Accord Networks Announces Record Revenues for Q2 2000
ATLANTA, Aug 7, 2000 (BUSINESS WIRE) --
Strong results reflect leadership position in the
visual and voice communications networking market
Accord Networks Ltd. (Nasdaq: ACCD chart, msgs), a leading manufacturer and distributor of an advanced product line of network switches, gateways and management systems for real-time, point-to-point and multipoint IP, ATM, and ISDN visual and voice communications, today announced record revenues and reiterated major events that occurred during the second quarter ending June 30, 2000. These events include a successful initial public offering, settlement of a patent litigation lawsuit, and the introduction of new products.
The revenues for the second quarter ending June 30, 2000 were $9.6 million. Revenues increased 73% over the second quarter 1999 revenues of $5.5 million and increased 16% over the first quarter 2000 revenues of $8.3 million. Of the revenues earned in the second quarter of 2000, 82% was earned from sales in North America and 18% was earned from sales in the rest of the world, as compared to 68% from North America and 32% from the rest of the world during the first quarter of 2000. Operating income increased from $193,000 in the second quarter of 1999 to Pro Forma operating income of $420,000 in the second quarter of 2000, a 118% increase. Pro Forma net income for the second quarter of 2000 was $389,000 compared to net income $177,000 in the same period last year. Pro Forma diluted earnings per share for the quarter were $.02 doubling analysts' mean estimate of $.01, according to First Call. The Pro Forma results exclude a one-time charge of $6.5 million for the settlement of a patent infringement lawsuit.
According to Jules L. DeVigne, Chairman and CEO of Accord Networks, "We are very pleased with the results of our first quarter as a public company, reflecting our strong leadership position in our market. Our revenues are being driven by increased demand for the MGC family of Internet-Protocol (IP), ATM, and ISDN visual and voice communications products. Our revenue is being generated through several types of customers including the service provider market -- ISPs, ASPs, IXCs, RBOCs, and CLECs -- as well as enterprise organizations, educational and medical institutions and government agencies. We are also pleased with the breadth and depth of our reseller and OEM partners."
During this quarter, Accord(R) Networks realized successes in several areas of the business. The Company significantly expanded its domestic and international customer list to include China Telecom, NTT, BBCOM, Abovenet, Boeing and MARs Corporation. Accord also added VTEL to a growing list of endpoint manufacturers that resell the Accord MGC family of products. VTEL joins other leading companies including PictureTel, Sony, TANDBERG and VCON.
This quarter, Accord(R) Networks also began shipping the MGC-50(TM), a work group solution and small enterprise solution for real-time visual and voice applications over IP networks. It can be deployed as a standalone or distributed product and brings to the market an unprecedented level of functionality at an entry-level price. It is an ideal product for customer sites requiring pure IP voice and visual communications because it is the only IP product that offers high-end communications features such as full transcoding capabilities. As with the MGC-100(TM), the MGC-50 can be configured as a gateway to handle the real-time voice and video communications across diverse networks.
Accord also announced MGC WebCommander, a unique management tool that empowers users to set up and control real-time voice and video sessions from a standard browser. The application resides on a secure Windows NT server either on the enterprise network or the service provider network. Web Commander, when combined with the capabilities and features of the MGC product family, provides the necessary functionality to enable next generation applications such as visual chat rooms, visual e-business, visual knowledge based sharing and visual customer relations management.
ACCORD NETWORKS LTD.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(In thousands)
Three Months Ended Six Months Ended
June 30, June 30,
ProForma Actual ProForma Actual
2000 2000 1999 2000 2000 1999
-----------------------------------------------
(Unaudited) (Unaudited)
REVENUES:
Product sales $ 8,994 $ 8,994 $ 5,259 $ 16,768 $16,768 $ 9,822
Support revenues 577 577 287 1,062 1,062 554
------------------------------------------------
Total revenues 9,571 9,571 5,546 17,830 17,380 10,376
------------------------------------------------
COST OF REVENUES:
Product sales 2,083 2,083 1,178 3,890 3,890 2,155
Support 787 787 494 1,421 1,421 925
------------------------------------------------
Total cost of
revenues 2,870 2,870 1,672 5,311 5,311 3,080
------------------------------------------------
GROSS PROFIT 6,701 6,701 3,874 12,519 12,519 7,296
OPERATING EXPENSES:
Research &
development, net 1,736 1,736 889 3,253 3,253 1,970
Selling &
marketing 3,270 3,270 1,861 6,055 6,055 3,653
General &
administrative 1,275 1,275 931 2,554 2,554 1,688
Litigation
settlement costs 6,500 6,500
------------------------------------------------
Total operating
expenses 6,281 12,781 3,681 11,862 18,362 7,311
------------------------------------------------
OPERATING INCOME
(LOSS) 420 (6,080) 193 657 (5,843) (15)
INTEREST AND OTHER
EXPENSES, net (31) (31) (16) (48) (48) (47)
-------------------------------------------------
NET INCOME (LOSS)
FOR THE PERIOD $ 389 (6,111) $ 177 $ 609 (5,891) (62)
=================================================
Earning (loss)
per share:
Basic $ .20 $ (3.17) $ .14 $ .32 $(3.11) $ (.05)
=================================================
Diluted $ .02 $ (3.17) $ .01 $ .03 $(3.11) $ (.05)
===============================================
Weighted average number of shares outstanding during the period:
Basic 1,925, 1,925, 1,277, 1,891, 1,891, 1,277,
819 819 067 827 827 067
================================================
Diluted 18,182, 1,925, 14,739, 17,884, 1,891, 1,277,
453 819 239 562 827 067
================================================
Note: The difference between the Pro Forma and Actual column is
the treatment of the $6.5 million settlement. The settlement is
excluded in the Pro Forma column and appears as an operating expense
in the Actual column.
