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Sunrise Telecom Reports Record Second Quarter Results
SAN JOSE, Calif., July 27 /PRNewswire/ -- Sunrise Telecom Incorporated (Nasdaq: SRTI - news), a provider of service verification equipment for telecommunications and Internet networks, today reported record financial results for the quarter ended June 30, 2000.
Summary of Financial Results
(In thousands, except per share data)
For the Three Months Ended
June 30, June 30, Percent
2000 1999 Increase
Net sales $27,485 $16,410 67%
Operating income (a) $8,835 $4,422 100%
Pro forma net income (a) $6,078 $3,057 99%
Pro forma earnings per
share (basic and diluted) (a) $0.13 $0.07 86%
Pro forma shares outstanding 45,564 44,551
(a) Adjusted to exclude non-cash charges related to the amortization of
goodwill and deferred stock-based compensation. Including these
charges, net income is $4,575 and $3,034 and both basic and diluted
earnings per share are $0.10 and $0.07 in the periods presented. See
page 3 of this release.
Sunrise Telecom Reports Record Results
Net sales for the second quarter increased to $27.5 million, a 67 percent increase over net sales of $16.4 million reported for the same quarter of the prior year. A major component contributing to this increase were sales of Sunrise Telecom's new customized Copper Loop Test Head for Lucent Technologies' Stinger DSLAM. Additionally, strong sales of the company's DSL product line, a significant increase in sales of fiber optics products, and sales of the company's new cable TV and signaling product lines obtained through the acquisitions of Hukk Engineering and Pro.Tel. Srl. contributed to the sales increase. Gross profit for the second quarter was $19.5 million, an increase of 57 percent compared to $12.4 million in the same quarter of the prior year. As a percentage of sales, gross profit for the second quarter was 71 percent.
For the quarter ended June 30, 2000, Sunrise Telecom had pro forma net income excluding non-cash charges related to the amortization of goodwill and deferred stock-based compensation of $6.1 million or pro forma basic and diluted earnings per share of $0.13 on 45.6 million basic and 47.6 million diluted shares. For the second quarter of the prior year, pro forma net income excluding non-cash charges was $3.1 million or $0.07 pro forma basic and diluted earnings per share on 44.6 million basic and 45.6 million diluted shares.
Net income for the second quarter including non-cash charges was $4.6 million or basic and diluted earnings per share of $0.10 compared to $3.0 million or $0.07 per basic and diluted share for the same period in the prior year.
For the first six months of 2000, net sales were $47.3 million, an increase of 93 percent over net sales of $24.5 million for the first half of 1999. Pro forma net income excluding non-cash charges was $9.5 million for the first half of 2000 or $0.21 per basic and diluted share, up from $4.1 million or $0.09 per basic and diluted share for the same period a year ago. Net income including non-cash charges for the six months was $7.3 million or $0.16 per basic and diluted share compared with $4.1 million or $0.09 per basic and diluted share for the same period in the prior year.
In July 2000, Sunrise Telecom completed its initial public offering of 4.6 million shares at $15 per share, including 600,000 over-allotment shares, of which 782,572 shares were sold by selling stockholders. Net proceeds to Sunrise Telecom from the offering totaled approximately $52.1 million. As of today, the company has more than $50.0 million in cash and cash equivalents.
About Sunrise Telecom Incorporated
Sunrise Telecom manufactures and markets service verification equipment to pre-qualify, verify, and diagnose telecommunications and Internet networks. Sunrise Telecom's products offer broad functionality, leading-edge technology and compact size to test the variety of new DSL, services, fiber optics, cable TV networks and signaling networks. The products are designed to maximize technicians' effectiveness in the field and to provide realistic network simulations for equipment manufacturers to test their products. The company was founded in 1991 and is based in San Jose, California. Sunrise Telecom distributes its products through a network of sales representatives, distributors and a direct sales force throughout six continents.
Sunrise Telecom, SunSet, SunLite and Advanced Central Office Analyzer are trademarks of Sunrise Telecom Incorporated. All other trade, product, or service names referenced in this release may be trademarks or registered trademarks of their respective holders.
Except for historical information, the matters discussed in this press release are forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Such factors include: quarterly fluctuations in our operating results; our dependence on a limited number of major customers; our dependence on DSL; any downturn in the demand for our products; delays in product development and delivery schedules; deferred or lost sales resulting from our lengthy sales cycle; our ability to expand our production and assembly operations; our ability to manage rapid and significant growth; our ability to integrate acquisitions; any slowdown in the growth of the telecommunications industry; increased competitive pressures; the loss of key personnel; our ability to enter into strategic relationships; rapid technological change within the telecommunications industry; our dependence on limited source suppliers; special risks associated with international operations; control by our founding shareholders; as well as the risk factors listed from time to time in the Company's SEC reports, including but not limited to our final prospectus dated July 12, 2000, copies of which are available from the Company's Investor Relations Department. The Company assumes no obligation to update the forward-looking statements included in this press release.
Fred |
