rosebud41,
Here's the full press release -
P-Com, Inc. Announces
Results for Third Quarter
2000
CAMPBELL, Calif.--(BUSINESS WIRE)--Oct. 26, 2000--P-Com, Inc.
(NASDAQ NM: PCOM - news)
-- Increase in Sales of 22% Sequentially
-- Income from Continuing Operations of $2.1 Million
-- Strengthening of Cash Position
P-Com, Inc. (Nasdaq NM: PCOM - news), a provider of wireless access
systems and services for the worldwide telecommunications market, today
reported results for its third quarter and nine months ended September 30, 2000.
P-Com will broadcast an investor teleconference today at 2:00 p.m. PDT/5:00
p.m. EDT today to discuss the quarterly results and the Company's outlook
(details are provided below).
Net sales from continuing operations for the third quarter 2000 increased 49%
percent to $59.5 million, compared to $40.1 million for the same period in 1999.
The increase in sales was attributable to strong market demand for the
Company's wireless broadband products and services. P-Com reported a net
loss of $2.1 million, or $0.026 per share, for the third quarter 2000. This
compares to a net loss $36.4 million, or $0.550 per share, for the same period in
1999, which included a $22.5 million loss on discontinued operations. In third
quarter 1999, the Company's net loss was $13.9 million, or $0.210 per share,
exclusive of the loss from discontinued operations.
Net sales from continuing operations for the first nine months of 2000 increased
46% to $159.4 million, compared to $109.4 million for the same period in 1999.
For the first nine months of 2000, the Company reported a net loss of $70.2
million, or $0.910 per share. The net loss for the nine months ended September
30, 2000 included unusual charges aggregating $46.3 million and an
extraordinary gain of $1.9 million resulting from the January 2000 exchange of
Convertible Subordinated Notes for shares of the Company's Common Stock as
well as a $4 million loss from discontinued operations. These results compare to
a net loss for the nine months ended September 30, 1999 of $109.9 million, or
$1.990 per share. The net loss for the nine months ended September 30, 1999
included unusual charges aggregating $36.5 million and a $12.2 million charge
associated with the exchange of Series B Convertible Preferred Stock.
The balance sheet strengthened during the period, with cash and equivalents
totaling $34.2 million, and net working capital of $72.2 million as of September
30, 2000.
Jim Sobczak, P-Com's president and chief operating officer, stated, ``P-Com
continued on track this quarter, with strong sequential growth in revenue and
achieving over two million dollars in income from continuing operations. Supply
chain management initiatives we put in place during the second and third quarters
have begun to bear fruit as gross margins also continued to improve sequentially.
P-Com is presently deepening its sales infrastructure with the clear goals of
building new account relationships and further leveraging our substantial
investment in research and engineering. In 2001, we plan to roll-out next
generation products in all P-Com product lines - Spread spectrum,
point-to-point and point-to-multipoint radios.''
George Roberts, P-Com chairman and chief executive officer, concluded,
``P-Com remains well-positioned to capitalize on robust demand in the
broadband wireless markets. Our current products are finding strong demand
among our customers, as evidenced by the recently announced $21 million in
orders from customers in the U.K. In addition to our product offerings, P-Com's
service and support capabilities represent another one of our core strengths. The
fact that our service organization has experienced steady growth, particularly in
the U.S., is further evidence that P-Com is meeting the demands for broadband
expertise and turnkey solutions head on in the marketplace.''
Conference Call
Management will discuss both the quarterly results and the Company's outlook,
and hold a question and answer session for investors today, October 26, 2000,
at 2:00 p.m. Pacific / 5:00 p.m. Eastern. The call may be accessed live via the
Internet at www.streetevents.com. There will also be a replay of the call
available on P-Com's Web site and via StreetEvents for 90 days.
About P-Com, Inc.
P-Com, Inc. develops, manufactures, and markets complete lines of
Point-to-Multipoint, Point-to-Point, Spread Spectrum wireless access systems,
and provides related services for the worldwide telecommunications market.
P-Com broadband wireless access systems are designed to satisfy the
high-speed, integrated network requirements of Internet access providers and
competitive local exchange carriers (CLECs). Cellular and personal
communications service (PCS) providers utilize P-Com Point-to-Point systems
to provide backhaul between base stations and mobile switching centers.
Government, utility, and business entities use P-Com systems in public and
private network applications. P-Com Network Services, a wholly owned
P-Com subsidiary, offers extensive technical services and project support
capabilities, including site surveys, systems planning, program planning and
management, and project management. Service expertise also includes the
installation of central office equipment, SDH and SONET systems, and wireless
implementation. For more information visit www.p-com.com.
