Stanford Telecom Reports Record High First
Quarter Fiscal 2000 Results
SUNNYVALE, Calif.--(BUSINESS WIRE)--July 20, 1999--Stanford Telecommunications, Inc. (NASDAQ/NMS:STII -
news) announced today that it achieved record high revenues, net income and earnings per share (diluted) of $61.0 million,
$10.5 million and $0.78, respectively for its first quarter of fiscal 2000, ended June 30, 1999. Revenues, net income and
earnings per share (diluted) for the first quarter of the previous fiscal year were $44.4 million, $1.0 million and $0.08,
respectively.
Contributing to the record high performance was inclusion of licensing fees for certain patents and products associated with
its cable modem technology. Total licensing fees recognized during the first quarter of fiscal 2000 totaled $17.8 million.
During the first quarter of fiscal 2000, the Company settled its litigation with Broadcom Corporation in which Broadcom
paid Stanford Telecom a substantial licensing fee for certain patent rights related to its cable modem technology. All claims
and causes of action have been dismissed.
Bookings of $55.9 million were posted for the first quarter of fiscal 2000. Backlog at the end of the June 1999 quarter stood
at $97.5 million. Bookings and backlog reported for the first quarter of fiscal 1999 were $43.0 million and $92.2 million,
respectively.
On June 22, 1999, Stanford Telecom and Newbridge Networks announced that the Board of Directors of each Company
had approved an agreement and plan of merger, subject to conditions including approval by Stanford Telecom's
shareholders, whereby Newbridge will acquire all of the outstanding shares of common stock of Stanford Telecom in a
tax-free, stock-for-stock exchange. Details of the transaction are included in the Company's Form 8-K as filed with the
SEC on June 25, 1999.
In announcing the results of the first quarter, Dr. Val P. Peline, President and Chief Executive Officer said, ''Over the past
four years we have invested in high growth potential commercial products in order to position the Company for future
growth and enhanced shareholder value. The recently announced merger with Newbridge Networks provides our
shareholders the opportunity to share in our successful development and introduction of our wireless broadband products.
As part of the merger agreement with Newbridge we are actively pursuing the sales of our Government base business and
our manufacturing operation. We have received enthusiastic interest from a number of potential buyers and believe that early
completion of this process will best serve our shareholders and dedicated employee workforce. Until the merger is finalized,
we expect to continue to conduct business as usual and continue to pursue those opportunities that have made Stanford
Telecom an industry leader in advanced communications products, systems and services.''
Stanford Telecom was founded in 1973, maintains headquarters in Sunnyvale and employs over 1,000 people at its various
locations around the United States. Stanford Telecom's Website can be found at stelhq.com.
Statements included in this press release are forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended. Such statements are or are based
upon projections and estimates that involve risks such as those detailed in the Company's Annual Report on Form 10-K and
Quarterly Reports on Form 10-Q. As a result, actual results could differ materially from the forward-looking statements
included herein.
STANFORD TELECOMMUNICATIONS, INC.
CONSOLIDATED CONDENSED SUMMARIES OF OPERATIONS
(in thousands, except per share amounts)
Three months ended
June 30, 1999
Base Stanford
Business Wireless
Operations Broadband, Total
Inc.
Revenues
Products and services $ 36,006 $ 7,240 $ 43,246
Licenses 17,750 -- 17,750
Total revenues 53,756 7,240 60,996
Cost of revenues 28,682 8,647 37,329
Gross profit (loss) 25,074 (1,407) 23,667
Expenses
Research and development 1,326 1,428 2,754
Marketing and administrative 4,573 1,468 6,041
Total expenses 5,899 2,896 8,795
Operating income (loss) $ 19,175 $ (4,303) $ 14,872
Interest income 393
Income before provision
for income taxes 15,265
Provision for income taxes (4,732)
Net income $ 10,533
Basic Shares Outstanding 13,139
Basic EPS $ 0.80
Diluted Shares Outstanding 13,495
Diluted EPS $ 0.78
Three months ended
June 30, 1998
Base Stanford
Business Wireless
Operations Broadband, Total
Inc.
Revenues
Products and services $ 34,810 $ 9,552 $ 44,362
Licenses -- -- --
Total revenues 34,810 9,552 44,362
Cost of revenues 26,661 8,258 34,919
Gross profit (loss) 8,149 1,294 9,443
Expenses
Research and development 990 2,719 3,709
Marketing and administrative 3,058 1,654 4,712
Total expenses 4,048 4,373 8,421
Operating income (loss) $ 4,101 $ (3,079) 1,022
Interest income 484
Income before provision for
income taxes 1,506
Provision for income taxes (467)
Net income $ 1,039
Basic Shares Outstanding 12,976
Basic EPS $ 0.08
Diluted Shares Outstanding 13,171
Diluted EPS $ 0.08
CONSOLIDATED BALANCE SHEETS
(in thousands)
June 30, March 31,
1999 1999
----------- ------------
Current Assets:
Cash and cash equivalents $ 15,340 $ 19,400
Short-term investments 29,148 9,934
Accounts receivable 27,463 30,086
Unbilled receivables 24,172 23,955
Inventories 12,341 13,973
Prepaid taxes and other expenses 4,510 3,963
Total current assets 112,974 101,311
Property and equipment, net of
depreciation 11,718 12,665
Other assets 1,046 1,087
-------- --------
$125,738 $115,063
Liabilities and shareholders' equity:
Current liabilities $24,063 $ 24,966
Long-term liabilities 608 668
Shareholders' equity 101,067 89,429
-------- --------
$125,738 $115,063
Contact:
Stanford Telecom
Gary Wolf, 408/745-240 |
