ArrowPoint Communications Reports Q1'00 Financial Results; Q1'00 Revenue increased 58% from Q4'99, 1196% over Q1'99.Business/Technology Editors ACTON Acton, town (1990 pop. 17,872), Middlesex co., E Mass., NW of Boston; settled c.1680, inc. 1735. Among its manufactures are electrical machinery, chemicals, prefabricated houses, and precision equipment. , Mass.--(BUSINESS WIRE)--April 24, 2000 ArrowPoint Communications (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ARPT ARPT Airport ARPT Ateneo Rifle Pistol Team ARPT Adaptive Research Planning Teams ARPT Adenine Phosphoribosyltransferase ARPT Access Region Prediction Table ), a leading provider of Web switches and Web network services software to optimize optimize - optimisation e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. and 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 content delivery, today reported first quarter results for the period ended March 31, 2000. Revenue for the first quarter ended March 31, 2000 was $9.5 million, compared with $6.0 million in the fourth quarter 1999 and $737,000 in the first quarter 1999, an increase of 58% and 1196%, respectively. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net loss for the first quarter ended March 31, 2000, which excludes a stock-based compensation charge of $2.8 million and does not include the value of the beneficial conversion feature of Series E 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". of $6.5 million, was $4.7 million, or $(0.19) per pro forma 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 with pro forma net loss of $3.1 million, exclusive of $1.6 million of stock-based compensation, or $(0.13) per pro forma basic and diluted share in the fourth quarter 1999. Net loss available to common stockholders, including the above-mentioned A`bove´-men`tioned a. 1. Mentioned or named before; aforesaid; mentioned or named earlier in the same text (in written documents). Adj. 1. stock-based compensation charge and the value of the beneficial conversion feature, was $14.0 million, or $(0.56) per pro forma basic and diluted share in the first quarter 2000, compared with $4.7 million or $(0.20) per pro forma basic and diluted share in the fourth quarter 1999. All per share amounts discussed above are computed on a pro forma basis which assumes the conversion of all convertible preferred stock into 21,003,996 shares of common stock as if such conversion occurred at the date of original issuance. ArrowPoint successfully completed an initial public offering of 5,750,000 shares of common stock on April 5, 2000, including 750,000 shares sold as the result of the underwriters' exercise of the over allotment A portion, share, or division. The proportionate distribution of shares of stock in a corporation. The partition and distribution of land. ALLOTMENT. Distribution by lot; partition. Merl. Rep. h.t. option. 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 the Company from the offering were approximately $180 million, which will be reflected in the Company's second quarter balance sheet. All outstanding shares of ArrowPoint preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. converted into 21,003,996 shares of common stock on that date. "We are very pleased with our first quarter performance, which was highlighted by our strong sales growth and followed by the successful completion of our initial public offering in early April and the recent expansion of our product line with the introduction of two new Web switches," said Louis Volpe, ArrowPoint's President and COO (Cell Of Origin) See mobile positioning. . "During the quarter we made excellent progress in implementing a key element of our growth strategy as we broadened our customer base, invested in the significant expansion of our sales force and extended our geographical reach. Our new CS-50 and CS-150 Web Switches are available immediately, offer an entry-level system, deliver improved price performance and further extend our technological leadership. As a result of these achievements, ArrowPoint is even better positioned to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the tremendous opportunity afforded to us in the rapidly growing Web switching Using a Web switch to route Web traffic to the server that can process it most efficiently. See Web switch. market." About ArrowPoint Communications ArrowPoint provides Content Smart(TM) Web Switches and WebNS(TM) software that optimize e-commerce and content delivery. Powered with patented "content switching" technology, ArrowPoint solutions are used by e-commerce, content distribution and Web hosting Making a Web site available on the Internet. Many ISPs host a few personal Web pages for an individual at no additional cost above the monthly service fee, but the address is subordinate to the ISP; for example, www.friendlyisp.com/pat_smith. industry leaders to deliver reliable transactions and prioritized services to their customers. The company is headquartered in Acton, Mass., with worldwide operations throughout North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , Europe, Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. and the Pacific Rim Pacific Rim, term used to describe the nations bordering the Pacific Ocean and the island countries situated in it. In the post–World War II era, the Pacific Rim has become an increasingly important and interconnected economic region. . For more information, call 978.206.3000 or visit the company Web site at www.arrowpoint.com. Statements in this press release concerning ArrowPoint's future prospects constitute 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. . Actual events or results may differ materially from those indicated by such forward-looking statements. In evaluating those statements, you should consider the risks and uncertainties associated with market acceptance of the Company's products, quarterly fluctuations in operating results attributable to the timing and amount of orders for the Company's products and services, the Company's ability to keep pace with changing product requirements and factors affecting the demand for its products and services, and other factors set forth in the Company's most recent Registration Statement on Form S-1 filed with the Securities and Exchange Commission. ArrowPoint cannot guarantee that the expectations reflected in those forward-looking statements will occur. Moreover, ArrowPoint assumes no responsibility for updating any of those forward-looking statements. The Company's pro forma condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. consolidated statements of operations, condensed consolidated statements of operations, and condensed consolidated balance sheets consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. are attached.
