Dialogic Corporation Announces Third QuarterResults
October 15, 1998 04:05 PM
PARSIPPANY, N.J.--(BUSINESS WIRE)--Oct. 15, 1998--Dialogic Corporation DLGC , the world's leading manufacturer of high performance, standards-based computer telephony (CT) components, today announced third quarter results. For the three months ended September 30, 1998, the Company recorded net income of $7.0 million and earnings per share on a diluted basis of $0.43 as compared with net income of $6.4 million and earnings per diluted share of $0.38 in the third quarter of 1997. Revenues for the quarter rose to $76.1 million, an increase of 11% over revenue of $68.8 million for the comparable period in 1997. Reported net income for the nine month period ended September 30, 1998, was $29.6 million or $1.78 per diluted share as compared to $14.4 million or $0.87 per diluted share for the period ended September 30, 1997. Included in the current year net income is $14.0 million or $0.84 per diluted share of after-tax gain on the first quarter asset sale of a subsidiary and non-recurring charges of $4.8 million or $0.29 per share for the write-down of certain assets. Excluding the gain on the asset sale and the one-time charges, net income was $20.3 million or $1.22 per share on a fully diluted basis, an increase of 41% year over year. For the nine month period ended September 30, 1998, revenues increased 14% to $215.6 million. "Overall, we are pleased with our growth this quarter despite the difficult market conditions being experienced worldwide," said Howard G. Bubb, President and CEO of Dialogic Corporation. "We believe our market position continued to improve as we rolled out industry leading new products at both the high and low ends of the market expanding on the industry's broadest computer telephony product line. We were particularly pleased with our success in Europe and Asia, spurred by the Company's ability to meet the requirements of its customers and prospective partners worldwide." Dialogic Corporation is the leading manufacturer of high performance, standards-based computer telephony (CT) components. Dialogic products are used in voice, fax, Internet telephony, data, voice recognition, speech synthesis, ISDN networks and call center management CT applications. The company is headquartered in Parsippany, New Jersey, with regional headquarters in Tokyo, Japan, and Brussels, Belgium, with sales engineering offices worldwide. For more information, visit the Dialogic Web Site dialogic.com. Certain of the statements contained herein are forward looking. Actual results might differ materially from the Company's forward-looking statements. Factors that could cause actual results to differ materially from the Company's forward-looking statements include economic and regulatory conditions in the Company's markets, a reduction in the demand for Dialogic customers' products, competition, new product introductions, quarterly fluctuations in results, and slowing of the overall rate of growth of the computer telephony market. For more information on risk factors, see the Company's forms 10-K and 10-Q filed with the Securities and Exchange Commission.
Trademarks: All names, products and services mentioned are trademarks or registered trademarks of their respective organizations.
Summary Statement of Income
(Unaudited)
(In thousands except per share data)
Three Months Ended
September 30,
1998 1997
Revenues $ 76,121 $ 68,760
Net income $ 6,956 $ 6,352
Net income per share
Basic $ 0.43 $ 0.40
Diluted $ 0.43 $ 0.38
Weighted average number
of common shares
Basic 16,003 15,994
Diluted 16,361 16,623
Nine Months Ended
September 30,
1998 1997
Revenues $215,640 $189,045
Net income $ 29,563(a) $ 14,358
Net income per share
Basic $ 1.84 $ 0.90
Diluted $ 1.78 $ 0.87
Weighted average number
of common shares
Basic 16,030 15,888
Diluted 16,606 16,499
(a) - Includes $14,031 gain from sale of subsidiary and $4,735
after-tax charge for write-down of certain impaired assets.
Consolidated Statement of Income
(Unaudited)
(In thousands except per share data)
Three Months Ended
September 30,
1998 % 1997 %
Revenues $ 76,121 100.0 $ 68,760 100.0
Cost of goods sold 28,956 38.0 25,882 37.6
Gross profit 47,165 62.0 42,878 62.4
Research and development 17,097 22.5 13,542 19.7
Selling, general &
administrative expenses 20,017 26.3 19,855 28.9
Operating income 10,051 13.2 9,481 13.8
Interest income, net 818 1.1 444 0.6
Income before provision
for income taxes 10,869 14.3 9,925 14.4
Provision for income taxes 3,913 5.1 3,573 5.2
Net income $ 6,956 9.2 $ 6,352 9.2
Net income per share
Basic $ 0.43 $ 0.40
Diluted $ 0.43 $ 0.38
Weighted average number
of common shares
Basic 16,003 15,994
Diluted 16,361 16,623
Nine Months Ended
September 30,
1998 % 1997 %
Revenues $215,640 100.0 $189,045 100.0
Cost of goods sold 80,386 37.3 71,021 37.6
Gross profit 135,254 62.7 118,024 62.4
Research and development 46,888 21.7 38,391 20.3
Selling, general &
administrative expenses 59,116 27.4 58,347 30.8
Asset impairment 5,297 2.5 - -
Operating income 23,953 11.1 21,286 11.3
Interest income, net 2,254 1.1 1,148 0.6
Gain on sale of subsidiary 23,384 10.8 - -
Income before provision
for income taxes 49,591 23.0 22,434 11.9
Provision for income taxes 20,028 9.3 8,076 4.3
Net income (a) $ 29,563 13.7 $ 14,358 7.6
Net income per share
Basic $ 1.84 $ 0.90
Diluted $ 1.78 $ 0.87
Weighted average number
of common shares
Basic 16,030 15,888
Diluted 16,606 16,499
(a) see note (a) to summary statement
DIALOGIC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
September 30, December 31,
1998 1997
ASSETS
Current assets:
Cash and cash equivalents $ 47,134 $ 18,764
Marketable securities 41,508 43,774
Accounts receivable, net 50,959 45,186
Inventory, net 24,515 30,492
Deferred income tax 10,435 7,190
Other current assets 10,749 6,842
Total current assets 185,300 152,248
Property and equipment, net 25,470 22,615
Other assets 5,467 7,541
TOTAL ASSETS $216,237 $182,404
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 9,382 $ 14,361
Accrued expenses 21,633 16,201
Income taxes payable 8,938 1,237
Current maturities of
long term liabilities 259 529
Total current liabilities 40,212 32,328
Long Term Liabilities 2,469 2,481
Deferred income taxes 3,226 2,730
SHAREHOLDERS' EQUITY 170,330 144,865
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $216,237 $182,404 |
