Q1 FY04 Finanial Results
Press Release
Source: Stratex Networks, Inc.
Stratex Networks Announces First Quarter Fiscal Year 2004 Financial Results
Wednesday July 23, 4:30 pm ET
SAN JOSE, Calif., July 23 /PRNewswire-FirstCall/ -- Stratex Networks,
Inc. (Nasdaq: STXN - News), a leading independent provider of wireless
transmission solutions, today reported financial results for the first
quarter of fiscal year 2004, ended June 30, 2003. Net sales in the first
quarter of fiscal year 2004 totaled $36.0 million compared to $49.3
million reported in the first quarter of fiscal year 2003. Net loss in the
first quarter of fiscal year 2004 was $3.4 million or $0.04 per share,
compared to a net loss of $22.9 million or $0.28 per share reported in
the first quarter of fiscal year 2003. Excluding a $3.6 million benefit
related to the favorable resolution of a previously reserved legal claim,
net loss in the first quarter of fiscal year 2004 was $6.9 million or $0.08
per share.
Stratex Networks received $41.8 million in orders during the first
quarter. The backlog as of June 30, 2003 was $41 million.
"Customer activity increased during the first quarter of fiscal 2004,
resulting in a 4% sequential increase in new orders," stated Chuck
Kissner, Chairman & CEO of Stratex Networks. "As previously
announced, the delay in the issuance of a letter of credit for a large
shipment to one customer impacted revenue for the quarter."
Stratex Networks recently held a new product seminar in conjunction
with its annual meeting. The seminar showcased Eclipse(TM), the first
microwave radio platform optimized for building networks, rather than
just links. Eclipse is designed to provide a scaleable capacity architecture
with minimal hardware swap-outs, and a range of flexible capacity and
interface choices to meet current and future customer requirements.
According to Mr. Kissner, development of Eclipse is on schedule for
initial commercial shipments before the end of the current fiscal year
ending March 31, 2004.
"The company is well on its way to achieving another 'first' in the
microwave segment of the wireless industry," continued Kissner.
"Customer interest in our new product platform is highly encouraging.
As the wireless industry continues to face market challenges and
competitive pressure, we are increasingly confident that the combination
of our streamlined company infrastructure and new product platform
will position Stratex Networks for long-term profitability and value
generation."
A conference call with company management will follow this
announcement at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time).
Investors are invited to listen to the call live via the Internet at http://
www.stratexnet.com/. Investors can listen via telephone by dialing 877-
543-9372 domestic or 706-643-3737 international and entering
conference identification number 1537194. A telephone replay using
the same conference identification number will be accessible at 800-
642-1687 domestic or 706-645-9291 international beginning
approximately two hours after conclusion of the live call. The Internet
link and telephone replay will be available for a period of two weeks
following the conference call.
About Stratex Networks: With its broad product offering and worldwide
sales and support organization, Stratex Networks is strategically
positioned to serve wireless high-capacity transmission technology
needs in a global environment. Since it was founded in 1984, Stratex
Networks has achieved international recognition for quality, innovation,
and technical superiority in delivering data, voice, and video
communication systems, including comprehensive service and support.
Additional information is available at www.stratexnet.com.
Safe Harbor Statement: This press release contains statements that
qualify as "forward-looking statements" under the Private Securities
Litigation Reform Act of 1995, including statements relating to the
Company's expectations regarding initial commercial shipments of the
Eclipse, market acceptance of the Eclipse and the Company's positioning
for long-term profitability and value generation. 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 risk factors including
unexpected delays in the schedule for initial commercial shipments of
Eclipse, negative trends in the general economic condition of the
worldwide economy, order cancellations, postponements in product
deliveries resulting in delayed revenue recognition, increased
competition, downward pressures on the price of the Company's
products and services and the introduction of competing products and
technologies. In addition, orders and backlog are not necessarily
indicative of revenue in any future period. For a further discussion of
these and other factors that impact the Company's business in general,
see the information provided under the heading "Factors That May Affect
Future Financial Results" in the Company's Annual Report on Form 10-K
for the year ended March 31, 2003, filed with the Securities and
Exchange Commission on May 19, 2003.
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands)
(unaudited)
June 30, March 31,
2003 2003
Assets
Cash and short-term investments $84,819 $90,182
Accounts receivable, net 25,633 31,072
Inventories 21,502 20,307
Other current assets 13,366 14,032
Total current assets 145,320 155,593
Property & equipment, net 28,763 28,836
Other assets 361 356
Total assets $174,444 $184,785
Liabilities and Stockholders' Equity
Accounts payable $20,626 $23,095
Other current liabilities 24,763 29,745
Total current liabilities 45,389 52,840
Other long-term liabilities 18,173 19,145
Total liabilities 63,562 71,985
Stockholders' equity 110,882 112,800
Total liabilities and stockholders' equity $174,444 $184,785
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three Months Ended
June 30,
2003 2002
Net sales $35,967 $49,319
Cost of sales 28,621 38,769
Gross profit 7,346 10,550
Operating expenses:
Research and development 3,886 3,622
Selling, general and administrative 10,506 14,596
Restructuring and other charges (credits) (3,550) 14,173
Total operating expenses 10,842 32,391
Loss from operations (3,496) (21,841)
Other income (expense) 52 (225)
Loss before income taxes (3,444) (22,066)
Provision (benefit) for income taxes (69) 797
Net loss ($3,375) ($22,863)
Basic and diluted net loss per share ($0.04) ($0.28)
Basic and diluted weighted average shares
outstanding 82,810 82,380
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES*
(in thousands)
(unaudited
Three months ended
June 30, 2003
GAAP net loss ($3,375)
Non-GAAP adjustments:
Reduction of reserve for legal claims (3,550)
Total Non-GAAP adjustments (3,550)
Non-GAAP net loss ($6,925)
In addition to disclosing results that are determined in accordance with
Generally Accepted Accounting Principles (GAAP), Stratex Networks, Inc.
also discloses pro forma or non-GAAP results in order to assess and
reflect operating performance. Management believes the pro forma
measure helps indicate underlying trends and better enables period-to-
period comparisons. Pro forma information excludes certain
restructuring and special charges. Pro forma information should not be
considered superior to or as a substitute for measures or data prepared
in accordance with GAAP.
Source: Stratex Networks, Inc. |