ArrowPoint Communications
Pro Forma Condensed Consolidated Statements of Operations (i)
(unaudited, in thousands, except per share data)
Three Months Ended
March 31, December 31, March 31,
2000 1999 1999
(Q1 '00) (Q4 '99) (Q1 '99)
Revenue $ 9,547 $ 6,025 $ 737
Cost of revenue 3,553 2,405 501
Gross Margin 5,994 3,620 236
Operating Expenses:
Sales and marketing 7,735 4,248 1,298
Research and development 2,308 1,962 1,342
General and administrative 934 630 350
Total operating expenses 10,977 6,840 2,990
Loss from operations (4,983) (3,220) (2,754)
Interest income, net 238 103 100
Net loss $ (4,745)$ (3,117)$ (2,654)
Net loss per share:
Basic and diluted $ (1.13)$ (0.84)$ (1.03)
Pro forma basic and diluted$ (0.19)$ (0.13)$ (0.13)
Shares used in computing
net loss per share:
Basic and diluted 4,189,643 3,723,724 2,588,111
Pro forma basic and
diluted (ii) 25,193,639 23,283,524 20,474,975
(i) This statement excludes the impact of stock-based compensation
and the value of the beneficial conversion feature of Series E
convertible preferred stock.
(ii) Pro forma basic and diluted shares outstanding include common
shares issuable upon the conversion of convertible preferred stock
using the if-converted method from the original date of issuance, and
excludes common stock equivalents related to outstanding stock
options, as their effect would be anti-dilutive.
ArrowPoint Communications
Condensed Consolidated Statements of Operations
(unaudited, in thousands, except per share data)
Three Months Ended
March 31, December 31, March 31,
2000 1999 1999
(Q1 '00) (Q4 '99) (Q1 '99)
Revenue $ 9,547 $ 6,025 $ 737
Cost of revenue 3,553 2,405 501
Gross Margin 5,994 3,620 236
Operating Expenses:
Sales and marketing 7,735 4,248 1,298
Research and development 2,308 1,962 1,342
General and administrative 934 630 350
Stock-based compensation 2,758 1,619 104
Total operating expenses 13,735 8,459 3,094
Loss from operations (7,741) (4,839) (2,858)
Interest income, net 238 103 100
Net loss $ (7,503)$ (4,736)$ (2,758)
Beneficial conversion
feature of Series E convertible
preferred stock (6,480) -- --
Net loss available to common
stockholders $ (13,983)$ (4,736)$ (2,758)
Net loss per share:
Basic and diluted $ (3.34)$ (1.27)$ (1.07)
Pro forma basic
and diluted $ (0.56)$ (0.20)$ (0.13)
Shares used in computing net
loss per share:
Basic and diluted 4,189,643 3,723,724 2,588,111
Pro forma basic and
diluted (i) 25,193,639 23,283,524 20,474,975
(i) Pro forma basic and diluted shares outstanding include common
shares issuable upon the conversion of convertible preferred stock
using the if-converted method from the original date of issuance, and
excludes common stock equivalents related to outstanding stock
options, as their effect would be anti-dilutive.
ArrowPoint Communications
Condensed Consolidated Balance Sheets
(in thousands)
March 31, December 31,
2000 1999
(unaudited)
Cash and cash equivalents $ 14,571 $ 10,731
Accounts receivable, net 7,999 4,745
Inventory 3,745 2,864
Prepaid expenses 521 541
Total current assets 26,836 18,881
Property and equipment, net 5,615 4,134
Other assets 652 191
Total assets $ 33,103 $ 23,206
Current liabilities $ 9,239 $ 8,530
Redeemable convertible preferred stock 34,534 34,534
Total stockholders deficit (10,670) (19,858)
$ 33,103 $ 23,206
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion