AirNet Announces Fourth Quarter Results and 2001 Year End Results; 4th Quarter Revenue Improves Nearly 100% to $4.1 Million.Business Editors/Technology Writers MELBOURNE Melbourne, city, Australia Melbourne, city (1991 pop. 2,761,995), capital of Victoria, SE Australia, on Port Phillip Bay at the mouth of the Yarra River. Melbourne, Australia's second largest city, is a rail and air hub and financial and commercial center. , Fla.--(BUSINESS WIRE)--March 26, 2002 AirNet Communications Corporation (Nasdaq:ANCC ANCC American Nurses Credentialing Center ANCC Association Nationale des Cardiaques Congénitaux ANCC Army-Navy Country Club (Arlington, VA) ANCC Area Nine Cable Council (state mandated government body in UK) ) today announced financial results for its fourth quarter and year ended December December: see month. 31, 2001. The company reported net revenue of $4.1 million in the fourth quarter, compared to $2.1 million in the third quarter of 2001 and $5.5 million in the fourth quarter of 2000. The company reported an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for the fourth quarter of $7.4 million, compared to a loss of $28.4 million in the fourth quarter of 2000 and a loss of $10.2 million in the third quarter of 2001. The net loss for the fourth quarter was $7.2 million, or $0.30 per basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to a net loss of $27.6 million or $1.17 per basic and diluted share in the fourth quarter of 2000 and $10.5 million or $0.44 per basic and diluted share in the third quarter of 2001. The company reported net revenue of $14.5 million for the year 2001 compared with $34.3 million a year earlier. The Company also reported a net loss of $60.1 million, or $2.53 loss per basic and diluted share, compared with net loss of $45.0 million, or $1.91 earnings per basic and diluted share, in 2000. The operating loss for 2001 was $60.1 million compared to a $49.7 million loss for 2000. Per share amounts for both the year end and fourth quarter results were based on 23.8 million weighted average shares for the year 2001 and excludes shares issuable upon the conversion of the Series B convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". and other convertible securities. Sequential quarterly improvement in revenue reflects sales to domestic customers and TECORE Wireless Systems. The decline in overall revenue in 2001 was primarily due to the economic slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in the global telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. market, which caused a decline in demand for our base station products. The Company continues to conserve cash assets, reduce liabilities and focus on near term opportunities for revenue. The outlook for the first and second quarter of this year is improved with the recent purchase orders from TECORE and Redwood redwood: see sequoia; brazilwood. redwood or sequoia Coniferous evergreen timber tree (Sequoia sempervirens) of the family Taxodiaceae, found in the fog belt of west-coastal North America. Wireless Systems. Due to recent collections and down payments associated with new customer orders, the Company may not require additional capital this year. Recent adoption of GSM (Global System for Mobile Communications) A digital cellular phone technology based on TDMA that is the predominant system in Europe, but also used worldwide. Developed in the 1980s, GSM was first deployed in seven European countries in 1992. , GPRS (General Packet Radio Service) The first high-speed digital data service provided by cellular carriers that used the GSM technology. GPRS added a packet-switched channel to GSM, which uses dedicated, circuit-switched channels for voice conversations. and EDGE high speed data technology by large operators in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and many of their affiliates could be of long term benefit to the Company. "In the midst Adv. 1. in the midst - the middle or central part or point; "in the midst of the forest"; "could he walk out in the midst of his piece?" midmost of a terrible 2001 economic environment for wireless network equipment manufacturers, AirNet implemented a significant 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). plan in the second half of 2001 in order to preserve shareholder value," said Glenn Ehley, president and chief executive officer of AirNet. "During the second half of the year, we turned our attention to cutting costs and liabilities, renewing our business relationships with our existing customers, developing new customers and sales channels, turning our inventory into cash, achieving our product performance goals, and positioning the Company for growth when the `wireless winter' ends. I believe the measures we took in the second half of last year are already bearing positive results for us this year." Major events in the fourth quarter include: -- Increased revenue in the fourth quarter of 2001, which was higher than the second and third quarters combined. -- Developed a strategic business relationship with TECORE Wireless Systems for the sale of AirNet products on a worldwide basis. -- Significantly