Airspan Networks Announces First Quarter 2004 Financial Results; Record Level of Quarterly Sales; Full Year Revenue Guidance Raised.Business Editors/High-Tech Writers BOCA RATON Boca Raton (bō`kə rətōn`), city (1990 pop. 61,492), Palm Beach co., SE Fla., on the Atlantic; inc. 1925. Boca Raton is a popular resort and retirement community that experienced significant industrial development in the 1970s and 80s. , Fla.--(BUSINESS WIRE)--May 5, 2004 Airspan Airspan (NASDAQ:AIRN) is a [WIMAX] equipment manufacturer founded in 1998 with an R&D facility in the UK. The first product, AS4020 platform, was based on CDMA radio technology adapted for fixed wireless access and was a market success especially in developing markets. Networks Inc. (Nasdaq:AIRN) today announced first quarter financial results for the period ending April 4, 2004. The Company reported revenues for the first quarter of $12.4 million, up 38% from the fourth quarter of 2003 and up 59% versus the first quarter of 2003. The net loss attributable to common stockholders for the first quarter was $0.15 per share versus a loss of $0.19 in the fourth quarter of 2003 and $0.16 a year ago. Financial Results First quarter revenue of $12.4 million was 38% higher than the $9.0 million recorded for the fourth quarter of 2003 and 59% higher than the $7.8 million in the first quarter of 2003. The Company recorded a gross profit of $3.7 million, or 30%. This compared to a gross profit of $2.3 million, or 26%, for the fourth quarter 2003 and $2.6 million, or 33%, for the first quarter of 2003. The Company 's first quarter operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. of $9.9 million were $1.2 million higher than the same period a year ago, due to the increase in staff from the Proximity acquisition and the effect of a weaker Dollar in 2004, offset by 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). carried out during 2003. Net loss for the first quarter of 2004 was $5.4 million, or $0.15 per share, compared to a loss of $6.7 million, or $0.19 per share, in the fourth quarter of 2003 and a loss of $5.6 million, or $0.16, in the first quarter of 2003. The Company's cash balance at the end of the first quarter stood at $44.1 million, including $1.7 million of restricted cash. Total cash grew in the first quarter by $8.6 million, compared to a reduction of $1.1 million in the fourth quarter and a reduction of $8.2 million in the first quarter of 2003. The Company closed the first quarter with inventory of $16.5 million, a decrease of $1.7 million over the prior quarter. "We are pleased to be able to report record quarterly revenue, coming from both our existing products and from the Proximity acquisition," said Eric ERIC Educational Research Information Clearinghouse ERIC Educational Resources Information Center ERIC ERISA Industry Committee ERIC Epidemiologic Research and Information Center (Durham, NC) Stonestrom, president and chief executive officer for Airspan. "We underlined the value of the Proximity purchase with our recently announced $65 million agreement with Axtel Axtel S.A.B. de C.V. (BMV: AXTEL), is a Mexican telecommunications company, headquartered in Monterrey, that provides telecommunication products and services in Mexico. It is the main competitor of Telmex, who was a monopoly until very recently. in Mexico Mexico, city, Mexico Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. , and we continue to grow our customer base for our other product lines. In the quarter, we had sales to 98 customers in total, also a new high. The growth was strongest in our WipLL WipLL Wireless IP Local Loop product line, where we added 21 new customers in the quarter. While operating costs operating costs npl → gastos mpl operacionales rose in the period, this was an expected result of the Proximity acquisition and we have already taken steps to reduce our headcount head count or head·count n. 1. The act of counting people in a particular group. 2. The number of people counted in this way. Noun 1. to bring those costs down to 2003 levels by the second half of this year. We are in a strong position for the second quarter and the year as a whole." "Our working capital position has improved considerably as a direct result of the integration of the Proximity business and an improved business climate," said Peter Aronstam, chief financial officer for Airspan. "This is the first quarter since we became a public company that we have seen positive cash flow from operating activities, due to a significant increase in customer advances. We still continue to focus on cash management, inventory and receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed , as evidenced by the improvements in our inventory turns and days sales outstanding In accountancy, Days Sales Outstanding is a company's average collection period. A low figure indicates that the company collects its outstanding receivables quickly. Typically it is looked at either quarterly or yearly (90 or 365 days). . We are also working to reduce our operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. as we drive towards profitability." Second Quarter and Full year Outlook Stonestrom commented that he continues to expect the Company to grow substantially through 2004, on the back of the Axtel agreement and growth of Airspan's other product lines. Revenue for the second quarter is expected to be in the range of $16 to 17 million, and in excess of $80 million for the full year. Stonestrom also continues to expect that the Company will have a profitable quarter within the year. "We have just completed a quarter with record revenues. We aim to beat it in the second quarter and to get to profitability this year. With the improved visibility across the product lines, we feel that these are realistic growth objectives." Investor Conference The Company has scheduled an investor conference call for 5 p.