DIGL ( $23 up $28.50) $27c vs $21c Reports Record Revenues
and Earnings for First-Quarter 2001Posts Actual $0.40 EPS on $34.4 Million Quarterly Revenues, Pro-forma Fully Taxed EPS of $0.27 versus $0.08
CLEARWATER, Fla., Apr 17, 2001 (BUSINESS WIRE) -- Digital Lightwave(R), Inc. (Nasdaq: DIGL chart, msgs), a leading provider of optical networking products and technology, today announced record revenues and earnings for the first quarter ended March 31, 2001.
First-quarter revenues were $34.4 million, up 85 percent from the $18.6 million reported for the first quarter of fiscal 2000. Net income was $13.0 million, or $0.40 per share (diluted), an increase of over 200 percent compared with $4.3 million, or $0.14 per share (diluted), for the year-earlier quarter. On a pro-forma basis, fully taxed earnings per share increased over 235 percent to $0.27 per share for the first quarter of fiscal year 2001, compared with $0.08 per share for the first quarter last year.
"We posted sequential revenue growth and strong profitability, despite the economic slowdown and our historical first-quarter seasonality," said Gerry Chastelet, chairman, president and chief executive officer of Digital Lightwave. "We're also very pleased with our progress in developing company infrastructure and international distribution partnerships to increase our worldwide market penetration. As we pursue global growth opportunities in 2001, we believe we are well positioned to meet our customers' emerging requirements with the right products to help cost-effectively build out and maintain complex optical networks."
During the first quarter, Digital Lightwave continued to expand its customer base, adding new accounts in the optical networking, broadband services and Internet infrastructure segments. Key customers taking product deliveries during the quarter included Ciena, Level 3, Lucent, Tellabs, Qwest, ONI Systems, and distribution partners Conformance Standards Limited and Wandel Global Services.
Quarterly Business Highlights
-- Multi-unit follow-on order from Livingston UK LTD, valued at
over $2.3 million, for a mix of Digital Lightwave's
international portable products including the NIC 10G(TM) for
STM-64 applications and the NIC 2.5G(TM) for lower speed PDH
and SDH requirements.
-- Formation of two new divisions with the strategic end-market
focus to expand Digital Lightwave's market opportunities and
leverage the company's core competencies and technological
strengths: Technology & Systems Division, headed by Glenn
Dunlap, senior vice president and general manager, and the
Portable Products Division, led by George Matz, executive vice
president and general manager.
-- Shipments of over $1.0 million of the company's integrated
Network Access Agent (NAA(TM)) products, including multiple
shipments to Level 3 and initial deliveries of network
products with OC-192/STM-64 capabilities to other customers.
Additionally, since the end of the first quarter, the company
received an order, for the integrated NAA OC-192 product,
valued at approximately $2.5 million, from a service
provider with shipments to commence in the current quarter.
About Digital Lightwave, Inc.
Digital Lightwave serves the growing global fiber-optic networking industry with products and technology that are used to develop, monitor, maintain and facilitate the management of high-speed communication networks. The company's product families include Network Information Computers (NICs(TM)), the industry's leading high-speed portable analyzers for fiber-optic network installation and maintenance testing, and Network Access Agents(TM) (NAAs(TM)), which provide network-integrated, centralized performance monitoring and analysis for optical networks, including remote multi-channel DWDM. Digital Lightwave also provides customized optical monitoring subsystems for OEM applications. News and information are available at www.lightwave.com.
Except for the historical statements made herein, this release contains certain forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein are based on current expectations, but are subject to a number of risks and uncertainties.
Factors that could cause actual results or events to differ materially from these forward-looking statements include: quarterly fluctuations in the company's operating results; risks associated with the company's dependence on a limited number of products; risks associated with new product introductions and uncertainty as to market acceptance of new products; rapid technological changes and the need to make new product introductions to remain competitive; reduced growth in Internet related communications; the company's ability to compete effectively with other companies; the company's dependence on major customers; fluctuations in the businesses of the company's customers; the company's ability to enter into strategic relationships; the company's dependence on contract manufacturing and limited source suppliers; industry-wide component shortages; the company's ability to manage its growth (including the ability to hire sufficient sales and technical personnel); the company's ability to sustain profitability; the company's dependence on key personnel; the company's control by a majority shareholder; the company's dependence on proprietary technology; possible volatility in the company's stock price; the company's success in defending significant litigation; the company's liquidity risk and future capital needs; general business conditions; and other factors described in the company's filings with the Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. Digital Lightwave assumes no obligation to update information contained in this release.
Editor's Note: Digital Lightwave(R), Network Information Computer(R), NIC(TM), Network Access Agent(TM), and NAA(TM) are registered trademarks and trademarks of Digital Lightwave, Inc.
Digital Lightwave, Inc.
Consolidated Statements of Operations
(Unaudited)
(In thousands, except share and per-share data)
Three Months Ended March 31,
----------------------------
2001 2000
----------- -----------
Net sales $ 34,418 $ 18,558
Cost of goods sold 10,499 6,566
----------- -----------
Gross profit 23,919 11,992
Operating expenses:
Engineering and development 3,638 3,360
Sales and marketing 5,025 3,124
General and administrative 1,560 1,316
----------- -----------
Total operating expenses 10,223 7,800
Operating income 13,696 4,192
Other income, net 410 81
----------- -----------
Income before provision
for income taxes 14,106 4,273
Provision for income taxes 1,127 --
----------- -----------
Net income $ 12,979 $ 4,273
=========== ===========
Per share of common stock:
Basic income per share $ 0.43 $ 0.15
=========== ===========
Diluted income per share $ 0.40 $ 0.14
=========== ===========
Weighted average common
shares outstanding 30,530,827 28,405,400
=========== ===========
Weighted average common
and common equivalent
shares outstanding 32,204,030 31,349,165
=========== ===========
Pro-forma disclosure:
Income before provision for
income taxes $ 14,106 $ 4,273
Pro-forma taxes (38% effective rate) 5,360 1,624
----------- -----------
Pro-forma net income $ 8,746 $ 2,649
=========== ===========
Pro-forma per share of common stock:
Basic income per share $ 0.29 $ 0.09
=========== ===========
Diluted income per share $ 0.27 $ 0.08
=========== ===========
Digital Lightwave, Inc.
Consolidated Balance Sheets
(In thousands)
March 31, December 31,
2001 2000
-------- --------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 38,823 $ 30,481
Accounts receivable, less allowance
of $350 and $250, respectively 27,036 25,301
Inventories 15,910 13,048
Prepaid expenses and
other current assets 1,532 757
-------- --------
Total current assets 83,301 69,587
Property and equipment, net 8,861 8,910
Other assets 243 336
-------- --------
Total assets $ 92,405 $ 78,833
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and
accrued liabilities $ 10,585 $ 10,610
-------- --------
Total current liabilities 10,585 10,610
Long-term liabilities 911 854
-------- --------
Total liabilities 11,496 11,464
-------- --------
Stockholders' equity:
Preferred stock -- --
Common stock 3 3
Additional paid-in capital 77,181 76,620
Retained earnings
(accumulated deficit) 3,725 (9,254)
-------- --------
Total stockholders' equity 80,909 67,369
-------- --------
Total liabilities and
stockholders' equity $ 92,405 $ 78,833
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