WMUX,
Western Multiplex Corporation Reports Record Revenues and Earnings for Fiscal 2000; Revenues Up 136%, EBITA Up 142%
Fourth Quarter Revenues Grow a Record 141% to $37.6 Million Growth Remains Strong in Company's Principal Wireless Infrastructure Segments
SUNNYVALE, Calif., Jan 23, 2001 /PRNewswire via COMTEX/ -- Western Multiplex Corporation (Nasdaq: WMUX chart, msgs) today reported record revenue for fiscal 2000, and its fourth quarter, both of which ended December 31, 2000. Revenue for the fourth quarter was $37.6 million, an increase of 140.9% over revenue of $15.6 million for the corresponding quarter ended December 31, 1999. Revenue for the year ended December 31, 2000 was $105.5 million, a 135.8% increase over revenue of $44.8 million for the year ended December 31, 1999.
Net income for the current quarter was $3.3 million, compared to a net loss of $1.1 million for the corresponding quarter of 1999. Basic and diluted earnings per share were $.06 for the current quarter and a loss of $.02 for the fourth quarter of the prior year. Net income for the year ended December 31, 2000 was $6.3 million, an increase of 434.8% over net income of $1.2 million for the year ended December 31, 1999. Basic earnings per share for the year ended December 31, 2000 was $.13, a 729.9% increase over basic earnings per share of $.02 for the year ended December 31, 1999. Diluted earnings per share for the year ended December 31, 2000 was $.12, a 649.7% increase over diluted earnings per share of $.02 for the year ended December 31, 1999.
Earnings before interest, income taxes and amortization (EBITA), before nonrecurring costs of $185,000, for the current quarter was $6.4 million, an increase of 75.5% over EBITA, before nonrecurring costs of $3.1 million, for the corresponding quarter of 1999, was $3.7 million. Basic EBITA per share before nonrecurring costs, for the current quarter was $.12, a 64.4% increase over basic EBITA per share before nonrecurring costs of $.07 for the corresponding quarter of 1999. Diluted EBITA per share before nonrecurring costs for the current quarter was $.11, a 56.9% increase over diluted EBITA per share before nonrecurring costs of $.07 for the corresponding quarter of 1999.
EBITA before nonrecurring costs of $185,000 for the year ended December 31, 2000 was $19.8 million, an increase of 142.4% over EBITA before nonrecurring costs of $3.1 million for the year ended December 31, 1999 was $8.2 million. Basic EBITA per share before nonrecurring costs for the year ended December 31, 2000 was $.42, a 276.1% increase over basic EBITA per share before nonrecurring costs of $.11 for the year ended December 31, 1999. Diluted EBITA per share before nonrecurring costs for the year ended December 31, 2000 was $.38, a 239.8% increase over diluted EBITA per share before nonrecurring costs of $.11 for the year ended December 31, 1999.
Reviewing the quarter-and year-end, Jonathan Zakin, Western Multiplex Chairman and CEO said, "In addition to having a very strong quarter, the company showed outstanding sustained growth for fiscal 2000. Our continued focus on execution has generated seven consecutive quarters of growth in revenue and EBITA before one-time charges. We are particularly pleased that in a year during which we increased our headcount by more than 75%, our revenue per employee increased from $343,000 to $572,000."
Western Multiplex's principal wireless infrastructure segments -- mobile, wireless backhaul and campus/enterprise connectivity -- remain strong, as does international demand.
Much of the revenue growth in the campus/enterprise connectivity market segment resulted from increased momentum in building a channel infrastructure. During fiscal 2000, the company added 180 channel partners, bringing the total number of partners to 200. These strategic channel partners enable the synergistic selling of their traditional line of network connectivity equipment alongside Western Multiplex's Tsunami wireless Ethernet bridges. In the fourth quarter, Western Multiplex announced a distribution agreement with two divisions of the Westcon Group, an international channel provider of networking technology products and value-added services.
In the fourth quarter, the company also announced the opening of both its Beijing office and its Mexico City program office, reinforcing its commitment to provide localized support and services to its international customers and dealers.
Also in the fourth quarter, the company added strength to its management team with Christina Rulo as vice president of Human Resources, and Gary Boss as vice president of manufacturing operations. Rulo, who has extensive experience with managing change in large organizations, is responsible for all human resources programs and policies. Prior to joining Western Multiplex, she served as corporate vice president of human resources for Hyperion Solutions. Boss, who has extensive experience in growing technology-company manufacturing operations, is enabling Western Multiplex to control costs, improve productivity and take full advantage of the global marketplace Prior to joining Western Multiplex, he served as vice president of manufacturing operations for U.S. Robotics.
In other fourth quarter developments, Western Multiplex began expansion of its operations by entering into an agreement to lease an additional 37,000 square foot facility in Sunnyvale, Calif. When the company occupies the facility in April 2001, it will be used for manufacturing and assembly operations.
Today's Conference Call To Be Broadcast Live Over the Internet
The Western Multiplex conference call will be broadcast live over the Internet today, Tuesday, January 23, 2001 at 5:00 PM, Eastern Standard Time.
To listen to the webcast, login to the Western Multiplex homepage, www.wmux.com.
Direct your browser to Investor Relations and click on the link titled "Conference Calls."
