Shiva Corporation Reports Fourth Quarter and Fiscal 1997 Results
PR Newswire - January 28, 1998 16:25
SHVA %CPR %ERN V%PRN P%PRN
BEDFORD, Mass., Jan. 28 /PRNewswire/ -- Shiva Corporation (Nasdaq: SHVA)
today reported financial results for its fourth quarter ended January 3, 1998.
Revenues for the quarter were $37.9 million, compared to $48.2 million in the
same quarter a year ago. The company recorded a net loss for the quarter of
$2.2 million, or $(0.07) per share, compared to net income of $1.5 million or
$0.05 per share (on a diluted basis) for the fourth quarter last year. The
financial results for the fourth quarter include a writedown on excess
inventory which negatively impacted cost of revenues by $2.6 million and
earnings per share by $0.05. This writedown is in addition to first quarter
charges related to V.34 modem cards, and is due to the market's acceptance of
56K modem technology which impacted demand for V.34 modem cards more rapidly
than originally anticipated.
For the year ended January 3, 1998, revenues were $144.3 million, compared
to $200.1 million for fiscal year 1996. Shiva posted a net loss for the year
of $13.6 million, or $(0.47) per share, compared to net income of $16.8
million, or $0.54 per share (on a diluted basis) for fiscal 1996. Financial
results for fiscal 1997 included the effects of charges related to price
protection reserves and inventory writedowns, which negatively impacted fiscal
1997 earnings per share by $0.33. The results for fiscal year 1996 include
merger expenses of $2.0 million, or $0.06 per share, related to the
acquisition of Airsoft, Inc.
"Although it has been a difficult year for Shiva, I believe we have made
many changes that have positioned us for the future. It is our intention to
work toward reclaiming Shiva's leadership position in remote access," said
James L. Zucco, Jr., president and chief executive officer of Shiva
Corporation. "We understand clearly where Shiva's value proposition lies for
both the business access and service provider markets. When you have more
years of in-market expertise and the largest installed base in a market
segment, you know what customers want most. It's all about reliability, ease
of use and delivering the right features at the right price. We continued to
fulfill this charter in the last quarter, as evidenced by Shiva winning PC
Magazine's Remote Access Product of the Year award for the fourth consecutive
year."
During the fourth quarter, Shiva shipped several new products and
introduced services, all of which specifically address customers' ease-of-use
requirements. The LanRover D56 is available in 12- and 24-port solutions that
leverage T1/PRI line capacity for cost-effective implementation of ISDN and
56Kbps technology using Rockwell K56flex modem cards. The LanRover XP16
allows companies to easily expand the number of remote workers who can dial
in, without correspondingly having to increase staff or space requirements.
Version 2.0 of the AccessPort ISDN client router addresses the needs of non-
technical users by making installations simpler. Shiva also made the
installation process simpler with the introduction of the RapidInstall
service.
In addition to winning PC Magazine's Remote Access Product of the Year
award during the quarter, Shiva also received the Best Overall Remote Access
Server Award from Business Communications Review. Shiva's LanRover was chosen
over products from Cisco, 3Com and Bay Networks.
Founded in 1985, Shiva Corporation is a global, full-line provider of
remote access solutions, systems and services. Its products enable users and
user sites at enterprises of all sizes to connect with corporate information
resources, on line services and the Internet. Shiva offers a full range of
award-winning, analog and digital remote access and communications servers.
The company is based in Bedford, Mass., with offices worldwide.
NOTE: All Shiva news releases are available via the Shiva Corp. World Wide
Web site shiva.com. For additional information, Shiva Investor
Relations can be accessed by E-mail at investor@shiva.com.
Shiva, Shiva with design (the company logo), NetModem/E, LanRover,
LanRover Access Switch, AirSoft, ShivaPPP, ShivaIntegrator and PowerBurst are
registered trademarks of Shiva Corporation. VantagePath, ShivOS, Tariff
Management, PowerSurf, ShivaPort, ShivaRemote, Shiva Dial-In SDK, Shiva
AccessPort, ISSAK, Remote-Centric and DIAT are trademarks of Shiva
Corporation. All other trademarks belong to their respective companies.
SHIVA CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data)
Quarter Ended Year Ended
Jan. 3, Dec. 28, Jan. 3, Dec. 28,
1998 1996 1998 1996
(unaudited)
Revenues $37,851 $48,216 $144,329 $200,119
Cost of revenues 18,509 20,634 71,416 83,177
Gross Profit 19,342 27,582 72,913 116,942
Operating Expenses:
Research and development6,869 6,556 25,545 23,186
Selling, general and
administrative 16,974 19,243 72,903 69,087
Merger expenses --- --- --- 1,987
Total operating
expenses 23,843 25,799 98,448 94,260
Income (loss) from
operations (4,501) 1,783 (25,535) 22,682
Other income, net 1,029 560 3,522 3,344
Income (loss) before
income taxes (3,472) 2,343 (22,013) 26,026
Income tax provision
(benefit) (1,321) 843 (8,366) 9,185
Net income (loss) $(2,151) $1,500 $(13,647) $16,841
Net income (loss) per
share - basic $(0.07) $0.05 $(0.47) $0.59
Net income (loss) per
share - diluted $(0.07) $0.05 $(0.47) $0.54
Shares used in computing net
income (loss) per
share - basic 29,578 28,746 29,266 28,425
Shares used in computing net
income (loss) per
share - diluted 29,578 31,338 29,266 31,459
SHIVA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
Jan. 3, Dec. 28,
1998 1996
Cash, cash equivalents
and short-term investments $95,783 $107,102
Accounts receivable, net 23,169 39,904
Inventories 14,058 17,958
Other current assets 11,052 6,022
Total current assets 144,062 170,986
Fixed assets, net 26,093 23,855
Other assets 12,091 3,209
Total assets $182,246 $198,050
Current liabilities $ 35,748 $40,522
Long-term liabilities 554 694
Total liabilities 36,302 41,216
Stockholders' equity 145,944 156,834
Total liabilities and
stockholders' equity $182,246 $198,050
SOURCE Shiva Corporation
/CONTACT: Robert Cirrone, Chief Financial Officer, 781-687-1000, or Karen
A. Wharton Sr., Director, Investor Relations, 781-687-1551,
investor@us.shiva.com, both of Shiva/
/Web site: shiva.com
(SHVA) |
