[0] Airspan Networks Inc. Announces Record First Quarter Results.Business Editors SUNRISE Sunrise, city (1990 pop. 64,407), Broward co., SE Fla., a residential suburb 8 mi (13 km) W of Fort Lauderdale; inc. 1961 as Sunrise Golf Village. It is a major office and commercial center and the site of Sawgrass Mills, one of the largest malls in the United States. , Fla.--(BUSINESS WIRE)--April 25, 2001 Airspan Airspan (NASDAQ:AIRN) is a [WIMAX] equipment manufacturer founded in 1998 with an R&D facility in the UK. The first product, AS4020 platform, was based on CDMA radio technology adapted for fixed wireless access and was a market success especially in developing markets. Networks Inc. (Nasdaq:AIRN), a leading worldwide provider of fixed wireless DSL DSL in full Digital Subscriber Line Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary equipment, today reported record results for its first quarter ended March 31, 2001. Revenue totaled $10.1 million, a 78 percent increase from first quarter 2000 and the largest amount of quarterly revenue in company history. Gross profit was $4.1 million, or 41 percent of revenue, a continuation of the improving trends of prior quarters. Net loss before tax and extraordinary items decreased to $5.9 million from $7.0 million in the first quarter 2000. Airspan also recorded a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. extraordinary gain in the quarter of $9.2 million before tax relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the settlement of the Alcatel Alcatel Société Alsacienne de Constructions Atomiques, de Télécomunications et d'Electronique note. Net income after tax was $3.4 million. Airspan recorded its sixth consecutive quarter of increased revenues. Airspan's record revenue was derived from a total of 25 customers, with significant network shipments for customers in the Philippines Philippines officially Republic of the Philippines Island country, western Pacific Ocean, on an archipelago off the southeast coast of Asia. Area: 122,121 sq mi (316,294 sq km). Population (2005 est.): 84,191,000. , Sri Lanka Sri Lanka (srē läng`kə) [Sinhalese,=resplendent land], formerly Ceylon, ancient Taprobane, officially Democratic Socialist Republic of Sri Lanka, island republic (2005 est. pop. and the U.S. that together represented 63 percent of first quarter 2001 revenue. Details For the three months ended March 31, 2001, sales to customers in Asia totaled $5.9 million, a 43 percent increase from first quarter 2000. European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. sales were $2.5 million, up 112 percent from first quarter 2000. Revenue derived from U.S. customers was $1.1 million, up 294 percent from first quarter 2000, while revenue from Africa / Middle East and South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. was $0.4 million and $0.1 million respectively. Gross profit totaled 41 percent of revenue, up 3 percentage points from the first quarter 2000 primarily due to lower product costs. Airspan had revenue from 25 customers in the quarter and the breadth of the customer base was further expanded as new orders were received from 5 new customers and trials expanded to include an additional 5 new customers. The pace with incumbent operators increased with major commitments being received from operators such as Telefonica de Peru/Ericsson and eircom eircom Group plc is the largest telecommunications operator in the Republic of Ireland. As Bord Telecom Éireann plc, the company was (until 1999) a state monopoly; as a private company it continues to dominate many telecommunications areas, its main competitors being ntl: plc. In the first quarter 2001 Airspan resolved its subcontractor One who takes a portion of a contract from the principal contractor or from another subcontractor. When an individual or a company is involved in a large-scale project, a contractor is often hired to see that the work is done. product supply issue, completing the transition between two subcontractor factories. "We are pleased to have this transition behind us and are now comfortable that our suppliers can meet our production demands" said Eric ERIC Educational Research Information Clearinghouse ERIC Educational Resources Information Center ERIC ERISA Industry Committee ERIC Epidemiologic Research and Information Center (Durham, NC) Stonestrom, Airspan's President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . During the quarter, operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. aggregated $11.1 million, compared to $9.8 million during first quarter 2000. Increased expenditures occurred mostly in sales and marketing, up $1.0 million, mainly attributable to additional trade show and user conference activity, customer trial costs and sales commissions; and general and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. , up $0.6 million, mainly growth related. These increases were offset by decreases in research and development costs, down $0.2 million, and the amortization of intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. , also down by $0.2 million. Net interest and other income totaled $1.2 million for the quarter, up $0.5 million from the first quarter 2000. Net loss before tax and an extraordinary item was $5.9 million or $0.17 per share, compared to a pro-forma net loss per share of $0.26 for the prior year quarter, assuming conversion of convertible preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. into common stock that occurred in conjunction with the company's initial public offering during July July: see month. 