disappoints again
Hifn Reports Revenue and Earnings for First Quarter Fiscal 2002
LOS GATOS, Calif., Jan. 23 /PRNewswire-FirstCall/ -- Hifn(TM) (Nasdaq: HIFN - news) today reported financial results for the first quarter ended December 31, 2001.
(Photo: newscom.com )
Revenues for the first quarter of fiscal 2002 were $6.4 million, marginally below the $6.5 million in revenue reported in the fourth quarter ended September 30, 2001 and down 60.2% from the $16.1 million in revenue reported in the first quarter of fiscal 2001.
Proforma net loss for the first quarter ending December 31, 2001 was $1.1 million, or $0.10 per diluted share, as compared to net income of $3.3 million, or $0.30 per diluted share, for the first quarter of fiscal 2001 ending December 31, 2000. The pro forma results exclude amortization of intangible assets and deferred stock compensation related to the acquisition of Apptitude, Inc. of $2.7 million and $2.1 million, respectively, for the first quarter ending December 31, 2001 and $2.7 million and $1.5 million, respectively, for the first quarter ending December 31, 2000. The net tax effect of the proforma adjustments for the three months ended December 31, 2001 and 2000 was $826,000 and $600,000, respectively.
``While I am pleased with our tight management of expenses, accomplished without employee layoffs, the market for networking products continues to be weak,'' said Chris G. Kenber, Hifn's Chairman and CEO. ``I remain positive about Hifn's longer-term future; we are making good progress with design wins and critical partnerships that underline our market-leading position. However, input from key customers and recent earnings reports from public networking companies suggest that the turnaround in the networking market has slipped by two quarters or so. Our performance through June of 2002 is therefore hard to predict and may weaken somewhat from current levels. I also expect our expenses to increase slightly for seasonal reasons though we will manage them to our revenue levels as tightly as possible,'' Kenber continued. ``The company is financially strong and our product road map is enthusiastically endorsed by our key customers and partners; Hifn will be well positioned to capitalize when the turnaround does occur, probably towards the end of calendar 2002.''
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 $5.0 million for the first quarter of fiscal 2002, or $0.49 per diluted share, compared to net loss of $356,000, or $0.04 per diluted share, for the first quarter of fiscal 2001 and $0.43 per diluted share for the fourth quarter of fiscal 2001.
Hifn management will hold a conference call to discuss these results today, January 23, 2002 at 1:30 p.m. Pacific Standard Time (PST). 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. (PST) on Wednesday, January 23, 2002 through 9 p.m. (PST) on Saturday, January 26, 2002 and may be accessed by calling 800-642-1687, pass code 2865955. |