reduced cash flow from ($23.8) million in Q4, 2000 to ($7.1) million in Q4, 2001. This is a 70% reduction in quarterly cash outflow. -- Achieved product performance and reliability goals by obtaining final acceptance from all of our existing customers. -- Positioned the Company for a strong first and second quarter of 2002 which will be addressed during the Company's conference call. Conference Call The Company will hold a conference call today, March 26, 2002 at 5:30 p.m. (ET) to discuss the fourth quarter, 2001 year end results and other recent developments. The dial-in number for the conference call is (719) 457-2728. A replay of the conference call will be available beginning today at 8 p.m. (ET) until 12:00 a.m. (ET) on Wednesday Wednesday: see week. , April 2, 2002. The replay number for the conference call is (719) 457-0820, and the pass code is 494608. About AirNet AirNet Communications Corporation is a leader in wireless base stations and other telecommunications equipment that allow service operators to cost-effectively and simultaneously offer high-speed high-speed adj. 1. Operated or designed for operation at high speed: a high-speed food processor. 2. Taking place at high speed: a high-speed chase. 3. wireless Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the and voice services to mobile subscribers. AirNet's patented broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). , software-defined AdaptaCell(TM) base station solution provides a high-capacity base station with a software upgrade path to the wireless Internet. The Company's AirSite(R) Backhaul Free(TM) base station carries wireless voice and data signals back to the wireline network, eliminating the need for a physical backhaul link, thus reducing operating costs operating costs npl → gastos mpl operacionales . AirNet has 69 patents issued or filed and has received the coveted cov·et v. cov·et·ed, cov·et·ing, cov·ets v.tr. 1. To feel blameworthy desire for (that which is another's). See Synonyms at envy. 2. To wish for longingly. See Synonyms at desire. World Award for Best Technical Innovation from the GSM Association (GSM Association, Dublin, Ireland, www.gsmworld.com) A membership association founded in 1987 that promotes the development and evolution of the GSM communications standard worldwide. , representing over 400 operators around the world. More information about AirNet may be obtained by calling 321.984.1990, or by visiting the AirNet Web site at http://www.airnetcom.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement Under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 The statements contained in this press release that are not historical information are 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. that relate to future events or our future financial performance, including statements regarding our expectations, beliefs, plans, estimates, intentions or strategies for the future. Forward looking statements include statements regarding the transition and evolution to high-speed data and wireless Internet services, future sales to customers and customer deployment plan, and our outlook for fiscal year 2001 and 2002. All forward-looking statements included in this release are based upon information available to AirNet Communications Corporation as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" and we assume no obligation to update any such forward-looking statements. Forward-looking statements involve risks and uncertainties, which could cause our actual results to differ materially from those projected. Potential risks and uncertainties include, but are not limited to, our historical and future losses, our limited operating history, fluctuations in our quarterly revenues and operating results, competitive pressure, inability to obtain new purchase orders in an uncertain economic environment, and our auditors AUDITORS, practice. Persons lawfully appointed to examine and digest accounts referred to them, take down the evidence in writing, which may be lawfully offered in relation to such accounts, and prepare materials on which a decree or judgment may be made; and to report the whole, together may provide an audit report that expresses doubt about our ability to continue as a going concern without additional capital. These and other risks are discussed in Company filings with the Securities and Exchange Commission, including its Annual Report on 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. for the year ended December 31, 2000, and the Annual Report on Form 10-K for the year ended December 31, 2001 which will be filed on or around March 31, 2002. AirNet(R) and AirSite(R) are registered trademarks with the U.S. Patent and Trademark Office. The stylized styl·ize tr.v. styl·ized, styl·iz·ing, styl·iz·es 1. To restrict or make conform to a particular style. 2. To represent conventionally; conventionalize. AirNet mark, AdaptaCell(TM), Super Capacity(TM), Backhaul Free(TM), and We're Ready for Anything(TM) are trademarks of AirNet Communications Corporation. Other names are registered trademarks or trademarks of their respective companies or organizations.
