AirNet Announces Record Second Quarter Results; Revenues Increase by 270% to $8.2 Million.Business Editors 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)--July 26, 2000 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 reported record revenues for the second quarter and six-month period ending June June: see month. 30, 2000. Net revenues for the quarter grew to $8.2 million, representing a 270% increase over the $2.2 million of revenue recorded in the second quarter of fiscal 1999. As expected, 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. due to continued investments in product development, sales, and marketing efforts for penetration into new markets. The company reported a $7.3 million operating loss versus $4.2 million in last year's second quarter. The second quarter net loss attributable to common shareholders was $6.2 million, or $0.26 per fully 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. The net loss to common shareholders in the second quarter of 1999 was $5.9 million, or $14.48 per fully diluted share. Per share amounts were based on 23.6 million weighted average shares in this year's second quarter, compared to 0.4 million weighted average shares in the 1999 second quarter. Net revenues for the six-month period ending June 30, 2000 grew 249% to $15.3 million from $4.4 million during the first six months of fiscal 1999. The operating loss for the six-month period was $14.7 million, compared to an operating loss of $8.8 million for the same period last year. The net loss attributable to common shareholders for the six-month period was $12.2 million, or $0.52 per fully diluted share, versus $12.1 million, or $31.97 per fully diluted share for the same period last year. Per share amounts were based on 23.5 million weighted average shares for the six month period ending June 30, 2000, compared to 0.4 million weighted average shares in the same period last year. Commenting on the results, Lee Hamilton Hamilton, city, Bermuda Hamilton, city (1990 est. pop. 3,100), capital of Bermuda, on Bermuda Island. It is a port at the head of Great Sound, a huge lagoon and deepwater harbor protected by coral reefs. , president and chief executive officer, stated, "We are pleased with the increased acceptance of AirNet's products and our growing customer base, both domestically and internationally. We added five new customers this quarter, and continue to build significant momentum from quarter to quarter. "We are also pleased with our substantial progress in executing our international growth strategy. The company shipped products to its first international customers in the second quarter, and these customers will serve as key reference accounts as we target new opportunities," added Mr. Hamilton. During the quarter, AirNet significantly enhanced its distribution capability and strengthened its management team. On June 28, 2000, AirNet announced that the company's first non-exclusive original equipment manufacturer (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 ) marketing and distribution agreement, establishing a relationship with Marconi Communications Marconi Communications is a principal subsidiary of the Marconi Corporation plc and was formerly known as GEC Plessey Telecommunications (GPT). The company was a world leading telecommunications manufacturer. SpA of Italy Italy (ĭt`əlē), Ital. Italia, officially Italian Republic, republic (2005 est. pop. 58,103,000), 116,303 sq mi (301,225 sq km), S Europe. -- a major global player in wireless telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. . This OEM agreement significantly expands AirNet's international reach and adds to the commercial credibility of its products. Also, on July July: see month. 7, 2000, AirNet announced John Berens joined the company as chief financial officer, and Richard Ri·chard , Joseph Henri Maurice Known as "Rocket." 1921-2000. Canadian hockey player. A right wing for the Montreal Canadiens (1942-1960), he led his team to eight Stanley Cup championships and was the first player to score 50 goals in a Beckley Beckley, city (1990 pop. 18,296), seat of Raleigh co., S W.Va.; inc. 1927. Beckley's major industries include tourism, agriculture (livestock, cotton, grain, nursery stock), and manufacturing (machinery, furniture, electrical equipment, glass, lumber, beverages). as vice president of international sales. Both are experienced executives from the communications industry communications industry, broadly defined, the business of conveying information. Although communication by means of symbols and gestures dates to the beginning of human history, the term generally refers to mass communications. and bring extensive wireless and international expertise to the management team. Mr. Hamilton concluded, "Market conditions signal a strong demand for next generation 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 applications, which will continue to drive an increased need for our products. AirNet's 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. products are uniquely positioned to meet the growing need for next-generation wireless applications." AirNet Communications Corporation's award winning wireless base station products, based on over 65 patents either issued or filed, provide a 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. , future proof solution for wireless operators as they deploy and expand their networks. 