Jenna
Here's the whole enchalata.......
Wednesday April 15, 4:10 pm Eastern Time
Company Press Release
SOURCE: Yurie Systems, Inc.
Yurie Systems, Inc. Reports Record First Quarter
Financial Results
LANDOVER, Md., April 15 /PRNewswire/ -- Yurie Systems, Inc. (Nasdaq: YURI - news)
announced today record financial results for the first quarter ended March 31, 1998.
The Company's revenue for the first quarter was $19.1 million, representing a 127% increase over
the $8.4 million reported in the first quarter of 1997 and a 8.4 % sequential increase over the
$17.6 million reported in fourth quarter of 1997.
Net income for the first quarter of 1998 was $3.8 million, or $0.14 per share diluted ($0.15 per
share basic), a 456% increase over the $677,000 in net income, or $0.03 per share both diluted
and basic, reported in the first quarter of 1997, and a 59% sequential increase over the $2.4
million in net income, or $0.09 per share both diluted and basic, reported in the fourth quarter of
1997. For the fourth quarter of 1997, net income included one-time expenses associated with the
acquisition of Data Labs. Excluding such expenses from the fourth quarter would have resulted in a
sequential increase in net income of 26%.
All earnings per share amounts reported in this release represent diluted or basic earnings per
share as defined within Statement of Financial Accounting Standards No. 128 (FAS 128).
The Company's continued strong revenue growth during the first quarter resulted largely from
increased sales of its LDR products to both government and commercial customers. During the
first quarter of 1998, product revenue was $18.4 million, a 146% increase over the first quarter of
1997 and an 11% sequential increase over the fourth quarter of 1997. Sales to strategic partners
accounted for 44% of total product sales and direct sales channels accounted for the balance.
Sales to Splitrock Services, Inc. were $571,000 (3% of total sales) of which product sales were
$84,000 (0.5% of product sales).
The Company's net income growth during the first quarter was attributable to revenue growth,
increased manufacturing efficiencies, and improved productivity for operating expenses.
During the first quarter, the Company continued to build on the strategic relationships it established
in 1997 with its OEM partners, Bay Networks and Lucent Technologies. In addition, during the
first quarter, the company signed an OEM agreement with Ericsson, Inc. thereby furthering its
distribution strategy.
''The first quarter was a challenging and rewarding one for Yurie,'' according to Harry Carr,
Yurie's President and Chief Operating Officer. ''Our revenue, operating income, and earnings
grew to new levels as we heightened our focus on product sales, our core strength. We continued
to see positive effects of our relationships with strategic partners and increased our direct sales in
both the commercial and government segments. We added significant new capabilities on our
multi-service access products while completing the integration of personnel from Data Labs.
Finally, we continued to enhance the fundamentals of our business to ensure the development and
delivery of quality products in a cost-effective manner. In short, this was a strong quarter that sets
a strong foundation for the rest of the year.''
Based in Landover, Maryland, Yurie Systems, Inc. designs, manufactures, markets, and services
multi-service ATM WAN access equipment for telecommunications service providers and
corporate and government end users. Dataquest and the Vertical Systems Group have identified
Yurie as the market share leader in the ATM WAN access equipment market for 1996 and 1997,
respectively. For more information on Yurie Systems, call (301) 352-4600 or visit the Company's
Web site at yurie.com.
This release may contain forward-looking statements regarding the Company's business, growth,
or customer prospects and other factors that may affect future earnings or financial results. Such
statements involve risks and uncertainties which could cause actual results to vary materially from
those expressed in or indicated by the forward-looking statements, and should be understood in
light of the risk factors detailed in the Company's recent prospectus, 10-K and 10-Q filings.
YURIE SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(in thousands, except per share data)
Quarter Ended, Year Ended ,
March 31 December 31
1998 1997 1997 1996
Revenue:
Product revenue $18,366 $7,480 $47,064 $18,737
Service revenue 741 923 4,005 2,528
Total revenue 19,107 8,403 51,069 21,265
Cost of revenue:
Cost of product revenue 5,984 2,785 16,670 6,806
Cost of service revenue 631 622 3,026 1,666
Total cost of revenue 6,615 3,407 19,696 8,472
Gross profit 12,492 4,996 31,373 12,793
Operating expenses:
Research and development 3,006 1,759 8,691 4,428
Sales and marketing 2,332 1,288 6,787 1,880
General and administrative 1,548 1,104 7,373 2,980
Total operating expenses 6,886 4,151 22,851 9,288
Income from operations 5,606 845 8,522 3,505
Other income 409 282 1,544 90
Income before income taxes 6,015 1,127 10,066 3,595
Provision for income taxes 2,250 450 3,930 1,563
Net income $3,765 $677 $6,136 $2,032
Basic earnings per share $0.15 $0.03 $0.25 $0.12
Basic weighted average
shares outstanding 25,385 23,400 24,714 20,606
Diluted earnings per share $0.14 $0.03 $0.23 $0.11
Diluted weighted average
shares outstanding 27,529 25,077 26,660 22,158
YURIE SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(unaudited) |
