AirNet Communications Announces Second Quarter Results; Revenues Decline to $1.9 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)--Aug. 13, 2001 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 the second quarter ended June June: see month. 30, 2001. The company reported net revenues of $1.9 million, compared to $6.4 million in the first quarter of 2001. 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 second quarter of $27.8 million, compared to $14.7 million in the previous quarter. The net loss for the quarter was $27.6 million, or $1.18 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 $14.3 million, or $.60 per basic and diluted share in the previous quarter. Per share amounts were based on 23.8 million weighted average shares for the second quarter 2001 and exclude shares issuable upon the conversion 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. The decline in revenues reflects the continuing, worldwide pressure on the wireless industry as a result of slower telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. equipment spending and reduced capital availability. The telecommunications downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. is also adversely impacting the Company's ability to raise additional capital. The Company continues to be diligent dil·i·gent adj. Marked by persevering, painstaking effort. See Synonyms at busy. [Middle English, from Old French, from Latin d in its efforts to conserve cash and reduce expenses. Major events in the second quarter include: -- Closed $30 million in additional investment commitments from Mellon Ventures, SCP Private Equity Partners ll, and Tandem PCS Investments. -- Implemented a restructuring plan in June. Under this plan, the company reduced its workforce by approximately 25% and cut expenses by approximately 35%. -- Engaged Salomon Smith Barney to assist in strategic planning and evaluation of all alternatives. -- Achieved product and technical success in the large operator trials - these operators clearly see the compelling product advantages that only AirNet can offer. -- Appointed Joseph F. Gerrity as Acting Chief Financial Officer. "The second quarter was a very difficult quarter for the wireless industry and AirNet as well," said 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 of AirNet. "While we have achieved product and technical success in our large operator trials, market conditions have forced these operators to reduce capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. and this, coupled with concerns about the long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. viability of the Company, has made it difficult for us to convert these trials into orders. Although we have implemented a 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 to cut expenses and preserve our cash position, we are currently re-considering our strategic plan and all of our alternatives." Conference Call The Company will hold a conference call today, August 13, 2001 at 5:30 p.m. (ET) to discuss this news release. The dial-in number for the conference call is (719) 457-2727. A replay of the conference call will be available beginning today at 8 p.m. (ET) until 12:00 a.m. (ET) on Monday Monday: see week. , August 20, 2001. The replay number for the conference call is (719) 457-0820, and the pass code is 714918. 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 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 73 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 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, 2000. 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.
AIRNET COMMUNICATIONS CORPORATION
CONDENSED BALANCE SHEETS
(In thousands)
UNAUDITED AUDITED
JUN 30, 2001 DEC 31, 2000
ASSETS
Cash and cash equivalents $19,863 $28,867
Accounts receivable, net of
allowances of $2.2 million and
$4.1 million at Jun 30, 2001 and
Dec 31, 2000, respectively 7,460 8,218
Inventories, net 26,893 32,769
Notes receivable, net 3,775 5,932
Other current assets 508 1,028
------- -------
Total current assets 58,499 76,814
------- -------
Property and equipment, net 14,549 11,664
Long-term notes receivable, net 2,104 3,060
Other long-term assets 1,822 596
------- -------
Total assets $76,974 $92,134
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $14,702 $13,198
Accrued expenses 6,944 4,136
Current portion of capital
lease obligations 575 803
Customer deposits 646 2,398
Deferred revenue 2,588 7,161
------- -------
Total current liabilities 25,455 27,696
------- -------
Capital lease obligations 391 215
Dividends Payable 300 --
------- -------
Total liabilities 26,146 27,911
Redeemable Convertible Preferred Stock 15,506 --
Stockholders' equity 35,322 64,223
------- -------
Total liabilities and
stockholders' equity $76,974 $92,134
======= =======
AIRNET COMMUNICATIONS CORPORATION
CONDENSED STATEMENT OF OPERATIONS
(In thousands, except per share date)
UNAUDITED UNAUDITED
THREE MONTHS ENDED SIX MONTHS ENDED
JUN. 30, JUN. 30, JUN. 30, JUN. 30,
2001 2000 2001 2000
NET REVENUES $ 1,886 $ 8,188 $ 8,280 $15,253
COST OF REVENUES 11,224 5,253 17,312 9,881
------ ------ ------ ------
Gross profit (9,338) 2,935 (9,032) 5,372
------ ------ ------ ------
OPERATING EXPENSES:
Research and development 9,618 6,915 18,230 12,993
Sales and marketing 4,644 2,089 8,807 4,564
General and
administrative 4,109 1,162 6,240 2,287
Stock-based compensation 95 109 190 218
------ ------ ------ ------
Total costs and
expenses 18,466 10,275 33,467 20,062
------ ------ ------ ------
LOSS FROM OPERATIONS (27,804) (7,340) (42,499) (14,690)
------ ------ ------ ------
OTHER INCOME (EXPENSE),
net 231 1,118 591 2,463
------ ------ ------ ------
NET LOSS (27,573) (6,222) (41,908) (12,227)
------ ------ ------ ------
ACCRETION OF DISCOUNT -
REDEEMABLE PREFERRED STOCK (199) -- (199) --
DIVIDENDS ON PREFERRED
STOCK (300) -- (300) --
NET LOSS ATTRIBUTABLE
TO COMMON STOCK $ (28,072) $ (6,222) $ (42,407) $ (12,227)
====== ====== ====== ======
NET LOSS PER SHARE
ATTRIBUTABLE TO COMMON
STOCKHOLDERS - Basic and
diluted $ (1.18) $ (0.26) $ (1.78) $ (0.52)
====== ====== ====== ======
WEIGHTED AVERAGE SHARES
USED IN CALCULATING
BASIC AND DILUTED LOSS
PER SHARE 23,786,968 23,554,966 23,779,794 23,454,678
========== ========== ========== ==========
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion