[STXN Reports Record Orders, Revenue, Income for Q3 FY01.]
Wednesday January 17, 4:30 pm Eastern Time
Press Release
SOURCE: DMC Stratex Networks, Inc.
DMC Stratex Networks Reports Third Quarter Financial Results for Fiscal Year 2001
Company Posts Quarterly Records With Revenues of $115.2 Million, Orders Of $133.6 Million,
Net Income of $12.0 Million
SAN JOSE, Calif., Jan. 17 /PRNewswire/ -- DMC Stratex Networks, Inc. (Nasdaq: STXN - news),
one of the world's foremost solutions providers for cellular applications and broadband
wireless access, today reported results for the third quarter of its fiscal year 2001, ended
December 31, 2000. Sales were a company-record $115.2 million, compared to sales of $77.4 million
for the third quarter of the prior fiscal year, a 49 percent increase. For the first nine months
of fiscal year 2001, DMC Stratex Networks' revenues were $307.4 million, a 45 percent increase over
the $211.9 million of revenue recorded during the first nine months of the previous fiscal year.
Net income for DMC Stratex Networks' fiscal 2001 third quarter was a company-record $12.0 million,
or $0.16 per share, compared to its fiscal 2000 third quarter net income of $3.4 million, or $0.05
per share. For the first nine months of fiscal year 2001, DMC Stratex Networks has earned net income
of $32.2 million, a 557 percent increase over the $4.9 million earned in the first nine months of
fiscal year 2000.
During the quarter, DMC Stratex Networks received a company-record $133.6 million in new orders,
compared to $104.3 million of orders in the third quarter of fiscal 2000. For the first nine months
of fiscal year 2001, DMC Stratex Networks has posted orders of $392.1 million, a 61 percent increase
over the $243.3 million booked in the first nine months of the previous fiscal year. Backlog as of
December 31, 2000 was $189 million.
``We have again announced record-setting quarterly revenue, income and orders, and we are extremely
pleased with our strong upward momentum in today's telecommunications industry,'' said Sam Smookler,
DMC Stratex Networks' President and CEO. ``Our wireless product lines continue to grow as we
increase production capabilities to meet the rapidly expanding customer demand for our products,
both in cellular infrastructure and broadband access applications. Shipments of our Altium(TM)
product line in the third quarter increased by 275 percent and shipments of our XP4 product line in
the third quarter increased by 220 percent over shipments in the same period of the prior year. In
total, in Q3 we shipped more than 13,000 microwave and millimeter wave radios to more than 150
different customers worldwide. I believe this shows that DMC Stratex Networks' solutions are clearly
the products of choice for service providers
and network operators worldwide.
``I am proud of the continued success of our Altium product line, which last month received the
Product of the Year Award in the fixed wireless solutions category from Internet Telephony
Magazine and the Best of the Best finalist award in the hardware category from InternetWeek,''
continued Smookler. ``We have shipped more than 6,700 Altium radios since we introduced this
product two years ago.''
With headquarters in San Jose, Calif., DMC Stratex Networks, Inc., is one of the world's foremost
solutions providers for cellular applications and broadband wireless access -- enabling the
development of complex communications networks worldwide. Since its founding in 1984, the Company
has achieved international recognition for quality, innovation, and technical superiority in
delivering data, voice, and video communication systems, including comprehensive service and
support. DMC Stratex Networks is strategically positioned to continue its solutions-based leadership
in wireless high-capacity transmission technology. Additional information can be found on the
Company's web site at www.dmcstratexnetworks.com.
The statements in this press release that relate to demand for the Company's broadband wireless
products, its positioning for continued success, and continued market growth are forward looking.
These forward-looking statements are based on current expectations and the Company assumes no
obligation to update this information. The Company's actual results could differ materially from
those anticipated in these forward-looking statements as a result of certain factors, including the
volume and timing of orders for the Company's products, the ability of the Company and its suppliers
to respond to changes made by customers in their orders, the ability of the Company to bring its new
products to market quickly at cost-effective prices and to add innovative features that
differentiate its products from those of its competitors, and competition in the microwave and
access business. For a discussion of such factors, see the ``Risk Factors'' in the Company's Form
10-K filed with the SEC on June 29, 2000.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
December 31, December 31,
2000 1999 2000 1999
Net Sales $115,194 $77,435 $307,361 $211,915
Cost of Sales 79,448 54,013 207,781 149,760
Gross profit 35,746 23,422 99,580 62,155
Operating Expenses:
Research and development 5,673 6,149 17,677 18,253
Selling, general and
administrative 16,654 13,382 47,287 37,128
Total operating expenses 22,327 19,531 64,964 55,381
Operating income 13,419 3,891 34,616 6,774
Other income (expense) 669 355 3,254 (749)
Income before income taxes 14,088 4,246 37,870 6,025
Provision for
income taxes 2,113 849 5,680 1,205
Net Income $11,975 $3,397 $32,190 $4,820
Basic earnings per share $0.16 $0.05 $0.44 $0.07
Diluted earnings per share $0.16 $0.05 $0.42 $0.07
Basic weighted average
shares outstanding 73,591 66,316 73,283 64,391
Diluted weighted average
shares outstanding 76,081 71,513 76,774 69,439
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31, March 31,
2000 2000
(Unaudited)
Assets
Cash and short-terms investments $49,525 $123,942
Accounts receivable, net 138,209 98,520
Inventories 110,877 48,547
Other current assets 13,771 11,201
Total current assets 312,382 282,210
Property & equipment, net 49,342 43,801
Other assets 17,563 11,430
Total assets $379,287 $337,441
Liabilities and Stockholders' Equity
Accounts payable $57,079 $39,582
Income taxes payable and other current
liabilities 27,139 33,467
Total current liabilities 84,218 73,049
Long-term liabilities -- --
Total liabilities 84,218 73,049
Stockholders' equity 295,069 264,392
Total liabilities and stockholders' equity $379,287 $337,441
SOURCE: DMC Stratex Networks, Inc. |
