7/19.....NXTV Communications Reports Record Revenue of $40.2 Million for Second Quarter 2000
Sequential Revenue Up 32%;
ROHNERT PARK, Calif.--(BUSINESS WIRE)--July 19, 2000-- Gross Margin Increases to 20.1%
Next Level Communications, Inc. (NASDAQ: NXTV - news), a leader in ATM/IP optical interactive DSL broadband systems, today reported record revenue of $40.2 million for the second quarter ended June 30, 2000, a 327% increase over revenue of $9.4 million for the second quarter of 1999 and a 32% increase over revenue of $30.5 million for the first quarter of 2000. This revenue growth highlights the continued increased demand for Next Level's unique broadband DSL technology and state-of-the-art service creation software, which enable delivery of integrated voice, data and digital video to the home over standard telephone lines.
Gross margin percentage grew to 20.1% in the second quarter, from 7.2% for the same period last year and 18.1% in the first quarter of 2000. Net loss for the second quarter was $14.6 million, or $.18 per share. This compares to a net loss of $19.9 million, or $.26 per pro forma share, during the same period in 1999.
Revenue for the six months ended June 30, 2000 rose 288% to $70.7 million compared to $18.2 million during the same period in 1999. Gross margin percentage for the six month period improved to 19.3% from 5.8% in the first six months of 1999. Net loss for the six month period was $33.1 million, or $.41 per share, compared to a net loss of $39.2 million, or $.51 per pro forma share, for the same period in 1999.
``We are extremely pleased with our strong second quarter performance, which reflects our customers' need to meet growing consumer demand for broadband services,'' said Pete Keeler, chairman and chief executive officer of Next Level. ``Next Level continues to attract new customers at a rapid pace as telecommunications companies increasingly turn to our technology to cost-effectively transform themselves into full-service voice, data and video providers.''
Second Quarter Highlights
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Total Customer Count Increases To 61
Next Level continues to attract new customers at a rapid pace, with total customer count reaching 61 as of June 30, 2000. The company added 19 new accounts during the quarter, including a $50 million dollar contract with ExOp of Missouri, Inc., a major Competitive Local Exchange Carrier (CLEC), and a contract with Bell Canada to commercially deploy VDSL broadband services in major metropolitan areas in Canada. In addition, US WEST's broadband VDSL deployment in Phoenix continues to accelerate, with more than 38,000 customers and over 400,000 homes passed as of June 30, 2000.
NLevel3 Unified Access Platform Added To Rural Utilities Service
Listing
The Rural Utilities Service (RUS), the federal lending agency that provides financing for the construction of telecommunications infrastructure in rural America, added the NLevel3 Unified Access Platform to its list of acceptable materials for use on telecommunications systems of RUS borrowers. Inclusion on the RUS list of accepted materials is expected to make it simpler and faster for Next Level's rapidly growing independent telco customer base to get financing for purchases of Next Level technology.
Technology To Deliver DBS Services Under Development
Next Level announced that it is developing technology to deliver DBS (direct broadcast satellite) services along with the VDSL/ADSL services currently offered through the company's N3 Residential Gateway.
Next Level To Incorporate Tdsoft Technology With Its DSL
Broadband Access System
Next Level is working with Tdsoft, a leading software developer, to enable Next Level's Broadband Digital Terminal to interface with international switches for the provision of telephone service in international markets. This will allow Next Level's international customers to fully leverage the platform's capabilities to provide integrated voice, data and video services.
Recent Highlights
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Bell Canada Begins VDSL Rollout
On July 17, 2000 Next Level announced it signed a multi-year contract with Bell Canada. Next Level will supply Bell Canada with the access equipment necessary to provide video, high-speed data and telephony services over copper twisted pair to Toronto apartment and condominium residences, with the potential to expand rapidly to other major cities. Bell Canada has been offering VDSL services to Palace Pier, a large condominium apartment complex in Toronto, on a trial basis since last year.
Next Level Forms Strategic Partnership With OutReach
Communications
Next Level announced today that it has formed a strategic partnership with OutReach Communications, LLC, to provide integrated broadband services to local telephone companies throughout rural United States telecommunications markets. This partnership will allow consumers in these markets to access the very latest in digital video services and high-speed Internet access, as well as traditional phone service, with the initial rollouts in Missouri planned for later this year. Next Level will provide its VDSL platform to facilitate the deployment of OutReach services under contracts with Local Exchange Companies (LECs).
About Next Level
Next Level is a technology leader in ATM/IP Optical Transport, Networking and Interactive DSL Broadband Systems for the delivery of voice, data and video services for communications companies. Next Level is based in Rohnert Part, Calif., and may be contacted at www.nlc.com.
This release contains ``forward-looking'' statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are generally preceded by words including, without limitation, ``will,'' ``plans,'' ``expects,'' ``believes,'' ``anticipates'' or ``intends.'' Investors are cautioned that all forward-looking statements in this release involve risks and uncertainties that could cause actual results to differ materially from current expectations. Factors that realistically could cause results to differ materially from those projected in the forward-looking statements are set forth in ``Risk Factors'' in our Form 10-K for the year ended December 31, 1999.
Statements of Operations
(Unaudited - In thousands, except per share information)
Three months ended Six months ended
June 30 June 30
2000 1999 2000 1999
---- ---- ---- ----
Revenues $ 40,176 $ 9,413 $ 70,655 $ 18,190
Cost of Revenue 32,101 8,735 57,049 17,140
Gross Profit 8,075 678 13,606 1,050
Operating Expense 24,617 19,391 48,026 37,435
Non-Cash Compensation Charge - - 2,384 -
Total Operating Expense 24,617 19,391 50,410 37,435
Operating Loss (16,542) (18,713) (36,804) (36,385)
Interest Income/Expense 1,910 (1,227) 3,742 (2,812)
Net Loss $(14,632) $(19,940) $(33,062) $(39,197)
Basic and Diluted
Net Loss per share
(Pro Forma for 1999) $ (.18) $ (.26) $ (.41) $ (.51)
Basic and Diluted Net Loss
per share Excluding
Compensation Charge
(Pro Forma for 1999) $ (.18) $ (.26) $ (.38) $ (.51)
Weighted Average Shares
Outstanding 80,322 69,967 80,044 69,967
Balance Sheets
(Unaudited - In thousands, except per share information)
June 30, 2000 December 31, 1999
Cash and Equivalents $ 90,298 $128,752
Marketable Securities 14,941 14,971
Trade Receivables 21,792 13,879
Inventories 37,874 22,553
Other Current Assets 3,614 4,177
Total Current Assets 168,519 184,332
Long Term Investments 28,000 30,151
Property & Equipment 49,396 48,263
Other Assets 4,465 5,065
Total Assets $250,380 $267,811
Total Current Liabilities $ 47,118 $ 36,384
Long Term Liabilities 25,173 25,199
Total Stockholders Equity 178,089 206,228
Total Liabilities and
Stockholders Equity $250,380 $267,811
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Contact:
Next Level Communications, Rohnert Park
Julie Carlson, 707/584-6565
jcarlson@nlc.com
or
Citigate Sard Verbinnen, New York
Kim Polan/Stephanie Sorrentino
212/687-8080 |
