Stratex Networks Announces Q2 Fiscal 2007 Financial Results
Wednesday November 1, 4:09 pm ET
Revenue Increases 19% Year over Year; Company Reports Continued Growth in Profitability
SAN JOSE, Calif., Nov. 1 /PRNewswire-FirstCall/ -- Stratex Networks, Inc., a leading provider of wireless transmission solutions, today reported financial results for the second quarter of fiscal 2007 ended September 30, 2006.
Revenues in the second quarter of fiscal 2007 were $67.3 million, compared with $66.2 million in the prior quarter and $56.6 million in the year ago period. Net income in the second quarter of fiscal 2007 was $1.6 million or earnings of $0.02 per diluted share. This compares with earnings of $1.8 million or earnings of $0.02 per diluted share in the prior quarter, and a loss of $(2.3) million, or a loss of $(0.02) per share in the year ago period. The second quarter of fiscal 2007 includes the impact of Financial Accounting Standard No. 123 ( R ), ("FAS 123 ( R )" ), stock compensation and merger- related expenses.
On a non-GAAP basis, Stratex Networks had net income of $5.6 million in the second fiscal quarter, or earnings of $0.06 per diluted share. This compares with non-GAAP net income of $4.8 million and non-GAAP earnings of $0.05 per diluted share in the first fiscal quarter and non-GAAP net loss of $(1.3) million and a loss of $(0.01) per share in the year ago period. Non- GAAP net income for the second fiscal quarter of 2007 excludes non-cash stock compensation expense of $2.6 million related to the adoption of FAS 123 ( R ) and the company's restricted stock plan, and $1.5 million in expense related to the proposed merger with Harris Corporation's Microwave Communications Division. In the prior and year ago quarter non-cash compensation expense was $3.0 million and $0.9 million, respectively, and was related to the Company's adoption of FAS 123 ( R ) and its restricted stock plan. A full reconciliation of GAAP net income (loss) to non-GAAP net income (loss) is provided in the accompanying financial tables.
"This September quarter marks the fourth consecutive quarter of profitability driven by broad acceptance of the Eclipse wireless transmission system in the international market place, particularly in Africa, the Middle East and Russia," said Tom Waechter, president and chief executive officer of Stratex Networks, Inc. "We are pleased with our overall financial achievements including continued revenue growth, expanding margins and sustained profitability.
"On September 5, we announced the proposed merger of Stratex Networks and the Microwave Communications Division of Harris Corporation. We believe that upon completion of this combination, the combined company would be the largest independent global provider of wireless transmission network solutions with trailing 12 month revenues of approximately $620 million as of September 30, 2006, and an unmatched set of solutions. We believe this will be a compelling value proposition for our customers, our employees as well as our investors who will witness a more competitive company better able to leverage its significant resources," said Waechter.
This combination is expected to close no later than early calendar year 2007. The new company will be called Harris Stratex Networks. |
