7/20...ATON..Announces Operating Profitability; FYQ4 Revenues up 82% From FYQ3
Fiscal 2000 Revenues up 317% From Fiscal 1999
SAN JOSE, Calif., July 20 /PRNewswire/ -- Alteon WebSystems, Inc. (Nasdaq: ATON - news) today announced record financial results for its fiscal fourth quarter and year ended June 30, 2000.
Net sales for the fourth quarter of fiscal 2000 were a record $51.5 million, up 82 percent from the $28.2 million reported in the third quarter of fiscal 2000, and up 555 percent from the $7.9 million in net sales reported in the fourth quarter of fiscal 1999.
Net income for the quarter was $7.4 million, or earnings of $0.16 per share based on 45.4 million fully diluted shares. Excluding the non-cash compensation charges of $287,000, net income for the fourth quarter was $7.7 million, or earnings of $0.17 per share. This compares with a net loss of $1.0 million, or a loss of $0.03 per share based on 37.6 million shares in the third quarter of fiscal 2000, and a net loss of $3.9 million, or a loss of $0.45 per share on 8.7 million shares for the fourth quarter of fiscal 1999.
Net sales for the year ended June 30, 2000 were $109.6 million, up 317 percent from the $26.3 million reported in the previous year. Net loss for the year was $9.7 million, or a loss of $0.32 per share based on 30.6 million shares. Net loss for the year included non-cash stock compensation charges of $7.7 million and $287,000 in the first and fourth quarters respectively. Excluding the non-cash compensation charges, net loss for the year was $1.7 million, or a loss of $0.06 per share. This compares with a net loss of $12.5 million, or a loss of $1.65 per share based on 7.6 million shares a year ago.
``We are very pleased with our outstanding financial results this quarter, as well as the progress we have made in key strategic areas,'' said Dominic Orr, president and CEO of Alteon WebSystems. Our recently announced Integrated Service Director (iSD) and Webworking framework is an exciting new strategy for Alteon -- one that can substantially expand our target markets.``
Fiscal Fourth Quarter Highlights
-- June 26, 2000: Planet Online speeds content for European businesses
with web switching from Alteon.
-- June 26, 2000: Virgin Cars and Virgin Wines integrate Alteon web
switches to improve customer response times, site availability.
-- June 13, 2000: Alteon aligns with Mercury Interactive to enhance web
users' experience.
-- June 13, 2000: Alteon and Akamai strike technology alliance whereby
Alteon will develop products that automate the process of manipulating
web content for use on Akamai's global content delivery network.
-- May 31, 2000: Peakstone and Alteon team to provide breakthrough
Internet service assurance.
-- May 23, 2000: Lucent to sell Alteon web switches to ISP's, Hosters and
Enterprise as part of IPWorX(TM) web performance solution.
-- May 23, 2000: Alteon and Lucent combine powerful web switching with
VPN firewalls to give customers speed and security for e-commerce.
-- May 17, 2000: Alteon captures top market share position in the
industry's first worldwide web switching market study.
-- May 16, 2000: ICG Communications standardizes on Alteon web switches
in massive nationwide data infrastructure upgrade.
-- May 9, 2000: LSI Logic and Alteon team to develop next generation
network processing technology.
-- May 8, 2000: Alteon takes web switching to new levels with Web OS 8.0.
-- May 8, 2000: Liberate leverages Alteon web switching to boost headend
reliability for network operators' interactive TV services.
Conference Call/Webcast
Alteon management will hold a conference call to discuss the results today, July 20, 2000, at 1:30 p.m. Pacific Time. Those wishing to join should dial 712-257-2274, passcode: Alteon at approx. 1:15 p.m. The call will also be available on the Internet by going to www.videonewswire.com/ALTEON/072000/. A replay will be available for one week by calling 402-220-0234.
