Tut Systems, Inc. Reports 89% Year Over Year Growth in Second Quarter
Revenues
PLEASANT HILL, Calif., July 21 /PRNewswire/ -- Tut Systems, Inc. (Nasdaq: TUTS - news) today reported strong second quarter performance with revenues
for the quarter ended June 30, 1999 of $5.0 million, an increase of 89%, compared to revenues of $2.7 million for the quarter ended June 30, 1998. Revenues
increased $1.1 million or 29% from the first quarter of 1999.
(Photo: newscom.com )
The net loss for the quarter ended June 30, 1999 was $2.7 million, or $.23 per share (on 11,498,000 weighted average pro forma shares), compared with a net loss
for the quarter ended June 30, 1998 of $3.8 million or $.49 per share (on 7,673,000 weighted average pro forma shares).
''Our financial performance for the second quarter as a public company exceeded our internal expectations,'' said Tut Systems, Inc. President and Chief Executive
Officer, Sal D'Auria. ''We are very proud to announce $5.0 million in revenue which is 89% higher compared to total revenues of $2.7 million in the second quarter
of 1998.
''Our strong financial performance in the quarter can be attributed to continued momentum in the product sales of our multi-tenant and service provider product
lines,'' continued D'Auria. ''With the new multi-tenant products announced during the second quarter, Expresso MDU Lite and Expresso MDU Lite Link, we have
broadened our product family, allowing us to provide high speed Internet access systems to almost every property configuration -- including high rise, garden style,
centrally and non-centrally wired properties. Tut's new and existing customers have responded enthusiastically to these new products.''
D'Auria added, ''Additionally, this quarter we were pleased to report the strategic acquisition of PublicPort Inc., an Ann Arbor, Michigan-based networking
company specializing in high-speed Internet applications for multi-tenant (MTU) property owners. With this acquisition, Tut expects to accelerate its product cycle
and launch a subscriber management gateway system for service providers deploying Internet access solutions. PublicPort gives us a competitive edge to provide a
comprehensive multi-tenant solution for service providers and property owners.''
For the thirty-day period ended July 7, 1999, the combined results of operations of Tut Systems, Inc. and PublicPort, Inc., yielded revenues of $2.5 million, loss
from operations of $0.8 million and a net loss of $0.6 million or $ .06 per share (on 11,626,000 weighted average pro forma shares).
Recent Announcements:
Significant announcements from Tut since the end of the first fiscal quarter include:
7/99 Tut Systems Added to Russell 2000
7/99 Tut Systems Kicks Off "Connected Together" Partner Program
6/99 Tut Systems Launches Hotel Internet Management System,
PublicPort(TM)
6/99 Tut Launches Wireless Expresso MDU LiteLink(TM)
6/99 Tut Systems Acquires Public Port, Inc.
5/99 Tut and InterQuest to Provide High-Speed Internet Access To
Post Properties
5/99 Tut Announces Customer Leasing Program
5/99 Tokyo's Century Hyatt Deploys Tut's High Speed Internet Access
Services
5/99 Tut's HomeRun(TM) Hits Store Shelves in Canada
4/99 Tut Expands High-Speed Internet Access Product Family with Expresso
MDU Lite
4/99 Tut Systems, Inc. Reports 109% Growth in First Quarter Revenues
4/99 8x8, Clarent, and Tut Systems Demonstrate Voice Over IP Solutions
for Home Networks and DSL Systems
4/99 Epigram Licenses Patented Technology from Tut Systems
About Tut Systems, Inc.
Tut Systems designs, develops and markets advanced communications products which enable high-speed data access over the copper infrastructure of telephone
companies, as well as the copper telephone wires in homes, businesses and other buildings. These products incorporate Tut's proprietary FastCopper technology in a
cost-effective, scalable and easy to deploy solution to exploit the underutilized bandwidth of copper telephone wires. The Company's products include Expresso high
bandwidth access multiplexers, associated modems and routers, XL Ethernet extension products and integrated network management software. Tut's HomeRun
technology, an in-home application of FastCopper, has been chosen by the Home Phoneline Networking Alliance (HomePNA) as the initial specification for in-home
networking over phonelines.
For more information, visit Tut's World Wide Web site at tutsys.com or contact Tut's US Headquarters directly at 925-682-6510 or 800-998-4888.
NOTE: Tut, the Tut logo, HomeRun and Fast Copper are trademarks of Tut Systems, Inc. All other products or company names mentioned are used for
identification purposes only, and may be trademarks of their respective owners.
Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995 for Tut Systems, Inc.:
Various matters set forth in this press release, including statements
regarding the deployment of new products, the timing of the launch of the
subscriber management system, the competitive advantages of Public Port, and
the acceleration of product cycles are forward looking statements. Factors
may affect Tut Systems including but not limited to, customer acceptance of
products, the introduction of alternative technological solutions, delay in
product shipments and other risks detailed from time-to-time in Tut Systems'
SEC filings and reports.
TUT SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three months ended Six months ended
June 30, June 30,
1999 1998 1999 1998
Revenues:
Product $4,735 $2,399 $8,308 $4,095
License and royalty 275 254 593 418
Total revenues 5,010 2,653 8,901 4,513
Cost of goods sold:
Product 2,921 1,370 5,160 2,382
License and royalty -- 21 3 21
Total cost of goods sold 2,921 1,391 5,163 2,403
Gross margin 2,089 1,262 3,738 2,110
Operating Expenses:
Sales and marketing 2,456 2,097 4,857 3,928
Research and development 1,687 1,321 3,358 2,764
General and administrative 1,015 782 2,002 1,424
Noncash compensation expense 114 939 228 1,005
Total operating expenses 5,272 5,139 10,445 9,121
Loss from operations (3,183) (3,877) (6,707) (7,011)
Interest expense (139) (13) (315) (23)
Other income 627 110 1,016 234
Loss before income taxes (2,695) (3,780) (6,006) (6,800)
Income tax expense -- 1 1 1
Net loss (2,695) (3,781) (6,007) (6,801)
Dividend accretion on
preferred stock -- 658 235 1,262
Net loss attributable to
common stockholders $(2,695) $(4,439) $(6,242) $(8,063)
Net loss per share
attributable to common
stockholders, basic and
diluted $(0.23) $(20.06) $(0.64) $(36.65)
Shares used in computing
net loss attributable to
common stockholders, basic
and diluted 11,498 221 9,695 220
Pro forma net loss per share,
before dividend accretion
basic and diluted $(0.23) $(0.49) $(0.55) $(0.89)
Shares used in computing pro
forma net loss per share,
before dividend accretion,
basic and diluted 11,498 7,673 10,889 7,673
TUT SYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
June 30, December 31,
1999 1998 |
