CMTO ouchie!( $4 1/2 , cut in 1/2) Q4 PRO FORMA SHR LOSS $0.85 VS $0.19... TERN next ?
Com21 Reports Yearly Revenues of $198 Million
Annual Revenue Increases 106%
MILPITAS, Calif., Jan. 22 /PRNewswire/ -- Com21, Inc. (Nasdaq: CMTO - news) today reported financial results for the three- and 12-month periods ended December 31, 2000.
Revenues for 2000 were $198 million. On a year-to-year basis, the Company's revenues increased 106% from $95.7 million in 1999. Revenues for the fourth quarter of 2000 were $44.0 million, an increase of 48% from $29.7 million recorded in the fourth quarter of 1999. Cable modem shipments increased as well, as Com21 shipped 810,000 cable modems worldwide in 2000, an increase of 188% over the 281,000 reported in 1999. DOCSIS modem shipments surpassed ATM (asynchronous transfer mode) modem shipments for the first time, as the Company's DOXport® modems accounted for 67% of all unit shipments in the fourth quarter of 2000. Domestic and international cable modem shipments for the fourth quarter were virtually even, with each region receiving 50% of all cable modem shipments.
``Com21 experienced a respectable fourth quarter,'' said Craig Soderquist, Com21 president and CEO. ``In the face of a general industry downturn, we were actually able to increase market share. We believe that this downturn was simply a temporary setback due to inventory rebalancing by the major MSOs, both in the U.S. and in Europe. Our margin decline in the fourth quarter resulted primarily from inventory adjustments so that these costs are not carried forward. We have revised our business model, which will allow us to make money with margins in the mid-twenties. We expect to break even in the second quarter of 2001, and exit the year with margins in the mid-twenties to low thirties.
``The DOXport 1110, our flagship cable modem, has received high marks from customers,'' added Soderquist, ``and we expect its industry-leading technology to drive strong revenues and improve our margins in the coming year.''
The Company reported a pro forma net loss for the fourth quarter of $20.8 million, or $0.85 per share, compared to a net loss of $4.0 million, or $0.19 per share, reported in the fourth quarter of 1999.
For the fiscal year ended December 31, 2000, Com21's revenues were $197.5 million, compared to $95.7 million reported for the fiscal year ended 1999. The Company reported a pro forma net loss for the 12-month period of $36.3 million, or $1.57 per share, compared to a pro forma net loss of $10.3 million, or $0.49 per share, during the same period last year.
The pro forma results exclude non-cash charges related to the acquisition of GADline and BitCom, including the write down of discontinued inventory, stock compensation, and the amortization of goodwill and intangible assets. Including these charges, the net loss for the fourth quarter of 2000 was $1.00 per share, or $24.7 million, versus a net loss of $0.19 per share, or $4.0 million for the same period last year. The net loss for the fiscal year 2000 was $2.41 per share, or $55.6 million, compared to a net loss of $0.49 per share, or $10.3 million, for the fiscal year 1999.
About Com21, Inc.
Com21, Inc. (www.com21.com) is a leading global supplier of system solutions for the broadband access market. The Company's DOCSIS, DVB, and ATM-based products enable cable operators and service providers to deliver high-speed, cost-effective Internet and telephony applications to corporate telecommuters, small businesses, home offices and residential users. To date, Com21 has shipped over one million cable modems worldwide, along with over 1,400 headend controllers. Com21 systems offer commercial service in cable systems passing 17 million households worldwide.
Com21 is an ISO 9001 registered company with over 500 employees worldwide. The Company's corporate headquarters is located in Milpitas, California, USA, with its European headquarters in Delft, The Netherlands. In addition, Com21 maintains research and development facilities in Ireland, Israel, Maryland and New York, as well as sales and support offices in the United States and Canada, Europe, Asia and Latin America.
