7/25....WFII QTR Revenue Increases 229 Percent to $59.4 Million
SAN DIEGO--(BUSINESS WIRE)--July 26, 2000--
Second Quarter Conference Call 1:30 p.m. PST
Conference call number 212/346-7460
Live and replay broadcast available on WFI Web site
at www.wfinet.com. Archived replay available 2 hours
after the end of conference call.
Wireless Facilities Inc., (WFI), (Nasdaq:WFII - news), a global leader in the design, deployment and management of wireless telecommunications networks, today announced outstanding financial results with record revenues and earnings reported for the second quarter and six months ended June 30, 2000.
Revenue for the second quarter increased 229 percent to a record $59.4 million, compared to $18.1 million in the second quarter of 1999. Sequentially, revenue grew 37 percent over the company's first quarter of 2000. Revenue growth continues to reflect very strong worldwide demand for mobile voice and personal communications services as well as increased capital investment by network operators and equipment suppliers to establish wireless Internet and broadband networks.
Excluding the effects of goodwill charges related to acquisitions, net income, rose 632 percent to a record $9.3 million, or $0.18 per diluted share, compared to net income of $1.3 million, or $0.04 per diluted share in the corresponding quarter a year ago. The number of shares used in the calculation of earnings per diluted share in the current period increased 52 percent from the second quarter of 1999.
Reported net income for the quarter rose 652 percent to a record $7.9 million, or $0.16 per diluted share, compared to $1.0 million in net income, or $0.03 per diluted share in the corresponding quarter a year ago.
Gross profit margin for the second quarter was 44 percent compared to 36 percent a year ago and improved sequentially from 42 percent in the first quarter of fiscal 2000.
``We are very pleased with the growth WFI achieved in the second quarter, driven by the phenomenal global growth in wireless telecommunications and the accelerating demand for outsourced services,'' said Massih Tayebi, WFI chairman and chief executive officer. ``While domestic market growth in mobile voice applications continues to exceed analysts' expectations, we are very excited about new market opportunities for wireless Internet applications and the implementation of Third Generation (3G) wireless technology.''
``Recent auctions in Europe for 3G spectrum licenses and the enormous costs associated with their acquisition are driving aggressive network assessment and deployment schedules with telecom operators and equipment suppliers. While still a very small percentage of our business, we were pleased to begin several 3G engagements in the second quarter. New 3G auctions are scheduled throughout Europe and the United States this year creating, we believe, even greater demand for outsourced services and WFI's turnkey network solutions.''
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 over 1,400 employees and has performed work in 39 countries since the company was founded in late 1994. The company has offices in Chicago, Seattle, Washington, D.C., Dallas, New York, Mexico City, London, Sao Paulo, Madrid and New Delhi. News and information are available 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 and the new Third Generation (3G) licenses will result in a greater need for outsourcing among wireless telecom carriers and equipment suppliers increasing revenues and earnings for the company; and 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; the company's ability to retain and hire key personnel; 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, or the loss of key customers; early stage 3G engagements might not be followed by larger 3G revenue opportunities; competition in the marketplace which could reduce revenues and profit margins; lower customer satisfaction levels for services performed by the company. These factors and others are more fully discussed under ``Risk Factors'' and elsewhere in the company's registration statement on Form S-1, the company's annual report on Form-10-K filed on March 30, 2000 and the company's Form 10-Q for the quarter ended March 31, 2000 filed on May 12, 2000 with the Securities and Exchange Commission.
WIRELESS FACILITIES INC.
Unaudited Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
Three Three Six Six
Months Months Months Months
Ended Ended Ended Ended
6-00 6-99 6-00 6-99
---- ---- ---- ----
Revenues $ 59,435 $ 18,078 $ 102,768 $ 33,106
Cost of revenues 33,056 11,649 58,386 21,024
-------------------------------------------
Gross profit 26,379 6,429 44,382 12,082
Selling, general and
administrative expenses 11,690 3,242 19,323 5,561
Depreciation 522 85 767 396
Amortization of goodwill
and purchased intangible
assets 1,371 215 2,239 681
-------------------------------------------
Operating income 12,796 2,887 22,053 5,444
Other income (expense) 459 (228) 1,010 (627)
-------------------------------------------
Income before taxes 13,255 2,659 23,063 4,817
Provision for income taxes (5,302) (1,610) (9,225) (2,181)
Minority interest (67) 0 (131) 0
-------------------------------------------
Net income $ 7,886 $ 1,049 $ 13,707 $ 2,636
===========================================
Net income per common
share:
Basic $ 0.19 $ 0.04 $ 0.34 $ 0.10
Diluted $ 0.16 $ 0.03 $ 0.28 $ 0.08
Weighted-average common
shares outstanding:
Basic 41,348 27,175 40,913 27,126
Diluted 50,073 32,935 49,479 32,365
WIRELESS FACILITIES INC.
Unaudited Condensed Consolidated Balance Sheets
(In thousands)
June 30, Dec. 31,
2000 1999
---- ----
ASSETS
Current assets:
Cash $ 37,129 $ 34,322
Investments in marketable securities 11,980 37,965
Billed accounts receivable, net 36,434 23,033
Unbilled accounts receivable 32,365 9,600
Contract management receivables 11,937 13,993
Inventory 2,468 --
Other current assets 8,319 3,200
---------------------
Total current assets 140,632 122,113
Property and equipment, net 11,397 5,069
Other assets, net 54,598 7,810
---------------------
Total assets $ 206,627 $ 134,992
=====================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 16,062 $ 11,389
Contract management payables 5,747 8,258
Billings in excess of costs 9,514 5,170
Capital lease obligation 1,089 137
Line of credit and current notes payable 13,800 --
Income taxes payable 9,320 5,641
----------------------
Total current liabilities 55,532 30,595
Note payable -- 909
Capital lease obligation 4,091 1,652
Other long-term liabilities 59 59
----------------------
Total liabilities 59,682 33,215
----------------------
Minority interest 138 338
Stockholders' equity 146,807 101,439
----------------------
Total liabilities, minority interest and
shareholders' equity $ 206,627 $ 134,992
======================
--------------------------------------------------------------------------------
Contact:
Wireless Facilities Inc.
Media Contact:
Glenn Selbo, 858/824-2929
glenn.selbo@wfinet.com
or
Investor Contact:
Mark Francois, 858/450-7304
mark.francois@wfinet.com
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