It seems that LMNE has much better metrics, yet is selling for bargain basement prices. Can anyone explain the major differences between the two companies.
See report below:
Luminent Announces Fourth-Quarter Results
Net Sales Increase 26% From the Third Quarter
CHATSWORTH, Calif., Jan 30, 2001 (BUSINESS WIRE) -- Luminent, Inc. (Nasdaq: LMNE chart, msgs) ("the Company" or "Luminent") today reported net sales for its fourth quarter ended December 31, 2000 of $45.2 million and pro forma net income of $3.9 million, or $0.03 per diluted share.
Net sales of $45.2 million for the fourth quarter increased 26% over net sales of $36.0 million for the third quarter ended September 30, 2000 and 143% over net sales of $18.6 million for the fourth quarter ended December 31, 1999. Including goodwill amortization and deferred stock compensation, Luminent reported a net loss of $25.9 million, or $0.17 per share, for the fourth quarter and a net loss of $65.0 million, or $0.45 per share, for the year ended December 31, 2000.
On a pro forma basis, excluding goodwill amortization and deferred stock compensation, the Company would have reported net income of $3.9 million, or $0.03 per diluted share, for the fourth quarter, an increase of 104%, or $0.02 per diluted share, over pro forma net income of $1.9 million earned for the third quarter ended September 30, 2000. Pro forma net income for the year ended December 31, 2000 would have been $7.7 million, or $0.05 per diluted share, an increase of 84%, or $0.02 per diluted share, from pro forma net income of $4.2 million for the prior year.
The following table summarizes Luminent's pro forma results for the fourth quarter and year ended December 31, 2000:
Luminent, Inc.
Pro Forma Condensed Consolidated Statements of Operations (a)
Excluding Amortization of Goodwill and Deferred Stock Compensation
(in thousands, except per share data)
Three Months Ended Year Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2000 1999 2000 1999
Net sales $ 45,228 $ 18,580 $ 124,192 $ 65,264
Cost of sales 29,869 12,532 81,640 43,078
Gross profit 15,359 6,048 42,552 22,186
Operating costs and expenses:
Selling, general and
administrative 6,595 1,862 17,044 5,675
Research and development 4,114 2,320 13,892 8,693
Parent company allocations -- 222 588 885
10,709 4,404 31,524 15,253
Operating income 4,650 1,644 11,028 6,933
Other income (loss), net 1,719 (9) 2,246 6
Income before provision
for taxes 6,369 1,635 13,274 6,939
Provision for taxes 2,229 651 4,976 2,764
Minority interest 207 -- 600 --
Net income $ 3,933 $ 984 $ 7,698 $ 4,175
Earnings per share, basic $ 0.03 $ 0.01 $ 0.05 $ 0.03
Earnings per share, diluted $ 0.03 $ 0.01 $ 0.05 $ 0.03
Shares used in per share
calculation, basic 150,652 144,000 145,677 144,000
Shares used in per share
calculation, diluted 153,033 144,000 146,262 144,000
(a) Pro forma results for the fourth quarter and year ended December 31, 2000 exclude $19.5 and $47.4 million, respectively, of goodwill amortization; and exclude amounts relating to deferred stock compensation for the fourth quarter and year ended December 31, 2000 of $849,000 and $2.7 million, respectively, from "cost of sales," $11.7 and $21.7 million, respectively, from "selling, general and administrative," and $1.3 and $4.3 million, respectively, from "research and development."
Luminent is a high technology company that designs, develops, manufactures and sells a comprehensive line of fiber optic components that enable communications equipment manufacturers to provide optical networking equipment for the rapidly growing intercity and intracity portions, or metropolitan segment, and business and home access segments of the communications network. The Company's products are designed to meet the increasing requirements for transmission capacity and speed, or bandwidth, between nationwide, or long-haul, telecommunication networks and end users. Luminent, Inc. is traded on the Nasdaq National Market under the symbol LMNE. More information on Luminent is available on its Web site, www.luminentinc.com.
Luminent, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
Three Months Ended Year Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2000 1999 2000 1999
Net sales $ 45,228 $ 18,580 $ 124,192 $ 65,264
Cost of sales 30,717 12,532 84,384 43,078
Gross profit 14,511 6,048 39,808 22,186
Operating costs and expenses:
Selling, general
and administrative 18,246 1,862 38,768 5,675
Research and
development 5,452 2,320 18,204 8,693
Parent company
allocations -- 222 588 885
Amortization of
goodwill 19,488 -- 47,421 --
43,186 4,404 104,981 15,253
Operating income
(loss) (28,675) 1,644 (65,173) 6,933
Other income (loss), net 1,719 (9) 2,246 6
Net income (loss)
before provision
for taxes (26,956) 1,635 (62,927) 6,939
Provision for taxes 57 651 2,766 2,764
Minority interest (1,100) -- (707) --
Net income (loss) $ (25,913) $ 984 $ (64,986) $ 4,175
Earnings (loss) per
share, basic and
diluted $ (0.17) $ 0.01 $ (0.45) $ 0.03
Shares used in per share
calculation 150,652 144,000 145,677 144,000
Luminent, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
Dec. 31, 2000 Dec. 31, 1999
ASSETS
Current assets:
Cash and short-term investments 132,860 220
Accounts receivable, net 21,613 10,544
Inventories, net 39,428 8,755
Other current assets 15,326 2,195
Total current assets 209,227 21,714
Property and equipment, net 51,367 1,413
Goodwill, net 341,165 --
Other assets 3,246 --
Total assets $ 605,005 $ 23,127
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 20,021 $ 4,200
Short-term borrowings and other
current portion of long-term debt 10,564 --
Accrued expenses 16,971 4,953
Total current liabilities 47,556 9,153
Long-term debt, net of current portion 9,550 --
Other long-term liabilities 779 --
Total liabilities 57,885 9,153
Minority interest 444 --
Stockholders' equity 546,676 13,974
Total liabilities and
stockholders' equity $ 605,005 $ 23,127
Forward-Looking and Cautionary Statements
Except for the historical information and discussions contained herein, statements contained in this release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, as discussed in the Company's filings with the Securities and Exchange Commission.
Contact:
Luminent, Inc., Chatsworth
Eric Blachno, 818/773-9044
www.luminentinc.com |
