ACT Networks Announces Fourth Quarter and Fiscal Year End Results; Fourth Quarter Revenue Up 11% Sequentially.Business Editors CALABASAS, Calif.--(BUSINESS WIRE)--July 27, 2000 ACT Networks, Inc. (Nasdaq:ANET) -- a leading provider of multi-service network access products -- today announced results for its fourth quarter and fiscal year ended June 30, 2000. Fourth quarter revenue was $14,027,000, compared with $13,209,000 in the same quarter of last year, an increase of approximately 6%, and a sequential increase of 11% as compared to the immediately preceding quarter. Net loss, excluding acquisition costs and a note receivable note receivable A debt due from borrowers and evidenced by a written promise of payment. Note receivable, an entry on the asset side of many corporate balance sheets, indicates the dollar amount of loans due to be repaid by borrowers. write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. discussed below, was $584,000, or $0.05 per share, a significant improvement over net loss of $2,998,000, or $0.30 per share, in the fourth quarter of 1999. During the fourth quarter of fiscal 2000, the Company entered into an agreement to be acquired by Clarent Corporation (Nasdaq: CLRN CLRN California Learning Resource Network CLRN Community Legal Resources Network CLRN Chemical Laboratory Response Network ) and incurred acquisition related costs of approximately $864,000. The Company also reserved for a $1,000,000 promissory note promissory note, unconditional written promise to pay a certain sum of money at a definite time to bearer or to a specified person on his order. Promissory notes are generally used as evidence of debt. receivable. Net loss for the fourth quarter, including the write down and the acquisition related costs, was $2,448,000, or $0.23 per share, compared with $2,998,000, or $0.30 per share in the same period last year. Revenue for the year ended June 30, 2000, was $48,836,000 compared with $54,322,000 for fiscal 1999. Net loss for fiscal 2000 was $9,307,000, or $0.90 per share, compared to $3,126,000, or $0.32 per share, in fiscal 1999. Gross margins as a percentage of sales in the fourth quarter were approximately 51% as compared to approximately 45% in the same period a year ago. 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. decreased to 61% of revenue in the fourth quarter of fiscal 2000 as compared to 73% in the fourth quarter of fiscal 1999. As of June 30, 2000, ACT's balance sheet included cash and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has of $50,633,000, an increase of $4,250,000 from the previous quarter, and stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. of $70,026,000, with no long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. . Andre de Fusco, President and Chief Executive Officer, stated, "I am pleased to report another strong quarter where we again achieved double digit Noun 1. double digit - a two-digit integer; from 10 to 99 integer, whole number - any of the natural numbers (positive or negative) or zero; "an integer is a number that is not a fraction" sequential growth despite certain product availability difficulties. I am particularly pleased with our progress in Asia Pacific where we experienced 85% growth sequentially. We are beginning fiscal 2001 with a backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. of approximately $1.8 million." "Together with Clarent Corporation, we have taken the initial steps in the integration of our two businesses and expect the acquisition to close shortly after our stockholder meeting on August 10th. We are looking forward to leveraging our products and business strategies to strengthen Clarent's position as a premier provider of integrated telephony Meaning "sound over distance," it refers to electronically transmitting the human voice. In the beginning, telephony dealt only with analog signals in the circuit-switched networks of the telephone companies. products for IP, ATM, and Frame Relay A high-speed packet switching protocol used in wide area networks (WANs). Providing a granular service of up to DS3 speed (45 Mbps), it has become popular for LAN to LAN connections across remote distances, and services are offered by most major carriers. environments." About ACT Networks ACT Networks develops, manufactures, and markets multi-service networking products which support a broad range of integrated voice, video and data networking applications. Service providers and enterprise customers use the Company's products to