This release may contain forward-looking statements that are subject to risks and uncertainties. Factors that could cause actual results to differ materially include, but are not limited to, risks related to market acceptance of the company's products and product enhancements, changes in the fundamental technology underlying computer networking, the interoperability of the company's products with its customers' networks or with the products of other vendors, the release of competitive products and other actions by competitors, need to maintain and expand its sales channels and its relationships with key participants in the Internet marketplace, economic downturns in either domestic or foreign markets. Please see the risks set forth in the company's Securities and Exchange Commission filings, including the Form 10Q filed on May 12, 2000.
About Alteon WebSystems
Alteon WebSystems pioneered the concept of Web switching and is a leading provider of next generation Internet infrastructure solutions designed to enable eBusinesses to meet the demands resulting from the rapid growth of the Internet. The company's Web data center products including Web switches, server adapters and traffic management software are optimized to meet the specific challenges of managing Web traffic and provide the high performance and availability of leading networking infrastructure solutions. These Web systems are now deployed in Internet data centers around the world by premiere portals, online destinations, Web hosters and ISPs such as Yahoo!, Buy.com, iWon.com, Concentric Network, DLJdirect, DIGEX, WebTV, Global Crossing and many others. Founded in May of 1996, Alteon WebSystems employs a staff of over 400 around the world and is publicly traded on The Nasdaq Stock Market® under the symbol ``ATON.'' Visit Alteon WebSystems on the World Wide Web at alteonwebsystems.com .
Condensed Consolidated Statements of Operations and Balance Sheets to follow.
ALTEON WEBSYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
June 30, March 31,
2000 2000
ASSETS
Current assets:
Cash and equivalents $154,189 $181,758
Short-term investments 78,799 59,092
Receivables - net 28,733 14,644
Inventory 15,515 10,469
Prepaid expenses and other
current assets 4,352 1,652
Total current assets 281,588 267,615
Property and equipment - net 17,133 11,007
Other long-term assets 8,304 5,117
Total $307,025 $283,739
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $16,948 $8,666
Accrued liabilities 22,121 17,619
Deferred sales, net 5,277 3,237
Current portion of long-term
obligations 887 1,632
Total current liabilities 45,233 31,154
Long-term obligations 1,520 1,175
Total liabilities 46,753 32,329
Stockholders' equity:
Common stock 311,785 305,226
Notes receivable from stockholders (4,643) (5,152)
Deferred compensation (5,745) (156)
Accumulated other comprehensive loss (64) --
Accumulated deficit (41,061) (48,508)
Total stockholders' equity 260,272 251,410
Total $307,025 $283,739
ALTEON WEBSYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Quarters Ended June 30, Twelve Months Ended June 30,
2000 1999 2000 1999
Net sales $51,488 $7,866 $109,582 $26,254
Cost of sales 17,697 4,004 40,083 13,385
Gross profit 33,791 3,862 69,499 12,869
Operating expenses:
Sales and marketing 20,597 4,127 49,291 13,061
Research and
development 7,183 2,918 22,792 10,004
General and
administrative 2,137 725 7,010 2,538
Stock compensation
to consultants 49 -- 7,687 --
Total operating
expenses 29,966 7,770 86,780 25,603
Income/(loss) from
operations 3,825 (3,908) (17,281) (12,734)
Interest income, net 3,806 75 8,041 264
Income/(loss) before
income taxes 7,631 (3,833) (9,240) (12,470)
Income tax expense 184 73 413 73
Net income/(loss) $7,447 $(3,906) $(9,653) $(12,543)
Basic net income/
(loss) per share $0.19 $(0.45) $(0.32) $(1.65)
Shares used in
computing basic net
income/(loss) per
share 39,082 8,697 30,565 7,610
Diluted net income/
(loss) pershare $0.16 $(0.45) $(0.32) $(1.65)
Shares used in
computing diluted
net income/(loss)
per share 45,388 8,697 30,565 7,610
SOURCE: Alteon WebSystems, Inc.
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