7/19....NTRO...Announces Record Revenues for Second Quarter
Broadband Wireless Access Solution Leader Named to Russell 2000 Index
SAN JOSE, Calif.--(BUSINESS WIRE)--July 19, 2000--Netro Corporation (Nasdaq:NTRO - news), a market leader in broadband wireless access systems, today announced record revenues of $15.5 million for the quarter ended June 30, 2000.
This compares with $3.2 million in revenues for the second quarter of 1999 and is an increase of 385 percent from the same period last year. On a sequential basis, Netro's revenues for the second quarter were up 48 percent from the first quarter of 2000. Net loss for the second quarter of 2000 was $819,000, or $.02 loss per share, compared with $7.3 million, or a pro forma $0.19 loss per share, for the second quarter of 1999.
``This record growth for Netro confirms the strong customer demand we are continuing to see on a worldwide basis for our leading-edge, broadband wireless technology as the access solution for last mile IP and high speed data applications,'' said Gideon Ben-Efraim, chairman and chief executive officer for Netro.
``This dynamic market is at an inflection point now and we are the first mover. Cisco and Nokia have joined Lucent, Motorola and Siemens in confirming our leadership position by choosing Netro's AirStar(TM) system for their broadband wireless access needs.''
During the quarter, the company announced an original equipment manufacturer (OEM) agreement with Nokia, one of the largest telecommunications providers in the world. In addition, Cisco, the world's leading supplier of Internet infrastructure equipment, announced a strategic partnership with Netro.
In other news, Netro was notified last week that the company has been selected to the Russell® 2000 Index when the broad-market index was re-balanced on June 30. Index membership was in effect on July 1 and remains in place for one year.
About Netro Corporation
Netro is a leading provider of intelligent broadband wireless access solutions for Internet and telecom service providers worldwide. Netro's broadband wireless access system, AirStar, derives its price performance benefit from its proprietary packet-based technology that maximizes spectrum usage through dynamic bandwidth allocation. AirStar is one of the first commercially available broadband wireless access systems, carrying IP and voice traffic using a point-to-multipoint architecture. Netro currently provides products for the 10, 26, 28 and 39GHz spectrums.
For more information, contact Netro Corporation, 3860 North First St., San Jose, CA 95134-1702 USA; 408/216-1500; netro-corp.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements involving risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. Potential risks and uncertainties include, but are not limited to, Netro's historical and future losses, limited operating history, dependence on a single product, fluctuations in quarterly operating results and limited manufacturing experience. Further information regarding these and other risks is included in Netro's prospectus dated March 17, 2000, and in its other filings with the Securities and Exchange Commission.
NETRO CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, Dec. 31,
2000 1999
ASSETS
Cash, cash equivalents and
short term investments $384,381 $45,337
Trade accounts receivable, net 13,660 6,925
Inventory 12,155 7,909
Other assets 1,776 1,074
Equipment and leasehold improvements, net 5,251 4,569
Total assets $417,223 $65,814
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt
and capital leases $ 6,553 $ 6,764
Trade accounts payable 8,255 5,064
Accrued liabilities 6,516 4,740
Total current liabilities 21,324 16,568
Long-Term Debt and Capital Leases,
Net of Current Portion 2,204 3,690
Total liabilities 23,528 20,258
Total shareholders' equity 393,695 45,556
Total liabilities and
shareholders' equity $417,223 $65,814
NETRO CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three months ended Six months ended
June 30, June 30,
2000 1999 2000 1999
REVENUES $15,504 $ 3,196 $25,958 $ 5,338
COST OF REVENUES 11,393 2,522 19,641 4,171
GROSS PROFIT 4,111 674 6,317 1,167
OPERATING EXPENSES:
Research and development 5,692 4,959 11,476 9,183
Sales and marketing 2,530 1,231 4,570 2,563
General and administrative 2,373 1,351 4,289 3,103
Amortization of deferred
stock compensation 263 341 560 509
Total operating expenses 10,858 7,882 20,895 15,358
LOSS FROM OPERATIONS (6,747) (7,208) (14,578) (14,191)
Other income (expense), net 5,928 (59) 6,689 (98)
NET LOSS $ (819) $(7,267) $(7,889) $(14,289)
Basic and diluted net loss
per share $ (0.02) $ (0.86) $ (0.16) $ (1.72)
Shares used to compute basic
and diluted net loss
per share 50,350 8,425 48,117 8,315
Pro forma basic and diluted
net loss per share $ (0.19) $ (0.38)
Shares used to compute
pro forma basic and diluted
net loss per share 37,973 37,628
Pro forma basic and diluted net loss per share includes the effect of the conversion of convertible preferred stock for all periods.
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Contact:
Netro Corporation
Laurie Hallwyler, 408/216-1630 (Media)
laurieh@netro-corp.com
Mike Everett, 408/216-1520 (Investors)
mikee@netro-corp.com |