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 provides a high capacity base station with a software upgrade path to the wireless Internet. The AdaptaCell's patented technology means no more time consuming and expensive hardware upgrades - the wireless Internet is only a software upgrade away. And, with software control, AirNet lets service providers support multiple protocols simultaneously avoiding costly overlays. The AirSite(R) Backhaul (1) The original definition of backhaul was to transmit a telephone call or data beyond its normal destination point and then back again in order to utilize available personnel (operators, agents, etc.) or network equipment that is not located at the destination location. Free Base Station(TM)'s award winning architecture eliminates the need for a physical backhaul link, thus reducing operating costs operating costs npl → gastos mpl operacionales . AirNet base station products won the prestigious "GSM World Award" for technical innovation for AdaptaCell's software upgrade to the wireless Internet and for AirSite's revolutionary wireless backhaul capability. AirNet is a wireless base station technology leader. AirNet can be contacted at 321/984-1990 or visit us at www.aircom.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 plans. 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, and fluctuations in our quarterly revenues and operating results. 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, 1999. AirNet(R) and AirSite(R) are registered with the U.S. Patent and Trademark Office. AdaptaCell(TM), Backhaul Free Base Station(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.
AIRNET COMMUNICATIONS CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Unaudited Unaudited Unaudited Unaudited
3 months 3 months 6 months 6 months
ending ending ending ending
June 30, 2000 June 30, 1999 June 30, 2000 June 30, 1999
------------- ------------- ------------- -------------
Net Revenues 8,188 2,215 15,253 4,373
Cost of
Revenues 5,253 1,455 9,881 2,912
------------- ------------- ------------- -------------
Gross Profit 2,935 760 5,372 1,461
Operating Expenses:
Research and
Development 6,915 3,459 12,993 7,194
Sales and
marketing 2,088 865 4,563 1,756
General and
administrative 1,162 580 2,287 1,141
Stock-based
compensation 109 74 218 121
------------- ------------- ------------- -------------
Total operating
expenses 10,274 4,978 20,061 10,212
------------- ------------- ------------- -------------
Loss from
operations (7,339) (4,218) (14,689) (8,751)
Other income, net 1,117 19 2,462 93
------------- ------------- ------------- -------------
Net loss (6,222) (4,199) (12,227) (8,658)
Preferred
Dividends (1) 0 1,704 0 3,398
------------- ------------- ------------- -------------
Net loss
attributable
to common
stockholders (6,222) (5,903) (12,227) (12,056)
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Net loss per share
attributable
to common
stockholders -
basic and
diluted (0.26) (14.48) (0.52) (31.97)
Weighted average
shares used in
calculating
basic and
diluted loss
per common
share 23,554,966 407,788 23,454,678 377,072
(1) All accumulative dividends were cancelled when the company closed
on its initial public offering in Dec. 1999. This is a non-cash
item.
AIRNET COMMUNICATIONS CORPORATION
CONDENSED BALANCE SHEETS
(in thousands)
Unaudited Audited
06/30/00 12/31/99
-----------------------------------
ASSETS
Cash and cash equivalents 70,844 100,423
Accounts receivable - net 9,533 10,122
Note receivable 9,015 0
Inventory 25,814 15,978
Other current assets 611 500
---------------- ----------------
Total Current Assets 115,817 127,023
Property and equipment, net 5,872 3,968
Note Receivable 1,575 0
Other long term assets 28 22
---------------- ----------------
Total Assets $ 123,292 $ 131,013
---------------- ----------------
---------------- ----------------
LIABILITIES AND STOCKHOLDERS'
EQUITY
Accounts payable 6,455 6,464
Accrued expenses 3,234 2,101
Current portion of capital
lease obligation 279 540
Customer deposits 2,958 5,234
Deferred revenues 13,349 8,209
---------------- ----------------
Total current liabilities 26,275 22,548
Capital lease obligations 421 202
Stockholders' equity 96,596 108,263
---------------- ----------------
Total liabilities and
stockholders' equity 123,292 131,013
---------------- ----------------
---------------- ----------------
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