ACCORD NETWORKS LTD.
CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30,
2000
-------------
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 3,156
Receivable from sale of
common stock in IPO 51,150
Accounts and note receivable:
Trade accounts receivable, net of
allowance for doubtful accounts
of $211 at June 30, 2000 7,162
Trade note receivable, net of
allowance for doubtful accounts of
$213 at June 30, 2000 561
Other 2,140
Inventories 6,391
Prepaid expenses and other current
assets 267
-------------
Total current assets 70,827
-------------
FIXED ASSETS:
Cost 5,753
Less - accumulated depreciation and
amortization 1,757
-------------
Total fixed assets 3,996
-------------
OTHER ASSETS 1,071
-------------
TOTAL ASSETS $75,894
=============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts Payable Trade 5,221
Lawsuit Settlement Payable 6,000
Other 6,357
-------------
Total current liabilities 17,578
LONG-TERM LIABILITIES:
Accrued severance pay 1,209
Deferred revenues 39
-------------
Total liabilities 18,826
-------------
SHAREHOLDERS' EQUITY:
Ordinary shares of NIS 0.01 par value 56
Warrants and options 149
Additional paid-in capital 75,474
Accumulated deficit (Note A) (18,611)
-------------
Total common stockholders' 57,068
-------------
TOTAL Liabilities and Shareholders'
Equity $ 75,894
=============
Note A: The accumulated deficit represents the Actual results that
will be reported in Accord Networks' quarterly financial statements
filed with the SEC on Form 10-Q which includes the $6.5 million patent
infringement lawsuit settlement as an operating expense.
Accord Networks
Accord Networks manufactures and distributes the Accord MGC
product family, an advanced product line of network switches, gateways
and management systems that provide comprehensive solutions for
real-time, point-to-point and multipoint visual, voice and data
communications over networks that utilize the Internet Protocol, as
well as ATM and ISDN networks. The MGC family includes the
MGC-100(TM), MGC-50(TM), MGC WebCommander(TM), MGC Manager(TM) and
Virtual Conference Suite. The MGC-100 and MGC-50 are designed to offer
unprecedented multipoint, point-to-point and gateway functionality,
scaleable architecture, advanced feature set, ease of maintenance and
single platform multi-network connectivity. The Accord MGC management
solutions empower the user with easy call set-up, control and
diagnostics over the Web. The MGC-100 and MGC-50 are cornerstone
solutions that connect an array of real-time communication devices
including POTS/PSTN telephones, Internet telephones, conference-ready
PCs and TV set-top units, as well as high-end conferencing systems.
Accord has partnered with leading end-point manufacturers and system
integrators whose products and services, when combined with the MGC
family, provide business enterprises, medical and educational
institutions and government agencies with a broad range of visual,
voice and data solutions. Such solutions include business
conferencing, distance learning and telemedicine applications on a
worldwide basis. The MGC family is also ideally suited for Service
Providers including newer generation ISPs, ASPs and CLECs. The family
enables service providers to deliver traditional applications as well
as new valued-added visual and voice communications services - such as
visual e-commerce, visually enabled call centers, visual chat rooms
and voice over IP - across broadband access networks like xDSL and
cable modems. For more information visit the Accord Networks web site
at www.accordnetworks.com. Accord is a registered trademark of Accord
Networks, Inc.
MGC-100, MGC-50, MGC WebCommander, and MGC Manager are trademarks
of Accord Networks, Inc.
Certain statements in this press release, particularly those
anticipating future financial performance, business prospects, growth
and operating strategies, sources of revenue and similar matters, and
those modified by the words "believes," "expects," "anticipates,"
"intends," "estimates" or similar expressions, constitute
"forward-looking statements" within the meaning of federal securities
laws. These forward-looking statements reflect management's
expectations and are based upon currently available information. These
statements are not guarantees of performance and are inherently
subject to risks and uncertainties, many of which cannot be predicted
or anticipated. Future events and actual results, financial or
otherwise, could differ materially from those expressed in or implied
by the forward-looking statements. Important factors that could cause
future events or actual results to differ materially include:
quarterly fluctuations in results, general business conditions in the
industry, changes in demand for products, the timing of orders,
management of growth, technological changes in the industry,
competition and other risks identified from time to time in the
company's reports filed with the Securities and Exchange Commission,
including Accord Network's Registration Statement on Form F-1
(Registration No. 333-38804), as declared effective by the Securities
Exchange Commission on June 28, 2000. Copies of such filings also are
available upon request from Accord Networks' investor relations
department.
--------------------------------------------------------------------------------
Contact:
Accord Networks, Inc.
Jeffrey B. Bradley, 770/641-4413
jeff.bradley@accordnetworks.comDJ ACCD Upside Earnings Alert: 2Q Op 2c; First Call 1c
07 Aug 16:26
Analysts surveyed: 3
Both figures exclude items.
The company's earnings figure is on a diluted basis. First Call/Thomson
Financial assumes earnings estimates from analysts are on a diluted basis.
(END) DOW JONES NEWS 08-07-00
04:26 PM |
