Earnings were released at 4:15 pm est.. Here is the release:
Proteon, Inc. Reports Second Quarter Results
July 24, 1997 04:14 PM
WESTBORO, Mass., July 24 /PRNewswire/ -- Proteon, Inc. PTON today reported a net loss for the second quarter ended June 28, 1997, of $1,133,000, or $0.07 per share, compared with a net loss of $2,345,000, or $0.15 per share for the second quarter of 1996. Net sales for the second quarter of 1997 were $7,747,800 compared with net sales of $10,646,000 for the second quarter of 1996.
For the six months ended June 28, 1997, Proteon reported a net loss of $1,445,800, or $0.09 per share, compared with a net loss of $2,204,000, or $0.14 per share, for the same period last year. Net sales for the first half of 1997 were $16,872,200, compared with $24,664,000 for the first half of 1996.
Daniel J. Capone, Jr., president and chief executive officer, said, "Our financial results for the period reflect the Company's continuing revenue transition toward remote access. Affecting second quarter results was our decision to invest an additional half million dollars in marketing and promotional efforts to increase our visibility. As announced previously, we have strengthened our senior management team with the appointment of a new chief financial officer, a new vice president of business development, and a new vice president of international sales and marketing. We are confident that these are the right strategic decisions to continue gaining market share and grow revenues in the Remote Access segment," added Capone.
In this announcement, under the provisions of the "safe harbor" section of the Private Securities Litigation Reform Act of 1995, Proteon, Inc. makes forward-looking statements that involve a number of risks and uncertainties. Among the factors that could cause actual future results to differ materially are the level of acceptance of Proteon's and OpenROUTE Networks' products in the marketplace; the company's ability to generate revenue across all existing product lines; future revenues generated by the licensing of OpenROUTE software; general competitive pressures in the marketplace; the company's ability to sign agreements with reseller partners including both Premier Access Partner VARs and Internet Service Providers (ISPs); the ability to sign OEM agreements; and continued overall growth in the networking industry. Risk factors are listed in the company's annual report, Form 10-K, Forms 10-Q, and other filings with the Securities and Exchange Commission.
About Proteon/OpenROUTE Networks, Inc.
Proteon/OpenROUTE Networks' GlobeTrotter (GT) remote access routers feature the best price performance in their class. Single unit prices for Internet Protocol (IP) connectivity start at only $795 per unit, which includes hardware and software. All GT router products come standard with OpenROUTE Networks' data compression functionality which provides data throughput performance that is 30 to 70 percent faster than competing products. GT products also provide a wide range of integrated network security features for Internet and corporate Intranet applications.
All GTs feature OpenROUTE(R), the company's interoperable, standards-based routing software. This means that GTs are compatible with networking devices from such leading vendors as IBM, Digital and Motorola, who have licensed OpenROUTE. GT products also come standard with the company's new "ALLWays.Connected(TM) Guarantee," which means that they are guaranteed to connect to products from Cisco and Ascend and all other suppliers; carry a lifetime warranty; and are offered with a "trade up" support program to provide investment protection. GT products can be installed in minutes and are easily maintained and managed from central network sites. For more information, contact OpenROUTE Networks/Proteon at 800-545-7464, on the World Wide Web at openroute.com, or by e-mail at pro@proteon.com.
NOTE: Proteon, OpenROUTE, IBM, Digital, Motorola, Cisco Systems, and Ascend Communications are trademarks of their respective organizations.
PROTEON, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands)
Three months ended Six months ended
June 28, June 29, June 28, June 29,
1997 1996 1997 1996
Sales:
Product $6,442 $7,759 $14,034 $18,056
Software licensing 210 1,499 718 3,682
Service and other 1,096 1,388 2,121 2,926
Net sales 7,748 10,646 16,873 24,664
Cost of sales:
Product 3,323 4,599 7,605 10,284
Software licensing --- 14 --- 118
Service and other 677 1,101 1,264 2,099
Cost of sales 4,000 5,714 8,869 12,501
Gross profit 3,748 4,932 8,004 12,163
Operating expenses:
Research and development 1,469 2,361 3,046 5,030
Selling and marketing 2,881 4,093 5,468 7,857
General and administrative 794 1,102 1,378 2,218
Total operating expenses 5,144 7,556 9,892 15,105
(Loss) income from operations (1,396) (2,624) (1,888) (2,942)
Interest income, net 268 279 519 738
(Loss) income before income taxes (1,128) (2,345) (1,369) (2,204)
Provision for income taxes 5 --- 77 ---
Net (loss) income ($1,133) ($2,345) ($1,446) ($2,204)
(Loss) income per common share ($0.07) ($0.15) ($0.09) ($0.14)
Weighted average number of common
and common equivalent shares
outstanding 15,267 15,515 15,385 15,514
PROTEON, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
June 28, December 31,
ASSETS 1997 1996
Current assets:
Cash and cash equivalents $18,735 $23,530
Accounts receivable, net 10,521 7,625
Inventories 6,014 8,737
Deposits and other assets 1,113 1,085
Total current assets 36,383 40,977
Property and equipment, net 3,987 4,594
Total assets $40,370 $45,571
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $2,465 $3,010
Accrued expenses 4,589 7,370
Total current liabilities 7,054 10,380
Stockholders' equity 33,316 35,191
Total liabilities and stockholders' equity $40,370 $45,571
SOURCE Proteon, Inc. |
