Looks good-I bought some today on pullback. Here's news release-CSTLC
Press Release Source: Castelle
Castelle Provides Positive Financial Guidance for Fourth Quarter 2002
Wednesday January 8, 11:03 am ET
Company Sees Sales at Eight Quarter High With Sixth Consecutive Quarter of Profitability
MORGAN HILL, Calif.--(BUSINESS WIRE)--Jan. 8, 2003--Castelle (Nasdaq:CSTLC - News)
Sales Expected to Reach $2.55 to $2.70 Million, Highest in Eight Quarters
Company Expects Net Income of $0.07 to $0.09 Per Diluted Share
Balance Sheet Remains Strong With Cash at Approx. $3.45 Million or $1.08 per Outstanding Share
Castelle (Nasdaq:CSTLC - News), a leading provider of office automation solutions for Fortune 1000 companies and small to medium-sized businesses, today provided sales and net income guidance for the Company's fourth quarter, ended December 31, 2002.
Sales in the fourth quarter are projected to rise to approximately $2.55 to $2.70 million, the highest in the last eight quarters. This compares to $2.25 million in the fourth quarter of 2001 and, at the midpoint of the range, represents an approximate 17% increase. Sequentially this would represent approximately 3% above the $2.54 million that was reported in the third quarter of 2002.
The Company expects to report its sixth consecutive quarter of profitability, with net income in the range of $0.07 to $0.09 per diluted share, compared to net income of $0.01 per diluted share in the fourth quarter of 2001 and, on a sequential basis, compared to $0.05 per diluted share in the third quarter of 2002. Diluted earnings per share amounts for the fourth and third quarters of 2002 are based on weighted average shares outstanding of 4.01 million and 4.79 million, respectively. The decrease in shares is due to initial purchases made by the Company as part of its stock buyback program announced in October 2002.
Scott McDonald, President and CEO, stated, "We are extremely pleased with our fourth quarter and 2002 financial results, as they point to the focus the Company has had over the past several quarters on improving operational efficiencies, cost improvements and most importantly on increasing our top-line sales growth. Our rising sales, particularly in the past two quarters, and consistent profits are direct reflections of our continued focus on our market niche -- Fax and Print Network Server Appliances. Our improved profit is primarily attributed to our sales growth, and demonstrates the continued strong demand for Castelle products. We embark upon 2003 as a strong, growing and consistently profitable company."
Balance Sheet Remains Strong
McDonald also noted that the Company continues to have a solid balance sheet with cash and cash equivalents expected to be approximately $3.45 million or $1.08 per common share outstanding as of December 31, 2002, following the Company's deployment of approximately $1.81 million during the fourth quarter to repurchase 1.62 million shares of its common stock under its previously announced stock buyback program. "Long-term shareholder value must be built on consistent profitability and financial soundness. Castelle has been delivering on both counts over the past six quarters and expects this trend to continue into the foreseeable future," concluded McDonald.
Castelle expects to report actual fourth quarter and year-end 2002 results in February 2003.
If you would like to be added to Castelle's investor email lists, please contact Karin Smith at karin.smith@castelle.com.
About Castelle
Castelle develops office automation systems that allow organizations to easily implement faxing and printing over local area networks and the Internet. A market leader in fax solutions for small to medium-sized workgroups, Castelle's FaxPress(TM) fax servers provide a simple way to integrate fax with email, desktop and back-end applications. The Company also manufactures LANpress® print servers, which enable users to locate printers anywhere on the network. Castelle products are designed to be easy to use and maintain, and provide an economical way for companies to share resources over the network.
Castelle was founded in 1987 and is headquartered in Morgan Hill, California. Its products are utilized by Fortune 1000 companies as well as small to medium-sized businesses and are available through a worldwide network of distributors, value-added resellers, systems integrators, e-commerce retailers, and the Castelle Online Store. Visit Castelle online at www.castelle.com.
Note to Editors: FaxPress is a trademark and LANpress is a registered trademark of Castelle.
Forward-Looking Statements
This press release contains forward-looking statements including references to demand for Castelle products and sales growth. These statements are subject to risks and uncertainties, including but not limited to the impact on our results from fluctuations in demand for our products, introduction of new products by our competitors, the finalization of the Company's quarterly and year-end reports, the timely development, acceptance and pricing of new products, general economic conditions as they affect the Company's customers and the continued listing of the Company's shares on the NASDAQ SmallCap Market. Investors are referred to the full discussion of risks and uncertainties associated with forward-looking statements as contained in our reports to the Securities and Exchange Commission, including our Forms 10-K and 10-Q. The Company assumes no obligation to update the forward-looking information.
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Contact:
Castelle
Scott C. McDonald, 408/852-8000 (President & Chief
Executive Officer)
Karin Smith, 408/852-8034 (Marketing Communications
Manager)
karin.smith@castelle.com
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Source: Castelle |
