P-Com, Inc. Announces Results for Fourth Quarter and Year
End 2000
Company Posts Record Sales and Returns to Profitability
CAMPBELL, Calif.--(BUSINESS WIRE)--Jan. 25, 2001--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 fourth quarter and year ended December 31, 2000. P-Com will
broadcast an investor teleconference today at 2:00 p.m. PDT/5:00 p.m. EDT to discuss the results and the Company's outlook (access details are
provided below).
Net sales for the fourth quarter 2000 increased 33% percent to $63.0 million, compared to $47.5 million for the same period in 1999. The increase in
sales was attributable to continued strong market demand for the Company's wireless broadband products and significant growth in the domestic
engineering services business. P-Com reported a profit of $225,000, or $0.00 per share, for the fourth quarter 2000. This compares to a net loss of
$11.7 million, or $0.19 per share, for the same period in 1999, which included a $14.7 million loss on discontinued operations.
Net sales from continuing operations for the year 2000 increased 49% to $234.4 million, compared to $156.9 million for the same period in 1999.
This figure includes $12.0 million incremental sales resulting from the adoption of SAB 101 in fiscal year 2000. Excluding the $12 million effect, the
year over year sales increase was 42%. For the year 2000, the Company reported a net loss of $69.9 million, or $0.90 per share. The net loss for the
year ended December 31, 2000 included 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 year ended December 31, 1999 of $121.6 million, or $2.13 per common share. The net loss for the year ended December 31, 1999 included an
$18.5 million charge associated with the exchange of Series B Convertible Preferred Stock.
During the fourth quarter, the Company implemented a change in accounting policy related to SEC Staff Accounting Bulletin No. 101, Revenue
Recognition in Financial Statements (SAB 101). SAB 101 sets forth the SEC's view that companies defer revenue recognition on customer
transactions until certain criteria are met, including customer acceptance, installation, and transfer of title. Companies implementing SAB 101
accounting changes are required to record the cumulative effect of adopting SAB 101 in their first fiscal quarter and are also required to restate historical
presentation of financial performance as if the new policy had been implemented for the entire fiscal year. As a result of implementing SAB 101
accounting policy changes, P-Com will record a cumulative effect of change in accounting principle of approximately $1.5 million. This one-time
non-cash charge effectively defers previously recognized revenue on $12.0 million in shipments made in 1999 and associated costs of $10.5 million.
These deferred revenues and related costs have now been recognized during 2000 in accordance with SAB 101, and are reflected in the results for the
year. The net effect of the above mentioned transactions on net earnings for fiscal year 2000 was zero.
Jim Sobczak, P-Com's president and chief operating officer, stated, ``P-Com reported record sales results for the year, ending the year with strong
momentum in the fourth quarter. Our manufacturing operations met production requirements head on during the quarter, delivering product on time
and in volume to our global customers. Our equipment business customer base is solid, with a blend of international and domestic
telecommunications market customers and our engineering services business experienced strong positive growth during 2000.''
George Roberts, P-Com chairman and chief executive officer, stated, ``P-Com continues to deliver the highest quality products to broadband wireless
markets around the world. As announced today, the company has received orders for our Point-to-Multipoint equipment from a new customer for
deployment in Japan, a vital new growth market for the Company. The Company looks forward to the coming year to service our existing customer
base and open new markets with our next generation broadband equipment slated to be released in the first half of 2001.''
biz.yahoo.com |