Statement of Operations ($'s in thousands except per share amounts)
For the three months For the year
ended ended
December 31, December 31,
2001 2000 2001 2000
-------- --------- --------- ---------
NET REVENUES $ 4,137 $ 5,482 $ 14,544 $ 34,332
COST OF REVENUES 4,501 12,684 25,476 31,204
-------- --------- --------- ---------
Gross profit (364) (7,202) (10,932) 3,128
OPERATING EXPENSES:
Research and
development 2,886 9,069 25,512 29,457
Sales and marketing 1,402 3,180 11,921 10,411
General and
administrative 2,843 8,924 11,552 12,578
Restructuring expenses - - - -
Stock-based
compensation (126) 51 159 378
-------- --------- --------- ---------
Total costs
and expenses 7,005 21,224 49,144 52,824
LOSS FROM OPERATIONS (7,369) (28,426) (60,076) (49,696)
OTHER INCOME (EXPENSE) (254) 846 542 4,672
-------- --------- --------- ---------
NET LOSS BEFORE
EXTRAORDINARY ITEMS (7,623) (27,580) (59,534) (45,024)
EXTRAORDINARY GAIN ON
VENDOR SETTLEMENTS 1,461 - 1,922 -
-------- --------- --------- ---------
NET LOSS (6,162) (27,580) (57,612) (45,024)
ACCRETION OF DISCOUNT
- REDEEMABLE PREFERRED
STOCK (430) - (1,036) -
PREFERRED DIVIDENDS (600) - (1,500) -
-------- --------- --------- ---------
NET LOSS ATTRIBUTABLE
TO COMMON SHAREHOLDERS $ (7,192) $ (27,580) $ (60,148) $ (45,024)
======== ========= ========= =========
NET LOSS PER SHARE
ATTRIBUTABLE TO COMMON
SHAREHOLDERS - BASIC $ (0.30) $ (1.17) $ (2.53) $ (1.91)
======== ========= ========= =========
WEIGHTED AVERAGE SHARES
OUTSTANDING - BASIC 23,787,414 23,528,820 23,783,637 23,579,467
========== ========== ========== ==========
CASH FLOW SUMMARY
CASH USED IN
OPERATING ACTIVITIES $ (4,514) $ (19,307) $ (48,177) $ (62,601)
CASH USED BY INVESTING
ACTIVITIES (2,481) (4,311) (3,149) (8,700)
CASH PROVIDED (USED)
BY FINANCING ACTIVITIES (140) (209) 27,160 (254)
-------- --------- --------- ---------
NET CHANGE IN CASH $ (7,135) $ (23,827) $ (24,166) $ (71,555)
========== ========== ========== ==========
Balance Sheet
As of December 31,
2001 2000
------------------
ASSETS
Cash and cash equivalents $ 4,702 $28,867
Accounts receivable - net 5,796 8,217
Inventories 21,871 32,769
Notes receivable 775 5,932
Other current assets 1,880 1,028
------- -------
TOTAL CURRENT ASSETS 35,024 76,813
PROPERTY AND EQUIPMENT, NET 11,498 11,664
OTHER LONG-TERM ASSETS 3,353 3,657
------- -------
TOTAL ASSETS $49,875 $92,134
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $ 5,224 $13,198
Accrued expenses 2,817 4,135
Current portion of capital
lease obligations 367 803
Customer deposits 548 2,398
Deferred revenues 2,637 7,161
------- -------
TOTAL CURRENT LIABILITIES 11,593 27,695
TOTAL LONG-TERM LIABILITIES 3,570 216
Redeemable convertible preferred
stock (liquidation value of
$60,000,000 plus accrued dividends) 16,344 --
TOTAL STOCKHOLDERS' EQUITY 18,368 64,223
------- -------
TOTAL LIABILITIES &
STOCKHOLDERS' EQUITY $49,875 $92,134
======= =======
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