Efficient Networks, Inc. Reports Record Revenues of Over $100 Million For the
Fourth Quarter of Fiscal 2000
Revenues Climb 65% in Fourth Quarter, Capping a Year Of Strong Growth for SpeedStream(R) DSL Products
biz.yahoo.com;
DALLAS, July 18 /PRNewswire/ -- Efficient Networks, Inc. (Nasdaq: EFNT - news), a worldwide developer and supplier of high-speed digital subscriber line (DSL) customer premises equipment (CPE) for the broadband access market, today reported record revenues for the fourth quarter and for the fiscal year ended June 30, 2000.
Revenues for the quarter ending June 30, 2000 were $101.9 million, an increase of 65% over revenues of $61.7 million for the quarter ended March 31, 2000 and an increase of 1,223% over revenues of $7.7 million achieved in the comparable quarter a year ago. The company's sequential growth rate over the past fiscal year is more than 90% per quarter. In addition to $101.9 million of net revenue in the fourth quarter, the company had deferred revenue at the end of the fourth quarter of $6.3 million.
Reviewing the fiscal year and fourth quarter, Efficient Networks President and CEO Mark Floyd said, ``Our company and employees experienced an outstanding year of solid achievements and growth. We introduced new products and software enhancements, expanded relationships with our biggest customers and successfully recruited a substantial number of talented new employees to Efficient,'' Floyd said. ``In the fourth quarter, demand for our products remained very strong as demand for broadband services continues to expand worldwide. In addition, operating profitability for Efficient Networks is targeted for the quarter ending September 30, 2000,'' Floyd said.
During the fourth quarter, SBC Communications Inc., the nation's leading provider of DSL service, placed substantial new purchase orders with Efficient.
Shipments into the networks of SBC Communications and Covad Communications Group, Inc. in North America and of Hanaro Telecom in Korea each represented more than 10% of the company's net revenue for the quarter ending June 30, 2000. The company's top ten customers represented 93% of total revenue for the quarter ended June 30, 2000, compared to 95% in the quarter ended March 31, 2000.
The company continued to expand its ESP Channel Program and add customers, including Telefonica SA, Tokyo Metallic Communications, Internet America, iGlobal's Telares(TM) and Advanced TelCom Group, Inc.
Also during the quarter, the company developed Voice over DSL implementation guidelines that significantly expanded interoperability between its SpeedStream Next Generation Integrated Access Devices (NG-IADs) and industry-leading voice gateways and softswitches. In this regard, Efficient is working in conjunction with industry-leading suppliers of voice-over-DSL gateways including Accelerated Networks, ANDA Networks, Convergent Networks, CopperCom, General Bandwidth, Jetstream Communications, Tdsoft Communications and Zhone Technologies.
Finally, the company completed the acquisition of Network TeleSystems, Inc. (NTS), a leading provider of broadband client services software. The NTS EnterNet broadband client software platform is employed by carriers and service providers around the world, as an integral part of their broadband service offerings over DSL and other broadband networks. The people, products and customer relationships from NTS bring a range of significant new opportunities to Efficient.
For the quarter ended June 30, 2000, sales to customers outside of the United States represented 24% of net revenues, compared to 17% for the quarter ended March 31, 2000. The company expects that a substantial portion of its revenues will continue to be derived from customers outside the United States.
Operating loss for the quarter ended June 30, 2000, excluding acquisition related charges and amortization of deferred stock option compensation, was approximately $1.8 million, or $0.03 per share based on 54.6 million weighted average shares outstanding. This compares to $7.4 million or $0.16 per share excluding acquisition related charges and amortization of deferred stock option compensation for the quarter ended March 31, 2000 based on 47.0 million weighted average shares outstanding.
The net loss for the June quarter was $49.6 million, or $0.91 per share. Net loss for the June quarter included amortization of deferred stock option compensation of $1.1 million and amortization of $46.7 million of intangible assets relating to the December 1999 acquisition of FlowPoint Corporation and the May 2000 acquisition of Network TeleSystems, Inc. This compared with a net loss of $54.9 million, or $1.17 per share (including amortization of deferred stock option compensation of $1.2 million, and amortization of intangible assets of $46.4 million) for the quarter ended March 31, 2000, and a loss of $12.3 million (including amortization of deferred stock option compensation of $1.2 million), for the corresponding quarter one year ago.
For the fiscal year ending June 30, 2000, revenues were $202.2 million, a 1,266% increase over $14.8 million for the fiscal year ended June 30, 1999. The net loss for the fiscal year ending June 30, 2000 was $130.4 million, or $3.06 per share, compared to a loss of $26.4 million, or $6.87 per share, for the corresponding fiscal year ended June 30, 1999.
Gross margins in the fourth quarter increased significantly to 27%, compared to 21% for the quarter ended March 31, 2000. The company expects continued improvement in gross margins during the next fiscal year.
Operating expenses, excluding acquisition related charges and deferred stock option compensation, were $31.1 million or 31% of net revenues for the quarter ended June 30, 2000, compared to $21.5 million or 35% of net revenues for the quarter ended March 31, 2000. The increase in operating expenses in absolute amount resulted primarily from an increase in personnel in the company's research and development and sales organizations. Overall head count increased 26% from 352 at March 31, 2000 to 443 at June 30, 2000.
All the best,
Michael |
