Thursday February 3, 4:01 pm Eastern Time
Company Press Release
SOURCE: Interspeed, Inc.
Interspeed Announces Q1 Financial Results
Revenues Increase 395 Percent Over Q4 Fiscal Year 1999; Growth Fueled by Strong Demand for Integrated DSL Access Router
Solutions and Continued Expansion of Indirect Sales Channel
NORTH ANDOVER, Mass., Feb. 3 /PRNewswire/ -- Interspeed, Inc. (Nasdaq: ISPD - news) today announced financial results for the first quarter of fiscal year
2000. Revenues for its first quarter ended December 31, 1999 were $3,152,000, an increase of $3,088,000, over revenues of $64,000 for the first quarter of fiscal
year 1999. Revenue increased $2,515,000, or 395 percent, from the fourth quarter of fiscal year 1999. Of the $3,152,000 first quarter 2000 revenues, 94 percent
of the revenues were from shipments to domestic customers and 6 percent to international customers.
Net loss was $2,546,000, or $0.24 per basic and diluted share, for the first quarter of fiscal year 2000, compared to a net loss of $1,623,000, or a loss of $0.20
per basic and diluted share, for the first quarter of fiscal year 1999. Pro forma net loss for the first quarter of fiscal year 2000, excluding non-cash stock
compensation expense, was $2,129,000, or $0.20 per basic and diluted share.
''We are very pleased with the revenue growth that Interspeed achieved in this past quarter,'' said Stephen Ide, president, Interspeed, Inc. ''Strong acceptance from
service providers for Interspeed's family of DSL Access Routers - the industry's only fully integrated DSL access platforms -- enabled Interspeed to deliver
significant revenue growth during the first quarter of fiscal year 2000. During this quarter, Interspeed began deployments with our distribution partners, while
continuing to expand our direct sales channel. We believe these efforts, combined with increased investments in sales and marketing, are positioning Interspeed for
continued growth.''
During this first quarter of fiscal year 2000, Interspeed achieved the following customer, distribution, and management milestones:
Signed distribution agreement with Japanese distributor, Soliton Systems, K.K., to market Interspeed's complete product family in Japan.
Signed distribution agreement with premier telecom reseller Solunet, Inc.
Signed international distribution agreement with channel development experts Congruent International.
Added seasoned industry veterans to the company's senior management team. These included Arthur Goodwin as senior vice president of worldwide sales,
and Kenneth Osowski as vice president of marketing.
Successfully implemented ORACLE enterprise resource planning system.
Continued to expand home office and field personnel.
About Interspeed's Product Family
Interspeed offers a highly scalable family of DSL Access Routers - the Interspeed 1000, Interspeed 500, and Interspeed DART. All three products include complete
DSL aggregation, Layer 2 switching, IP Routing, and VPN functions in a single device, thus eliminating the need for service providers to purchase these components
separately, and saving significant cost. The Interspeed DART is the industry's first complete, low-density DSL solution that enables service providers to deliver
high-speed Internet access and other advanced IP applications to the MTU market. The Interspeed 500 is designed for larger MTU and Central Office
environments, and the Interspeed 1000 is ideal for larger deployments in central office environments. The three products are managed with Speedview(TM), a
powerful set of administration and management functions that make installation as simple as ''plug and play.''
About Interspeed
Interspeed (www.interspeed.com) designs, develops and markets advanced high-speed data communications solutions based on digital subscriber line (DSL)
technology. Its products enable data communication service providers, such as competitive local exchange carriers, Internet service providers, and owners of
multi-tenant units to utilize the existing copper wire infrastructure to deliver high-speed data access to their customers. Interspeed offers the industry's only single
platform system that integrates the principal components required to offer DSL service, including signal concentration, routing, switching and network management.
Unlike traditional DSL products, Interspeed's DSL Access Routers can offer customers a highly scalable and flexible solution at a lower total cost of ownership.
Note to Investors
This press release contains forward-looking statements that do not give full weight to all the potential risks, but relate to the Company's plans objectives and
expectations, which are dependent upon a number of factors outside of the Company's control, including market acceptance of DSL, the availability of competing
products and technology and technological advances by competitor's with greater resources. Thus, actual results may differ materially. Additional information
concerning these risks is contained in the ''Risk Factors'' section of Interspeed, Inc.'s Report on Form 10-K for the year ended September 30, 1999 filed with the
Securities and Exchange Commission on December 29, 1999.
All trademarks are the property of their respective owners.
Interspeed, Inc.
Condensed Statements of Operations
(in thousands, except per share amounts)
(Unaudited)
Three months ended
December 31,
1999 1998
Revenue $ 3,152 $64
Cost of revenue 1,769 36
Gross profit 1,383 28
Operating expenses:
Research and development 1,652 1,273
Sales and marketing 1,395 136
General and administrative 695 210
Stock compensation 417 32
Total operating expenses 4,159 1,651
Interest income 230 --
Net loss $ (2,546) $ (1,623)
Net loss per share-basic and
diluted $(0.24) $(0.20)
Shares used to computed net loss
per share - basic and diluted 10,706 8,000
Pro forma net loss excluding
non-cash compensation expense $ (2,129) $ (1,591)
Pro forma net loss per share excluding
non-cash compensation expense
-basic and diluted $(0.20) $(0.20)
Interspeed, Inc.
Condensed Balance Sheets
(in thousands)
December 31, 1999 September 30, 1999
(Unaudited)
Assets
Current assets:
Cash $ 14,634 $ 21,227
Accounts receivable 3,174 808
Inventory 3,072 2,445
Prepaid expenses and other 476 168
Total current assets 21,356 24,648
Property and equipment, net 1,501 1,178
Receivable from Brooktrout 90 - -
Other assets 5 54
Total assets $ 22,952 $ 25,880
Liabilities and stockholders'
equity
Current liabilities:
Accounts payable $1,858 $2,789
Accrued expenses and deferred
revenue 926 688
Note due Brooktrout -- 129
Total current liabilities 2,784 3,606
Deferred rent 127 104
Total stockholders' equity 20,041 22,170
Total liabilities and
stockholders' equity $ 22,952 $ 25,880
SOURCE: Interspeed, Inc.
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