The minimum requirements to listen include sound capabilities on your personal computer and installation of RealPlayer software available at no cost for Windows 95/98, Windows 3.1, Windows NT, Macintosh, and UNIX systems from Real Audio, www.real.com.
The webcast will be archived immediately following the conference call and will remain available at the Western Multiplex home page, www.wmux.com. Additionally, the conference call will be available on a recorded telephone archive by calling toll free 888-203-1112 and entering pass code 693623, beginning January 23 at 8:00 p.m., Eastern Standard Time until the end of business on Thursday, January 25. For international callers, the recorded telephone archive is available by calling the following number, 719-457-0820, to which tolls apply.
About Western Multiplex Corporation
Western Multiplex Corporation is a leader in broadband fixed-wireless communication systems used by leading Internet Service Providers, telecommunications carriers and corporations worldwide. The company's fixed-wireless telco and IP based systems address the growing need of service providers and end-users to rapidly and cost-effectively deploy high-speed communication networks for mobile communication backhaul, fiber extension, multi-tenant/multi-dwelling unit Internet access, enterprise, government and education campus connectivity and enable last mile access. The company's website is: www.wmux.com. Western Multiplex Investor Information Service: 877-9WMUX-IR (877-996-8947)
Safe Harbor
This press release contains statements representing Western Multiplex's expectations or beliefs concerning future events that are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, which provides a safe-harbor for such statements. The forward-looking statements contained in this press release include statements related to increases in the demand for Western Multiplex's products and future growth plans. The company's actual results could differ materially from management's expectations for a variety of factors, including due to an unexpected decline in demand for Western Multiplex's products, lower overall demand for wireless infrastructure devices, competition from existing or new competitors or increased costs and expenses. Western Multiplex cautions that these statements are further qualified by other important factors, including, but not limited to, the factors set forth in Western Multiplex's filings with the Securities and Exchange commission, including Western Multiplex's Registration Statement on Form S-4 filed on December 1, 2000, Western Multiplex's final Prospectus from its initial public offering dated July 31, 2000 and its Quarterly Report on Form 10-Q for the quarter ended September 29, 2000. Western Multiplex does not undertake any obligation to update this information and you should recognize that this information is only accurate as of today's date.
WESTERN MULTIPLEX CORPORATION
CONDENSED BALANCE SHEETS
(In thousands)
December 31, December 31,
2000 1999
ASSETS
Current assets:
Cash and short-term investments $51,719 $1,913
Accounts receivable, net 34,292 8,830
Inventory 10,949 5,543
Prepaid expenses and other 4,970 301
Deferred tax assets 1,573 1,057
Total current assets 103,503 17,644
Long-term investments 3,014 --
Equipment and leasehold improvements, net 5,381 2,496
Deferred tax assets 3,565 3,882
Deferred financing costs -- 748
Other long-term assets 2,500 --
Goodwill and other intangible assets, net 22,906 18,552
Total assets $140,869 $43,322
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Revolving line of credit $ -- $2,000
Long-term debt -- current portion -- 2,847
Accounts payable 10,208 3,059
Accrued liabilities 8,582 3,848
Payable to parent company 35 1,409
Total current liabilities 18,825 13,163
Long-term liabilities 28 19,153
Total liabilities 18,853 32,316
Stockholders' equity: 122,016 11,066
Total liabilities and
stockholders' equity $140,869 $43,322
WESTERN MULTIPLEX CORPORATION
CONDENSED INCOME STATEMENTS
(In thousands, except per share amounts)
Three Months Ended Year Ended
December December December December
31, 31, 31, 31,
2000 1999 2000 1999
(Unaudited)
Revenue $37,635 $15,617 $105,508 $44,750
Cost of revenue 18,626 7,642 50,466 22,470
Gross profit 19,009 7,975 55,042 22,280
Operating expenses
before amortization:
Research and development 4,312 1,594 12,379 5,925
Sales and marketing 5,662 2,066 16,180 6,154
General and administrative 2,599 648 6,696 2,038
Recapitalization costs -- 3,050 -- 3,050
Merger costs 185 -- 185 --
12,758 7,358 35,440 17,167
Earnings before interest,
income taxes and
amortization 6,251 617 19,602 5,113
Amortization:
Amortization of goodwill 722 189 2,382 737
Amortization of deferred
stock compensation 902 -- 3,816 --
1,624 189 6,198 737
Income from operations 4,627 428 13,404 4,376
Interest income (expense),
net 1,051 (368) 85 (368)
Income before taxes 5,678 60 13,489 4,008
Income tax provision 2,387 1,196 6,800 2,831
Income before
extraordinary item 3,291 (1,136) 6,689 1,177
Loss on early extinguishment
of debt, net of income
tax benefit -- -- 394 --
Net income $3,291 $(1,136) $6,295 $1,177
Basic earnings per share $0.06 $(0.02) $0.13 $0.02
Diluted earnings per share $0.06 $(0.02) $0.12 $0.02
Shares used to compute
basic earnings
per share 55,532,566 80,000,000 47,044,568 73,000,000
Shares used to compute
diluted earnings
per share 58,160,801 80,000,000 52,080,734 73,000,000
Source: Western Multiplex Corporation |
