ORLANDO, Fla., July 24 /PRNewswire/ -- Triton Network Systems, Inc. (Nasdaq: TNSI) reported its second quarter results ended June 30, 2000, which included a 49% growth in revenue over the first quarter of 2000.
Revenue for the second quarter of 2000 was $5.2 million compared to revenue of $3.5 million for the first quarter of 2000, the initial quarter the Company recorded revenue. The Company had an operating loss, before amortization of intangible assets and deferred compensation expense of $(11.1) million for the second quarter of 2000 compared to an operating loss, before deferred compensation expense of $(6.1) million for the same period of 1999.
The Company's net loss for the second quarter of 2000 was $(13.2) million, which included amortization of intangible assets and deferred compensation expense of $1.9 million and $0.3 million, respectively. The net loss for the second quarter of 1999 was $(6.3) million. Assuming the conversion of convertible preferred shares into common stock, which occurred in July 2000 in conjunction with the Company's initial public offering, the pro forma net loss per share for the second quarter of 2000 and 1999 was $(0.48) and $(0.34), respectively.
For the first six months of 2000, revenue was $8.7 million, the operating loss before amortization of intangible assets and deferred compensation expense was $(22.1) million and the net loss was $(24.1) million. The operating loss before deferred compensation expense and net loss for the six months ended June 30, 1999, was $(13.8) million and $(14.2) million, respectively. Pro forma net loss per share for the first half of 2000 and 1999 was $(0.94) and $(0.79), respectively.
Gross margins improved to (7)% in the second quarter 2000 from (48)% in the first quarter of 2000. This improvement was due primarily to the higher revenue volume and component part cost reductions.
Operating expenses for the second quarter of 2000, excluding intangible asset and deferred compensation amortization, of $10.7 million were $4.6 million higher than in the second quarter of 1999. Research and development expenses of $5.6 million grew 147%, with over half of the increase associated with expenses of the broadband modem product line acquired from IBM at the end of the first quarter of 2000. Selling and general and administrative expenses were also significantly higher as the Company expanded its domestic and international selling and marketing activities, and grew its infrastructure to support expected business growth. The intangible asset amortization related to the broadband modem product line acquired from IBM.
In July 2000, the Company successfully completed an initial public offering of 6.3 million shares, including 825,000 shares associated with the over-allotment option exercised by the underwriters. The proceeds of the offering, net of expenses, was approximately $86 million and will be used for general corporate purposes.
"I am extremely pleased with the success Triton Network Systems has achieved to date. The revenue growth of 49% in the second quarter of 2000 and the improvement in gross margins is aligned with our expectations for this stage of our Company's development" said Skip Speaks, President and Chief Executive Officer. "Additionally, investor confidence in our Company as shown by our initial public offering is validation of the vision of Triton's founders, employees and initial investors."
About Triton Network Systems, Inc.
Triton Network Systems, Inc. provides broadband wireless equipment that enables communications service providers to deliver high-speed, cost effective voice, video and data services to their business customers.
Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements involving risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. Potential risks and uncertainties include, but are not limited to, Triton Network Systems' historical and future losses, limited operating history, fluctuations in quarterly operating results and limited manufacturing experience. The Company assumes no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof. Further information regarding these and other risks is included in Triton Network Systems' prospectus dated July 12, 2000, and its other filings with the Securities and Exchange Commission.
CONTACT: Kenneth Vines of Triton Network Systems, Inc., 407-903-2032, or kvines@triton-network.com; or Investor Relations - Sandra Moreno of Thomson Financial Investor Relations, 212-701-1867, or sandra.moreno@thomsonir.com; or Media Relations - David Matthews of Springbok Technologies, 972-480-9458 |
