Aironet Wireless Communications, Inc. Reports Record First Quarter Results.AKRON Akron (ăk`rən), city (1990 pop. 223,019), seat of Summit co., NE Ohio, on the Little Cuyahoga River; inc. 1865. Once the heart of the nation's rubber industry, Akron still contains the headquarters of some rubber corporations and chemical and , Ohio--(BUSINESS WIRE)--Aug. 25, 1999-- Aironet Wireless Communications Aironet is a maker of wireless networking equipment currently operated as a division of Cisco Systems. It was started by ex-Marconi Wireless employees in 1986 as Telesystems SLW in Canada, right after the United States FCC opened up the ISM bands for spread spectrum license-free , Inc. (Nasdaq:AIRO AIRO Air Officer AIRO ACT Internet Reporting Option AIRO Army Imagery Requirements Office (US Army) ), a leading provider of wireless local area networking solutions, today announced its first fiscal quarter results for the three month period ended June June: see month. 30, 1999. Total revenues for the first quarter of fiscal year 2000 were $12.4 million, compared with $9.5 million for the same period last year, an increase of 31%. Non-affiliate revenues grew 54% to $9.5 million for the first quarter, compared with $6.2 million for the same period last year. Net income was $445 thousand or $0.04 per share, compared with net income of $21 thousand or $0.00 per share for the first quarter in fiscal year 1999. Subsequent to the close of the Company's first quarter, on July July: see month. 30, 1999, Aironet successfully completed its initial public offering of 6,000,000 shares of which 4,000,000 shares were newly issued common stock. The Company used $2.5 million of the approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $38.9 million net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). to repay the outstanding balance under a working capital credit line and expects to use the remainder for general corporate purposes. "Record revenues from non-affiliated customers were driven by growth in the sales of our 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. (11 Mbps) wireless networking See wireless network. solutions, including our 4800 Turbo DS(TM) Series for in-building wireless LANs A local area network that transmits over the air typically in the 2.4 GHz or 5 GHz unlicensed frequency band. It does not require line of sight between sender and receiver. Wireless base stations (access points) are wired to an Ethernet network and transmit a radio frequency over an area and our BR500(TM) Series for building-to-building wireless bridges," said Roger Murphy, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Aironet. "In the marketplace, we're we're Contraction of we are. we're we are seeing an increasing demand for high-speed, IEEE (Institute of Electrical and Electronics Engineers, New York, www.ieee.org) A membership organization that includes engineers, scientists and students in electronics and allied fields. 802.11 standards-based, wireless network connectivity A generic term for connecting devices to each other in order to transfer data back and forth. It often refers to network connections, which embraces bridges, routers, switches and gateways as well as backbone networks. specifically in the enterprise, healthcare and education markets." Aironet is a leading provider of high-speed, standards-based wireless local area networking (WLAN See wireless LAN. WLAN - wireless local area network ) solutions. Aironet's in-building wireless LAN products provide flexible wireless network connectivity, including Internet access See how to access the Internet. , to mobile PC users throughout a building or around a campus. Aironet's building-to-building bridges provide fixed wireless connectivity between sites. Supporting data rates up to 11 Mbps, Aironet's wireless networking products are based on industry standards and operate in the unlicensed 2.4 GHz frequency band. The Company markets its products worldwide through distributors, value-added resellers A value-added reseller (VAR) is a company that adds some feature(s) to an existing product(s), then resells it (usually to end-users) as an integrated product or complete "turn-key" solution. (VARS VARS Value Added Reseller VARS Vehicle Accounting and Reporting System (US Immigration and Naturalization Service) VARS Vertical and Azimuth Reference System VARS Variant Stem VARS Variables ) and 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 partners. Aironet (AIRO) is listed on the Nasdaq National Market and is headquartered in Akron, Ohio Akron is a city in the U.S. state of Ohio and the county seat of Summit County.GR6 The municipality is located in northeastern Ohio on the Cuyahoga River between Cleveland to the north and Canton to the south, approximately 60 miles (96 km) west of (Web Site: www.aironet.com). This news release may contain 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 or the future financial performance of the Company that involve risks and uncertainties. These statements are only predictions and may differ materially from actual future events or results. Readers are referred to the documents filed with the SEC, specifically the most recent S-1 which identifies important risk factors that could cause actual results to differ from those contained in the forward looking statements, including risks associated with dependence on new product offerings, competition, intellectual property and licenses, future growth, rapid technological and market change, manufacturing and sourcing risks, volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the of stock price and potential volatility in operating results, among others. All Company and product names mentioned may be trademarks or registered trademarks of their respective holders, and are hereby acknowledged. -0-
AIRONET WIRELESS COMMUNICATIONS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
Three months ended June 30,
---------------------------
1999 1998
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Revenues:
Non-affiliate $ 9,465 $ 6,162
Affiliate product 1,493 1,434
Affiliate royalty 1,445 1,881
------------ ------------
Total revenues 12,403 9,477
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Cost of revenues:
Non-affiliate 5,297 3,908
Affiliate 1,150 1,214
------------ ------------
Total cost of revenues 6,447 5,122
------------ ------------
Gross profit:
Non-affiliate 4,168 2,254
Affiliate product 343 220
Affiliate royalty 1,445 1,881
------------ ------------
Total gross profit 5,956 4,355
------------ ------------
Operating expenses:
Sales and marketing 2,359 1,482
Research and development 1,758 1,624
General and administrative 781 1,100
Goodwill amortization 216 216
------------ ------------
Total operating expenses 5,114 4,422
------------ ------------
Income (loss) from operations 842 (67)
Interest expense (income), net (17) (10)
------------ ------------
Income (loss) before income taxes 859 (57)
Provision (benefit) for income taxes 414 (78)
------------ ------------
Net income $ 445 $ 21
------------ ------------
------------ ------------
Net income per common share:
Basic $ 0.05 $ ---
------------ ------------
------------ ------------
Diluted $ 0.04 $ ---
------------ ------------
------------ ------------
Weighted average shares used in calculating net income
per common share:
Basic 9,367 9,169
------------ ------------
------------ ------------
Diluted 10,098 9,356
------------ ------------
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AIRONET WIRELESS COMMUNICATIONS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE DATA)
June 30, March 31,
1999 1999
(unaudited)
--------- --------
ASSETS
Current assets:
Cash and cash equivalents $ 4,703 $ 6,137
Accounts receivable, trade, net 5,714 4,242
Accounts receivable, other 943 243
Receivable from affiliate 6,628 3,609
Inventories 4,786 4,625
Deferred tax asset 781 733
Prepaid expenses and other 374 404
Income taxes receivable 308 620
--------- --------
Total current assets 24,237 20,613
Property and equipment, net 2,673 2,381
Deferred tax asset 882 882
Intangible assets, net 2,963 3,191
Other long-term assets 1,310 131
--------- --------
Total assets $ 32,065 $ 27,198
--------- --------
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 5,221 $ 4,618
Payable to affiliate 5,253 2,085
Income taxes payable 423 30
Deferred tax liability 18 10
Accrued liabilities 3,506 3,358
--------- --------
Total current liabilities 14,421 10,101
Line of credit 2,500 2,500
--------- --------
Total liabilities 16,921 12,601
Stockholders' equity:
Common stock, $.01 par value per share;
15,000,000 shares authorized;
9,567,181 shares issued and outstanding 96 96
Additional paid-in capital 19,203 19,101
Accumulated deficit (4,155) (4,600)
--------- --------
Total stockholders' equity 15,144 14,597
--------- --------
Total liabilities and
stockholders' equity $ 32,065 $ 27,198
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