C-COR.net Announces Second Quarter FY2000 Results With Diluted EPS of $.13,
Up 425% Over the Previous Year; Second Quarter Revenues Up 57%
Wednesday, January 19, 2000 07:57 AM
STATE COLLEGE, Pa., Jan. 19 /PRNewswire/ -- C-COR.net (Nasdaq: CCBL, news, msgs) announced
the financial results for the second quarter of fiscal year 2000 which ended on December 24, 1999. For
the quarter, C-COR.net reported net income of $3,949,000. This compares to a net loss of $976,000 for
the second quarter of fiscal year 1999. The Company's fiscal year 1999 financial results have been
restated to reflect the acquisitions of Convergence.com in July 1999 and Silicon Valley
Communications, Inc. in September 1999, both of which have been accounted for using the pooling of
interests method of accounting.
Earnings per fully diluted share in the second quarter were $.13, compared to a net loss per fully
diluted share of $.04 in the second quarter of fiscal year 1999. Diluted earnings per share calculations
were based on weighted average number of common shares outstanding of 31,261,000 and
24,133,000, respectively, reflecting the Company's announcement in early December 1999 of a
two-for-one stock split. The record date of that split was December 22, 1999, and the distribution date
was January 6, 2000.
Net sales for the quarter were $62,391,000, an increase of 57% over net sales of $39,651,000 for the
second quarter of fiscal year 1999. Bookings in the second quarter were $56,412,000, up from
$50,371,000 in the previous quarter, resulting in an ending backlog of $37,467,000 and a book-to-bill of
.90 for the quarter. The strong bookings in the quarter can be attributed, in part, to orders from North
America. In early January 2000, the Company received the initial production order for Mux Nodes,
which are designed for use in today's evolving fiber-rich architectures.
In the second quarter of fiscal year 2000, the Company completed a follow-on public offering of
approximately 3.2 million shares of its common stock at a price of $44 per share. Proceeds from that
offering are to be used for repayment of debt, capital expenditures, strategic investments and for
working capital and other general corporate purposes. During the quarter, substantially all of the
outstanding debt of the Company was paid off. In addition, the Company announced on January 12,
2000, that it had invested $3,500,000, or approximately a 5% ownership interest, in Fortress
Technologies, Inc., a leading security networking company which offers advanced encryption-based
products for secure communications over the Internet and broadband networks. In connection with the
investment, C-COR.net and Fortress Technologies have agreed on key terms of an exclusive reseller
agreement, under which the companies would jointly offer a network-based data security solution for
residential and business cable modem customers.
C-COR.net President and CEO, David A. Woodle, stated, "We are encouraged with our
accomplishments in the second quarter. We have continued to integrate the operations of
Convergence.com and Silicon Valley Communications which were acquired through the two mergers
completed in the first quarter, and we successfully concluded the follow-on offering. We are moving
forward with our strategic plan to provide `network integrity' through offering advanced fiber optic and RF
products along with a full range of technical services to the global broadband marketplace."
C-COR.net provides products and support to customers as they plan, design, build and maintain
complex broadband communications networks. C-COR.net is a developer and global supplier of robust,
high-quality RF (Radio Frequency) and advanced AM (Amplitude Modulation) fiber optic distribution
electronics for two-way HFC networks. C-COR.net's newest fiber optic products, the Mux Node and
Mini Node, facilitate evolving fiber-rich architectures to deliver analog video, digital video, high-speed
data and telephone applications.
C-COR.net also offers comprehensive customer service for the full HFC (Hybrid Fiber Coax) broadband
network life cycle, including network engineering and design, system activation, integration of Internet
applications over cable, network optimization and management, and system maintenance.
C-COR.net's multi-million dollar 24 hours per day/7 days a week Network Operations Center (NOC) in
Atlanta, Georgia, provides state-of-the- art, real-time network monitoring with responsive cable modem
Help Desk Service.
C-COR.net, founded over 45 years ago, designs and manufactures robust, high-quality network
distribution products for two-way hybrid fiber/coax (HFC) networks. C-COR.net's headquarters is in
State College, Pennsylvania, with production and service facilities in State College and Tipton,
Pennsylvania; Tijuana, Mexico; Santa Clara, California; and Suwanee, Georgia. C-COR.net also
maintains offices in Almere, The Netherlands; and Hong Kong. C-COR.net's common stock is listed in
the Nasdaq National Market under the symbol CCBL. C-COR.net's website is c-cor.net.
Consolidated Statements of Operations
(unaudited, in thousands of dollars except share and per share amounts)
Thirteen Weeks Ended
Increase
December 24, December 25, (Decrease)
1999 1998 percent
NET SALES $62,391 $39,651 57%
Costs and expenses
Cost of sales 47,092 30,052 57%
Sales and administrative 6,221 6,484 (4%)
Research and product development 3,508 3,172 11%
Other (income) expense (742) 244 (404%)
Total costs and expenses 56,079 39,952 40%
Income (loss) from continuing
operations before income taxes 6,312 (301)
Income tax expense 2,369 691
Income (loss) from continuing
operations 3,943 (992)
Discontinued Operations
Gain on disposal of discontinued
business segment, less applicable
income tax expense 6 16
Net income (loss) $3,949 $(976)
NET INCOME (LOSS) PER SHARE (basic):
Continuing operations $0.14 $(0.04)
Discontinued operations
Gain on disposal 0.00 0.00
Net income (loss) $0.14 $(0.04)
NET INCOME (LOSS) PER SHARE (diluted):
Continuing operations $0.13 $(0.04)
Discontinued operations
Gain on disposal 0.00 0.00
Net income (loss) $0.13 $(0.04)
Weighted Average Number of
Common Shares Outstanding (a)
Basic 28,117,000 24,133,000
Diluted 31,261,000 24,133,000
(a) Adjusted to reflect a two-for-one stock split effective January 6, 2000. |
