Airspan Networks Announces First Quarter Financial Results.Business Editors 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)--April 30, 2003 Airspan Networks Inc. (Nasdaq:AIRN) today announced first quarter financial results ended March 30, 2003. Revenues of $7.8 million were 130 percent higher than the first quarter of 2002. The company incurred a loss per share of $0.16 in the first quarter of 2003 versus a loss of $0.23 in the first quarter of 2002. The Company excluded from reported revenue $1.3 million of equipment shipments in the first quarter, as revenue recognition criteria for those shipments had not all been met as of March 30, 2003. The Company anticipates recognizing this revenue in future quarters. Supply chain issues further delayed the shipment of approximately $0.8 million of backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. . Gross profit was $2.6 million, or 33 percent of revenue, compared with $0.4 million, or 11 percent, in the prior year's first quarter. Reported 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. for the quarter totaled $8.8 million, compared to $8.7 million in the first quarter of 2002. The number for first quarter 2002 expenses included a provision of $0.2 million for 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). . Excluding the restructuring provision in the first quarter of 2002, 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. increased by $0.3 million. WipLL operating expenses of $1.4 million offset reductions of $1.1 million in operating expense of the existing business prior to the acquisition of the WipLL product line. The company's cash and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments at the close of the first quarter stood at $47.2 million, of which $1.6 million was restricted cash. "Given the typical seasonality in spending on telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. equipment which leads to lighter demand in the first half of the year, and the continued 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 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. generally in the industry, we're encouraged with our first quarter performance," said Eric Stonestrom, president and chief executive officer for Airspan. "In the quarter we shipped in excess of $9 million of equipment and services. We signed significant contracts for the AS4020 product line with major operators such as BCL BCL - The successor to Atlas Commercial Language. ["The Provisional BCL Manual", D. Hendry, U London 1966]. of New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. . In addition, we aligned our product roadmap with the WiMAX forum, which gives a significant boost to our medium term outlook. We're satisfied with the progress we made on several fronts, including the winning of new customers and the growing number of WipLL deployments worldwide, and our management of operating expenses and cash. While our cash usage in the quarter was higher than the preceding quarter due to a close out of certain payables associated with manufacturing subcontractors, we expect to return to historical levels and to continue the trend of declining operating cash use, as we implement the next phase of our cost reduction program. At the start of the second quarter we settled our debt obligation of $2.5 million, due in September 2003, with a payment of $2.4 million. This settlement will save us $0.2 million of principal and future interest payments, and leave the company with no funded debt Funded Debt Long-term debt that matures after more than one year. Notes: This is usually issued as a bond or a long-term note. See also: Bond, Debt, Maturity, Note Funded debt Debt maturing after more than one year. ." During the first quarter, Airspan derived its revenue from a total of 50 customers in 33 countries, including seven new customers. Stonestrom expects that Airspan's results will continue to improve through 2003, and in particular that the company will exceed $7.8 million of revenues in the second quarter. Stonestrom anticipates that Airspan will reach its breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations point by the end of the year, through a combination of moderately increased revenues and aggressive operating expense reductions. 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 1-800-305-1078; international access dial-in number is 1-703-871-3026. 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. 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. A telephone replay of the call will also be available. The US toll-free number for the replay is 1-888-266-2081; international access number for the replay is 703-925-2533. Please reference the Airspan Networks fourth quarter conference call. About Airspan Networks Airspan Networks provides wireless DSL DSL in full Digital Subscriber Line Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary systems and solutions to both licensed and unlicensed operators around the world in frequency bands between 900 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. to 4 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. Additionally, Airspan has developed an enhanced version of its WipLL product, which in addition to the 2.4GHz and 3.5GHz ranges, serves unlicensed operators in the 5.7-5.8GHz range. Airspan continues to evolve its products in order to meet new 802.11b and 802.16a 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. The company has deployments with more than 100 operators in more than 50 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, United Kingdom. More information on Airspan can be found at http://www.airspan.com Except for historical matters contained herein, statements made in this press release are forward-looking and are made pursuant to the 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. provisions of 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. Without limiting the generality gen·er·al·i·ty n. pl. gen·er·al·i·ties 1. The state or quality of being general. 2. An observation or principle having general application; a generalization. 3. of the foregoing, words such as "may," "will," "to," "plan," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," or "continue" or the negative other variations thereof or comparable terminology are intended to identify 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. . Investors and others are cautioned that a variety of factors, including certain risks, may affect our business and cause actual results to differ materially from those set forth in the forward-looking statements. These risk factors include, without limitation, (i) a slowdown of expenditures by communication service providers; (ii) increased competition from alternative communication systems; (iii) the failure of our existing or prospective customers to purchase products as projected; (iv) our inability to successfully implement cost reduction or containment containment Strategic U.S. foreign policy of the late 1940s and early 1950s intended to check the expansionist designs of the Soviet Union through economic, military, diplomatic, and political means. It was conceived by George Kennan soon after World War II. programs; and (v) a loss of any of our key customers. The Company is also subject to the risks and uncertainties described in its 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, 2002.
