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. 16, 1996--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, 1995. Second quarter revenues rose to a record $6,167,103, a 27% increase from the comparable quarter in the prior year and a 21% increase from the immediately preceding first quarter. The sales growth was driven by the company's 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, sales of which increased 551% from the same period a year ago. All regions, except for Asia Pacific, also reported substantial sales growth. Compared to the same quarter last year, North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. sales, excluding custom 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 sales, increased by 54%, 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. increased by 62% and European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. sales increased by 43%. During the second quarter, the company incurred pre-tax costs of $5,600,000 related to the company's acquisition of Presticom on November 30, 1995. Additionally in the second quarter, the Company recorded an inventory reserve for older time division multiplexing (communications) time division multiplexing - (TDM) A type of multiplexing where two or more channels of information are transmitted over the same link by allocating a different time interval ("slot" or "slice") for the transmission of each channel. I.e. products (TDM (Time Division Multiplexing) A technology that transmits multiple signals simultaneously over a single transmission path. Each lower-speed signal is time sliced into one high-speed transmission. ) of 700,000 as a result of a faster than anticipated shift in product mix from TDM to frame relay. Combined, the charges had an after tax impact of $0.84 per share. The net loss for the second quarter was $6,656,323, or $0.86 per share, which compared to net income of $215,929, or $0.05 per share in the prior year quarter. Fiscal 1996 second quarter results were also affected by increased spending in product development and sales and marketing as the company introduced new products -- VoicePac 400 and 800 and Skyframe to Beta -- and strengthened its sales and marketing efforts. For the six months ended December 31, 1995, revenues grew to $11,268,885, from $9,288,089 for the comparable period last year. The net loss including the one-time charges for the recent six months was $6,866,825 or $0.89 per share, versus net income of $387,114 or $0.08 per share in the year-ago period. "We are pleased with our renewed sales momentum in the second quarter," stated Martin Shum, chairman and chief executive officer. "We experienced excellent sales growth for integrated frame relay access products and international sales were also strong in the quarter. Our marketing efforts devoted to the development of a carrier channel, both domestic and international, are also coming to fruition fru·i·tion n. 1. Realization of something desired or worked for; accomplishment: labor finally coming to fruition. 2. Enjoyment derived from use or possession. 3. . We anticipate closing on some of these accounts in the near future." Shum continued, "Additionally, we completed our acquisition of Presticom, a developer of multiprotocol frame relay access devices (communications) Frame Relay Access Device - (FRAD) Hardware and software that turns packets from TCP, SNA, IPX, etc into frames that can be sent over a Frame Relay wide area network. (FRADs) with extensive expertise in the SNA (Systems Network Architecture) IBM's mainframe network standards introduced in 1974. Originally a centralized architecture with a host computer controlling many terminals, enhancements, such as APPN and APPC (LU 6. environment. We believe Presticom's strength in data over Frame Relay is an excellent complement to our existing voice over frame relay expertise. "Our expenses increased from the previous first quarter as we continued to invest in research and development, marketing programs and new product introductions. These expenses, combined with the charges related to the Presticom acquisition and the inventory write down had a negative impact on second quarter bottom line results. We will continue focusing on lowering expenses relative to sales in upcoming quarters and are confident that these steps are positioning ACT as a stronger competitor in a rapidly growing market. We believe the revenue growth in the second quarter reflects the increasing opportunities for our expansion," concluded Shum. ACT Networks develops, manufactures, markets and sells integrated Frame Relay wide-area network access products which support a broad range of end-user network applications. 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. , voice and data access switching capabilities, and proprietary voice, data and facsimile integration technologies. The company's products are designed to work with either terrestrial Dealing with the earth. See terrestrial link. media or wireless media. Organizations 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. -0-
ACT Networks Inc.
Statement of Operations Highlights
Three Months Ended Six Months Ended
December 31 December 31
1995 1994 1995 1994
Net sales $6,167,103 $4,876,632 $11,268,885 $9,288,089 Gross Profit 2,475,884 2,725,728 4,935,335 5,140,918 Research & Development 1,241,465 935,594 2,278,961 1,722,452 SG&A 2,559,230 1,512,354 4,565,487 2,957,321 In-process Research & Development 5,600,000 --- 5,600,000 --- Operating Income (Loss) (6,924,811) 277,780 (7,509,113) 461,145 Net Interest Income (Expense) 307,918 (47,851) 681,718 (60,031) Income (Loss) Before Taxes (6,616,893) 229,929 (6,827,395) 401,114 Provision for Income Taxes 39,430 14,000 39,430 14,000 Net Income (Loss) (6,656,323) 215,929 (6,866,825) 387,114 Net Income (Loss) per Share $ (0.86) $ 0.05 $ (0.89) $ 0.08 Weighted Average Shares Outstanding 7,733,677 4,752,000 7,724,891 4,685,473
Balance Sheet Summary
June 30, 1995 Dec. 31, 1995
Cash and Cash Equivalents $30,546,278 $11,352,192 Short Term Investments --- 7,403,959 Accounts Receivable 5,198,370 7,571,217 Inventory 4,677,190 6,466,056 Other Current Assets 394,591 599,711 Net Fixed Assets 1,518,851 2,278,352 Goodwill and Other Intangible Assets, Net --- 2,029,140 Other Assets 561,498 502,182 Total Assets 42,896,778 38,202,809 Current Liabilities 2,581,149 3,182,306 Other Liabilities --- 311,914 Stockholders' Equity 40,315,629 34,808,589 Total Liabilities & Stockholders' Equity 42,896,778 38,202,809 CONTACT: ACT Networks, Camarillo Martin Shum, 805/388-2474 Melvin L. Flowers, 805/388-2474 or Morgen-Walke Associates Doug Sherk/Chris Danne/Todd Friedman, 415/296-7383 Jill Ruja/Elissa Grabowski, 212/850-5600 |
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