Beat CONSENSUS by $0.02/share
Tollgrade Communications, Inc. Reports Third Quarter Earnings Increase
PR Newswire, Thursday, October 16, 1997 at 08:47
CHESWICK, Pa., Oct. 16 /PRNewswire/ -- Tollgrade Communications, Inc.
(NASDAQ:TLGD) today reported that third quarter 1997 earnings increased 17.4%
to $.27 per share, up from $.23 per share for the same quarter of 1996. Net
income for the quarter ended September 27, 1997, was $1,606,923 compared to
$1,395,676 for the year-ago quarter.
Sales rose to $11,362,609, an increase of 12.7% over the same quarter last
year. Quarterly results reflect increased sales of core MCU(R) products to
newly developing markets within Ameritech, as well as increased levels of
shipments to Pacific Telesis, Bell Atlantic and Advanced Fibre Communications.
Compared to the quarter a year ago, gross profit increased 20.8% to
$6,137,292, up from $5,080,441, due to increased sales levels, while as a
percentage of sales, gross profit increased to 54.0%, up from 50.4%, due
primarily to sales of certain higher margined products within the MCU product
line. Third quarter 1997 income from operations increased 12.0% to
$2,385,058, over third quarter 1996 results.
Operating details, compared to the third quarter of 1996, include:
-- Selling and marketing expense increased 4.2% to $1,286,864, reflecting
continuing investment in international market development as well as the
addition of personnel to expand the domestic marketing and communications
functions.
-- General and administrative expense increased 41.1%, to $947,799, as six
positions were added to meet expanded needs for operations and administrative
support.
-- Research and development expenses increased 45.3% to $1,517,571, due to
the addition of personnel and increased project-related costs associated with
developing new products and new technologies, and enhancing features of
existing products. As a percentage of revenue, research and development
expenses increased to 13.4%, up from 10.4% in the year-ago quarter.
TOLLGRADE COMMUNICATIONS, INC., AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(In thousands, except per-share data)
(Unaudited)
Three Months Ended Nine Months Ended
9/27/97 9/28/96 9/27/97 9/28/96
Revenues $ 11,363 $ 10,080 $ 32,097 $ 27,112
Cost of product sales 5,226 5,000 14,469 13,435
Gross profit 6,137 5,080 17,628 13,677
Operating expenses:
Selling and marketing 1,287 1,234 3,667 3,385
General and administrative 948 672 2,692 1,747
Research and development 1,517 1,044 4,183 2,636
Total operating expenses 3,752 2,950 10,542 7,768
Income from operations 2,385 2,130 7,086 5,909
Other income 221 90 637 479
Income before income taxes 2,606 2,220 7,723 6,388
Provision for income taxes 999 824 2,903 2,423
Net income $1,607 $1,396 $4,820 $3,965
Fully diluted earnings
per-share information:
Weighted average shares
of common stock and
equivalents: 5,955 5,940 5,957 5,920
Net income per common and
common equivalent shares $0.27 $0.23 $0.81 $0.67
TOLLGRADE COMMUNICATIONS, INC., AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
September 27, December 31,
1997 1996
ASSETS
Current assets:
Cash and cash equivalents $2,147 $4,591
Short-term investments 16,592 12,343
Accounts receivable:
Trade 7,203 5,153
Other 689 304
Inventories 9,420 8,570
Prepaid expenses and deposits 245 550
Deferred tax asset 172 172
Total current assets 36,468 31,683
Property and equipment, net 2,943 2,770
Deferred tax asset 157 157
Patents and other assets 11 16
Total assets $39,579 $34,626
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $1,033 $1,692
Accrued expenses 721 1,077
Accrued salaries and wages 727 770
Royalty payable 532 742
Income taxes payable 446 171
Total current liabilities 3,459 4,452
Deferred tax liability 168 168
Total liabilities 3,627 4,620
Total shareholders' equity 35,952 30,006
Total liabilities and
shareholders' equity $39,579 $34,626
MCU is a registered trademark of Tollgrade Communications, Inc.
SOURCE Tollgrade Communications, Inc. |
