CIDCO Reports Strong Sequential Sales and Earnings Growth for the Fourth Quarter
Sales and Earnings Increase 38% and 113%, Respectively, Over the Third Quarter
January 21, 1998 04:15 PM
MORGAN HILL, Calif., Jan. 21 /PRNewswire/ -- CIDCO Incorporated CDCO today announced
that fourth quarter sales grew to $70.6 million, an increase of 24% over sales of $57.1 million for the
same period in 1996, and an increase of 38% compared to sales of $51.1 million in the third quarter
of 1997. Net income for the fourth quarter of 1997 grew to $3.7 million, or $0.26 per share,
compared to $248,000, or $0.02 per share, for the fourth quarter of 1996, and compared to $1.7
million, or $0.12 per share, for the third quarter of 1997.
"We are pleased with the fourth quarter's strong performance," commented Daniel L. Eilers, President
and Chief Executive Officer of CIDCO. "As a result of steps taken over the past several months to
control costs and bring new telephone products to market, we exit 1997 with these strong fourth
quarter results. SmartPhone product line sales continued to increase in the fourth quarter, producing
$13.7 million in revenue. Additionally, demand for Caller-ID adjunct products strengthened from third
quarter 1997 and fourth quarter 1996 levels, accounting for 81% of total fourth quarter sales. We
believe that our vision of reinventing the telephone is very much intact and on track."
CIDCO made a number of significant announcements in the quarter:
* In October, CIDCO introduced its most advanced SmartPhone, the award-winning CST-2100, an
ADSI (Analog Display Services Interface) telephone with a large 9-line, 20 character screen designed
to make telephone company and third party services easier to access and manage.
* Also during the fourth quarter, the Company made significant progress toward bringing to market
the CIDCO iPhone, the first fully operational web telephone that allows full graphical access to the
Internet. In December, several types of companies announced plans to support the CIDCO iPhone,
including Internet Service Providers, content providers, distribution and vertical market applications
developers. Among these companies are Time, Inc. New Media, Concentric Network Corporation,
Hollywood Online, RR Donnelly & Sons, and others.
* Finally, trials of the CIDCO iPhone have been successful, and shipments to select customers are
expected to begin later this month.
Sales for the year ended December 31, 1997 increased 20% to $257 million from $215 million for
the year ended December 31, 1996. Net income for the year ended December 31, 1997 was $12.9
million, or $0.90 per share, compared to $18.5 million, or $1.21 per share, for the year ended
December 31, 1996.
CIDCO Incorporated CDCO is a leading innovator in advanced telephony products -- from Caller
ID equipment to Internet-enabled telephones -- which support intelligent network services being
offered by telephone companies and Internet service providers. It is a leading supplier of Caller ID in
the United States and has sold over 21 million products, including Caller ID display units, network
feature telephones, advanced cordless telephones and smart screen phones utilizing ADSI technology.
CIDCO's products are provided to telephone subscribers through a variety of channels which include
distribution arrangements with leading telephone companies worldwide and numerous retail outlets.
Visit CIDCO on the World Wide Web at cidco.com or call 408-779-1162.
In addition to the historical information contained herein, statements in this press release may contain
forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to
the safe harbors created thereby. The following are among the factors that could cause actual results
to differ materially from the forward-looking statements: business conditions and growth in the
telecommunications industry and general economies, both domestic and international; lower than
expected customer orders; competitive factors; changes in product mix or distribution channels; and
technological difficulties and resource constraints encountered in developing and/or introducing new
products. Forward-looking statements contained in this press release regarding industry trends,
product development and introductions, sales, and future business activities should be considered in
light of these factors and those factors discussed from time to time in the Company's public reports
filed with the Securities and Exchange Commission, such as those discussed under "Factors That May
Effect Future Results" in the Company's report on Form 10-Q for the quarter ended September 30,
1997.
CIDCO INCORPORATED
Income Statement
(in thousands, except per share data)
Three months ended Twelve months ended
December 31, December 31,
1997 1996 1997 1996
Sales $ 70,635 $ 57,106 $257,033 $215,197
Cost of sales 39,233 33,768 141,672 119,817
Gross margin 31,402 23,338 115,361 95,380
Operating expenses:
Research and development 4,241 3,482 16,859 13,170
Selling and marketing 20,374 19,211 70,851 47,720
General and administrative 1,508 1,611 9,288 7,254
Total operating expenses 26,123 24,304 96,998 68,144
Income from operations 5,279 (966) 18,363 27,236
Interest income 729 2,900 2,793 6,729
Interest expense -- (1,521) -- (3,093)
Other income, net 729 1,379 2,793 3,636
Income before income taxes 6,008 413 21,156 30,872
Provision for income taxes 2,281 165 8,246 12,349
Net income $ 3,727 $ 248 $ 12,910 $ 18,523
Basic Earnings per share $ 0.27 $ 0.02 $ 0.93 $ 1.30
Diluted Earnings per share $ 0.26 $ 0.02 $ 0.90 $ 1.21
Common Shares Outstanding 13,953 14,368 13,948 14,284
Common Shares Assuming Dilution 14,436 14,996 14,340 16,893
Condensed Balance Sheet
(in thousands)
Dec. 31, Dec. 31,
1997 1996
Assets:
Cash and marketable securities $ 74,739 $ 65,069
Net accounts receivable 58,082 48,242
Net inventories 12,904 14,555
Other current assets 9,953 6,370
Long-term assets 17,750 18,377
Total assets $173,428 $152,613
Liabilities and stockholders' equity:
Current liabilities $ 42,698 $ 23,767
Stockholders' equity 130,730 128,846
Total liabilities and stockholders' equity $173,428 $152,613
SOURCE CIDCO Incorporated
1997 PR Newswire. All rights reserved. |
