Amati Communications Corporation Reports Results For The Third Quarter Of Fiscal Year
1997
SAN JOSE, Calif., May 22 /PRNewswire/ -- Amati Communications Corporation
(Nasdaq: AMTX) today announced its financial results for the third quarter of
fiscal year 1997.
For the third quarter ended May 3, 1997, sales were $3,663,000, or 2%
lower than the prior year's third quarter sales of $3,756,000. The Company
reported a net loss of $2,293,000 or $.12 per share compared to a net loss of
$498,000 or $.03 per share for the third quarter of fiscal year 1996.
Revenues recognized during the current fiscal quarter relate primarily to
contract revenues recorded under the Company's previously announced joint
development agreement with NEC Japan.
For the first nine months of fiscal 1997, sales were $11,188,000, an
increase of 16% over sales for the comparable fiscal 1996 period of
$9,634,000. For the first nine months of fiscal 1997, the Company reported a
loss of $5,825,000 or $.32 per share compared to a net loss of $31,881,000 or
$2.16 per share for the comparable fiscal 1996 nine-month period. In fiscal
1996, the merger between the Company and the former Amati Communications
Corporation, a private company, was consummated. This business combination,
accounted for as a purchase, resulted in a one-time write-off of $31,554,000
for in-process research and development. Because the Company is in its
development stage, financial results may vary significantly from quarter to
quarter.
Amati's Asymmetrical Digital Subscriber Line (ADSL) products currently
participate successfully in labs and field trials in both domestic and
international markets. The Company considers research and development a key
element in its ability to compete and will continue to make investments to
reduce costs and improve the performance and physical appearance of its ADSL
products. In the Very High-Speed Digital Subscriber Line (VDSL) technology,
development efforts in conjunction with the partnership with NEC Japan are
ongoing.
Amati Communications Corporation is a leading developer of advanced
transmission equipment utilizing Discrete Multi-tone (DMT) technology for the
ADSL, VDSL and cable modem markets. Amati is the holder of the ADSL/DMT
patents and has licensed the technology to companies such as Nortel, Motorola
and NEC. The Company is also a provider of network connectivity systems for
the internetworking and OEM marketplaces. Amati can be reached on the World
Wide Web at: amati.com.
Statements made in this press release which are not historical, including
statements regarding product demonstration, product capabilities, product
releases and markets, are forward looking statements and as such are subject
to a number of risks such as: market for products still under development,
price competitiveness and rapid technological changes. Please see the
Company's Annual Report and Form 10-K for the 1996 fiscal year and other
reports filed with the Securities and Exchange Commission for additional
disclosure regarding such risk factors.
AMATI COMMUNICATIONS CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended Nine Months Ended
May 3, Apr 27, May 3, Apr 27,
1997 1996 1997 1996
Net sales $3,663 $3,756 $11,188 $9,634
Cost of sales 2,042 2,180 6,242 5,566
Gross margin 1,621 1,576 4,946 4,068
Operating expenses:
Research and development 2,050 1,105 5,680 2,489
Marketing and sales 783 276 1,938 480
General and administrative 1,035 696 3,041 1,527
Write off of acquired in-process
research and development 0 0 0 31,554
Total operating expenses 3,868 2,077 10,659 36,050
Loss from operations (2,247) (501) (5,713) (31,982)
Other income (expense):
Interest income 35 11 68 155
Interest expense (81) (8) (180) (11)
Total other income (expense) (46) 3 (112) 144
Loss before taxes (2,293) (498) (5,825) (31,838)
Provision for income taxes 0 0 0 43
Net Loss $(2,293) $(498) $(5,825) $(31,881)
Net Loss per Share $(0.12) $(0.03) $(0.32) $(2.16)
Number of shares used in computation
of net loss per share 18,958 17,138 18,436 14,747
AMATI COMMUNICATIONS CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands)
May 3, July 27,
ASSETS 1997 1996
Current assets:
Cash and cash equivalents $515 $886
Short term investments 1,000 0
Accounts receivable, less allowance of
$30 in 1997 and in 1996 2,964 1,524
Inventories 3,847 1,616
Other current assets 750 1,156
Total current assets 9,076 5,182
Equipment and leasehold improvements - net 5,569 1,059
Other non-current assets 300 0
Total Assets $14,945 $6,241
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $4,336 $3,079
Accrued employee compensation 1,094 793
Current maturities of capitalized lease obligations 773 0
Notes payable 0 395
Total current liabilities 6,203 4,267
Long-term liabilities:
Capitalized lease obligations, less current
maturities 2,053 0
Obligations under lease commitments 294 294
Total long-term debt and liabilities 2,347 294
Stockholders' equity 6,395 1,680
Total Liabilities and Stockholders' Equity $14,945 $6,241
SOURCE Amati Communications Corp.
CONTACT: James E. Steenbergen, President & CEO of Amati
Communications, 408-879-2000 |
