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Thursday October 18, 4:17 pm Eastern Time
Press Release
SOURCE: Packeteer, Inc.
Packeteer, Inc. Announces Third Quarter Financial Results
CUPERTINO, Calif.--(BUSINESS WIRE)--Oct. 18, 2001--Packeteer®, Inc. (NASDAQ: PKTR - news), a leading provider of Internet application performance infrastructure systems, today announced quarterly revenues and results of operations for the quarter ended September 30, 2001.
Net revenues for the third quarter 2001 were $10.9 million, compared with $11.5 million for the same period last year, a decrease of 5%. On a sequential basis, net revenues decreased 17% from $13.1 million for the second quarter 2001. Pro forma net loss for the quarter was $1.5 million, or $0.05 per share. Pro forma excludes amortization of acquisition-related goodwill and intangibles and stock-based compensation, and impairment charges for goodwill and intangibles. This compares to a third quarter 2000 pro forma net income of $0.2 million, or $0.01 per share. Before pro forma adjustments, net loss for the third quarter 2001 was $54.3 million, or $1.83 per share compared to a net loss of $1.1 million, or $0.04 per share for the same period in the prior year. During Q3, the Company determined that based on the current business outlook, the carrying value of goodwill and intangible assets was in excess of fair value. As a result, the Company recorded an impairment charge of $52.6 million.
The balance sheet at the end of Q3 remained strong. Total cash and investments of $61.4 million at September 30, 2001 were $0.8 million lower than the balances of $62.2 million at December 31, 2000, but $1.5 million higher than the balance at June 30, 2001. Accounts receivable of $5.9 million at September 30, 2001 represented 49 days sales outstanding, which is below Packeteer's targeted goal of 50-60 days sales outstanding, and total inventories of $1.7 million were lower than the balance at December 31, 2000.
``Although our 3rd quarter revenues are down sequentially, we believe this is primarily due to the declining macro economic conditions which are expected to continue for the next several quarters,'' stated Craig Elliott, President and CEO. ``We continue to build the business with the long-term goal of sequential revenue growth and profitability, but in the short term plan to generally maintain our core organization and control expenses at existing levels, which essentially may delay profitability. We expect economic conditions to improve over the next year and thus will be able to take advantage of increased application performance infrastructure systems spending.''
``With the existing economic disruptions we believe that purchasing cycles for many customers globally have lengthened, but demand for solutions that deliver a return-on-investment will continue,'' said Elliott. ``CIOs and network managers have generally shifted their focus from expansion to optimization of existing network resources. We are well positioned to provide solutions through the deployment of Packeteer's systems designed to optimize mission critical application performance without incurring the costs of additional bandwidth or further network expansion.''
A Conference Call with company management will be held Thursday, October 18, 2001 at 2:00 pm Pacific Time. The call will be simulcast on the Internet at www.packeteer.com and www.streetevents.com. A replay of the call and management's accompanying script will be available on the Web site through October 25, 2001. Additional investor information can be accessed at www.packeteer.com or by calling Packeteer's Investor Relations Department at 408/873-4422.
About Packeteer
Packeteer (NASDAQ: PKTR - news) is a leading provider of application performance infrastructure systems designed to give enterprises and service providers a layer of control for applications delivered across intranets, extranets and the Internet. Packeteer's products -- powered by PacketWise(TM) software -- are designed to ensure end-to-end quality of service (QoS) for networked applications and managed services, enhancing users' quality of experience through comprehensive bandwidth, traffic, content, service-level and policy management. Packeteer's products are deployed by Global 2000 corporations and service providers, and sold through more than 100 resellers, distributors and system integrators in more than 50 countries. For more information, contact Packeteer via telephone at 408/873-4400, fax at 408/873-4410, or by email at info@packeteer.com, or visit the company's Web site at www.packeteer.com. Packeteer is headquartered in Cupertino, Calif.
Safe Harbor Clause
The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended, including statements regarding Packeteer's expectations, beliefs, intentions or strategies regarding the future. Forward-looking statements include express or implied statements regarding future revenues and profitability, spending levels by existing and prospective customers, new product development, liquidity and macro economic conditions. All forward-looking statements included in this press release are based upon information available to Packeteer as of the date hereof. Packeteer assumes no obligation to update any such forward-looking statements. Forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from those projected. Actual results may differ materially due to a number of factors including the perceived need for our products, our ability to convince potential customers of our value proposition, the costs of competitive solutions, continued capital spending by prospective customers and macro economic conditions. These and other risks relating to Packeteer's business are set forth in Packeteer's Form 10-K filed with the Securities and Exchange Commission on March 29, 2001, and Packeteer's Form 10-Qs and other reports filed from time to time with the Securities and Exchange Commission.
Note to Editors: Packeteer and PacketShaper are registered trademarks and Packet Wise, AppVantage and AppCelera are trademarks of Packeteer, Inc. All other products and services are the trademarks of their respective owners. |
