Teltrend Reports Earnings and Sales for First Quarter 2000
ST. CHARLES, Ill.--(BUSINESS WIRE)--Nov. 30, 1999--Teltrend Inc. (Nasdaq: TLTN - news), today announced results for its first quarter ended October 30, 1999. Earnings for the quarter were $0.42 per diluted share, up from $0.41 in the first quarter of last year. Sales for the quarter were $26.0 million compared to $30.2 million for the first quarter last year. The lower year-to-year quarterly sales is partially attributable to the sale of Teltrend's router business in the fourth quarter of last year as well as to the fact that last year's first quarter contained fourteen weeks compared to thirteen weeks in this year's first quarter. Sales of Teltrend T1 products increased, and sales of Teltrend HDSL and DLC products were up 100% and 47%, respectively, while sales of voice frequency and DDS products were lower.
Quarterly sales of Teltrend's three major product categories (High Capacity Products, Channelized Products, and Conversion Products) totaled $14.7 million, $6.5 million, and $4.8 million, respectively, compared to $14.2 million, $10.1 million, and $4.7 million, respectively for the first quarter of fiscal 1999.
The Company's cash reserves increased during the quarter from $25.9 million to $27.8 million. The Company repurchased 15,000 shares of its common stock during the quarter under its stock buyback program.
''Overall we're pleased with the results of our first quarter,'' said Howard L. Kirby, Jr., Teltrend Chairman and CEO. ''Interest in our new ASTS(TM) system and 2-wire HDSL products for provisioning High Cap services has been strong, as has interest in FastPort(TM), our new system for provisioning private line digital services. During the quarter we received our first stocking orders for ASTS and HDSL2.
''In spite of some temporary consolidation-related order delays at two RBOC's, we made significant progress in our core High Capacity Products business. Also, our Digital Loop Carrier products showed good year-to-year growth, due primarily to increasing RBOC acceptance of our advanced special services channel units. Also, Teltrend received its first production orders during the quarter for special services channel units for the NextLevel Communications digital loop carrier system. We expect these production orders will start to deliver next quarter.''
Mr. Kirby continued, ''The high level of interest in our new Teltrend products: ASTS(TM), HDSL2, FastPort(TM) and UniPort(TM) is very encouraging. We regard the Teltrend ASTS system as the best choice for deployment of high capacity services, irrespective of whether they are provided by RBOC, Independent Telco, or CLEC, and irrespective of whether these services are provided via fiber optic, HDSL, HDSL2 or repeatered T1 technology. Teltrend's ASTS system has a tremendous potential to save our customers money. It ''covers the waterfront'' in transmission capability. It's a compact, economical system that replaces five previous equipments: T1 distribution system, M13 multiplexer, performance monitoring unit, digital test access unit, and protection switch. And very importantly, ASTS plug-ins are plug-compatible with the existing Telco STS infrastructure and Teltrend HDSL2 units are interoperable with other standards-compliant HDSL2 units like those produced by PairGain Technologies, Inc.
''Switching for a moment from High Cap services to private line digital (DDS) services, we believe Teltrend's FastPort(TM) and UniPort(TM) also have a tremendous potential to save our customers money. For telephone loops up to 18,000 feet in length we believe UniPort(TM) is the best choice for provisioning DDS. It plugs into the same slots and costs virtually the same as conventional DDS provisioning equipment. It's totally compatible with existing testing systems. And, best of all, it requires only a single twisted pair, versus two pair for conventional DDS technology. For lines beyond 18,000 feet, where Telcos typically face the necessity of costly and time-consuming removal of load coils, FastPort(TM) could be a lifesaver. Three years ago Teltrend envisioned the idea of being able to provision DDS without the need to remove load coils. Lots of people thought it couldn't be done, and it has taken some time. But, we've done it.
''Our UK-based conversion business also had a good quarter, and developed several promising new business prospects in the process. Cisco approved our IQ200 unit for use in Europe. The Teltrend IQ200 provides interfacing between Cisco frame relay equipment and European PBX's. This opportunity is forecasted to provide a significant new revenue stream for Teltrend Ltd.
''Our Teltrend manufacturing team made excellent progress during the quarter, building top quality products and reducing product costs. Teltrend Engineering and Manufacturing have been converting our products to newer, lower cost surface mount designs on an on-going basis. Currently our surface mount line is near capacity. To get ready for ASTS, HDSL2, UniPort(TM) and FastPort(TM) volume production we're bringing up a second surface mount line in January, doubling our current capacity.''
Certain of Mr. Kirby's statements in the previous paragraphs are forward looking. These statements, identified by the use of phrases such as ''we regard'', ''we expect'', ''we believe'', ''will start'', and ''has a tremendous potential'', are based on current expectations and involve risks and uncertainties. Consequently, actual results could differ materially from the Company's expectations expressed in the preceding paragraphs. The various factors that could cause actual results to differ from the expectations include, but are not limited to: competition from other, and in certain cases more established, manufacturers of similar products; pricing pressure and other ramifications of the consolidation of some of the Company's major customers; the inability to achieve market acceptance of new products or products under development for a variety of reasons, including their cost or the actual or perceived need for such products in the marketplace; the failure of the Company's new products to pass the rigorous testing and qualification process imposed by the Company's customers; the rapid pace with which changes in technology, industry standards, and customer requirements occur within the telecommunications business, and the adverse effect such changes and the introduction of new products involving new technologies could have on the Company's ability to sell its new and existing products.
Teltrend Inc., established in 1979 with over 500 employees worldwide, is headquartered in suburban Chicago. Teltrend designs, manufactures and markets a broad range of telecommunications and data communications products used by businesses and telephone companies to provide voice and data services. Teltrend's unique local telephone loop solutions -- developed for HDSL, HDSL2, Fiber Optic, T1, ISDN, DDS, and DLC applications -- allow telephone companies to provide new and better services to their customers without the need for costly infrastructure replacement. The Company's products are sold to the Regional Bell Operating Companies, GTE, Sprint, and other U.S. and International telephone companies as well as original equipment manufacturers such as Lucent, Nortel, and Cisco. |