Safe Harbor Act Clause
This press release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbors created by those sections. Except for the historical information contained herein, this press release contains forward-looking statements, estimates, and assumptions by the Company that involve risks and uncertainties, including the Company's ability to complete and successfully integrate acquisitions, the Company's ability to gain new business and develop and offer new products, the expansion of operations by the Company's customers and the deployment of the Company's products in specific markets. The matters discussed in this press release may also involve risks and uncertainties concerning Com21's products and services described in Com21's filings with the Securities and Exchange Commission (SEC). In particular, see the risk factors described in the Company's most recent Form 10K and Form 10Q. Com21 assumes no obligation to update the forward-looking information contained in this press release.
NOTE: Com21® is a registered trademark of Com21, Inc., Milpitas, California, USA. All other trademarks are the property of their respective owners.
COM21, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2000 1999 2000 1999
Revenues $43,959 $29,718 $197,509 $95,743
Cost of revenues 36,514 20,741 153,768 60,918
Gross profit 7,445 8,977 43,741 34,825
Operating expenses:
Research and
development 15,775 8,164 48,515 29,821
Sales and marketing 9,056 4,931 29,145 16,250
General and administrative 7,643 1,264 16,868 4,120
In-process research
and development 8,823
Total operating
expenses 32,474 14,359 103,351 50,191
Loss from operations (25,029) (5,382) (59,610) (15,366)
Total other income, net 366 1,380 3,993 5,104
Loss before income taxes (24,663) (4,002) (55,617) (10,262)
Provision for income taxes -- -- 22 55
Net loss $(24,663) $(4,002) $(55,639) $(10,317)
Net loss per share,
basic and diluted $(1.00) $(0.19) $(2.41) $(0.49)
Shares used in
computation, basic
and diluted 24,555 21,532 23,123 20,932
COM21, INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS*
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2000 1999 2000 1999
Revenues $43,959 $29,718 $197,509 $95,743
Cost of revenues 35,756 20,741 149,552 60,918
Gross profit 8,203 8,977 47,957 34,825
Operating expenses:
Research and development 15,097 8,164 47,159 29,821
Sales and marketing 9,016 4,931 29,065 16,250
General and administrative 5,270 1,264 11,980 4,120
Total operating expenses 29,383 14,359 88,204 50,191
Loss from operations (21,180) (5,382) (40,247) (15,366)
Total other income, net 367 1,380 3,993 5,104
Loss before income taxes (20,813) (4,002) (36,254) (10,262)
Provision for income taxes 0 0 22 55
Net loss $(20,813) $(4,002) $(36,276) $(10,317)
Net loss per share,
basic and diluted $(0.85) $(0.19) $(1.57) $(0.49)
Shares used in computation,
basic and diluted 24,555 21,532 23,123 20,932
Pro Forma results exclude non-cash charges related to the acquisition of GADline and BitCom, including the write down of discontinued inventory, stock compensation, and the amortization of goodwill and intangible assets.
COM21, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
December 31, December 31,
ASSETS 2000 1999
Current assets:
Cash and cash equivalents $36,487 $16,499
Short-term investments 9,427 89,524
Accounts receivable 44,135 19,207
Inventories 31,342 4,518
Prepaid expenses and other 14,347 2,924
Total current assets 135,738 132,672
Investments 2,000 -
Property and equipment, net 16,690 8,198
Acquired intangibles, net 16,726 --
Goodwill, net 43,331 --
Other assets 788 296
Total Assets $215,273 $141,166
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $48,264 $12,870
Accrued compensation and related benefits 4,447 3,732
Deferred revenue 435 317
Other current liabilities 6,679 2,982
Current portion of capital
lease and debt obligations 11,307 538
Total current liabilities 71,132 20,439
Deferred rent 371 304
Capital lease and debt obligations 14 345
Total Liabilities 71,517 21,088
Total Stockholders' Equity 143,756 120,078
Total Liabilities and
Stockholders' Equity $215,273 $141,166
SOURCE: Com21, Inc.
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