I got the IPO and didn't even know what it was but since it's gone up steadily every day since, I figured I better find out.
sunrisetelecom.com
I looked at the prospectus and noticed they've been profitable since Day One. Incredible.
freeedgar.com
From 1995 to 2000:
Earnings per share, Year ending Dec 31, 1995, 96, 97, 98, 99 and 3-mos ending March 31, 99 and 00:
(1)
Basic..$0.04 $0.08 $0.10 $0.08 $0.25 $ 0.02 $0.06
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Diluted.. $0.04 $0.08 $0.10 $0.07 $0.24 $0.02 $0.06
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Note margins:
Percentage of Net Sales
Year Ended December 31, Three Months Ended March 31
1997 1998 1999 1999 2000
----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C>
Net sales....................................
100.0% 100.0% 100.0% 100.0% 100.0%
Cost of sales..............................
26.3 26.6 24.0 28.2 28.2
----- ---Gross profit...............................
73.7 73.4 76.0 71.8 71.8
Operating expenses:
Research and development...................
20.3 21.7 17.4 21.1 16.9
Sales and marketing........................
26.3 27.2 24.7 26.3 25.7
General and administrative.................
5.6 7.9 6.4 6.5 7.3
----- ----- Total operating expenses...................
52.2 56.8 48.5 53.9 49.9
----- ---Income from operations.....................
21.5 16.6 27.5 17.9 21.9
Other income, net............................
0.4 0.8 0.5 0.9 0.7
----- ----Income before income taxes.................
21.9 17.4 28.0 18.8 22.6
Income taxes.................................
6.5 5.6 10.2 5.9 8.6
----- ----- Net income...................................
15.4% 11.8% 17.8% 12.9% 14.0%
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Net Sales. Net sales increased approximately 145% from $8.1 million in the first quarter of 1999 to $19.8 million in the same period in 2000. Sales of our xDSL products accounted for approximately $9.6 million of the net sales increase, our new fiber optics products accounted for approximately $1.3 million of the net sales increase, and our new signaling products accounted for approximately $552,000 of the net sales increase. We expect that sales growth in the near future will be primarily from our xDSL, fiber optics and signaling products.
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Our use of cash in investing activities in 1999 was primarily related to a $2.7 million cash deposit for the purchase of land for and construction of our new facility, a $782,000 payment relating to the Hukk Engineering acquisition and $2.7 million of purchases of property and equipment. We believe that capital expenditures in 2000 will include approximately $15.0 million relating to the construction of our new facility in San Jose, California, which we are building to accommodate our need for an increase in manufacturing capacity and employees, and approximately $5.0 million for equipment, furniture and fixtures relating to the new facility. In addition, due to anticipated growth in our operations and the increased capacity afforded by our new facility, we believe that capital expenditures for the acquisition of property and equipment relating to our ongoing business activities will increase to a total of approximately $5.0 million in 2000.
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Statistics for last-mile:
We believe that the increasing demand for high-speed bandwidth access and the increasing development and availability to end users of technologies, such as those described above, that support this access will propel the continued growth of the Internet and of network service providers. According to Ryan Hankin Kent, Inc., at the end of 1999, 625,000 households and businesses in the United States and Canada used DSL for broadband access and another 1.5 million households used cable TV modems. Further, by 2003, the research indicates that there will be 13.6 million DSL connections and 11.1 million cable TV modem connections.
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Company goals:
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Our objective is to be a significant provider of service verification test equipment for a broad range of applications within the global telecommunications industry. The following are the key elements of our strategy:
. Maintain Our Position in DSL Service Verification Equipment. We intend to maintain our position in DSL service verification equipment by continuing to enhance the features and functionality of our existing products to serve our customers' rapidly changing needs. In particular, we expect to introduce additional products to address new DSL technologies. We also plan to expand our relationships with the top DSL service providers in the United States and in international markets. In addition, we have recently begun to supply Lucent Technologies with a customized copper loop test head for their Stinger DSL Access Multiplexor product, which will provide service providers with a DSL test solution for DSL line deployment, maintenance and diagnostics functions.
. Penetrate the Growing Market for Fiber Optic Cable Verification Testing Equipment. We plan to capitalize on the expanding use of fiber optic cable in the telecommunications industry. For example, we have just introduced three new products to support testing of higher bandwidth fiber optic networks and plan to continue to increase the data rates supported by our optical products and develop additional products to support new network applications and technologies based on gigabit optical rates.
. Provide New Cable TV Verification Solutions. We intend to penetrate the growing market for verification equipment for cable TV by adding features and functionality to increase the applicability of our product offerings. For example, we have recently introduced our CR1200R, which provides for testing digital networks with Internet capabilities, and we expect to add new features in the future. Similarly, we intend to further address the convergence of voice and data across cable TV networks.
. Expand Beyond Field Verification Testing. We intend to leverage our expertise in field verification testing to expand into remote testing, alarm and surveillance and central office testing applications. Our Ghepardo signaling products allow technicians to remotely access signaling probes distributed throughout the network. In addition, our Ghepardo products provide alarm and surveillance monitoring and enable equipment developers to exercise and evaluate their network elements' signaling capabilities. We have also introduced products aimed at central office testing that are a natural extension of our field testing products. For example, the SS500 is a complete SONET service tester that offers a new combination of bi-directional protocol analysis and service verification for the central office, and our xDSL products offer the industry's only rack-mount verification solution for central office technicians.
. Grow Internationally. We plan to expand from our presence in over 60 countries to meet the growing demand for high-speed access solutions and increase our brand recognition internationally. We believe existing service providers in Asia, Europe and Latin America will gradually convert their installed base of analog voice equipment to more efficient DSL equipment due to the advantages of the technology, its superior economics compared to readily available alternatives and the increasing demand for it. We plan to introduce a new fiber optics testing product, the Sunset SDH, which provides a combination of SONET/SDH for testing international gateway areas. We intend to add features to our existing products to make our solutions more attractive to service providers in other countries.
. Pursue Strategic Acquisitions. We plan to continue to make acquisitions and enter into joint ventures on a selected basis. We expect that acquisitions and joint ventures may provide an efficient way of expanding our business, product offerings and access to different customers and market niches.
. Pursue Follow-On Sales Opportunities. We plan to continue to develop hardware modules that allow our customers to increase the functionality of the products which they have purchased from us. For example, our xDSL products allow technicians to add hardware cartridges to test different types of DSL service. This feature allows customers to protect their investment in test equipment and generates follow-on sales opportunities as we develop new modules in the future.
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Well, that's a start.
Pat |
