Wednesday October 25, 4:31 pm Eastern Time
Press Release
Blue Wave Systems Inc. Announces Results For First Fiscal Quarter Ended September 30, 2000 & a 209% Sequential Increase in ComStruct Orders
DALLAS--(BUSINESS WIRE)--Oct. 25, 2000--Blue Wave Systems Inc. (Nasdaq/NMS:BWSI - news), a leading DSP solutions provider to the telecommunications industry, today announced net sales for its first fiscal quarter ended September 30, 2000 were $6,586,000, a decrease of 11% from revenues of $7,391,000 during the comparable period last year. The company reported a first quarter net loss of $(495,000), or $(.03) per share, as compared to net income of $272,000, or $.02 per diluted share, during the comparable period last year. The company's backlog of customer orders that are scheduled to ship within the next 12 months was $18,000,000 at September 30, 2000, as compared to $16,800,000 at June 30, 2000 and $15,500,000 at September 30, 1999.
The company also announced that orders for it's ComStruct product range reached a new quarterly record and increased sequentially 209% for a total of $7,135,000.
Revenues from the company's ComStruct line of telecommunications products represented 50% of revenues during the first fiscal quarter. When compared to the same quarter last fiscal year, ComStruct revenues grew 422%. Revenues from our mil/aero and industrial businesses combined represented 50% of revenues during the first fiscal quarter. When compared to the same quarter last fiscal year, revenues from these combined businesses decreased 52%, as a result of planned schedules on mil/aero product orders.
``We are very pleased with the first quarter,'' said Rob Shaddock, president and chief executive officer of Blue Wave Systems. ``It was a significant quarter as a number of ComStruct design wins moved into production and ComStruct was adopted in more programs. We had previously announced this would be a low quarter for our legacy business where shipments are scheduled for later in the fiscal year. The record level of ComStruct orders in this first quarter shows that our early customers are moving to production as we continue the successful transition of the company. Our recently announced $6.2 million order from Siemens, received in the second quarter, further underlines the confidence that customers have in our products and company and we expect to report further progress in the second quarter. Combined with the orders in the first quarter and the adoption of ComStruct in 7 new programs we are well positioned to continue with the rapid growth of the telecom business, and have a solid foundation for this year.''
Shaddock continued, ``Our legacy business shipment schedules are in place for the next quarters, and that business will continue to contribute to our earnings and cash flow as ComStruct continues its rapid growth in 3G Wireless and next generation converged networks. These recent orders are an early mark of the success of our transition, and with the additional experience added to our management team in the quarter we are able to continue building the ComStruct business and improve our effectiveness.''
About Blue Wave Systems Inc.
Blue Wave Systems is a leading supplier of high-channel Digital Signal Processing (DSP) subsystems used in telecommunication infrastructure equipment, such as voice over packet (VoIP) gateways, digital wireless communications and intelligent peripherals. The ComStruct(TM) line of telecom infrastructure communication processing subsystems was launched in January 1999. At the heart of the ComStruct(TM) line is the company's FACT(TM) software (Framework Architecture for Communication Technologies), which enables the DSP subsystem to be rapidly and effectively deployed in a variety of carrier class telecom applications. Blue Wave Systems has been a market leader in DSP board-level products since 1983. For additional information, please visit our company's Web site at www.bluews.com.
The company will host a conference call to review the results of the quarter at 10:00 a.m. Central Daylight Time, Thursday, October 26, 2000. To access the call, dial toll-free 800/263-9161. International participants will need to dial 212/676-5385. The reservation number is 16569688. The call will also be webcast live, and later archived, on the Investor Relations page of the company's Web site www.bluews.com. An audio replay of the call is available by dialing 800/633-8284, or 858/812-6440 for international callers. The reservation number for the audio replay is 16569688. The replay will be available from 12:00 noon Central Daylight Time on October 26, 2000 through 12:00 noon Central Standard Time on November 2, 2000.
This press release contains forward-looking statements which are based on expectations of the company but involve a number of risks and uncertainties including, but not limited to, rapid technological change, quarterly fluctuations, integration of Mizar and Loughborough Sound Images, dependence on the defense industry, commercial market uncertainties, dependence on key suppliers and employees, and competition. The foregoing list should not be construed as exhaustive and the company disclaims any obligation subsequently to revise forward-looking statements to reflect unanticipated events. For a further explanation of risk factors please see the company's most recent SEC filings. The company further cautions users who may utilize published bookings and backlog information as tools to forecast the company's revenue during a given timeframe since certain purchase orders may be subject to cancellation and/or revision to delivery schedules.
Blue Wave Systems Inc.
Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Three Months Ended
September 30,
2000 1999
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Net sales $ 6,586 $ 7,391
Cost of sales 3,301 3,358
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Gross margin 3,285 4,033
Operating expenses:
Product development and engineering 1,663 1,352
Sales and marketing 1,192 1,505
General and administrative 1,001 846
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Total operating expenses 3,856 3,703
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Operating income (loss) (571) 330
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Other income (expense):
Interest expense (1) (52)
Interest income 82 3
Other, net -- 19
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Total other income (expense) 81 (30)
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Income (loss) before provision for income
taxes (490) 300
Provision for income taxes 5 28
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Net income (loss) $ (495) $ 272
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Basic net income (loss) per share $ (0.03) $ 0.02
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Diluted net income (loss) per share $ (0.03) $ 0.02
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Weighted average common shares outstanding:
Basic 15,707 13,639
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Diluted 15,707 14,053
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Blue Wave Systems Inc.
Consolidated Balance Sheets
(in thousands)
September 30, June 30,
2000 2000
---- ----
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 7,889 $ 6,120
Restricted cash 480 491
Accounts receivable, net of allowances of
$115 and $137, respectively 5,669 8,616
Inventories, net 6,864 6,231
Prepaid expenses and other 802 935
Deferred tax asset 271 271
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Total current assets 21,975 22,664
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Plant and equipment:
Machinery and equipment 7,503 7,432
Furniture and fixtures 2,524 2,568
------ ------
10,027 10,000
Less accumulated depreciation (7,560) (7,398)
------ ------
Plant and equipment, net 2,467 2,602
------ ------
Deferred tax asset-noncurrent 1,619 1,602
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Total assets $ 26,061 $ 26,868
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 4,623 $ 4,257
Accrued compensation 405 491
Other accrued liabilities 1,676 1,795
Deferred revenue 535 431
------ ------
Total current liabilities 7,239 6,974
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Deferred income taxes 788 788
Other noncurrent liabilities 28 43
Long-term debt, net of current maturities 480 491
------ ------
Total liabilities 8,535 8,296
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Commitments and contingencies -- --
Stockholders' equity:
Common stock 163 162
Additional paid-in capital 31,521 31,498
Accumulated deficit (11,889) (11,394)
Accumulated other comprehensive loss (1,180) (605)
------ ------
18,615 19,661
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Less -- treasury stock, at cost (1,089) (1,089)
------ ------
Total stockholders' equity 17,526 18,572
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Total liabilities and stockholders' equity $ 26,061 $ 26,868
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Contact:
Blue Wave Systems Inc., Dallas
Don Crosbie, 972/277-4609
dcrosbie@bluews.com |
