VRLK Nasadq .43 former very high flyer making a turn here:
(PR NEWSWIRE) Verilink Reports Fourth Quarter and Annual Results
Verilink Reports Fourth Quarter and Annual Results
MADISON, Ala., July 24 /PRNewswire-FirstCall/ --
Verilink Corporation (Nasdaq: VRLK), a leading supplier of business-to-
business broadband access solutions, today reported its financial results for
the fourth quarter and fiscal year ended June 28, 2002.
Net sales for the fourth quarter were $8 million, up 116% from net sales
of $3.7 million in the third quarter of the current fiscal year, and down 42%
from net sales of $13.8 million in the same period in the prior year. Net
sales for the fiscal year ended June 28, 2002 were $23.4 million.
The Company reported net income of $152,000 for the fourth quarter
compared to net income of $34,000 in the comparable prior year period. The
net loss for fiscal 2002 was $17.2 million. Earnings per share were $0.01 on
a primary and diluted basis for the fourth quarter of fiscal 2002 compared to
break-even per share for the fourth quarter of fiscal 2001. The Company's
fourth quarter results include a charge for bad debts of $368,000 related to
amounts outstanding from WorldCom.
"Verilink continues to operate in an adverse business climate for
telecommunication equipment, but we are pleased with our financial performance
and profits for the quarter," stated Leigh S. Belden, President and CEO. "We
continue to focus on market segments that offer sales growth opportunities,
but remain limited in our forward visibility due to our customers making
buying decisions on a day-to-day basis. During the quarter, increased sales
came primarily from one customer due to the initial deployments of data
services by wireless service providers."
During the fourth quarter, the Company acquired 948,300 shares of its
common stock from Beacon Telco, L.P. for $332,000, thereby reducing the
outstanding stock by approximately 6%.
A live Webcast of the conference call discussing Verilink's results is
scheduled for July 24, 2002 at 4:00 p.m. CDT and is available on the Internet
by visiting
firstcallevents.com
Instructions for listening, including the URL address and technical
requirements, are contained in the Company's press release dated July 19, 2002
and may be found on the Company's website. A replay of the conference will be
available on the PR Newswire website.
About Verilink Corporation
Since 1982, Verilink has provided voice and data access solutions at the
network edge over T1/E1, DDS, T3, ISDN and G.shdsl. Verilink offers a wide
variety of TDM multiplexing, inverse multiplexing and cross connection
solutions, as well as converged solutions for access to Frame Relay, ATM, and
IP-based networks. The Company's headquarters are located at 127 Jetplex
Cir., Madison, AL 35758. To learn more about Verilink, visit the web site at
www.verilink.com .
Note: Statements in this press release that are not historical facts are
forward looking and actual results could differ materially. Among the factors
that could cause actual results to differ are the impact of customer
concentration, the impact to revenue from future sales opportunities, savings
anticipated from cost reduction measures, and unforeseen changes in demand for
the Company's products. Readers should also refer to the risk disclosures
outlined in the Company's Securities and Exchange Commission reports,
including the latest Annual Report on Form 10-K and Form 10-Q for prior
quarters. The Company disclaims any duty to update the forward-looking
statements contained herein, except as may be required by law.
Verilink and the Verilink logo are registered trademarks of Verilink
Corporation. All other trademarks or registered trademarks are the property
of the respective owners.
VERILINK CORPORATION
Summary Condensed Consolidated Financial Statements (thousands except per
share amounts)
Three months ended Twelve months ended
June 28, June 29, June 28, June 29,
CONSOLIDATED STATEMENTS 2002 2001 2002 2001
OF OPERATIONS (Unaudited) (Unaudited)(Audited) (Audited)
Net sales $8,001 $13,801 $23,413 $44,956
Cost of sales 4,189 7,024 15,397 24,415
Gross profit 3,812 6,777 8,016 20,541
Research and development 873 3,131 5,505 19,682
Selling, general and administrative 2,757 3,635 14,581 18,042
Impairment of long-lived assets 14 --- 5,379 ---
Operating income (loss) 168 11 (17,449) (17,183)
Interest and other income, net 63 123 503 974
Interest expense (79) (100) (294) (235)
Income (loss) before income taxes 152 34 (17,240) (16,444)
Provision for income taxes --- --- --- 6,311
Net income (loss) $152 $34 $(17,240) $(22,755)
Net income (loss) per share - Basic $0.01 $0.00 $(1.09) $(1.51)
Net income (loss) per share - Diluted $0.01 $0.00 $(1.09) $(1.51)
Shares used to compute net
income (loss) per share - Basic 15,629 15,633 15,816 15,095
Shares used to compute net
income (loss) per share - Diluted 15,634 16,094 15,816 15,095
June 28, June 29,
CONSOLIDATED BALANCE SHEETS 2002 2001
Current assets:
Cash and cash equivalents $5,630 $15,219
Restricted cash --- 500
Short-term investments 598 516
Accounts receivable, net 4,045 3,488
Inventories, net 1,246 3,401
Other current assets 354 408
Total current assets 11,873 23,532
Property, plant, and equipment, net 7,288 13,611
Restricted cash, long-term 1,000 500
Other assets 2,019 5,298
Total assets $22,180 $42,941
Current liabilities $5,583 $7,281
Long-term debt and other long-term
liabilities 4,480 6,060
Stockholders' equity 12,117 29,600
Total liabilities and stockholders' equity $22,180 $42,941
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SOURCE Verilink Corporation
-0- 07/24/2002
/CONTACT: Bill Smith of Verilink Corporation, +1-256-327-2204, or
bsmith@verilink.com /
/Web site: verilink.com /
(VRLK)
CO: Verilink Corporation
ST: Alabama
IN: CPR MLM NET TLS
SU: ERN CCA
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