DITC earnings. The Fiber Sector continues to show there's plenty to go around. Remember, industry ANALysts expect revenues to grow 4 fold in the fiber optics and related components industries between now and 2003.
I haven't dissected these numbers to see if there is anything "special" thrown in (one time gains, etc.) but on the surface, Net Income (from same period last year) went from $940,000 to $11.7M! I need to do more research on DITC to find out who their real competitors are and the real demand for these products (life cycle) because these numbers look pretty good to me.
Chart: timely.com
If I run $.47/Q out for 4Q's I get $1.88/Yr earnings. $57/$1.88 = P/E of 30.3 - which seems a little low for this rapid growth industry.
Mike
Ditech Communications Announces Fiscal 2001 Q1 Results Revenues Increase 345% over Q1 2000; Pro Forma Earnings Per Share Reach $0.47
MOUNTAIN VIEW, Calif., Aug 17, 2000 /PRNewswire via COMTEX/ -- Ditech Communications Corporation (Nasdaq: DITC chart, msgs) today reported results for its first quarter of fiscal year 2001. Revenues for the first quarter ended July 31, 2000 were $43.5 million, up 345% over revenues of $9.8 million in the same quarter last year.
Ditech's pro forma net income available to common shareholders for the first quarter of fiscal 2001 was $14.2 million, up from $940,000 in the same quarter last year. Pro forma earnings per share for the first quarter was $0.47 compared to $0.04 for the same quarter last year.(1) Ditech's pro forma financial results do not include the impact of non-cash charges related to M&A activity, including purchased research and development, goodwill and other costs.
Ditech's actual net income available to common shareholders for the first quarter of fiscal 2001 was $11.7 million compared to $940,000 in the same quarter last year. Actual earnings per share for the first quarter were $0.39 per share compared to $0.04 for the same quarter last year. Gross margins were 70.1 percent for the first quarter compared to 57.6 percent for the same quarter last year.
"Our execution was excellent this quarter while we simultaneously continued to build the infrastructure required for our bold move into the core optical networking market," said Tim Montgomery, Ditech's President and CEO. "Our leading-edge Broadband Echo Canceller continued to drive strong sales in our voice business this quarter, providing the foundation for our high gross margins. We added five new echo cancellation customers, including three new customers in the wireless market. We also continued our technology leadership, introducing our new STS-1 Echo Canceller, the first echo canceller with an interface fast enough to plug into an optical network. In addition, we added three new customers in our optical business, and we introduced the Quasar, a new type of optical amplifier which will allow us to address new markets and customers."
Continued Montgomery, "While this quarter's results were gratifying, we are especially proud of the execution of our longer term strategic plan to become a leading player in the core optical networking market. To that end, we successfully completed the acquisition of Atmosphere Networks. With this acquisition, we doubled our optical engineering staff, adding critical expertise and critical mass to our drive for a leadership position in the optical networking business."
Ditech Communications Corporation
Ditech Communications Corporation is a global telecommunications equipment supplier for voice and data networks. Ditech's voice products are high-capacity echo cancellers that utilize advanced software and digital signal processor (DSP) technology. This unique combination of software and hardware allows Ditech to deliver Voice Quality of Service (VQoS(TM)), a robust and cost-effective solution for voice enhancement and echo cancellation. Ditech's products for data networks provide building blocks for high-speed, high-capacity backbone networks. These products are based on wavelength division multiplexing (WDM), a technology that enables many wavelengths of light, each carrying multiple gigabits of information, to be carried on one fiber optic connection. With Ditech's WDM products, network equipment companies and service providers can quickly and cost-effectively expand their network capacity to meet the growing demands of the Internet age without incurring the vast time and expense of laying new fiber optic cable. Ditech (DITC) is listed on the Nasdaq National Market and is headquartered in Mountain View, California (Web site:http://www.ditechcom.com ).
Source and financials: siliconinvestor.com |