P-Com, Inc. has its world headquarters in Campbell, California, USA and
offices in Florida, Virginia, the United Kingdom, Italy, Germany, China, and
Singapore. P-Com is an ISO 9001 certified Company. For additional
information, contact P-Com at 3175 S. Winchester Boulevard, Campbell, CA
95008 USA. TEL: (408) 866-3666 FAX: (408) 866-3655.
Safe Harbor Statement
Statements in this release that are forward looking involve known and unknown
risks and uncertainties, which may cause P-Com's actual results in future periods
to be materially different from any future performance that may be suggested in
this release. Such factors may include, but are not limited to, working capital
constraints, fluctuations in customer demand and commitments, both in timing
and volume, introduction of new products, commercial acceptance and viability
of new products and expenses associated therewith, cancellations of orders
without penalties, pricing and competition, reliance upon subcontractors,
P-Com's ability to have available an appropriate amount of production capacity
in a timely manner, the ability of P-Com's customers to finance their purchases of
P-Com's products and/or services, the timing of new technology and product
introductions, the risk of early obsolescence, and the pending stockholder class
action lawsuit. Further, P-Com operates in an industry sector where securities
values are highly volatile and may be influenced by economic and other factors
beyond P-Com's control, such as announcements by competitors and service
providers. Reference is made to the discussion of risk factors detailed in
P-Com's filings with the Securities and Exchange Commission, including its
reports on Form 10-K and 10-Q.
P-COM, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data, unaudited)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
2000 1999 2000 1999
Sales:
Product $ 46,693 $ 30,012 $ 123,172 $ 79,996
Service 12,842 10,046 36,251 29,414
Total Sales 59,535 40,058 159,423 109,410
Cost of sales:
Product 34,864 22,536 114,251 82,121
Service 9,280 6,705 26,410 20,103
Total cost
of sales 44,144 29,241 140,661 102,224
Gross profit 15,391 10,817 18,762 7,186
Gross margin 25.9% 27.0% 11.8% 6.6%
Operating expenses:
Research and
development 4,026 7,623 15,592 25,763
Selling and
marketing 3,270 3,690 9,950 13,468
General and
administrative 5,248 5,325 20,947 26,810
Goodwill
amortization 711 2,054 18,887 6,162
Restructuring
charges -- (167) -- 3,118
Total operating
expenses 13,255 18,525 65,376 75,321
Income (Loss) from
continuing
operations 2,136 (7,708) (46,614) (68,135)
Interest expense (1,368) (2,717) (4,148) (6,849)
Other income
(expense), net (2,895) (3,288) (6,266) (3,342)
Loss from continuing
operations before
income
taxes and
extraordinary item (2,127) (13,713) (57,028) (78,326)
Provision for income
taxes (55) 228 11,037 479
Loss from continuing
operations
before
extraordinary item (2,072) (13,941) (68,065) (78,805)
Loss on discontinued
operations -- (22,458) (4,000) (26,144)
Extraordinary item:
gain on retirement
of Notes -- -- 1,890 7,284
Net loss (2,072) (36,399) (70,175) (97,665)
Charge related to
conversion of
Preferred Stock
to Common Stock -- -- -- (12,190)
Net loss applicable
to holders of
Common Stock $ (2,072) $ (36,399) $ (70,175) $ (109,855)
Basic and diluted
net loss attributable
to holders of Common
Stock per
share:
Loss from continuing
operations
before
extraordinary
item $ (0.026) $ (0.210) $ (0.882) $ (1.410)
Discontinued
operations -- (0.340) (0.052) (0.490)
Extraordinary
item -- -- 0.024 0.130
Conversion of
Preferred Stock -- -- -- (0.220)
Net loss applicable
to holders of
Common Stock $ (0.026) $ (0.550) $ (0.910) $ (1.990)
Basic and diluted
shares used in per
share computations
(ooo): 78,935 65,330 77,198 55,133
P-COM, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)
September 30, December 31,
2000 1999
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 34,176 $ 11,629
Accounts receivable, net of
allowance of $3,879 and
$14,899, respectively 43,924 38,935
Inventory 62,470 46,849
Prepaid expenses 10,109 15,987
Notes receivable 1,034 -
Net assets of discontinued operations - 3,151
Total current assets 151,713 116,551
Property and equipment, net 27,328 36,626
Deferred income taxes - 9,858
Goodwill and other assets 27,459 50,605
$ 206,500 $ 213,640
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 36,679 $ 34,275
Accrued employee benefits 2,621 2,894
Other accrued liabilities 21,572 15,841
Deferred contract obligation 8,000 8,000
Notes payable 10,647 23,557
Total current liabilities 79,519 84,567
Other long-term liabilities 1,924 3,542
Convertible Subordinated Notes 29,700 36,316
Stockholders' equity:
Common Stock 8 7
Additional paid-in capital 315,998 238,721
Accumulated deficit (219,147) (148,973)
Accumulated other comprehensive loss (1,502) (540)
Total stockholders' equity 95,357 89,215
$ 206,500 $ 213,640
Contact:
P-Com, Inc.
Leighton Stephenson, 408/866-3666
pcom@p-com.com
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