7/19....TSTN...Systems Reports Second Quarter Results
Second Quarter Revenues Grew to $41.1 Million; Earnings per Share of $0.28
SANTA CLARA, Calif., July 19 /PRNewswire/ -- Turnstone Systems, Inc. (Nasdaq: TSTN - news), a leading provider of loop management hardware and software products that enable local exchange carriers to rapidly deploy and efficiently maintain digital subscriber line (DSL) services, today announced second quarter results for the period ending June 30, 2000.
(Photo: newscom.com )
Second quarter revenues increased to $41.1 million, from $4.7 million in the same period a year earlier and up 78 percent sequentially from $23.1 million in the first quarter of fiscal 2000. Net income for the second quarter increased to $9.1 million, or $0.28 per diluted share based on 32.8 million weighted average shares outstanding, compared to a net loss of $1.1 million or $(0.29) per diluted share for the same period a year earlier, and net income of $4.6 million, or $0.14 per diluted share for the first quarter of fiscal 2000.
``The second quarter was tremendous for Turnstone,'' said Rick Tinsley, president and chief executive officer of the company. ``The increase in deployments during the quarter is indicative of accelerated demand for broadband services, especially DSL. We announced eleven new customers that selected Turnstone's Copper CrossConnect CX100 for new DSL deployment during the second quarter, including HarvardNet, Northpoint Communications, US West and Germany's riodata.''
``We are also encouraged with the growth of our international business, which accounted for approximately 5% of our revenues in the second quarter compared to less than 1% in the previous quarter,'' Tinsley said.
As of June 30, 2000, the company had cash and short-term investments of $104.8 million, total assets of $144.9 million and stockholders' equity of $121.8 million.
About Turnstone Systems
Turnstone Systems, Inc. is a leading provider of hardware and software products that enable local exchange carriers to rapidly deploy and efficiently maintain DSL services. Turnstone's flagship product, the Copper CrossConnect(TM) CX100, is a loop management platform that is deployed in central offices to enable automation and remote control of physical layer tasks related to DSL installation, qualification and maintenance. Turnstone's CrossWorks(TM) software enables service providers to easily integrate these loop management functions into back-office Operational Support Systems (OSS), enhancing their ability to efficiently scale their DSL service offerings to meet ever-increasing demand. Turnstone is based in Santa Clara, California. For more information about Turnstone, visit www.turnstone.com, email info@turnstone.com or phone the toll-free number 877-8-COPPER.
TURNSTONE SYSTEMS, INC.
CONDENSED STATEMENTS OF OPERATIONS
(In thousands except per share data)
(Unaudited)
The Three Months The Six Months
Ended Ended
June 30, June 30,
2000 1999 2000 1999
Net revenues $41,053 $4,719 $64,160 $5,671
Cost of revenues 17,076 2,510 25,832 3,086
Gross profit 23,977 2,209 38,328 2,585
Operating expenses:
Research and development 3,622 1,023 6,350 1,853
Sales and marketing 3,635 821 5,713 1,329
General and administrative 1,113 308 1,896 499
Amortization of deferred
stock compensation 1,996 1,186 3,814 1,283
Total operating expenses 10,366 3,338 17,773 4,964
Operating income (loss) 13,611 (1,129) 20,555 (2,379)
Interest income (expense)
and other, net 1,475 41 2,393 83
Income (loss) before income tax 15,086 (1,088) 22,948 (2,296)
Income tax expense 6,034 -- 9,311 --
Net income (loss) $9,052 $(1,088) $13,637 $(2,296)
Basic net earnings/(loss)
per share of common stock $.35 $(.29) $.62 $(.68)
Diluted net earnings/(loss)
per share of common stock $.28 $(.29) $.43 $(.68)
Weighted-average shares
of common stock
outstanding used in
computing basic net
earnings/(loss) per share 25,672 3,789 22,054 3,400
Weighted-average shares
of common stock
outstanding used in
computing diluted net
earnings/(loss) per share 32,816 3,789 32,117 3,400
TURNSTONE SYSTEMS, INC.
CONDENSED BALANCE SHEETS
(In thousands)
(Unaudited)
June 30, December 31,
2000 1999
Assets
Current assets:
Cash and cash equivalents $55,254 $8,063
Short-term investments 49,509 --
Accounts receivable, net 20,186 6,439
Inventory 9,665 2,939
Prepaid expenses and other current assets 4,163 599
Total current assets 138,777 18,040
Property and equipment, net 2,256 1,085
Restricted cash 3,639 --
Other assets 207 132
Total assets 144,879 19,257
Liabilities and stockholder' equity
Current liabilities:
Current obligations under capital leases 221 229
Accounts payable 10,352 783
Accrued compensation and benefits 2,637 920
Income tax payable 2,610 --
Customer deposits 905 1,328
Other current liabilities and accrued expenses 2,422 1,679
Deferred revenue 3,770 2,132
Total current liabilities 22,917 7,071
Long-term obligations under capital leases, net
of current portion 125 260
Other long-term liabilities 35 35
Total liabilities 23,077 7,366
Stockholders' equity:
Convertible preferred stock -- 15
Common stock, $.001 stated value,
200,000 shares authorized;
30,376 and 11,407 shares issued and
outstanding at June 30, 2000 and
December 31, 1999, respectively 30 11
Additional paid-in capital 123,393 26,547
Deferred stock compensation (10,246) (9,701)
Accumulated other comprehensive loss (31) --
Retained earnings (accumulated deficit) 8,656 (4,981)
Total stockholders' equity 121,802 11,891
Total liabilities and stockholders' equity $144,879 $19,257
SOURCE: Turnstone Systems, Inc. |
