7/19...TUTS...Inc. More Than Quadruples Revenues, Reporting 319% Year Over Year Growth
Operating Profitability on a Pro Forma Basis Achieved a Quarter Ahead Of Expectations
PLEASANT HILL, Calif., July 19 /PRNewswire/ -- Tut Systems, Inc. (Nasdaq: TUTS - news), today reported a strong second quarter performance with revenues for the quarter ended June 30, 2000, of $21 million, an increase of 319%, compared to revenues of $5 million for the quarter ended June 30, 1999. This quarter Tut achieved its first quarter of operating profitability on a pro forma basis -- a quarter ahead of internal expectations.
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The net income for the quarter ended June 30, 2000, excluding certain noncash purchase acquisition expenses of $1.8 million, was $0.6 million, or $.04 per share, compared with a net loss for the quarter ended June 30, 1999, of $(2.7) million or $(.23) per share. Net loss for the quarter ended June 30, 2000, including noncash purchase acquisition expenses, was $(1.2) million.
``This is an exciting milestone for Tut to achieve pro forma profitability this rapidly in the fiscal year,'' said Tut Systems, Inc. President and Chief Executive Officer, Sal D'Auria. ``Additionally, we beat our internal goals for every single financial metric including a two point increase in our gross margins. Clearly, these kind of results show our business is accelerating beyond our expectations with a clear path for continued growth in future quarters.''
``In the MTU market place, Tut also expanded its leadership position with total shipments to date of more than 17,000 building systems and over 200,000 lines to the multi-tenant industry,'' said D'Auria. ``And, the exciting thing about this industry, is that systems deployments to commercial and residential multi-tenant buildings throughout the world are just beginning to be rolled out. Our internal calculations show that only 1-2% of MTUs have building systems in them today -- which indicates an enormous opportunity for Tut to continue to sell our multi-tenant solutions all over the world.''
Recent Announcements:
Significant announcements from Tut since the end of the first fiscal quarter include:
7/00 Tut Systems Ships Over 200,000 Lines to the Multi-Tenant Industry
and Over 17,000 Building Systems
6/00 Tut Systems Ships the Industry's First LAN-Based Multi-Tenant Unit
System Delivering Data Over 2500 Feet
6/00 Tut Systems Announces Next Generation Expresso SMS/OCS Service
Delivery Platform for Multi-Tenant Properties
5/00 Tut Systems Completes Acquisition of Xstreamis
5/00 Tut Systems Ships 15Mbps Solution for Commercial Applications in the
Multi-Tenant Market
4/00 Tut Systems, Inc. Reports 323% Year Over Year Growth in First
Quarter Revenues
4/00 Tut Systems Ships Over 120,000 Lines to the Multi-Tenant Market
4/00 BRE Properties' VelocityHSI Signs Agreement with Tut Systems
Expected to Be Worth Up to $10 Million
4/00 Tut Systems Names Former Compaq Executive as Vice President of
Marketing
About Tut Systems, Inc.
Tut Systems is a leading provider of multi-service broadband access systems for multi-tenant buildings including apartments, dormitories, hotels and commercial properties. Tut's family of multi-service platform products allows service providers and property owners to use buildings' existing infrastructure or new copper or fiber infrastructure to cost-effectively and reliably deliver multi-service integrated broadband communication solutions. In partnership with service providers, Tut has deployed its solutions in commercial and residential properties of the country's largest real estate investment trusts, and in the flagship properties of major hotel chains worldwide. Tut's HomeRun(TM) technology has been chosen by the Home Phoneline Networking Alliance (HomePNA) as the initial specification for in-home networking over phonelines.
For more information, visit Tut's World Wide Web site at tutsystems.com or contact Tut's US headquarters in Pleasant Hill, California, directly at 925-682-6510 or 800-998-4888. For investor information, please call 800-486-1241.
NOTE: Tut, the Tut logo, HomeRun and Fast Copper are trademarks of Tut Systems, Inc. All other products or company names mentioned are used for identification purposes only, and may be trademarks of their respective owners.
Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995 for Tut Systems, Inc.:
Various matters set forth in this press release, such as statements relating to the planned deployment, expected financial performance and market position of Tut Systems, Inc. and/or its products are forward-looking statements. These statements are subject to risks and uncertainties, including without limitation, the price/performance requirements of customers, the size and potential growth of the MTU market, the introduction of alternative technological solutions, delay in product shipments, and other risks detailed from time-to-time in Tut Systems' SEC filings and reports.
TUT SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three months ended Six months ended
June 30, June 30,
2000 1999 2000 1999
Revenues:
Product $20,345 $4,735 $36,509 $8,308
License and royalty 669 275 979 593
Total revenues 21,014 5,010 37,488 8,901
Cost of goods sold
Product 11,234 2,921 20,371 5,160
License and royalty -- -- -- 3
Total cost of goods sold 11,234 2,921 20,371 5,163
Gross margin 9,780 2,089 17,117 3,738
Operating expenses:
Sales and marketing 4,785 2,456 9,604 4,857
Research and development 4,048 1,687 7,231 3,358
General and administrative 2,541 1,015 4,716 2,002
In-process research
& development -- -- 800 --
Amortization of
intangibles 1,814 -- 2,560 --
Noncash compensation
expense 114 114 228 228
Total operating expenses 13,302 5,272 25,139 10,445
Loss from operations (3,522) (3,183) (8,022) (6,707)
Other income 2,342 488 2,607 701
Loss before income taxes (1,180) (2,695) (5,415) (6,006)
Income tax expense -- -- 1 1
Net loss (1,180) (2,695) (5,416) (6,007)
Dividend accretion on
preferred stock -- -- -- 235
Net loss attributable to
common stockholders $(1,180) $(2,695) $(5,416) $(6,242)
Net loss per share
attributable to common
stockholders, basic
and diluted $(0.08) $(0.23) $(0.39) $(0.64)
Shares used in computing
net loss attributable
to common stockholders,
basic and diluted 15,302 11,498 13,869 9,695
Computation of pro forma
net income (loss)
per share:
Net loss attributable to
common stockholders $(1,180) $(2,695) $(5,416) $(6,242)
Adjustments for certain
noncash expenses related
to purchase and
acquisition and dividend
accretion:
In-process research
and development -- -- 800 --
Amortization of
intangibles 1,814 -- 2,560 --
Dividend accretion
of preferred stock -- -- -- 235
Pro forma net income
(loss) $634 $(2,695) $(2,056) $(6,007)
Pro forma net income
(loss) per share
- basic and diluted $0.04 $(0.23) $(0.15) $(0.55)
Shares used in
computing pro forma
net income (loss)
- basic 15,302 11,498 13,869 10,889
Shares used in computing
pro forma net
income - diluted 16,547 -- -- --
TUT SYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
June 30, December 31,
2000 1999
(unaudited)
ASSETS
Current assets:
Cash, cash equivalents and short term
investments $134,651 $32,236
Accounts receivable, net 15,387 11,742
Inventories 15,353 8,401
Prepaid expenses and other 5,248 3,746
Total current assets 170,639 56,125
Property and equipment, net 7,604 3,476
Investments 16,255 --
Other assets 51,365 5,755
Total assets $245,863 $65,356
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $13,067 $9,410
Line of credit -- 1,529
Deferred revenue 906 770
Total current liabilities 13,973 11,709
Deferred revenue, net of current portion 2,103 2,125
Other liabilities 329 --
Total liabilities 16,405 13,834
Stockholders' equity 229,458 51,522
Total liabilities and stockholders' equity $245,863 $65,356
SOURCE: Tut Systems, Inc. |