build bandwidth-efficient, cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. , easy-to-manage converged networks The integration of the telephone system with IP-based data networks. See softswitch. (networking) converged network - A single network that can carry voice, video and data. . ACT's award-winning NetPerformer(R) and ServiceXchange(TM) product lines incorporate advanced voice and data compression data compression Process of reducing the amount of data needed for storage or transmission of a given piece of information (text, graphics, video, sound, etc.), typically by use of encoding techniques. algorithms The following is a list of the algorithms described in Wikipedia. See also the list of data structures, list of algorithm general topics and list of terms relating to algorithms and data structures. , enhanced switching and traffic management, and state-of-the-art telephony integration technologies that provide the highest voice quality solutions for voice-over-packet and data solutions. For more information about ACT Networks, headquartered in Calabasas, CA, visit the corporate website at http://www.actnetworks.com. This release contains 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. regarding future events and the future performance of the Company, particularly statements regarding customer prospects, introduction of new products, the timing of new product introductions, capabilities of new products and new strategies or other factors that may affect future earnings and 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, including, without limitation, the possibility that the market for the Company's products will not continue to develop or that the Company's products and capabilities will not address emerging market needs; the effect of increased competition; adverse impacts due to changing technologies, product obsolescence ob·so·les·cent adj. 1. Being in the process of passing out of use or usefulness; becoming obsolete. 2. Biology Gradually disappearing; imperfectly or only slightly developed. and new product developments by third parties; the possibility that proposed new products and new product features will not be released when anticipated or work in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with expectations; and potential loss of significant customers; risks associated with the Company's reliance on key personnel and the integration of new management; risks associated with the Company's reliance on third party suppliers and resellers; and the Company's ability to protects its proprietary technology. These and other potential factors are discussed in the Company's most recent reports on Forms 10-K and 10-Q filed with the Securities and Exchange Commission. Note to Editors: ACT Networks, DynaStar, and NetPerformer are registered trademarks and ServiceXchange is a trademark of ACT Networks Inc.
ACT NETWORKS, INC.
Statement of Operations Highlights
(amounts in thousands, except per share data)
Three Months Ended Twelve Months Ended
June 30 June 30
2000 1999 2000 1999
Net sales $ 14,027 $ 13,209 $ 48,836 $ 54,322
Gross profit 7,192 5,966 24,087 29,910
Research & Development 2,548 3,172 10,643 12,887
SG&A 5,974 6,443 23,278 21,886
Impairment and
restructuring 0 0 0 607
Operating loss (1,330) (3,649) (9,834) (5,470)
Valuation reserve on
note receivable 1,000 0 1,000 0
Interest and other
income, net 768 543 2,606 2,380
Income (loss) before
provision for income
taxes and
extraordinary item (1,562) (3,106) (8,228) (3,090)
Provision (benefit)
for income taxes 22 (108) 215 36
Loss before
extraordinary item (1,584) (2,998) (8,443) (3,126)
Extraordinary item,
net of taxes -
ACT merger costs 864 0 864 0
Net Income (loss) (2,448) (2,998) (9,307) (3,126)
Basic loss per
common share
Before extraordinary
item $ (0.15) $ (0.30) $ (0.82) $ (0.32)
Extraordinary item $ (0.08) $ - $ (0.08) $ -
Net loss per
common share $ (0.23) $ (0.30) $ (0.90) $ (0.32)
Weighted average
shares outstanding 10,505 10,095 10,285 9,644
BALANCE SHEET SUMMARY
June 30, 2000 June 30, 1999
Cash and cash equivalents 46,549 33,850
Short-term investments 4,085 17,613
Accounts receivable, net 12,009 18,309
Inventory 6,864 9,613
Other current assts 762 582
Fixed assets, net 4,050 3,636
Goodwill and other intangibles, net 1,106 1,769
Other assets 168 269
Total Assets $ 75,591 $ 85,641
Current liabilities 5,565 8,722
Stockholders' equity 70,026 76,919
Total Liabilities and
Stockholders' Equity $ 75,591 $ 85,641
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