SAN JOSE, Calif., Feb. 24 /PRNewswire/ -- Amati Communications Corporation
(Nasdaq: AMTX) today announced its financial results for the second quarter of
fiscal year 1997.
For the second quarter ended February 1, 1997, net revenue was $3,012,000,
or 19% higher than the prior year's second quarter sales of $2,524,000. As
anticipated, the Company reported a net loss of $2,786,000 or $.15 per share
compared to a net loss of $32,199,000 or $2.12 per share for the second
quarter of fiscal year 1996. During the second quarter of fiscal 1996, the
merger between the Company and the former Amati Communications Corporation, a
private company based in Mountain View, California, was consummated. This
business combination, accounted for as a purchase, resulted in a one-time
write-off of $31,554,000 for in-process research and development.
For the first six months of fiscal 1997, sales were $7,525,000, an
increase of 28% over sales for the comparable prior fiscal period of
$5,878,000. The decline in revenues in the second quarter from the first
quarter of the current fiscal period relates primarily to contract revenues
recorded under the Company's previously announced joint development agreement
with NEC Japan. For the first six months of fiscal 1997, the Company reported
a loss of $3,532,000 or $.19 per share compared to a net loss of $31,383,000
or $2.32 per share for the comparable fiscal 1996 six-month period. Because
the Company is in its development stage, financial results may vary
significantly from quarter to quarter.
Amati's Asymmetrical Digital Subscriber Line (ADSL) products currently
participate successfully in labs and field trials in both domestic and
international markets. The Company considers research and development a key
element in its ability to compete and will continue to make investments to
reduce costs, improve performance and physical appearance of its ADSL
products. In the Very High-Speed Digital Subscriber Line (VDSL) technology,
development efforts in conjunction with the partnership with NEC Japan are
ongoing and products are expected in calendar year 1998.
Amati Communications Corporation is a leading developer of advanced
transmission equipment utilizing Discrete Multi-tone (DMT) technology for the
ADSL, VDSL and cable modem markets. Amati is the holder of the ADSL/DMT
patents and has licensed the technology to companies such as Nortel, Motorola
and NEC. The Company is also a provider of network connectivity systems for
the internetworking and OEM marketplaces. Amati can be reached on the World
Wide Web at: amati.com.
NOTE: Statements made in this press release which are not historical,
including statements regarding product demonstration, product capabilities,
product releases and markets, are forward looking statements and as such are
subject to a number of risks. See the Company's Annual Report and Form 10-K
for the 1996 fiscal year and other reports filed with the Securities and
Exchange Commission for additional disclosure regarding such risk factors.
AMATI COMMUNICATIONS CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended Six Months Ended
Feb. 1, Jan. 27, Feb. 1, Jan. 27,
1997 1996 1997 1996
Net sales $ 3,012 $ 2,524 $ 7,525 $ 5,878
Cost of sales 2,113 1,546 4,200 3,387
Gross margin 899 978 3,325 2,491
Operating expenses:
Research and development 1,879 1,023 3,630 1,383
Marketing and sales 598 145 1,154 204
General and administrative 1,158 510 2,006 831
Write off of acquired
in-process research and
development 0 31,554 0 31,554
Total operating
expenses 3,635 33,232 6,790 33,972
Loss from operations (2,736) (32,254) (3,465) (31,481)
Other income (expense):
Interest income 32 58 33 144
Interest expense (82) (3) (100) (3)
Total other income
(expense) (50) 55 (67) 141
Loss before taxes (2,786) (32,199) (3,532) (31,340)
Provision for income taxes 0 0 0 43
Net Loss $ (2,786) $(32,199) $ (3,532) $(31,383)
Net Loss per Share $ (0.15) $ (2.12) $ (0.19) $ (2.32)
Number of shares used
in computation 18,685 15,223 18,208 13,551
AMATI COMMUNICATIONS CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands)
February 1, July 27,
ASSETS 1997 1996
Current assets:
Cash and cash equivalents $ 2,900 $ 886
Short term investments 2,148 0
Accounts receivable, less allowance of
$29 in 1997 and $30 in 1996 2,232 1,524
Inventories 2,640 1,616
Other current assets 972 1,156
Total current assets 10,892 5,182
Equipment and leasehold improvements - net 4,941 1,059
Other non-current assets 100 0
Total Assets $15,933 $ 6,241
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 3,589 $ 3,079
Employee compensation 1,105 793
Current maturities of capitalized
lease obligations 652 0
Notes payable 0 395
Total current liabilities 5,346 4,267
Long-term liabilities:
Capitalized lease obligations,
less current maturities 1,862 0
Obligations under lease commitments 294 294
Total long-term debt and liabilities 2,156 294
Stockholders' equity 8,431 1,680
Total Liabilities and Stockholders'
Equity $15,933 $ 6,241
SOURCE Am |
