Here are their earnings....
BROADBAND TECHNOLOGIES, INC. REPORTS FINANCIAL RESULTS
FOR THE FIRST QUARTER OF FISCAL 1998
RESEARCH TRIANGLE PARK, NC - April 23, 1998 - BroadBand Technologies, Inc. (NASDAQ: BBTK), a leading provider of integrated access platforms for the telecommunications industry today reported results for the first quarter ending March 31, 1998. Net sales for the quarter were $2.5 million compared to $5.3 million recorded for the same period last year. The company reported a net loss for the quarter of $11.1 million or ($.83) per share, compared with a net loss of $8.5 million or ($.64) per share for the same period a year ago.
During the quarter BroadBand announced its new business strategy and began taking steps toward its implementation. Current results do not yet include financial benefits of the contracts announced as part of the new business strategy. In addition, the first quarter results continue to reflect product development investment, the long implementation process that is typical of customers for major communications infrastructure changes, continued market development for broadband services on an integrated platform, as well as an uncertain regulatory environment for the company's customers.
"We made significant progress in the first quarter to position BroadBand for improved market and financial performance and BroadBand is on track for the successful implementation of its new strategy," said David E. Orr, president and CEO, BroadBand Technologies. "We anticipate the results of the new strategy will begin to positively affect revenues and reduce operational costs by the beginning of the third quarter."
New Corporate Strategy
In February, BroadBand announced a three-part strategy to improve its financial position and target emerging needs in the established, high-growth local loop access market. As the first of the three initiatives, BroadBand signed multiple agreements with Lucent Technologies worth in excess of $50 million over three years. In addition, BroadBand announced its intentions to form a strategic alliance to evolve the iFLX(TM) trade; platform to meet the emerging Full Service Access Network (FSAN) standard. Rounding out the new strategy, the company also announced plans to develop an access product that capitalizes on its core competencies in ATM, broadband access and xDSL, as well as intellectual property BroadBand has licensed from Lucent. This new corporate strategy establishes a foundation for BroadBand to leverage its technical strengths to target the high-growth, $2 billion, converging loop access and data markets, while gravitating toward more independence and less reliance on video demand over an integrated platform.
"During the first quarter, BroadBand coordinated development and manufacturing plans with Lucent, began solidifying operational efforts for the development of our access product, and made encouraging progress in the development of an international partnership to meet the emerging FSAN standard," said Orr.
Membership in the ADSL Working Forum
Also in the first quarter, BroadBand announced that it has joined the ranks of other leading technology providers by participating in the Universal Asymmetric Digital Subscriber Line Working Forum (UAWG). The UAWG is a consortium of leading PC and telecommunications companies, including Intel, Compaq, Microsoft, Ameritech, BellSouth, GTE, SBC Communications, Sprint and US WEST, that is working to accelerate the deployment of high-speed Internet access for mass consumer markets. By sharing its extensive technical experience, BroadBand will help the UAWG catalyze rapid deployment of broadband access systems to support growth in the Internet and other related high bandwidth services. At the same time, the company will utilize knowledge gained from hands-on participation in the UAWG to enhance its its own product development.
About BroadBand Technologies
BroadBand Technologies, Inc., based in Research Triangle Park, North Carolina, was founded in 1988. It specializes in integrated access platforms, which combine ATM switching and transport with Digital Subscriber Line (xDSL) and Fiber-in-the-Loop (FITL) technologies, to deliver high-speed data and voice services as well as digital video. The company uses its access expertise in the development of its own loop electronics equipment and also supports other telecommunications equipment providers for broadband and optical local loop components. For more information on BroadBand Technologies, please visit the company's home page at bbt.com
This press release contains forward-looking statements about the company's performance. The Company's Form 10-K, Form 10Qs and other documents on file with the Securities and Exchange Commission identify important factors which could cause actual results to differ materially from those indicated by the forward looking statements. However, forward looking statements are beyond the ability of the Company to control and in many cases the Company cannot predict what factors would cause actual results to differ materially from those indicated by the forward looking statements.
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CONTACT:
Dale Kirkland Jon Bornstein
BroadBand Technologies, Inc. Copithorne & Bellows
(919) 405-4623 (919) 562-6787
kirkland@bbt.com jon.bornstein@cbpr.com
BROADBAND TECHNOLOGIES, INC.
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BALANCE SHEETS
March 31
December 31
1998
1997
(Unaudited)
(Audited)
(Dollars in thousands )
Assets
Current assets:
Cash and investments
$ 91,936
$ 88,791
Accounts receivable
3,552
2,371
Inventories (net)
2,744
3,214
Other Current Assets
1,018
1,547
Total current assets
99,250
95,923
Restricted cash - Short and Long Term
9,271
13,033
Property and plant equipment (net)
8,402
9,108
Long Term Assets
2,338
2,525
Long Term Investments
7,130
15,328
$ 126,391
$ 135,917
Liabilities and Shareholders' Equity
Current Liabilities:
Accounts Payable and accrued liabilities
$ 9,536
$ 8,544
Deposits and other accrued liabilities
3,263
3,263
Other current liabilities
6,285
5,971
Total current liabilities
19,084
17,778
Long-Term Liabilities:
Deferred Revenue
13,000
13,000
Long-Term Debt
115,800
115,600
Total Long-Term Liabilities
128,800
128,600
Total Shareholders' equity
(21,493)
(10,461)
$ 126,391
$ 135,917
BROADBAND TECHNOLOGIES, INC.
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STATEMENTS OF OPERATIONS
Three Months Ended
Three Months Ended
For the periods ended March 31, 1998 and March 31, 1997
1998
1997
1998
1997
(Unaudited)
(Unaudited)
(Dollars in thousands except per share amounts)
Sales
$ 2,507
$ 5,310
$ 2,507
$ 5,310
Cost and expenses:
Cost of Sales
2,188
4,297
2,188
4,297
Research and development
6,253
6,199
6,253
6,199
Performance fees and obsolete equipment
0
300
0
300
Sales,Marketing and administration
5,410
2,820
5,410
2,820
Net Interest Expense
1,604
1,605
1,604
1,605
Net Interest Income
(1,875)
(1,449)
(1,875)
(1,449)
Pretax (loss)
(11,073)
(8,462)
(11,073)
(8,462)
Income tax provision
0
0
0
0
Net (loss)
$ (11,073)
$ (8,462)
$ (11,073)
$ (8,462)
Average shares and equivalents (thousands)
13,390
13,253
13,390
13,253
(Loss) per share
$ (0.83)
$ (0.64)
$ (0.83)
$ (0.64)
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