Thursday February 8, 4:26 pm Eastern Time Press Release
AM Communications Announces Third Quarter Fiscal 2001 Results Revenues Up 34% From A Year Ago
QUAKERTOWN, Pa.--(BUSINESS WIRE)--Feb. 8, 2001--AM Communications, Inc. (OTC:AMCM - news) announced today the financial results for the third quarter and first nine months of its fiscal year 2001 ended December 30, 2000.
Revenues for the third quarter of fiscal 2001 were $3.6 million, up 34% compared to $2.7 million reported for the third quarter of fiscal 2000. The Company reported net income of $150,000 during the recent quarter, compared to a net loss of $401,000 in the comparable period in fiscal 2000.
Revenues for the nine months ended December 30, 2000 were $11.2 million, up 64% from the $6.8 million reported in the comparable period a year ago. Net income was $700,000 for the nine months ended December 30, 2000, compared to a net loss of $1.2 million in the comparable nine-month period a year ago.
Commenting on the results, Javad Hassan, Chairman, said, ``We have continued to make progress in growing our business year over year, though we experienced a slight decline in revenues sequentially from the $3.9 million reported in the past September 2000 quarter. Our revenue levels in the December quarter were impacted by manufacturing issues including component and capacity limitations.
We have increased purchase levels of longer lead time components and expect NeSTronix, our manufacturing partner, to increase capacity in the next several months, which we anticipate will allow revenues to grow sequentially for the March 2001 quarter.
Concurrently with the issuance of this earnings release, we issued a release announcing a major new customer relationship with Charter Communications. This relationship is a multi-year program with Charter Communications to install OmniStat(TM) monitoring systems in some 80 operating sites and the development and integration of multiple network monitoring and management systems.
We estimate that revenues from this program could exceed $15 million over a multi-year period, making this the largest customer commitment in the Company's history.
Backlog was at $4.1 million as of December 30, 2000, up from $3.9 million a year ago, but has subsequently declined to $3.7 million as of February 2, 2001. The drop in backlog since December 30, 2000 is due to a slowdown in OEM bookings during the first several weeks of January 2001, which is considered seasonally slow.
The backlog does not include new bookings that we expect to receive from the new Charter business. We also are expecting to see a ramp up of revenues from our two new strategic business units, the AM Broadband Services and AM Network Integration Solutions groups. Both of these groups have closed new business recently and will report revenue in the March 2001 quarter.
While we have identified several new customers and revenue segments, our revenue growth could be tempered due to general economic conditions and other factors which could limit our customers' rollout of new services and purchase of AM products.
We have continued to leverage AM's market recognition, customer base and strategic technical and manufacturing relationships in order to position the Company to become one of the world's leading broadband reliability companies to enable 'just in time' maintenance and service. We are excited about our recent successes with Charter and our new business groups, which we view as evidence that our strategy is being accepted by the customer base.``
AM will be hosting a conference call with interested investors on Friday, February 9, 2001, beginning at 10:00 a.m. (EST). Anyone interested in participating may contact us at 800/248-9004 to register for the call. A digitized replay will be available from 1:30 p.m. on February 9 to 11:59 p.m. on February 12, 2001 by calling 800/475-6701, access code 570071.
AM Communications, Inc., located in Quakertown, Pennsylvania, is a leading provider of plant, headend, and hub management solutions to the broadband industry. AM's solutions provide network operators with greater control over their networks' performance levels and reliability, giving them a competitive edge in today's deregulated communications environment.
Through partnerships and close working relationships with leading network technology companies including Philips, Scientific-Atlanta, Motorola and ADC, AM Communications has emerged as a true open systems company capable of supporting multi-vendor networks through cooperative engineering.
Registered under ISO-9001, AM's 25+ years of quality, dependability, and service are key to designing, building, and implementing management solutions for the broadband network. AM Communications is an OTC company traded under the ticker symbol ``AMCM''. More information is available at AM's Web site: www.amcomm.com.
This news release discusses primarily historical information. Statements included in this release, to the extent they are forward looking, involve a number of risks and uncertainties such as competitive factors, technological developments, and market demand.
Further information on potential factors that could affect the Company's financial results can be found in the Company's Reports on Forms 10-KSB and Forms 10-QSB, which are filed by the Company with the Securities and Exchange Commission (SEC).
(c) Copyright 2000 AM Communications, Inc. The AM logo and OmniStat name are registered trademarks of AM Communications, Inc.
AM COMMUNICATIONS, INC.
Condensed Statements
of Operations ($000)
-----------------------
(Unaudited) Three Months Ended Nine Months Ended
Dec. 30, Jan. 1, Dec. 30, Jan. 1,
2000 2000 2000 2000
--------- --------- --------- ---------
Revenues $ 3,574 $ 2,669 $ 11,195 $ 6,838
Cost of Sales 1,725 1,610 5,482 3,642
Selling, General
& Administrative 774 675 2,298 1,946
Research and
Development 891 763 2,618 2,441
--------- --------- --------- ---------
Operating Income
(Loss) 184 (379) 797 (1,191)
Net Income (Loss) $ 150 $ (401) $ 700 $ (1,248)
========= ========= ========= =========
Basic Net Income
(Loss) Per Share $ Nil $ (0.01) $ 0.02 $ (0.04)
========= ========= ========= =========
Diluted Net Income
(Loss) Per Share $ Nil $ (0.01) $ 0.01 $ (0.04)
========= ========= ========= =========
Shares Used in
Computation of
Basic Net Income
(Loss) Per Share 34,021 32,367 33,611 31,948
========= ========= ========= =========
Shares Used in
Computation of
Diluted Net
Income (Loss)
Per Share 53,619 32,367 52,962 31,948
========= ======== ========= =========
Condensed Balance Sheets
($000)
------------------------ December 30, April 1,
2000 2000
------------ ------------
(Unaudited) (Audited)
Cash $ 14 $ 79
Accounts Receivable 2,620 2,439
Inventory 2,341 1,694
Prepaid Expenses and Other 312 131
------- -------
Total Current Assets 5,287 4,343
Equipment and Fixtures, Net 227 216
Other Assets 9 16
------- -------
Total Assets $ 5,523 $ 4,575
======= =======
Current Portion of Debt 1,055 782
Accounts Payable 1,716 1,650
Accrued Expenses and Other 925 1,149
------- -------
Total Current Liabilities 3,696 3,581
------- -------
Long Term Debt 69 93
Deferred Revenue 102 126
Senior Convertible Preferred
Stock 1,983 2,583
Stockholders' Equity (Deficit) (327) (1,808)
------- -------
Total Liabilities and
Stockholders' Equity $ 5,523 $ 4,575
======= =======
--------------------------------------------------------------------------------
Contact:
AM Communications, Inc., Quakertown
Investor Relations
Christine Mascaro, 215/538-8700
Fax: 215/538-8779
cmascaro@amcomm.com |
