ACT Networks Announces Second Quarter Results.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. 19, 1999--ACT Networks, Inc. (Nasdaq:ANET) today announced results for the second quarter ended December December: see month. 31, 1998. Net income for the second quarter was $225,000 or $0.02 per share, as compared to a net loss of $483,000, or $0.05 per share, in the same period last year, and a net loss of $966,000, or $0.10 per share, in the immediately preceding quarter. Second quarter revenues were $12,074,000 as compared to $15,310,000 in the comparable quarter for the prior year. For the six months ended December 31, 1998, the net loss was $741,000 or $0.08 per share, as compared to net loss, including $6,750,000 of in-process R&D charges related to the SourceCom transaction, of $9,429,000, or $1.03 per share, in the comparable period last year. Revenues were $26,010,000 compared to $28,331,000 in the same period last year. "We are pleased that the Company has returned to profitability in this quarter," commented Andre An·dré , John 1751-1780. British army officer hanged as a spy in the American Revolution for conspiring with Benedict Arnold. de Fusco, President and Chief Executive Officer of ACT Networks. "We continue to execute our business plan which calls for reengineering Using information technology to improve performance and cut costs. Its main premise, as popularized by the book "Reengineering the Corporation" by Michael Hammer and James Champy, is to examine the goals of an organization and to redesign work and business processes from the ground up our business processes and cutting expenses. Additionally, this quarter we signed a supply agreement with Fore Systems See Marconi. , much like the Lucent agreement announced last quarter, further validating val·i·date tr.v. val·i·dat·ed, val·i·dat·ing, val·i·dates 1. To declare or make legally valid. 2. To mark with an indication of official sanction. 3. the competitiveness of our products and our new distribution strategy." "Finally, on December 22, 1998, we were delighted to announce the appointment of Marty Woll v. t. & i. 1. See 2d Will. , as ACT's new Vice President of Finance and Chief Financial Officer which completes the staffing of the Company's senior management team," concluded Mr. de Fusco. ACT Networks develops, manufactures, and markets multi-service access products which support a broad range of integrated voice and data networking applications. Service providers and enterprise customers use the Company's products to build multi-service networks that are bandwidth bandwidth Measurement of the capacity of a communications signal. For digital signals, the bandwidth is the data speed or rate, measured in bits per second (bps). For analog signals, it is the difference between the highest and lowest frequency components, measured in hertz 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. and easy to manage. The Company's award-winning Adj. 1. award-winning - having received awards; "this award-winning bridge spans a distance of five miles" NetPerformer(R) product incorporates 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 capabilities, and state-of-the-art hardware and software integration technologies. For more information about ACT Networks, headquartered in Camarillo, CA, visit the corporate website at http://www.acti.com. This press release may contain 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 future financial performance of the Company. These statements are only predictions and actual events or results may differ materially as a result of a number of factors including, without limitation, the factors discussed in the Company's last Reports on Forms 10-K and 10-Q under "Risk Factors" and the risks associated with the possibility that the market for 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 will not continue to develop or that the Company's products and capabilities will not address emerging market needs; the losses associated with the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). program will not be greater than anticipated or that anticipated cost savings will be realized in the future; the effect of increased competition; 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; that the new products will be released when anticipated; the loss of significant customers; the Company's ability to effectively integrate acquisitions; the Company's ability to manage its growth; dependence on key personnel; new management; international sales, tariff tariff, tax on imported and, more rarely, exported goods. It is also called a customs duty. Tariffs may be distinguished from other taxes in that their predominant purpose is not financial but economic—not to increase a nation's revenue but to protect domestic and regulatory matters; reliance on third party suppliers and on resellers for distributing its products, and the Company's ability to retain key personnel and to adequately protect its proprietary technology. Note to Editors: ACT Networks is a registered trademark of the Company. (Tables to Follow) -0-
ACT NETWORKS INC.
INCOME STATEMENT HIGHLIGHTS
(amounts in thousands, except per share data)
Three Months Ended Six Months Ended
December 31 December 31
1998 1997 1998 1997
---- ---- ---- ----
Net Sales $12,074 $15,310 $26,010 $28,331
Gross Profit 7,204 8,572 15,135 15,893
Research &
Development 3,243 3,851 6,566 7,672
SG&A 4,361 5,897 9,701 11,582
In-process Research
& Development 6,750
Restructuring Charges 607
Operating Loss (400) (1,176) (1,739) (10,111)
Net Interest Income 625 627 1,176 1,095
--------- ---------- ---------- ----------
Net Income (Loss)
Before Taxes 225 (549) (563) (9,016)
(Provision) Benefit
for Income Taxes 0 66 (178) (413)
--------- ---------- ---------- ----------
Net Income (Loss) 225 (483) (741) (9,429)
========= ========== ========== ==========
Net Income (Loss)
per Share - Basic $0.02 ($0.05) ($0.08) ($1.03)
Weighted Average
Shares Outstanding 9,434 9,146 9,367 9,188
Net Income (Loss)
per Share - Diluted $0.02 ($0.05) ($0.08) ($1.03)
Shares Used in Per
Share Calculation 9,976 9,146 9,367 9,188
BALANCE SHEET SUMMARY
December 31, 1998 June 30, 1998
----------------- -------------
Cash and Cash Equivalents $41,696 $35,018
Short Term Investments 6,899 11,607
Accounts Receivable 16,062 17,226
Inventory 6,304 8,829
Other Current Assets 1,937 1,786
Net Fixed Assets 3,466 3,743
Goodwill and Other
Intangible Assets, Net 2,161 2,574
Other Assets 55 55
--------- ----------
Total Assets 78,580 80,838
========= ==========
Current Liabilities 5,490 8,321
Stockholders' Equity 73,090 72,517
--------- ----------
Total Liabilities &
Stockholders' Equity 78,580 80,838
========= ==========
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion