Glenayre Technologies Reports Fourth Quarter 1998 Results
CHARLOTTE, N.C., Feb. 17 /PRNewswire/ -- Glenayre Technologies Inc. (Nasdaq: GEMS - news) today announced results for the fourth quarter and year ended Dec. 31, 1998, and restated fourth quarter and year end 1997, results.
In previously issued financial statements, the company recorded charges for acquired in-process technology of $125.2 million in the fourth quarter 1997 in connection with the acquisitions of Open Development Corporation and Wireless Access Inc. In response to recent guidance from the Securities and Exchange Commission, the company has reduced the amount of charges for acquired in-process technology to $38.7 million in the fourth quarter 1997. These reductions have been reallocated to goodwill, and the company's financial statements have been restated to reflect the adjustments.
Net sales for the fourth quarter 1998 decreased to $96.8 million or 22% from $123.6 million for the fourth quarter 1997. The company's loss from operations totaled $53.4 million for fourth quarter 1998 compared to a loss from operations of $32.4 million for the same period in 1997. Loss per share increased to ($0.73) per share for the fourth quarter 1998 from the restated ($0.61) loss per share for fourth quarter 1997.
Results were negatively impacted during fourth quarter 1998 by charges including: 1) a $26.7 million writeoff of goodwill and other intangibles related to the company's prepaid wireless business; 2) a $7.9 million loss on the sale of the company's network management business (formerly known as CNET); and 3) charges of $6.8 million associated with restructuring costs. Additionally, costs associated with integration and severance costs, and a pager production problem reduced fourth quarter results. Exclusive of the one- time adjustments, net loss in the fourth quarter of 1998 would have been approximately $4.0 million or ($0.06) per share.
Net sales for the twelve months ended December 31, 1998, decreased to $399.9 million or 11% from $451.7 million for the twelve months ended December 31, 1997. The company's loss from operations totaled $45.2 million for 1998 compared with earnings of $26.6 million for 1997. Loss per share decreased to ($0.65) per share for 1998 from the restated $0.10 earnings per share for 1997.
President and CEO Ramon Ardizzone, said, ''I believe that in 1999 we have reasonable visibility in the markets we serve, as well as in the timing of new business. While we anticipate that the first half of the year will be slower than the second half, I believe we have made the right expense adjustments to support the volume of business we expect. As well, we anticipate to report earnings numbers that will match reasonable expectations for the year.''
For over 30 years, Glenayre Technologies Inc. has been developing and providing leading edge personal telecommunication systems, including products for paging and cellular networks. Glenayre products are installed in over 100 countries, and the company is a member of the Nasdaq-100 Index®. Additional information about Glenayre is available on the company's Web site at: glenayre.com.
Audio broadcast and replay of Glenayre's fourth quarter 1998 teleconference will be available on the Internet. It can be accessed at glenayre.com under Investor Relations.
This news release contains statements that may be forward looking within the meaning of applicable securities laws. The statements may include projections regarding future earnings results, and are based upon the company's current expectations and assumptions, which are subject to a number of risks and uncertainties. Factors that could cause actual results to differ are discussed in the company's most recently filed Form 10-Q. These factors may include: potential market changes resulting from rapid technological advances; introduction and acceptance of two-way paging products and systems; competition; variability of quarterly results; volatility of the company's stock price; limits on protection of proprietary technologies; potential changes in government regulation; financing of customer two-way paging purchases; and international business risks. |
