7/17...AFCI... Announces 45% Revenue Growth in Second Quarter
PETALUMA, Calif., July 17 /PRNewswire/ -- Advanced Fibre Communications®, Inc. (AFC) (Nasdaq: AFCI - news), a leader in multi-service broadband solutions for the telecommunications industry, today announced the largest quarterly sales revenue reported in the Company's history. Revenues for the second quarter, ended June 30, 2000, were $101,232,000, compared with $69,758,000 for the second quarter of 1999 -- an increase of 45%. For the first six months of 2000, revenues totaled $186,651,000, compared with $137,358,000 in the first half of 1999 -- an increase of 36%.
Net income for the recently completed quarter was $9,313,000 or $.11 per share (diluted). Charges of a non-recurring nature incurred during the quarter in conjunction with the acquisition of GVN Technologies, Inc. totaled $1,062,000. Without these charges, net income for the quarter would have been $10,014,000 or $.12 per share (diluted). This compares to net income in the second quarter of 1999 of $3,517,000 or $.04 per share (diluted) -- an increase in absolute dollars of 185%.
For the first six months of 2000, net income was $37,684,000 or $.44 per share (diluted). This includes a $32,750,000 cash payment from Marconi Communications Inc. during the first quarter, as part of a settlement of outstanding litigation. Without this gain and the associated tax effect, net income would have been $16,070,000 or $.19 per share (diluted). Net income for the first half of 1999 was $5,972,000 or $.07 per share (diluted).
``Obviously we are pleased that we have achieved the largest quarterly revenues in AFC's history,'' said John Schofield, president and CEO for AFC. ``The U.S. continues to be an area of particular strength for us as we expand relationships with a number of large accounts. During the quarter we announced some highly anticipated new products that enable service providers to offer broadband services beyond the traditional reach of the central office. I believe these product offerings are well positioned to help our customers eliminate the geographic digital divide.''
Past financial results have been restated to reflect the consolidated operating results of GVN Technologies, Inc., acquired by AFC in a pooling of interests transaction in the second quarter of 2000. Net income and earnings per share amounts in the attached consolidated statement of operations are inclusive of the effects of non-recurring acquisition-related charges.
The current year's results include installation and service fees in revenues and margins. Prior year amounts have been reclassified to conform to the current year's presentation.
About AFC
Advanced Fibre Communications®, Inc. (AFC®) designs and manufactures worldwide broadband access solutions for the last mile. AFC's OmniMAX(TM) is a global product family consisting of industry-leading multi-service access platforms with integrated optics and intelligent CPE. AFC's OmniMAX(TM) products can quickly and cost-effectively upgrade legacy networks, ubiquitously delivering narrowband, wideband and broadband services to all subscribers regardless of their geographic location from a carrier's central office.
AFC's OmniMAX(TM) product portfolio consists of: AccessMAX(TM), a variety of broadband multi-service access platforms that provide local loop voice, data and broadband solutions; PremMAX(TM), a series of integrated access devices (IADs) that provide integrated voice and data at the customer premises; and TransMAX(TM), a Sonet/SDH optical transport system for metro ring solutions. AFC is also a leading designer and manufacturer of environmentally hardened outside plant cabinets and technology, ranging from 48 to 2,048 lines, as well as indoor cabinets ranging from 48 to 480 lines.
AFC is a corporate member of NMSDC (National Minority Supplier Development Council), a member of TIG (Telecommunications Industry Group) and a participant in the Northern California Supplier Development Council.
Except for historical information contained in this press release, the foregoing contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those indicated by such forward-looking statements based on a variety of risks and uncertainties, including the risks and uncertainties relating to continued strong demand for AFC's products, competition, and the successful development and market acceptance of AFC's new products and features. Information about potential factors that could affect the Company's financial results is included in the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which have been filed with the Securities and Exchange Commission.
NOTE: AFC, the AFC logo and the UMC1000 are registered trademarks of AFC. OmniMAX, TransMax, PremMax and AccessMax are trademarks of AFC. Any other products or service names mentioned herein are the property of their respective owners.
ADVANCED FIBRE COMMUNICATIONS, INC.
SUMMARY STATEMENTS OF INCOME (Unaudited)
(Amounts in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
Revenues $101,232 $69,758 $186,651 $137,358
Cost of revenues 54,005 37,569 99,909 74,782
Gross profit 47,227 32,189 86,742 62,576
Operating expenses:
Research and development 14,444 12,149 29,116 23,962
Selling, general and
administrative 20,706 17,323 37,512 33,426
Total operating expenses 35,150 29,472 66,628 57,388
Operating income 12,077 2,717 20,114 5,188
Other income, net 2,034 1,361 36,984 2,829
Income before income taxes 14,111 4,078 57,098 8,017
Income taxes 4,798 561 19,414 2,045
Net income $9,313 $3,517 $37,684 $5,972
Basic earnings per share $0.12 $0.05 $0.47 $0.08
Shares used in per share
computations 80,043 77,409 79,833 77,012
Diluted earnings per share $0.11 $0.04 $0.44 $0.07
Shares used in per share
computations 85,043 79,876 84,945 79,704
Pro forma diluted earnings
per share, excluding gain
on Marconi litigation
settlement, non-recurring
charges, and tax effects $0.12 -- $0.20 --
Shares used in per
share computations 85,043 -- 84,945 --
ADVANCED FIBRE COMMUNICATIONS, INC.
SUMMARY BALANCE SHEETS (Unaudited)
(In thousands)
June 30, December 31,
2000 1999
Assets
Current assets:
Cash and cash equivalents $18,732 $31,372
Marketable securities 882,110 700,750
Accounts receivable, net 67,755 60,768
Inventories, net 46,907 37,065
Other current assets 9,745 6,474
Total current assets 1,025,249 836,429
Property and equipment, net 61,104 56,914
Other assets 7,846 7,289
Total assets $1,094,199 $900,362
Liabilities & Stockholders' Equity
Current liabilities:
Accounts payable $20,092 $19,202
Accrued liabilities 293,376 234,347
Total current liabilities 313,468 253,549
Long term liabilities 2,503 2,496
Commitments and contingencies -- --
Total stockholders' equity 778,228 644,587
Total liabilities and
stockholders' equity $1,094,199 $900,632
SOURCE: Advanced Fibre Communications
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