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT today. The dial-in numbers for the live conference call are as follows: US toll-free number is 1-888-243-0813; international access dial-in number is 1-703-925-2400. Reference the Airspan Networks quarterly conference call. There will be a live webcast of the conference call available on the investor relations Investor relations The process by which the corporation communicates with its investors. section of the Airspan Web site at http://www.airspan.com. The webcast will also be distributed over CCBN's Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call through CCBN's individual investor center at http://www.companyboardroom.com or by visiting any of the investor sites in CCBN's Individual Investor Network such as America America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name. Online's Personal Finance Channel, Fidelity Investments Fidelity Investments is a group of privately held companies in the financial services industry. It is made up by two independent but closely cooperating companies, Fidelity Management and Research Corporation (FMR Co. (R) (http://www.fidelity.com) and others. Institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. can access the call via CCBN's password protected event management site, StreetEvents (http://www.streetevents.com). For those who cannot listen to the live broadcast, an audio replay of the call will be available on the Airspan Web site for 30 days. The US toll-free number for the replay is 1-888-266-2081; international access number for the replay is 1-703-925-2533. Please use access code 448315. About Airspan Networks Inc. Airspan Networks provides wireless voice and data systems and solutions, including Voice Over IP, to both licensed and unlicensed operators around the world in frequency bands between 700 MHz (MegaHertZ) One million cycles per second. It is used to measure the transmission speed of electronic devices, including channels, buses and the computer's internal clock. A one-megahertz clock (1 MHz) means some number of bits (16, 32, 64, etc. and 6 GHz, including both PCS (1) (Personal Communications Services) Refers to wireless services that emerged after the U.S. government auctioned commercial licenses in 1994 and 1995. This radio spectrum in the 1. and 3.5GHz international bands. Airspan continues to evolve its products toward the proposed 802.16d 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. standards, and is an active member of the WiMAX (World Interoperability for Microwave Access, Inc., www.wimaxforum.org) An organization founded in 2001 that promotes the IEEE 802.16 wireless broadband standard and provides certification for devices for compliant devices. Forum. The Company has deployments with more than 200 operators in more than 70 countries. Airspan's systems are based on radio technology that delivers excellent area coverage, high security and resistance to fading fading fading skin coloring. See Arabian fading syndrome (below). Declining in body condition, general health, activity and productivity. Arabian fading syndrome general health is unimpaired. . Airspan's systems can be deployed rapidly and cost effectively, providing an attractive alternative to traditional wired communications networks The transmission channels interconnecting all client and server stations as well as all supporting hardware and software. . Airspan also offers radio planning, network installation, integration, training and support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services to facilitate the deployment and operation of its systems. Airspan is headquartered in Boca Raton, Florida Boca Raton ("bōkə rə-tōn") is a city in Palm Beach County, Florida incorporated in May 1925. As of the 2000 census, the city had a total population of 74,764; the 2006 population recorded by the U.S. Census Bureau was 86,396. with its main operations center The facility or location on an installation, base, or facility used by the commander to command, control, and coordinate all crisis activities. See also base defense operations center; command center. in Uxbridge Uxbridge, England: see Hillingdon. , United Kingdom. More information on Airspan can be found at http://www.airspan.com This press release contains 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. within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, including statements regarding our strategy, future operations, financial position, future revenues, projected costs, prospects, plans and objectives of management, may be deemed to be forward-looking statements. The words "anticipates," "believes," "estimates," "expects," "intends," "may," "plans," "projects," "will," "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. There are a number of important factors that could cause actual results or events to differ materially from the plans, intentions and expectations disclosed in the forward-looking statements we make. These important factors include the factors that we identify in our 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, 2003. You should read those factors as being applicable to all related forward-looking statements wherever they appear in this press release. We do not assume any obligation to update any forward-looking statements.
Airspan Networks Inc
Consolidated Statements of Income
(in thousands except for share and per share data)
Three months ended
March 30, 2003 April 4, 2004
-------------- -------------
(unaudited)
Revenue $7,811 $12,420
Cost of revenue (5,253) (8,693)
-------------- -------------
Gross profit 2,558 3,727
-------------- -------------
Operating expenses:
Research and development 3,719 5,046
Sales and marketing 2,604 2,560
General and administration 2,386 2,051
Amortization of intangibles 43 246
-------------- -------------
Total operating expenses 8,752 9,903
-------------- -------------
Loss from operations (6,194) (6,176)
Net interest and other income 607 807
-------------- -------------
Loss before tax (5,587) (5,369)
-------------- -------------
Income tax charge - 16
-------------- -------------
Net loss $(5,587) $(5,385)
============== =============
Net loss per share
- basic and diluted $(0.16) $(0.15)
Weighted average shares outstanding
- basic and diluted 34,978,322 35,893,740
Airspan Networks Inc
Consolidated Balance Sheets
(in thousands)
December 31, April 4,
2003 2004
----------- ---------
(unaudited)
ASSETS
Current Assets
Cash and cash equivalents $33,926 $42,404
Restricted cash 1,588 1,737
Accounts receivable 12,509 12,749
Unbilled accounts receivable 54 104
Inventory 18,215 16,506
Prepaid expenses and other current assets 4,570 7,264
----------- ---------
Total Current Assets 70,862 80,764
Property, plant and equipment, net 3,736 3,581
Goodwill, net 3,136 3,136
Intangible assets, net 4,554 4,308
Other non-current assets 984 1,005
----------- ---------
Total Assets $83,272 $92,794
=========== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $7,751 $9,167
Accrued taxes 449 1,512
Deferred revenue 989 1,623
Customer Advances 15,070 27,083
Other accrued expenses 10,000 9,384
----------- ---------
Total Current Liabilities 34,259 48,769
----------- ---------
Stockholders' Equity
Common stock 11 11
Note receivable - stockholder (130) (130)
Additional paid in capital 215,209 215,824
Treasury stock (797) (797)
Other comprehensive income 1,839 1,621
Accumulated deficit (167,119) (172,504)
----------- ---------
Total Stockholders' Equity 49,013 44,025
----------- ---------
----------- ---------
Total Liabilities and
Stockholders' Equity $83,272 $92,794
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