Yurie Systems, Inc. Reports Record First Quarter Financial Results
PR Newswire - April 15, 1998 16:11
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LANDOVER, Md., April 15 /PRNewswire/ -- Yurie Systems, Inc. (Nasdaq: YURI)
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)
(in thousands)
March 31, December 31,
ASSETS 1998 1997
Current assets:
Cash and cash equivalents $9,925 $8,142
Restricted cash 750 1,000
Short-term investments 32,130 35,917
Accounts receivable 20,192 13,314
Tax receivable 533 993
Interest receivable 248 402
Inventory 5,015 5,467
Deferred tax asset - st 2,365 1,246
Other current assets 1,280 228
Total current assets 72,438 66,709
Net property and equipment 7,564 6,990
Long-term deferred tax asset -- 1,028
Other assets 691 675
Total Assets $80,693 $75,402
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $2,237 $2,137
Accrued liabilities 6,938 7,471
Short-term notes payable 17 17
Unearned revenue - 38
Total current liabilities 9,192 9,663
Accrued rent 581 585
Deferred income taxes 392 --
Capital lease obligations 17 20
Stockholders' equity:
Common stock 255 253
Treasury stock (450) (23)
Additional paid-in capital 58,779 56,701
Translation adjustment (620) (648)
Retained earnings 12,547 8,851
Total stockholders' equity 70,511 65,134
Total Liabilities and Stockholders' Equity $80,693 $75,402
SOURCE Yurie Systems, Inc.
/CONTACT: Catherine Graham, Director, Investor Relations of Yurie,
301-352-4609, or e-mail, investor@yurie.com/
/Company News On-Call: prnewswire.com or fax, 800-758-5804,
ext. 117326/
(YURI) |