2000. Airspan recorded an extraordinary gain of $9.2 million before tax relating to the extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of the company's note in favor of upon the side of; favorable to; for the advantage of. See also: favor Alcatel. After tax, the extraordinary gain amounted to $6.5 million. Net profit after tax was $3.4 million, or $0.10 per share. "Our first quarter 2001 revenue increase over 2000 demonstrates that there continues to be significant and growing demand for our wireless DSL products globally, despite any slowdowns others may be seeing in the US market," said Peter Aronstam, Airspan's CFO See Chief Financial Officer. . "With revenue growth in excess of 75 percent over the corresponding period in 2000, and a much slower rate of increase in expense levels, we have kept cash usage on target, and we continue to demonstrate our ability to grow and manage the business. While we always focus on revenue growth, there will be strong emphasis for the balance of the year on our expense levels and cash usage." Stonestrom reiterated the firm's guidance. "Looking forward, we remain comfortable with financial analysts' existing projections of 2001 revenue growth in the range of 90-100 percent of 2000 revenues," he said. "While the level of funding and capital expenditure uncertainty remains significant, operators remain committed to upgrading their access infrastructure in recognition of the fact that to be successful in the long term, telecom service providers must control both customer relationships and the underlying access network," Stonestrom added. "With the progress we are making on revenues and margins and the ongoing focus on expense control, we continue to believe that we can achieve profitability by mid 2002. We also relieved a significant debt obligation in the first quarter, which lowers the interest expense of the company and improves the balance sheet." At the end of the first quarter of 2001, Airspan had approximately $100 million of cash on its balance sheet. Airspan will host a conference call Wednesday Wednesday: see week. , April 25, 2001, at 5 p.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT to discuss its first quarter results. The call-in call-in adj. Being in a format such that listeners or viewers are invited to have their telephone conversations with the host or guests on a show broadcast to other listeners: a call-in radio show. n. number within the U.S. is 800 235 0452. For access internationally, dial +1 785/832 1077. Callers should reference the Airspan Networks conference. Replay of the conference can be accessed by dialing 888/567-0671 from the U.S. and +1 402/530-0413 internationally. Callers for the replay should reference the quarterly results call; the pass code is 916009. The replay will be available for 48 hours after the live conference. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Certain statements in this press release contain "forward-looking statements" within the meaning of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. . Forward-looking statements are based on the opinions and estimates of management at the time the statements are made and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. The words "believe," "expect," "intend," "anticipate," variations of such words and similar expressions identify forward-looking statements but their absence does not mean that the statement is not forward looking. Forward-looking statements in this press release include, without limitation, the company's guidance and expectations concerning its financial performance in fiscal year 2001, the dates at which it expects to become profitable or cash flow positive, and statements regarding planned cash management and any cost savings expected therefrom there·from adv. From that place, time, or thing. Adv. 1. therefrom - from that circumstance or source; "atomic formulas and all compounds thence constructible"- W.V. . These statements are not guaranties of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date of this announcement. Factors that could affect Airspan's actual results include, among others: -- a decrease in the demand for fixed wireless DSL products -- A decision by operators to delay or decrease their commitment to upgrading their access infrastructure -- the factors described in Airspan's filings with the Securities and Exchange Commission, including its Prospectus dated July 19, 2000 and Annual Report on Form 10-K for the year December 31, 2000. Airspan undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date of this release or to reflect the occurrence of unanticipated events.
Airspan Networks Inc
Consolidated Balance Sheets
(in thousands)
April 1, Dec. 31,
ASSETS 2001 2000
(unaudited)
Current Assets
Cash and Cash equivalents $ 97,740 $115,340
Restricted cash 7,154 7,207
Accounts receivable 16,860 14,482
Unbilled accounts receivable 1,104 349
Inventory 10,423 8,166
Deferred tax asset 1,481 --
Prepaid expenses and other current assets 4,311 3,481
Total Current Assets $139,073 $149,025
Property, plant and equipment, net 7,285 6,800
Intangible assets, net 1,103 1,209
Long-term accounts receivable 648 --
Other non-current assets 252 300
Total Assets $148,361 $157,334
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 6,492 $ 6,038
Short term debt 487 849
Accrued taxes 474 351
Deferred revenue 1,844 1,210
Deferred tax liability 1,481 --
Other accrued expenses 5,534 3,720
Current portion of capital lease obligations 20 34
Current portion of long-term debt 3,718 5,723
Total Current Liabilities 20,050 17,925
Non current liabilities
Note payable to DSC Telcom L.P. -- 12,983
Other long-term debt 2,500 2,500
Accrued interest on long-term debt -- 271
Total Non Current Liabilities 2,500 15,754
Stockholders' Equity
Common Stock 51 51
Note Receivable - stockholder (180) (180)
Additional paid in capital 214,128 214,025
Other comprehensive income (860) 441
Accumulated deficit (87,328) (90,682)
Total Stockholders' Equity 125,811 123,655
Total Liabilities and Stockholders' Equity $148,361 $157,334
Airspan Networks Inc.
Consolidated Statements of Income
(in thousands except for share and per share data)
Year to date and
three months ended
April 1, 2001 April 2, 2000
(unaudited) (unaudited)
Revenue $10,051 $5,661
Cost of revenue (5,964) (3,530)
Gross Profit 4,087 2,131
Operating expenses:
Research and development 4,045 4,199
Sales and marketing 4,137 3,099
General and administration 2,859 2,243
Amortization of intangibles 106 276
Total operating expenses 11,147 9,817
Loss from operations (7,060) (7,686)
Net interest and other income 1,170 638
Loss before tax and
extraordinary item (5,890) (7,048)
Income tax (credit)/charge (2,773) 16
Loss before extraordinary item (3,117) (7,064)
Extraordinary item
Gain on extinguishment of debt 9,244 -
Income tax charge 2,773 -
Gain after tax 6,471 -
Net income/(loss) $3,354 $(7,064)
Earnings per Share -
basic and diluted
Loss before tax and
extraordinary item $(0.17) $(6.48)
Income tax credit/(charge) $0.08 $(0.02)
Loss before extraordinary item $(0.09) $(6.50)
Extraordinary item, net of taxes $0.19 -
Net income/(loss) $0.10 $(6.50)
Weighted average shares outstanding
- basic and diluted 34,580,448 1,087,047
Pro forma net income/
(loss) per share
- basic and diluted $0.10 $(0.26)
Pro forma weighted average shares
outstanding
- basic and diluted 34,580,448 27,633,079
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