WIRELESS FASCILITIES Reports Record First Quarter Revenue and Profit; WFII
Delivers 188 Percent Revenue Growth
Business/High-Tech Editors
SAN DIEGO--(BUSINESS WIRE)--April 26, 2000--Wireless Facilities,
Inc. (WFI) (NASDAQ: WFII), a global leader in the design, deployment
and management of wireless telecommunications networks, today reported
record revenues and earnings for its first quarter ended March 31,
2000.
Revenue for the quarter increased 188 percent to a record $43.3
million, compared to $15.0 million in the first quarter of 1999.
Revenue growth reflects continued strong worldwide demand for mobile
voice and personal communications services (PCS) as well as increased
capital investment by network operators and equipment suppliers to
establish wireless data networks.
Net income for the quarter rose 267 percent to a record $5.8
million, or $0.12 per diluted share, compared to $1.6 million in net
income, or $0.05 per diluted share in the corresponding quarter a year
ago. The number of shares used in the calculation of Earnings Per
Share in the current period increased 54 percent from the first
quarter of 1999. Also, the impact of goodwill from acquisitions was
approximately two cents per share. Without goodwill, the Company
would have reported $0.14 per share in the first quarter.
Gross profit margin for the first quarter was 42 percent, compared
to 39 percent for the same period in 1999.
"WFI enjoyed a very strong quarter, which we believe demonstrates
our unique value proposition as an independent provider of turnkey
outsourcing services for the wireless industry," said Massih Tayebi,
WFI's Chief Executive Officer. "Wireless networks are rapidly
expanding to meet growing subscriber demand for enhanced voice and
mobile data applications, and increasingly, carriers are building
high-speed broadband wireless data networks to extend the reach of
existing fiber optic networks in business settings. We continue to
strengthen and expand our end-to-end service capabilities through key
hires and strategic acquisitions in response to these market
opportunities.
"During the quarter we made two key acquisitions. The Walter
Group, an established leader in telecom network development and
management consulting, provides WFI with expanded capabilities in
business planning, site acquisition and program management services.
The acquisition of a Network Operations Center near Dallas, Texas from
Ericsson provides the Company with network management and operations
capabilities that enable WFI to deliver a complete suite of network
management solutions to multiple wireless operators and service
providers across a wide platform of technologies. Both of these
acquisitions brought us many talented people, extended our service
offerings and strengthened our customer relationships."
Dr. Tayebi finished by saying, "Armed with end-to-end network
deployment and management services, WFI is exceptionally well
positioned to contribute to and benefit from the phenomenal growth of
wireless communications and its convergence with the Internet."
About Wireless Facilities
A global leader in telecommunications outsourcing, Wireless
Facilities, Inc. plans, designs, deploys and manages wireless networks
for some of the largest cellular, PCS and broadband wireless carriers
and equipment suppliers worldwide. Specializing in network
architecture and dimensioning of mobile and high speed wireless data
systems, WFI provides a complete range of network services - from
business and market planning to RF engineering, fixed network
engineering, IP and data engineering, site acquisition and
development, installation, optimization and maintenance. Headquartered
in San Diego, WFI has grown to more than 1,100 employees and has
performed work in 37 countries since the company was founded in late
1994. The company has offices in Chicago, Seattle, Washington, D.C.,
Mexico City, London, Sao Paulo and New Delhi. News and information are
available at www.wfinet.com.
First Quarter Conference Call 1:30 p.m. PST -- Conference call
number 212-346-6551 -- Live broadcast available on WFI Web site.
Archived replay available 2 hours after the end of conference call at
www.wfinet.com.
Forward Looking Statement
This news release contains certain forward-looking statements that
involve risks and uncertainties. Words such as "anticipates,"
"expects," "intends," "plans," "believes," "may," "will," and similar
expressions are intended to identify forward-looking statements.
Forward looking statements include references to the Company's belief
that its value proposition to the wireless industry will continue to
result in increasing revenues and earnings; that the continued
expansion of the wireless networks will result in increasing revenues
and earnings for the Company; the Company's belief that it is
exceptionally well positioned to contribute to and benefit from
industry growth and expansion. Such statements are only predictions,
and the company's actual results may differ materially from those
anticipated in these forward-looking statements. Factors that may
cause such differences, include, but are not limited to; a slower rate
of adoption of telecom outsourcing by network carriers and equipment
suppliers, the timing, rescheduling or cancellation of significant
customer contracts and agreements; loss of key customers; competition
in the marketplace which could reduce revenues and profit margins;
lower customer satisfaction levels for services performed by the
Company; the Company's ability to retain and hire key personnel; and
the continued growth in deployment of wireless networks. These factors
and others are more fully discussed under "Risk Factors" and elsewhere
in the Company's annual report on Form-10-K filed on 3/30/00 with the
Securities and Exchange Commission.
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WIRELESS FACILITIES, INC.
Unaudited Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
Three Three
Months Months
Ended Ended
3-00 3-99
Revenues $ 43,333 $ 15,028
Cost of revenues 25,330 9,204
Gross profit 18,003 5,824
Selling, general and
administrative
expenses 7,633 2,324
Depreciation 365 619
Amortization of goodwill and
purchased intangible assets 748 324
Operating income 9,257 2,557
Other income and (expenses) 552 (399)
Income before taxes 9,809 2,158
Provision for income taxes (3,924) (571)
Minority interest (64) 0
Net income $ 5,821 $ 1,587
Net income per common share:
Basic $ 0.14 $ 0.06
Diluted $ 0.12 $ 0.05
Weighted-average common shares outstanding:
Basic 40,798 27,077
Diluted 49,205 32,006
WIRELESS FACILITIES, INC.
Unaudited Condensed Consolidated Balance Sheets
(In thousands)
March 31, December 31,
2000 1999
ASSETS
Current Assets
Cash and cash equivalents $ 24,908 $ 34,322
Investments in marketable
securities 29,551 37,965
Billed accounts receivable, net 32,573 23,019
Unbilled accounts receivable 20,467 9,614
Contract management receivables 16,880 13,993
Other current assets 3,950 3,200
Total current assets 128,329 122,113
Property and equipment, net 8,983 5,069
Goodwill, net 37,185 7,098
Other assets, net 2,672 712
Total assets $ 177,169 $ 134,992
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable and accrued
expenses $ 8,250 $ 11,389
Contract management payables 5,241 8,258
Billings in excess of costs and
profits 11,083 5,170
Current portion of capital lease
obligation 1,179 137
Current portion of notes payable 14,432 0
Income taxes payable 2,391 5,641
Total current liabilities 42,576 30,595
Long-term liabilities-notes payable,
net of current portion 409 909
Capital lease obligation, net of
current portion 2,866 1,652
Other long-term liabilities 59 59
Total liabilities 45,910 33,215
Minority interest 71 338
Stockholders' equity 131,188 101,439
Total liabilities, minority interest
and shareholders' equity $ 177,169 $ 134,992
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CONTACT: Wireless Facilities Inc.
Glenn Selbo (media), 858/824-2929
glenn.selbo@wfinet.com
or
Mark Francois (investors), 858/450-7304
mark.francois@wfinet.com
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: NETWORKING SOFTWARE TELECOMMUNICATIONS
CONFERENCE CALLS EARNINGS
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