Airspan Networks Inc
Consolidated Statements of Income
(in thousands except for share and per share data)
Three months ended
Mar 31, 2002 Mar 30, 2003
----------------- ----------------
(unaudited)
Revenue $3,389 $7,811
Cost of revenue (3,017) (5,253)
Inventory provision - -
----------------- ----------------
Gross profit/(loss) 372 2,558
----------------- ----------------
Operating expenses:
Research and development 3,314 3,719
Sales and marketing 2,876 2,604
Bad debt provision 62 -
General and administration 2,241 2,386
Amortisation of intangibles - 43
Restructuring provision 167 -
----------------- ----------------
Total operating expenses 8,660 8,752
----------------- ----------------
Loss from operations (8,288) (6,194)
Net interest and other income 38 607
----------------- ----------------
Loss before tax (8,250) (5,587)
----------------- ----------------
Income tax credit / (charge) (1) -
----------------- ----------------
Loss before extraordinary item (8,251) (5,587)
----------------- ----------------
Extraordinary item
Gain on extinguishment of debt - -
Income tax charge - -
----------------- ----------------
Gain after tax - -
----------------- ----------------
Net income (loss) $(8,251) $(5,587)
================= ================
Net income (loss) per share
Loss before extraordinary item $(0.23) $(0.16)
Extraordinary item, net of taxes - -
- basic and diluted $(0.23) $(0.16)
Weighted average shares outstanding
- basic and diluted 35,112,026 34,978,322
Airspan Networks Inc
Consolidated Balance Sheets
(in thousands)
Dec. 31, March 30,
2002 2003
ASSETS
Current Assets
Cash and cash equivalents $48,167 $42,571
Restricted cash 2,146 1,569
Short term investments 5,074 3,025
Accounts receivable 14,328 14,180
Unbilled accounts receivable 152 66
Inventory 17,627 18,256
Prepaid expenses and other current assets 3,914 3,075
--------- ---------
Total Current Assets 91,408 82,742
Property, plant and equipment, net 4,137 4,096
Goodwill, net 784 784
Intangible assets, net 626 583
Long-term accounts receivable - -
Other non-current assets 906 872
--------- ---------
Total Assets $97,861 $89,077
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $7,759 $6,171
Accrued taxes 481 477
Deferred revenue 922 895
Other accrued expenses 8,099 7,726
Current portion of long-term debt 2,500 2,500
--------- ---------
Total Current Liabilities 19,761 17,769
--------- ---------
Non Current Liabilities
Other long-term debt - -
--------- ---------
Total Non Current Liabilities - -
--------- ---------
Stockholders' Equity
Common stock 10 11
Note receivable - stockholder (130) (130)
Additional paid in capital 214,727 214,735
(405) (597)
Other comprehensive income 1,562 540
Accumulated deficit (137,664) (143,251)
--------- ---------
Total Stockholders' Equity 78,100 71,308
--------- ---------
--------- ---------
Total Liabilities and
Stockholders' Equity $97,861 $89,077
========= =========
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion