ACT Networks Announces Third Quarter Financial Results Revenue Increases Sharply -- Up 29% Sequentially.Business Editors/High-Tech Writers CALABASAS, Calif.--(BUSINESS WIRE)--April 25, 2000 ACT Networks, Inc. (Nasdaq:ANET) -- a leading provider of multi-service network access products -- today announced results for the quarter ended March 31, 2000. Revenue for the third quarter of fiscal 2000 increased 29% sequentially to $12,644,000 from $9,767,000 in the previous quarter. Revenue for the third quarter of fiscal 1999 was $15,103,000 which included a $5,000,000 initial stocking order from a significant OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and customer in that quarter. Net loss for the quarter was $465,000, or $0.04 per share, an 88% improvement over net loss of $3,858,000, or $0.38 per share, reported last quarter. Net income for the third quarter of fiscal 1999 was $612,000, or $0.06 per share and included a one time gain of $0.01 per share from the sale of the Company's interest in Networks 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. Corporation. 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. as of March 31, 2000 was approximately $1.8 million. Gross margins increased to 53.5% from 37.3% in the previous 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. decreased 6% as compared to the previous quarter. For the nine months ended March 31, 2000, revenues were $34,809,000 as compared to $41,113,000 for the comparable period last year. For the nine month period, net loss was $6,859,000, or $0.67 per share, versus a net loss of $129,000, or $.01 per share, in the year-ago period. Net loss for the nine months ended March 31, 2000 includes a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. inventory write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. charge of $1,184,000. 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, stated, "This has been a very strong quarter for ACT Networks on a variety of fronts. Our revenue, gross profit and bookings have increased and our overall expenses, DSOs and inventory days have decreased. Our relationship with our core customers remains strong, and we have formed new relationships with significant players in the market such as Winstar Communications and Telstra." "During the quarter we made generally available three new models of the NetPerformer product family, as well as the second release of the ServiceXchange voice-over-IP gateway. We also followed through on our commitment to supply a high quality integrated VSAT (Very Small Aperture satellite Terminal) A small earth station for satellite transmission that handles up to 56 Kbits/sec of digital transmission. VSATs that handle the T1 data rate (up to 1.544 Mbits/sec) are called "TSATs. access solution by introducing the SkyPerformer. Shipments of our DynaStar Dynastar is a winter sports company based in the Chamonix valley, France. Founded in 1963, the name Dynastar was born when Les Plastiques Synthétiques, manufacturers of Starflex skis, collaborated with Dynamic on a new compound ski. product rebounded sharply over the previous quarter and was deployed at several new customer sites." "Interest in our multi-service access solutions has gained strong momentum in what has become a very competitive market and I am pleased to report the positive results of our efforts," Mr. de Fusco concluded. About ACT Networks ACT Networks(R) 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) and ServiceXchange(TM) 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. , enhanced switching and traffic management capabilities, and state-of-the-art hardware and software integration technologies. For more information about ACT Networks, headquartered in Calabasas, California Calabasas is a city in Los Angeles County, California, in the western United States. As of the 2000 census, the city population was 23,123. The city was formally incorporated in 1991. , 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, ServiceXchange and NetPerformer are registered trademarks of ACT Networks Inc. All other trademarks mentioned in this press release are the property of their respective owners.
ACT NETWORKS, INC.
Statement of Operations Highlights
(amounts in thousands, except per share data)
Three Months Ended Nine Months Ended
March 31 March 31
2000 1999 2000 1999
Net sales $ 12,644 $ 15,103 $ 34,809 $ 41,113
Gross profit 6,761 8,809 16,896 23,945
Research
& Development 2,410 3,150 8,096 9,716
SG&A 5,288 5,741 17,304 15,443
Impairment and
restructuring 0 0 0 607
Operating loss (936) (82) (8,504) (1,821)
Interest and
other income, net 595 660 1,838 1,836
Income (loss) before
provision for income
taxes (342) 578 (6,666) 15
Provision (benefit)
for income taxes 123 (34) 193 144
Net Income (loss) $ (465) $ 612 $(6,859) $ (129)
Net income (loss)
per share - Basic $ (0.04) $ 0.06 $ (0.67) $ (0.01)
Weighted average
shares outstanding 10,383 9,757 10,285 9,494
Net income (loss)
per share - Diluted $ (0.04) $ 0.06 $ (0.67) $ (0.01)
Weighted average
shares - diluted 10,383 10,603 10,285 9,494
BALANCE SHEET SUMMARY
March 31, 2000 June 30, 1999
Cash and
cash equivalents 23,543 33,850
Short-term
investments 22,839 17,613
Accounts
receivable, net 13,379 18,309
Inventory 10,012 9,613
Other current assets 1,853 582
Fixed assets, net 3,785 3,636
Goodwill and
other intangibles, net 1,241 1,769
Other assets 154 269
Total Assets $ 76,806 $ 85,641
Current liabilities 4,740 8,722
Stockholders' equity 72,066 76,919
Total Liabilities
and Stockholders' Equity $ 76,806 $ 85,641
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