Here Ya Go :
Tuesday February 11 4:22 PM EDT
Proteon Inc. Reports Fourth Quarter and Full Year 1996 Financial
Results
New OpenROUTE(R) Networks Subsidiary To Focus On Growing Market for Remote Access
Internet/Intranet Connectivity
WESTBORO, Mass., Feb. 11 /PRNewswire/ -- Proteon Inc today reported a net loss for the fourth quarter ended December
31, 1996, of $8,047,000, or $0.52 per share, compared with net income of $1,571,000, or $0.10 per share, for the fourth
quarter of 1995. The loss includes a restructuring charge of $3,312,000, or $0.21 per share, relating to reductions in
occupancy requirements and related assets and the separation of a number of employees. Excluding restructuring charges, the
loss from operations of $0.31 per share for the quarter includes $0.16 per share from ongoing operations and an inventory
reserve of $0.15 per share. Net sales for the fourth quarter of 1996 were $10,043,000, compared with $17,228,000 for the
fourth quarter of 1995.
For the year ended December 31, 1996, Proteon reported a net loss of $12,014,000, or $0.77 per share, compared with net
income of $8,220,000, or $0.52 per share, for the year ended December 31, 1995. Net sales for 1996 were $45,296,000,
compared with $75,323,000 for 1995.
Daniel J. Capone, Jr., president and chief executive officer, said, "As we indicated in our announcement of January 9, the
results in our fourth quarter reflect a restructuring charge which was, in part, necessary to establish our new OpenROUTE(R)
Networks subsidiary. Our operating performance, absent the restructure and inventory reserve, was fundamentally on target
with analyst expectations.
"As we move forward into the new year, we are excited about the prospects of our new OpenROUTE Networks subsidiary.
The strategies for this new subsidiary are designed to enable the company to aggressively focus its efforts on the rapidly
growing Internet/Intranet connectivity marketplace. By leveraging our strengths in OpenROUTE internetworking software and
our successful line of GlobeTrotter Remote Access routers, we are concentrating our efforts on gaining more market share and
increasing revenue. By executing our business plan, we hope to restore the company to profitability within the first half of the
year," added Capone.
In this announcement, under the provisions of the "safe harbor" section of the Private Securities Litigation Reform Act of 1995,
Proteon, Inc. makes forward-looking statements that involve a number of risks and uncertainties. Among the factors that could
cause actual future results to differ materially are the level of acceptance of Proteon's and OpenROUTE Networks' products in
the marketplace; the company's ability to generate revenue across all existing product lines; future revenues generated by the
licensing of OpenROUTE software; general competitive pressures in the marketplace; the company's ability to sign agreements
with reseller partners including both Premier Access Partner VARs and Internet Service Providers (ISPs); the ability to sign
OEM agreements; and continued overall growth in the networking industry. Risk factors are listed in the company's annual
report, Form 10-K, Form 10-Q, and other filings with the Securities and Exchange Commission.
About OpenROUTE Networks/Proteon
OpenROUTE Networks' GlobeTrotter remote access routers feature the best price performance in their class. Single unit
prices for Internet Protocol (IP) connectivity start at only $795 per unit, which includes hardware and software. All
GlobeTrotter products come standard with OpenROUTE Networks' data compression functionality which provides data
throughput performance that is 30 to 70 percent faster than competing products. GlobeTrotter products also provide a wide
range of integrated network security features for Internet, Intranet and corporate applications.
All GlobeTrotters feature OpenROUTE, the company's interoperable, standards-based routing software. This means that
GlobeTrotters are compatible with networking devices from such leading vendors as IBM, Digital and Motorola, who have
licensed OpenROUTE, as well as other vendors' standards-based networking equipment. GlobeTrotter products can be
installed in minutes and are easily maintained and managed from central network sites. For more information, contact
OpenROUTE Networks/Proteon at 800-545-7464, on the World Wide Web at openroute.com, or by e-mail
at pro@proteon.com.
PROTEON, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
Dec. 31, Dec. 31,
ASSETS 1996 1995
Current assets:
Cash and cash equivalents $23,443 $32,692
Accounts receivable, net 7,625 12,138
Inventories 8,737 4,425
Deposits and other assets 1,083 1,457
Total current assets 40,888 50,712
Property and equipment, net 4,619 8,317
Total assets $45,507 $59,029
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $3,010 $4,064
Accrued expenses 7,392 7,642
Total current liabilities 10,402 11,706
Stockholders' equity 35,105 47,323
Total liabilities and stockholders' equity $45,507 $59,029
NOTE: The accompanying notes are an integral part of the consolidated financial statements.
PROTEON, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands)
Three months ended Twelve months ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1996 1995 1996 1995
Sales:
Product $6,818 $12,742 $32,175 $51,810
Software licensing 1,900 3,020 7,530 14,284
Service and other 1,325 1,466 5,591 9,229
Net sales 10,043 17,228 45,296 75,323
Cost of sales:
Product 6,344 6,778 20,825 27,373
Software licensing 285 322 538 2,656
Service and other 1,071 1,440 4,307 6,635
Cost of sales 7,700 8,540 25,670 36,664
Gross profit 2,343 8,688 19,626 38,659
Operating expenses:
Research and development 2,228 2,531 9,353 8,802
Selling and marketing 3,847 3,800 15,486 17,903
General and administrative 1,082 1,042 4,590 4,683
Restructure cost 3,312 --- 3,312 ---
Total operating expenses 10,469 7,373 32,741 31,388
(Loss) income from operations (8,126) 1,315 (13,115) 7,271
Interest income, net 239 326 1,261 1,437
(Loss) income before income
taxes (7,887) 1,641 (11,854) 8,708
Provision for income taxes 160 70 160 488
Net (loss) income ($8,047) $1,571 ($12,014) $8,220
(Loss) income per common share ($0.52) $0.10 ($0.77) $0.52
Weighted average number of
common and common equivalent
shares outstanding 15,560 15,806 15,630 15,692
NOTE: The accompanying notes are an integral part of the consolidated financial statements. SOURCE Proteon, Inc. |
