ACT Networks Announces Second Quarter Results; Revenues are Highest in the Company's History.CAMARILLO Camarillo (kă'mərē`yō), city (1990 pop. 52,303), Ventura co., S Calif.; inc. 1964. It is the center of a fertile farm area where citrus fruits and flowers are grown. , Calif.--(BUSINESS WIRE)--Jan. 16, 1997--ACT Networks, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ANET) today announced results for the second quarter and six months ended December December: see month. 31, 1996. Second quarter revenues increased 93% to a record $11,904,123 from $6,167,103 in the comparable quarter for the prior year. During the second quarter of fiscal 1997, the Company incurred in-process research and development charges of $700,746 related to the Company's acquisition of DeltaComm announced on December 13, 1997. Earnings per share increased to $0.11 per share, compared to a loss of $0.92 per share in the second quarter of last year. Last year's results include in-process research and development charges of $5,600,000 related to the Company's acquisition of Presticom on November November: see month. 30, 1995. Excluding the in-process research and development charges, second quarter net income was $0.18 per share compared to a net loss of $0.08 per share in the same period last year. For the six months ended December 31, 1996, revenues grew 96% to $22,073,068, from $11,268,885 for the comparable period last year. Net income for the six months, including the one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charges, was $2,405,405, or $0.24 per share, versus a net loss of $6,866,825, or $0.96 per share for the year-ago period. "We are very pleased with our results for the second quarter which reflect the growing demand for voice over 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. products," stated Mr. Martin Shum, Chairman and Chief Executive Officer. "Revenues grew 17% from the immediately preceding quarter, as sales expanded strongly both in the U.S. and abroad. "Domestically, we continue to expand our sales base and are planning to introduce new products primarily designed for the data-centric U.S. market. "Internationally, sales were strong especially in Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. , where we signed a supply agreement with Telefonica Sistemas de Satelites during the quarter. In addition, we are pleased that market acceptance for our SkyFrame(TM) products is building." Mr. Shum continued, "We continue to leverage our sales growth, as SG&A decreased as a percentage of sales to 29.3% from 31.6% in the immediately preceding first quarter and operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. excluding the one time charge was the highest in the Company's history. With a strong balance sheet and market position, we feel we are well positioned to continue to take advantage of the opportunities for expansion in the frame relay marketplace." ACT Networks, Inc. develops, manufactures, markets Frame Relay wide-area network access products which support a broad range of voice, data and integrated network A network that supports both data and voice and/or different networking protocols. See converged network and new public network. applications. The Company is focused on three strategic markets: enterprise networks (ACTnet(TM) and NetPerformer(TM)), satellite networks (SkyFrame(TM)) and carrier networks (FrameXchange(TM)). End users and service providers worldwide use the Company's products to build 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. , bandwidth efficient, easy-to-manage wide area networks (WANs). The Company's products 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. , switching capabilities and proprietary integration technologies. This press release may make projections or other 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 or the future financial performance of the Company. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We refer you to the documents the Company files from time to time with the Securities Exchange Commission, specifically the Company's last Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and Form 10-Q Form 10-Q See 10-Q. . These documents contain and identify important factors that could cause the actual results to differ materially from those contained in our projections or forward-looking statements. -0-
ACT NETWORKS INC.
INCOME STATEMENT HIGHLIGHTS
(amounts in thousands, except per share data)
Three Months Ended Six Months Ended
December 31 December 31
1996 1995 1996 1995
Net Sales $11,904 $6,167 $22,073 $11,269
Gross Profit 6,690 2,476 12,408 4,935
Research & Development 1,767 1,242 3,313 2,279
SG&A 3,485 2,559 6,704 4,566
In-process Research &
Development 701 5,600 701 5,600
Operating Income 737 (6,925) 1,690 (7,510)
Net Interest Income (Expense) 838 308 1,679 682
Net Income Before Taxes 1,575 (6,617) 3,369 (6,828)
Provision for Income Taxes 460 39 964 39
Net Income (Loss) 1,115 (6,656) 2,405 (6,867)
Net Income (Loss) per Share $0.11 ($0.92) $0.24 ($0.96)
Weighted Average Shares
Outstanding 10,052 7,206 10,022 7,164
BALANCE SHEET SUMMARY
December 31, June 30,
1996 1996
Cash and Cash Equivalents $53,273 $63,164
Short Term Investments 17,596 7,210
Accounts Receivable 12,309 9,862
Inventory 8,336 7,409
Other Current Assets 1,099 666
Net Fixed Assets 3,556 2,478
Goodwill and Other
Intangible Assets, Net 1,954 1,883
Other Assets 979 1,179
Total Assets 99,102 93,851
Current Liabilities 5,568 3,564
Other Liabilities 147
Stockholders' Equity 93,534 90,140
Total Liabilities &
Stockholders' Equity 99,102 93,851
CONTACT: ACT Networks, Inc. Martin Shum, 805/388-2474 (Chairman/CEO) Melvin L. Flowers, 805/388-2474 (CFO See Chief Financial Officer. ) or Morgen-Walke Associates Chris Danne/Alex Williamson/Doug Sherk, 415/296-7383 Emily Dupree, 212/850-5600 |
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