TERN--Terayon Reports Record Results for First Quarter 2000
BUSINESS WIRE - April 11, 2000 16:47
SANTA CLARA, Calif., Apr 11, 2000 (BUSINESS WIRE) -- Terayon Communication Systems, Inc. (Nasdaq: TERN), a leading supplier of broadband networking equipment, today reported record revenues for the first quarter ended March 31, 2000.
Revenues for the first quarter of 2000 grew to $59.3 million from $15.9 million in the first quarter of 1999. In the quarter, the Company reported increased profitability compared to the fourth quarter of 1999, with pro forma net income of $1.9 million, or $0.06 per share diluted. This excludes non-cash charges for in-process research and development, the amortization of intangible assets related to acquisitions, and the cost of two warrants to purchase common stock. This compares to a pro forma net loss for the first quarter of 1999 of $4.3 million or $0.23 per share. Including the charges related to in-process research and development, the amortization of intangibles and the cost of the two warrants, the net loss for the first quarter of 2000 was $28.4 million or $1.04 per share. This compares to a net loss for the first quarter of 1999 of $5.9 million or $0.32 per share. Terayon's results for the first quarter of 2000 include the results of Telegate Ltd. from January 2, 2000, the closing date of the Telegate acquisition.
Terayon CEO Zaki Rakib stated, "Terayon continues to enhance its leadership position in broadband across all the major product areas and all the major geographies. The company continues to grow operationally, to expand its broadband portfolio, and to build our customer base around the world. Our results demonstrate that Terayon is becoming well positioned in the broadband market, and is scaling to meet the demands of this growing market.
"We are continuing our broadband expansion via both internal development and growth by acquisition. During the quarter, we announced four key acquisitions, all of which we expect to close by the end of April:
-- The Access Network Electronics division of Tyco Electronics, which expands our presence into the U.S. DSL market;
-- Internet Telecom, which helps fulfill our plan to deliver advanced
voice-over-IP solutions;
-- ComBox, to expand our data standards portfolio to include the
European DVB standard, as well as an entry into the broadband
satellite communications market;
-- And Ultracom, further expanding our core systems-on-silicon
capability to wireless and DSL.
Together with our previous acquisitions and internal product
developments, these contribute to our ability to address all the major
media -- cable, DSL and wireless, as well as the technologies needed
to support applications based on the all the major mediums -- data,
video, and telephony."
Zaki Rakib continued, "During the quarter, we announced
significant new deployments with several strategic operators in Asia:
-- i-CABLE, the sole cable operator in Hong Kong, announced the
selection of Terayon as its primary broadband supplier.
-- Korea's largest cable operator, C&M, announced the selection of
Terayon to deliver broadband data services to their subscribers in
Seoul.
-- Shenzhen Topway Cable Net Company Ltd., the major cable operator
in Shenzhen, China, selected Terayon--an important milestone as we
address this growth opportunity in China's high-tech region.
-- We continue to make significant shipments to our major Japanese
customers, where we remain the market leader today. "In closing, I
continue to be optimistic about Terayon's future in this
extraordinary broadband market."
Terayon Communication Systems provides innovative broadband networking solutions for advanced broadband voice, data and video services. The company's cable data access systems, digital video systems, and broadband telephony systems are deployed by leading cable operators worldwide. The company's xDSL access systems deliver innovative telephony and data solutions for the growing SOHO business market. Terayon, based in Santa Clara, California, USA, has sales and support offices worldwide, and is traded on the Nasdaq under the symbol TERN. Terayon can be found on the web at www.terayon.com.
"Safe Harbor" Statements under the Private Securities Litigation Reform Act of 1995:
Except for the historical information contained herein, this news release contains forward-looking statements, estimates, and assumptions by the Company and other parties that involve risks and uncertainties, including the Company's ability to successfully integrate any acquired companies, the Company's ability to gain new business and develop and offer new products, the expansion of operations by the Company's customers and the deployment of the Company's products in specific markets, as well as the other risks detailed from time to time in the Company's filings with the SEC.
Note: Terayon, the Terayon logo, TeraPro, TeraLink, and TeraComm are registered trademarks of Terayon Communication Systems, Inc. TeraView and CherryPicker are trademarks of Terayon Communication Systems, Inc. All other trademarks are property of their respective owners.
Terayon Communication Systems, Inc. Unaudited Pro Forma Condensed Consolidated Statements of Operations (In thousands, except per share amounts)
Three Months Ended
March 31,
-------------------------------
2000 1999
---- ----
Revenues $59,337 $15,873
Cost of goods sold 37,619 13,955
-------------------------------
Gross profit 21,718 1,918
-------------------------------
Operating expenses:
Research and development 10,008 3,155
Sales and marketing 7,198 2,836
General and administrative 4,019 1,163
-------------------------------
Total operating expenses 21,225 7,154
-------------------------------
Pro forma income (loss)
from operations 493 (5,236)
Net interest income 1,394 958
-------------------------------
Pro forma net income (loss) $1,887 ($4,278)
===============================
Pro forma net income (loss)
per share, basic and diluted $0.06 ($0.23)
===============================
Shares used in pro forma
per share calculation,
basic and diluted 32,966 18,336
===============================
Terayon Communication Systems, Inc.
Unaudited Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
Three Months Ended
March 31,
-------------------------------
2000 1999
---- ----
Revenues $59,337 $15,873
Cost of goods sold 43,948 13,955
-------------------------------
Gross profit 15,389 1,918
-------------------------------
Operating expenses:
Research and development 10,568 3,155
Cost of product development
assistance agreement 9,563 1,615
Sales and marketing 7,676 2,836
General and administrative 4,185 1,163
In-process research
and development 6,750 --
Amortization of goodwill 6,435 --
-------------------------------
Total operating expenses 45,177 8,769
-------------------------------
Loss from operations (29,788) (6,851)
Net interest income 1,394 958
-------------------------------
Net loss (28,394) (5,893)
===============================
Historical net loss
per share, basic and diluted ($1.04) ($0.32)
===============================
Shares used in historical per
share calculation,
basic and diluted 27,256 18,336
===============================
Terayon Communication Systems, Inc.
Unaudited Condensed Consolidated Balance Sheets
(In thousands)
March 31, December 31,
2000 1999
---- ----
ASSETS
Current assets:
Cash and cash equivalents $54,676 $32,398
Short-term investments 63,200 80,594
Accounts receivable, net 35,183 21,296
Inventories 12,284 4,991
Prepaid expenses and other 10,115 4,161
---------- ---------
Total current assets 175,458 143,440
Property and equipment, net 9,544 6,157
Intangibles and other assets 265,154 151,639
--------- ---------
Total assets $450,156 $301,236
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $39,212 $13,217
Accrued payroll and
other liabilities 17,325 17,849
--------- ---------
Total current liabilities 56,537 31,066
Non-current liabilities 12,691 11,515
Stockholders' equity 380,928 258,655
Total liabilities and
stockholders' equity $450,156 $301,236
========= =========
Distributed via COMTEX. |
