Paradyne Reports Third Quarter 1999 Results
LARGO, Fla., Oct 27, 1999 (BUSINESS WIRE) --
Excellent Broadband Revenue Growth and Net Income
Performance Recorded for the Third Quarter
Paradyne Networks Inc. (Nasdaq:PDYN), a leader in broadband access
systems, today reported excellent third quarter performance for the
quarter ended Sept. 30, 1999. Sales of broadband products reflected
strong growth with $40.5 million in revenues, a 55 percent increase
over the same period in 1998. Broadband revenues for the first nine
months of 1999 were $110 million, a 57 percent increase over the same
period in 1998.
Total company revenues for the third quarter were $57.8 million, a 9
percent increase over the same period of 1998. The total company
revenues for the first nine months of 1999 increased 15 percent to $162
million, excluding $2.6 million of one-time royalty revenue, as
compared to $140.6 million for the nine-month period ended Sept. 30,
1998.
Excluding deferred stock compensation amortization, net income was $2.8
million or $0.09 per pro forma diluted share for the third quarter of
1999. As reported, net income was $1.9 million or $0.06 per diluted
share for the third quarter of 1999. This compares to a net loss of $.3
million or $0.01 per share for the quarter ended Sept. 30, 1998.
Net income, as reported, for the nine months ended Sept. 30, 1999 was
$3.6 million or $0.12 per diluted share, compared to a net loss of $2.9
million or a loss of $0.11 per share for the same period of the prior
year. Excluding one-time royalty and patent sales, deferred stock
compensation, and restructuring charges, net income for the nine-month
period ended Sept. 30, 1999 was $1.5 million or $0.05 per pro forma
diluted share, compared to a net loss of $2.7 million or a loss of
$0.11 per share.
"We exceeded our third quarter expectations in terms of revenue growth
and net earnings attainment," said Andy May, Paradyne's chief executive
officer. "The third quarter results confirm that our strategy of
expanding our broadband business is working. Once again, for the second
quarter in a row, more than 70 percent of our revenues came from
broadband products. We were pleased with our narrowband revenues, which
increased sequentially and exceeded our expectations for the third
quarter with revenues of $16.3 million."
In addition to the outstanding revenue and earnings performance in the
quarter, Paradyne successfully completed an initial public offering in
July and a secondary offering in September. "Speaking for the entire
Paradyne team, we are excited about our overall accomplishments in the
quarter and look forward to growing the business even further," said
May.
Highlights for the quarter include:
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-- Shipments of the Hotwire(R)Digital Subscriber Line Access
Multiplexers (DSLAMs) were more than 1,100 for the quarter and
now exceed 3,900 systems with the capacity for over one million
lines.
-- Sprint chose Paradyne's entire family of FrameSaver(R) service
level management products as part of its network offerings.
FrameSaver Service Level Verifier (SLV) is available for
immediate use and resale to Sprint and its customers.
-- Choice One Communications Inc., in a deal valued at $15 million,
will provide Northeast markets with digital subscriber line (DSL)
services based exclusively on Paradyne's Hotwire product family
including MVL(TM) (Multiple Virtual Lines) systems.
-- Capital Explorations Corporation, a Competitive Local Exchange
Carrier (CLEC), will deploy DSL Internet access using Paradyne's
Hotwire DSL products. Interconnect agreements with BellSouth,
Sprint and GTE allow immediate rollout of services in Florida.
-- Northwest Airlines, the fourth largest airline in the world,
selected Paradyne's FrameSaver service level management solutions
for deployment at more than 1,000 Northwest Airlines' airports
and cargo locations.
-- ALTEC, an Athens-based group of 22 companies focused on the
information technology and telecommunication industries, chose to
distribute Paradyne's DSL-based Internet access and frame relay
service level management solutions to the Balkan Region. This
agreement marks the first deployment of DSL-based services in the
area.
-- A next-generation, standards-based DSLAM offering service
providers the ability to serve up to 40 percent more customers.
Paradyne's Hotwire GranDSLAM will offer the latest ATM switching
fabric to integrate delivery of toll-quality voice and high-speed
data services. The GranDSLAM supports the broadest range of
DSL-based network services, including IP, ATM, Frame Relay, TDM,
MAC and Voice over DSL (VoDSL) and will support a range of DSL
transport types. Its standards-based architecture will support
interoperability with third-party endpoints.
-- Immediate availability of Voice over DSL (VoDSL) service with
Paradyne's Hotwire DSL platform. Choice One Communications Inc.
and Network Access Solutions (NAS) will deploy market trials for
this VoDSL service.
-- IDC named Paradyne number one in market share based on revenues
in the category "WAN Demarcation Devices and Their Role in
Service Level Monitoring (SLM)".
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