Catapult Communications Reports Financial Results for Third Quarter
1999; Earnings Per Share Increased 45 Percent, Revenue Up 45
Percent
Wednesday, July 14, 1999 04:33 PM
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MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--July 14, 1999--Catapult Communications
(Nasdaq: CATT), a leading provider of advanced software-based test systems to the
telecom industry, reported quarterly revenues and net income for the third fiscal quarter
ended June 30, 1999.
Total revenues for the third quarter were $6.7 million, a 45 percent increase over revenues
reported for the third quarter of 1998. Net income during the quarter increased 74 percent to
$2.0 million from $1.1 million reported for the third quarter of 1998. Diluted earnings per
share for the third quarter increased to $0.15, based on 13.1 million average shares
outstanding. Diluted earnings per share in the same quarter a year ago were $0.10, based
on 10.9 million average shares outstanding.
Total revenues for the nine months ended June 30, 1999 were $21.7 million, a 66 percent
increase over $13.1 million reported for the nine months ended June 30, 1998. Net income
during the nine months ended June 30, 1999 increased 86 percent to $6.7 million from $3.6
million reported for the nine months ended June 30, 1998. Diluted earnings per share for the
nine months ended June 30, 1999 increased to $0.56, based on 12.0 million average shares
outstanding. Diluted earnings per share in the same period a year ago were $0.33, based
on 10.9 million average shares outstanding. Revenue and earnings for the nine months
ended June 30, 1999 were significantly higher than revenue and earnings for the nine
months ended June 30, 1998 due to a large one-time sale to NTT DoCoMo in the second
quarter of fiscal year 1999.
"Our goal is to broaden our presence in the telecom test system market. In order to achieve
this, we continue to develop new and emerging protocols and significantly increase market
penetration. In this past quarter, we have made progress on all fronts," said Dr. Richard A.
Karp, President and CEO of Catapult.
Dr. Karp added, "Catapult continues to lead the industry in availability of test solutions for
new and complex protocols. This past quarter, we introduced H.323 and other Voice-over IP
testing capabilities. In addition, we added several new customers in the data
communications market. Going forward, we will work to maintain our lead in Voice-over IP
testing, expand our ATM support, and develop a product for 3G, which is next generation
technology for cellular services."
About Catapult Communications Corporation
Catapult Communications Corporation, founded in 1985, is a leading provider of advanced
software-based test systems for the global telecommunications industry. The DCT, also
called Digital Communications Test System, or DCT-S(TM), supports over 125 protocols
and variants. Helping to ensure interoperability and reliability, the DCT-S is a comprehensive
test solution designed to enable equipment manufacturers and network operators to deliver
complex digital equipment and services more quickly and cost-effectively. Catapult's
advanced software and hardware assists equipment manufacturers and service providers
in the design, integration, installation and acceptance testing of a broad range of digital
telecommunications equipment and services.
Catapult Communications Corporation is headquartered at 160 South Whisman Road,
Mountain View, CA, 94041. Additional information is available at catapult.com.
This press release contains forward looking statements regarding the Company's
anticipated development of new protocols and products, expansion of ATM support and
increased market penetration. These statements are subject to known and unknown risks
and uncertainties that could cause actual results to differ materially from those expressed
or implied by such statements, including the following risks: changes in the
telecommunications industry and the company's ability to anticipate and react to such
changes, the company's ability to increase headcount, the introduction of new products by
competitors, and delays in the development and introduction of new products by the
company.
Catapult Communications Corporation
Consolidated Condensed Statements of Income
(In $000 except per share data)
(Unaudited)
Quarter Ended Nine-Months Ended
June 30 June 30
1999 1998 1999 1998
Revenues:
Product sales $ 5,806 $ 4,092 $19,396 $11,385
Services 901 529 2,292 1,695
Total revenues 6,707 4,621 21,688 13,080
Cost of revenues:
Product sales 509 569 1,908 1,258
Services 236 150 627 389
Total cost of revenues 745 719 2,535 1,647
Gross profit 5,962 3,902 19,153 11,433
Operating expenses:
Research and development 792 534 2,089 1,419
Sales and marketing 1,446 847 3,940 2,194
General and administrative 742 549 2,055 1,596
Total operating expenses 2,980 1,930 8,084 5,209
Operating income 2,982 1,972 11,069 6,224
Interest income 501 168 903 417
Other income (expense) (47) (166) (159) (303)
Income before income taxes 3,436 1,974 11,813 6,338
Provision for taxes 1,477 849 5,079 2,721
Net income $ 1,959 $ 1,125 $ 6,734 $ 3,617
Earnings per share:
Basic $ 0.16 $ 0.11 $ 0.58 $ 0.35
Diluted $ 0.15 $ 0.10 $ 0.56 $ 0.33
Weighted average shares:
Basic 12,632 10,424 11,595 10,328
Diluted 13,091 10,933 12,039 10,889
As a percentage of revenues:
Gross profit 88.9% 84.4% 88.3% 87.4%
Operating expenses 44.4% 41.8% 37.3% 39.8%
Operating income 44.5% 42.7% 51.0% 47.6%
Net income 29.2% 24.3% 31.0% 27.7%
Catapult Communications Corporation
Consolidated Condensed Balance Sheets
(In $000)
(Unaudited)
June 30, 1999 Sept. 30, 1998
ASSETS
Current Assets:
Cash, cash equivalents
& short-term investments $41,729 $15,229
Accounts receivable, net 2,531 2,007
Inventory, net 680 612
Other current assets 721 501
Total current assets 45,661 18,349
Total long-term assets 1,345 1,146
Total assets $47,006 $19,495
LIABILITIES, REDEEMABLE COMMON STOCK AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable &
accrued liabilities $ 3,993 $ 3,121
Deferred revenue 2,084 1,222
Total current liabilities 6,077 4,343
Deferred income taxes 2 2
Total liabilities 6,079 4,345
Redeemable common stock -- 5,000
Stockholders' equity 40,927 10,150
Total liabilities, redeemable common
stock & stockholders' equity $47,006 $19,495
CONTACT: Catapult Communications Corp.
April Minor, 650/314-1000
ir@catapult.com
Quote for referenced ticker symbols: CATT
© 1999, Business Wire
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