density DSP sub-systems. During this last quarter we launched an important new product that will process over 200 GSM voice channels as well as new products dedicated to high density VoIP applications. All of our telecommunications products are supported by dedicated Professional Services teams in both Europe and North America creating the type of value that allows our customers to accelerate their time-to-market.''
About Blue Wave Systems Inc.
Blue Wave Systems Inc. is a leading supplier of high-channel Digital Signal Processing (DSP) subsystems used in telecommunications infrastructure equipment, such as voice over packet (VoIP) gateways, digital wireless communications, and intelligent peripherals. The ComStruct(TM) line of telecom infrastructure communication processing subsystems was launched in January 1999. At the heart of the ComStruct line is the company's FACT(TM) software (Framework Architecture for Communication Technologies), which enables the DSP subsystem to be rapidly and effectively deployed in a variety of carrier class telecom applications. Blue Wave Systems has been a market leader in DSP board-level products since 1983. For additional information, please visit our company's Web site at www.bluews.com.
The company will host a conference call to review the results of the quarter at 10:00 a.m. Central Daylight Time, Thursday, April 27, 2000. To access the call, dial toll-free 800/937-4591. International participants will need to dial 415/904-2401. The reservation number is 13448925. The call will also be webcast live, and later archived, on the Investor Relations page of the company's Web site www.bluews.com. An audio replay of the call is available by dialing 800/633-8284, or 858/812-6440 for international callers. The reservation number for the audio replay is 13448925. The replay will be available from 12:00 noon Central Daylight Time on April 27, 2000 through 12:00 noon Central Daylight Time on May 4, 2000.
This press release contains forward-looking statements which are based on expectations of the company but involve a number of risks and uncertainties including, but not limited to, rapid technological change, quarterly fluctuations, integration of Mizar and Loughborough Sound Images, dependence on the defense industry, commercial market uncertainties, dependence on key suppliers and employees, competition, and Year 2000 compliance. The foregoing list should not be construed as exhaustive and the company disclaims any obligation subsequently to revise forward-looking statements to reflect unanticipated events. For a further explanation of risk factors please see the company's most recent SEC filings. The company further cautions users who may utilize published bookings and backlog information as tools to forecast the company's revenue during a given timeframe since certain purchase orders may be subject to cancellation and/or revision to delivery schedules.
Blue Wave Systems Inc.
Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Three Months Ended Nine Months Ended
March 31, March 31,
2000 1999 2000 1999
---- ---- ---- ----
$ 9,271 $ 6,700 Net sales $ 25,115 $ 21,303
4,364 3,056 Cost of sales 11,635 9,870
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4,907 3,644 Gross margin 13,480 11,433
Operating expenses:
Product development and
1,470 1,521 engineering 4,134 4,624
1,647 1,723 Sales and marketing 4,631 5,517
925 833 General and administrative 2,830 2,418
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4,042 4,077 Total operating expenses 11,595 12,559
------ ------ ------- -------
865 (433) Operating income (loss) 1,885 (1,126)
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Other income (expense):
(1) (41) Interest expense (80) (163)
43 9 Interest income 50 77
-- 18 Other, net 19 59
------ ------ ------- -------
42 (14) Total other income (expense) (11) (27)
------ ------ ------- -------
Income (loss) before provision
907 (447) for income taxes 1,874 (1,153)
90 9 Provision for income taxes 187 44
------ ------ ------- -------
$ 817 $ (456) Net income (loss) $ 1,687 $(1,197)
------ ------ ------- -------
------ ------ ------- -------
Basic net income (loss) per
$ 0.05 $(0.03) share $ 0.12 $(0.09)
------ ------ ------- -------
------ ------ ------- -------
Diluted net income (loss) per
$ 0.05 $(0.03) share $ 0.11 $(0.09)
------ ------ ------- -------
------ ------ ------- -------
Weighted average common shares
outstanding:
15,528 13,120 Basic 14,519 13,053
------ ------ ------- -------
------ ------ ------- -------
16,517 13,120 Diluted 15,913 13,053
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Blue Wave Systems Inc.
Consolidated Balance Sheets
(in thousands)
March 31, June 30,
2000 1999
------- -------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 4,691 $ 551
Restricted cash 516 788
Accounts receivable, net of allowances
of $187 and $198, respectively 8,942 5,933
Inventories, net 6,691 5,119
Prepaid expenses and other 1,061 874
Deferred tax asset 271 271
------- -------
Total current assets 22,172 13,536
------- -------
Plant and equipment:
Machinery and equipment 7,654 7,211
Furniture and fixtures 2,667 2,643
------- -------
10,321 9,854
Less accumulated depreciation (7,515) (6,584)
------- -------
Plant and equipment, net 2,806 3,270
------- -------
Deferred tax asset-noncurrent 1,342 1,095
Other assets 20 77
------- -------
Total assets $ 26,340 $ 17,978
------- -------
------- -------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 6,092 $ 5,071
Accrued compensation 326 437
Other current liabilities 1,230 1,703
Lines of credit -- 1,707
------- -------
Total current liabilities 7,648 8,918
------- -------
Deferred income taxes 830 821
Noncurrent liabilities 59 104
Long-term debt, net of current
maturities 516 788
------- -------
Total liabilities 9,053 10,631
------- -------
Stockholders' equity:
Common stock 162 137
Additional paid-in capital 31,071 23,103
Accumulated deficit (12,544) (14,231)
Accumulated other comprehensive loss (313) (261)
------- -------
18,376 8,748
------- -------
Less -- treasury stock, at cost (1,089) (1,401)
------- -------
Total stockholders' equity 17,287 7,347
------- -------
Total liabilities and stockholders'
equity $ 26,340 $ 17,978
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Contact:
Blue Wave Systems Inc., Dallas
Charles D. Brockenbush, 972/277-4609
cdb@bluews.com |
