Lightbridge, Inc. Reports Fourth Quarter, Fiscal Year Results
BURLINGTON, Mass.--(BUSINESS WIRE)--Feb. 10, 1998--Lightbridge, Inc. (NASDAQ:LTBG - news), a leading
provider of customer acquisition and retention solutions for the global telecommunications industry, today reported financial
results for the fourth quarter and twelve months ended December 31, 1997. Revenues for the fourth quarter of 1997 increased
by 48.9% to $13.3 million, from $8.9 million for the fourth quarter of 1996. Net income for the quarter ended December 31,
1997, before acquisition-related charges, was $1.5 million, or $0.10 per share, compared to net income of $1.6 million, or
$0.10 per share on a proforma basis, for the quarter ended December 31, 1996. The acquisition-related charges, which
resulted from Lightbridge's acquisition of Coral Systems, Inc. on November 7, 1997, consisted of a previously announced
nonrecurring charge of $16.0 million, or $(1.05) per share, for certain purchased in-process research and development by
Coral Systems at the time of the acquisition, as well as additional charges relating to the amortization of goodwill, amortization
of acquired technology and costs of integration. Net income for the quarter ended December 31, 1997, before the
nonrecurring charge for the write-off of purchased research and development (but after giving effect to other
acquisition-related charges) was $674,000 or $0.04 per share. Net loss for the quarter ended December 31, 1997 was $15.4
million, or $(1.01) per share after giving effect to all of the acquisition-related charges. The weighted average number of
common and potential shares outstanding for the fourth quarters of 1997 and 1996 was 15.3 million and 16.4 million,
respectively.
Revenues for the twelve months ended December 31, 1997 increased by 37.3% to $40.6 million, from $29.5 million for the
twelve months ended December 31, 1996. Net income for the twelve months ended December 31, 1997, before
acquisition-related charges, was $5.1 million, or $0.34 per share, compared to net income of $2.3 million, or $0.16 per share
on a proforma basis, for the twelve months ended December 31, 1996. Net income for the twelve months ended December
31, 1997, before the nonrecurring charge of $16.0 million, or $(1.08) per share, for the write-off of purchased in-process
research and development (but after giving effect to other acquisition-related charges) was $4.2 million, or $0.29 per share.
Net loss for the year ended December 31, 1997 was $11.8 million, or $(0.80) per share, after giving effect to all of the
acquisition-related charges. The weighted average number of common and potential shares outstanding for the years ended
December 31, 1997 and 1996 was 14.8 million and 14.4 million, respectively.
Pamela D. A. Reeve, Lightbridge's President and Chief Executive Officer, commented, ''I am disappointed to report revenue
this quarter fell short of our expectations. This shortfall of approximately one million dollars in transaction revenue reflects
services Lightbridge provided to one key carrier that were later deemed unbillable. Despite this issue, we experienced strong
growth in transaction revenue during the quarter as the critical mass of PCS carriers entered their first retail season fueling
increased competition for the wireless consumer. During this retail season we had two fully operational data centers that
produced our strongest quarter in transaction volume, turnaround time and reliability. In addition, I am pleased with this
quarter's very strong growth in consulting services which augurs well for implementation and deployment of new clients.''
Reeve continued, ''1997 was a particularly good year for the company as we experienced growth in all areas of our business
and laid the foundation for future growth. We continued to strengthen our leadership position adding 17 new clients during the
year, bringing our total to 70 carriers. In addition, we extended our global reach by initiating important new worldwide
relationships, bringing onstream Iridium, UniqueAir LTD, and Orange PLC [Nasdaq:ORNGY - news] among others. At
year-end we finalized the acquisition of Coral Systems, which enables Lightbridge to provide best-of-breed, front-and
back-end solutions for global telecommunications carriers. We continue to be excited about the opportunities in this dynamic
telecommunications marketplace and, based on the strides we made in 1997, believe we are in a very strong position to
capitalize on its growth.''
In November, 1997 Lightbridge announced the completion of the acquisition of Coral Systems, Inc. Also in November
Lightbridge and Dun & Bradstreet unveiled the industry's first Wireless Telecommunications Industry Score as a risk
assessment tool for business accounts. In addition, during the fourth quarter Lightbridge announced a major new contract with
360 Communications.
About Lightbridge
Lightbridge, Inc. (NASDAQ:LTBG), based in Burlington, Mass., is a leading provider of software-based services that help
global telecommunications carriers quickly acquire customers and retain them over time. Lightbridge has leveraged its credit
processing expertise into solutions that help carriers quickly and cost-effectively provide bundled services through new
channels. Telesto(tm), Lightbridge's network of integrated customer acquisition and retention solutions, provides best-in-class
acquisition, fraud, churn and market performance solutions to such clients as 360 Communications, AT&T Wireless, BellSouth
Mobility DCS, Omnipoint Communications and Sprint PCS. It is the only complete, workflow-enhanced system for customer
interaction in the converged telecommunications marketplace. Additional information on the company can be found on the
Web at lightbridge.com.
Telesto is a registered trademark of Lightbridge, Inc. All other trademarks and registered trademarks are the properties of
their respective owners.
This press release contains forward-looking statements concerning Lightbridge that involve a number of risks and uncertainties.
Important factors that could cause Lightbridge's actual results to differ materially from those indicated by such forward-looking
statements include risks set forth under the caption ''Risk Factors'' in Lightbridge's Annual Report on Form 10-K for the year
ended December 31, 1996. |
