Ahhhh the beauty of diversification...Great CC must listen, these guys have their act together!
Carrier Access Reports Third-Quarter 2003 Financial Results; Revenues Grow 31% Sequentially; Company Achieves Third Consecutive Quarterly Profit
BOULDER, Colo., Oct 21, 2003 (BUSINESS WIRE) -- Carrier Access Corporation
(Nasdaq: CACS), a leading provider of broadband access solutions, today reported
its financial results for the third quarter ended September 30, 2003.
Revenues for the third quarter of fiscal 2003 were $15.9 million compared with
$12.2 million for the second quarter of fiscal 2003 and $10.5 million for the
third quarter of fiscal 2002. Net income for the third quarter of fiscal 2003
was $702,000 or $0.03 per diluted share compared with a net income for the
second quarter of fiscal 2003 of $122,000 or $0.00 per diluted share and a net
loss of $14.9 million or $0.60 per diluted share for the third quarter of fiscal
2002.
Revenues for the first nine months of fiscal 2003 were $39.3 million compared
with $38.8 million in the same period last year. Net income for the first nine
months of fiscal 2003 was $941,000 or $0.04 per diluted share compared with a
net loss for the first nine months of fiscal 2002 of $44.6 million or $1.80 per
diluted share. During the first nine months of 2003, the company recovered
significant amounts of aged receivables, and accordingly changed its estimates
for allowance for doubtful accounts.
"This was a great quarter for Carrier Access, our third consecutive quarter of
revenue and net income growth," said Roger Koenig, president and CEO, Carrier
Access Corporation. "We are clearly executing our plan to return to
profitability and to increase our revenue through diversification of our
customer base with the introduction of new products. Our third-quarter results
demonstrate our progress as revenues grew 31% sequentially to $15.9 million,
reflecting increased market demand for our wireless, integrated business
services, Voice over IP (VoIP), and fiber solutions. Our investments in research
and development over the last two years are now showing returns as we continue
to deliver new applications to new customers. As a result, we believe we are
gaining momentum and market share in our target access segments.
"The third quarter was particularly significant for us in the wireless market.
We believe that our success is due to a continuing wireless carrier focus on
cell site efficiency, improving remote management, upgrading sites for E911
compliance, and providing packetized traffic for 3G migration. In June of 2002,
we introduced the Axxius(TM) 800 platform as part of our market diversification
strategy and we are now recognizing the benefits of that investment with 28% of
our Q3 revenue generated from sales to the wireless market. We intend to
continue our development efforts in this area to enable wireless carrier
customers to migrate to new packet-based solutions for even greater operational
efficiencies.
"In addition to gaining momentum in the wireless market, earlier this month we
announced successful trials and a strategic partnership for
fiber-to-the-premises (FTTP) deployments. Our product development of the
Exxtenz(TM) Business Optical Network Terminal (B-ONT) began to pay off as well
as in the third quarter as we recognized our first meaningful revenue for this
new access technology. We are clearly delivering results on our investment in
packetized access technologies that are designed to lower the cost of delivering
new broadband services to businesses and end users. During the third quarter, we
added new features to our Adit(R) 600 platform, and successfully trialed new
VoIP features for international customers. We are seeing increased demand for
our Adit 600 platform both for traditional voice deployments and for VoIP
applications. We are extremely encouraged by our customers' adoption of the Adit
600 platform.
"According to market analysts, network edge spending overtook core spending in
2001 and they predict that during 2004, edge expenditures will outpace the core
by 3 to 1. Our plan is to continue our research and development efforts in
market-disruptive technologies and take advantage of the shift in spending
towards packet-based access solutions. We believe we can take advantage of this
shift as our products support both traditional circuit-based telephony and
packet-based solutions. We believe we are very well-positioned to deliver the
cost-effective solutions required by service providers at the edge of the
network.
"In summary, we are very pleased with the results of our third quarter. We
believe that we are demonstrating the results of the strategy that we put in
place over the last two years."
Carrier Access will hold a conference call today at 4:30 p.m. EDT to review
these results. The call is open to the public. Those who wish to participate
should dial 415-228-4835, domestically or internationally, at least fifteen
minutes prior to the scheduled start time for the call, and reference Carrier
Access.
Carrier Access has also scheduled this event to be broadcast live via web cast
and replayed until 5:00 p.m. EST, December 7, 2003. To access this web cast
please go to the Investor Relations page at www.carrieraccess.com/investors, or
www.companyboardroom.com.
Forward-Looking Statement Caution
This press release contains forward-looking statements regarding new customer
initiatives and the ability to attain revenue with these new customers
initiatives, as well as our growth prospects and market share gains in broadband
access and service creation. We caution that actual results may differ
materially from those indicated by these forward-looking statements as a result
of various important factors including, but not limited to, continuing
uncertainty regarding general economic conditions, changes in capital spending
by carriers and telecommunications companies, market acceptance of our products,
problems with or at our customers, distributors and/or suppliers, growth rates
within our industry, the financial stability of our customers, the introduction
of new competition and technologies, and other risks and uncertainties including
those factors discussed in the company's Annual Report on Form 10-K for the year
ended December 31, 2002 and other documents periodically filed with the
Securities and Exchange Commission. We do not undertake any obligation to revise
or update any forward-looking statements, whether as a result of new
information, future events, or otherwise.
About Carrier Access Corporation
Carrier Access manufactures broadband access and service delivery platforms for
both landline and wireless communications carriers. Our solutions enable our
customers to expand service revenues, lower operating costs, and extend capital
budgets. Founded in 1992, Carrier Access has delivered more than 3.0 million
voice and data lines for customers in North American and International markets.
The company focuses on broadband access from central offices to customer
premises, next-generation wireless transport and data infrastructure, and
enterprise service delivery. Carrier Access products meet and exceed the highest
industry interoperability, reliability and quality standards, including
Telcordia(TM) OSMINE, NEBS Level-3 and ISO 9001. For more information visit
www.carrieraccess.com.
Carrier Access, the Carrier Access logo and tagline, Solve for X, Axxius, Adit,
and Exxtenz are trademarks of Carrier Access Corporation.
Any other trademark is the trademark of its respective owner.
CARRIER ACCESS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share amounts)
Three Months Nine Months
Ended Ended
September 30, September 30,
2003 2002 2003 2002
---- ---- ---- ----
Net revenue $15,927 10,534 $39,286 38,787
Cost of goods sold 9,169 6,342 22,010 25,851
------- ------ ------- -------
Gross profit 6,758 4,192 17,276 12,936
------- ------ ------- -------
Operating expenses:
Research and development 2,525 5,283 7,638 20,069
Sales and marketing 2,763 4,157 8,183 14,186
General and administrative 1,277 1,675 3,842 10,492
Bad debt expense (recoveries) (423) 7 (2,981) 3,060
Asset impairment charges - 8,995 - 8,995
Other intangible amortization - 72 - 216
------- ------ ------- -------
Total operating expenses 6,142 20,189 16,682 57,018
------- ------ ------- -------
Income (loss) from operations 616 (15,997) 594 (44,082)
Other income, net 86 128 258 592
------- ------ ------- -------
Income (loss) before income taxes 702 (15,869) 852 (43,490)
Income tax expense (benefit) - (1,016) (89) 1,142
------- ------ ------- -------
Net income (loss) $702 $(14,853) $941 $(44,632)
======= ====== ======= ========
Income (loss) per share:
Basic $0.03 $(0.60) $0.04 $(1.80)
Diluted $0.03 $(0.60) $0.04 $(1.80)
Weighted average common shares:
Basic
24,807 24,766 24,787 24,753
Diluted |
