Hifn Reports Revenue and Earnings for Fourth Quarter and Full Fiscal Year 2001
LOS GATOS, Calif., Oct. 18 /PRNewswire/ -- Hifn(TM) (Nasdaq: HIFN - news) today reported financial results for the fourth quarter and twelve months ended September 30, 2001.
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Revenues for the fourth quarter of 2001 were $6.5 million, down 1.3% from the $6.6 million in revenue reported in the third quarter ended June 30, 2001 and down 54.7% from the $14.3 million in revenue reported in the fourth quarter of fiscal 2000. Revenues for the twelve months ended September 30, 2001 were $43.0 million, a decrease of 4.1% from the $44.8 million reported for the twelve months ended September 30, 2000.
Proforma net loss for the fourth quarter ending September 30, 2001 was $1.3 million, or $0.13 per diluted share, as compared to net income of $3.2 million, or $0.30 per diluted share, for the fourth quarter ending September 30, 2000 of fiscal 2000. Proforma net income for the twelve months ended September 30, 2001 was $2.1 million, or $0.19 per diluted share, as compared to net income of $7.3 million, or $0.72 per diluted share, for the twelve months ended September 30, 2000. The pro forma results for the fourth quarter and twelve months ended September 30, 2001 exclude $3.3 million and $14.7 million, respectively, in amortization of intangible assets and deferred stock compensation related to the acquisition of Apptitude, Inc. in August 2000 as well as, for the twelve months ended September 30, 2001, net charges related to facility sublease. Additionally, the pro forma results for fiscal year 2001 exclude an inventory related charge of $3.4 million recorded in the three months ended June 30, 2001. The net tax effect of the proforma adjustments for the three and twelve months ended September 30, 2001 was $232,000 and $3.0 million, respectively. The pro forma results for the three and twelve months ended September 30, 2000 exclude $6.4 million in amortization of intangible assets and deferred compensation costs, in-process research and development costs and special acquisition related charges, net of tax.
``Although our results are in line with previous guidance, Hifn continues to be affected by the downturn in the networking segment,'' said Chris G. Kenber, Hifn's President and CEO. ``We are pleased with our expense reduction program which lowered current quarter operating expenses by over a million dollars, or 12%, as compared to the third quarter of 2001 without a layoff and without curtailing our new product development efforts,'' Kenber continued. ``While we expect that the December quarter will probably be flat compared with the September quarter's results we are announcing today, we are beginning to see early signs of a modest upturn in mid-calendar year 2002. As we look out towards the end of next calendar year, we are seeing evidence of a stronger recovery, driven by our high rate of design wins currently, and in the recent past.''
The Company accounted for the acquisition of Apptitude under the purchase method. Including the effect of the acquisition, the Company recorded a net loss of $4.4 million for the fourth quarter of 2001, or $0.43 per diluted share, versus net loss of $3.2 million, or $0.33 per diluted share, for the fourth quarter of 2000 and $0.68 per diluted share for the third quarter of 2001. Net loss for the twelve months ended September 30, 2001 was $13.4 million, or $1.32 per diluted share, compared to net income of $1.0 million, or $0.10 per diluted share for the twelve months of fiscal 2000.
Hifn also announced that Kenber has been named as Chairman of the Board of Directors in addition to his responsibilities as President and Chief Executive Officer. Kenber will succeed Dr. Douglas L. Whiting, current Chairman and founder of Hifn, who will remain on the Board of Directors and will continue in his current role as the Company's Chief Scientist.
Hifn management will hold a conference call to discuss these results today, October 18, 2001 at 1:30 p.m. Pacific Daylight Time (PDT). Those wishing to join should dial 800-509-8613 at approximately 1:15 p.m. Playback of the conference call will be available from 5 p.m. (PDT) on Thursday, October 18, 2001 through 9 p.m. (PDT) on Sunday, October 21, 2001 and may be accessed by calling 800-642-1687, pass code 2020033. |
