BBN announces first quarter, 1996 results.Beranek and Newman Inc., NYSE NYSE See: New York Stock Exchange :BBN (BBN Technologies, Cambridge, MA, www.bbn.com) A consulting firm that participated in the development of some of the most extensive networks in the world, including ARPANET, which evolved into the Internet. It was founded in 1948 as a consulting service in acoustics by Dr. ) today reported revenue of $61,126,000 for the first quarter ended September 30, 1995, an 18 percent increase over the $51,743,000 for the same quarter in fiscal year 1995. The increase primarily reflects higher revenue in the company's internetworking-related businesses. BBN reported a net loss of $8,651,000, or $.49 per share for the first quarter, compared to a net loss of $1,808,000, or $.11 per share, for the same period a year ago. On September 30, 1995, BBN's cash and short-term investments balance was $98,464,000. The net loss primarily reflects continued significant investments in the company's internetworking-related activities. In addition, BBN Domain Corporation, the company's data analysis software subsidiary, reported losses due to lower than expected software sales, as well as costs associated with refocusing Noun 1. refocusing - focusing again focalisation, focalization, focusing - the act of bringing into focus of its business. BBN 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. George H. Conrades said, "The Internet market, our primary opportunity, continues to expand at a dramatic rate, and we are continuing our investment and increasing our focus 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>. that opportunity. As a result of our substantial investment in internetworking, we expect to report a significant 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 fiscal year. We continue to believe that our internetworking investments are essential in order to achieve our goal of significant revenue growth and long-term shareholder value." BBN's managed Internet services subsidiary, BBN Planet Corporation, had first quarter revenue of $7,405,000 and an operating loss of $7,239,000, compared to revenue of $2,022,000 and an operating loss of $943,000 for the same quarter a year ago. BBN Planet President and CEO Paul R. Gudonis said, "We achieved significant growth in new orders during the quarter, as customers such as LL Bean, The Boston Globe and Fleet Bank selected BBN Planet to help them use the Internet for business. On September 1, our key strategic partner, AT&T, launched its nationwide offering of the WorldNet(SM) Managed Internet Service, which is based on BBN Planet's managed connectivity service. We believe our partnership with AT&T gives us substantial competitive advantages, including access to AT&T's extensive customer base, distribution through its large sales force, utilization of AT&T's network infrastructure, and the benefits of being associated with the highest quality telecommunications service provider A Telecommunications Service Provider or TSP is a type of Communications Service Provider that has traditionally provided telephone and similar services. This category includes ILECs, CLECs, and mobile wireless companies. in the industry." BBN made progress in other internetworking-related activities as well. Recent important contracts awarded to the BBN Systems and Technologies Division included the following: o As a teammate to TRW TRW The Real World (TV reality show) TRW The Right Way TRW Tactical Reconnaissance Wing TRW The Retriever Weekly (University of Maryland, Baltimore, MD) TRW Thompson Ramo Wooldridge Inc , BBN is expected to perform approximately 20 percent of the work on a $425 million, 10-year contract awarded to TRW by the U.S. Treasury U.S. Treasury Created in 1798, the United States Department of the Treasury is the government (Cabinet) department responsible for issuing all Treasury bonds, notes and bills. Some of the government branches operating under the U.S. Treasury umbrella include the IRS, U.S. for the design, construction and operation of a nationwide telecommunications network A telecommunications network is a of telecommunications links and nodes arranged so that messages may be passed from one part of the network to another over multiple links and through various nodes. . o A two year, $5 million contract by the Department of Defense's Advanced Research Projects Agency (ARPA ARPA - Defense Advanced Research Projects Agency ) to develop an ultra high-speed Internet See broadband. Protocol router router Portable electric power tool used in carpentry and furniture making that consists of an electric motor, a base, two handle knobs, and bits (cutting tools). A router can cut fancy edges for shelving, grooves for storm windows and weather stripping, circles and ovals that will enable breakthrough levels of traffic to be routed among wide-area and local-area networks. Upon development, this multi-gigabit router is expected to have a data transfer rate 25 times faster than currently available commercial routers. o A technology licensing and development agreement with a major international manufacturer relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc BBN's T/10 network access device and the recently announced T/40 video router Video Routers are used for transporting video signals from inputs to outputs. Inputs and Outputs The number of inputs and outputs varies dramatically. The way routers are described is normally number of inputs by number of outputs e.g. 2x1, 256x256. . During the quarter, revenue for the BBN Systems and Technologies Division increased modestly and operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. was favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impacted by the technology licensing agreement. BBN's speech recognition business increased over last year, as BBN intensified in·ten·si·fy v. in·ten·si·fied, in·ten·si·fy·ing, in·ten·si·fies v.tr. 1. To make intense or more intense: its focus on networked speech recognition applications, primarily for call centers. BBN Hark hark intr.v. harked, hark·ing, harks To listen attentively. Idiom: hark back To return to a previous point, as in a narrative. also continued to develop new channel partners, such as Inference (logic) inference - The logical process by which new facts are derived from known facts by the application of inference rules. See also symbolic inference, type inference. Corporation, which announced with BBN this week a joint marketing and development agreement to automate To turn a set of manual steps into an operation that goes by itself. See automation. customer service using speech recognition. Separately, Julie Donahue, CEO of BBN Hark, has announced her resignation from BBN, effective immediately. The company has initiated a search for a successor. In the interim, Mr. Conrades will be acting CEO for the subsidiary. BBN Domain had first-quarter revenue of $10,945,000, and an operating loss of $4,960,000, compared to revenue of $8,047,000 and an operating loss of $316,000 for the same quarter a year ago. Sales of the subsidiary's data analysis software, RS/1(R) and Cornerstone cornerstone Ceremonial building block, dated or otherwise inscribed, usually placed in an outer wall of a building to commemorate its dedication. Often the stone is hollowed out to contain newspapers, photographs, or other documents reflecting current customs, with a view to (TM) were below expectations. BBN Domain is focusing its business on networked process optimization Process optimization is the practice of making changes or adjustments to a process, to get results. Optimization is the use of specific techniques to determine the most cost effective and efficient solution to a problem or design for a process. solutions for pharmaceutical and manufacturing companies. In connection with this effort, BBN Domain recorded a charge to operations of $1,700,000. Several major pharmaceutical companies have chosen BBN's clinical research software to help implement speed-to-market initiatives for new medicines. Eli Lilly and Company Eli Lilly and Company (NYSE: LLY) is a global pharmaceutical company and one of the world's largest corporations. Eli Lilly's global headquarters is located in Indianapolis, Indiana, in the United States. and Ciba Geigy Limited are each participating in Collaborative Rapid Application Development projects with BBN Domain. The subsidiary also has signed its first development partnership agreement to deliver process optimization networked applications for manufacturing. OSRAM, a leading manufacturer of lighting products, is the first partner to work with BBN Domain's emerging process optimization technology. Headquartered in Cambridge, Massachusetts This article is about the city of Cambridge in Massachusetts. For the English university town, see Cambridge, England. For other places, see Cambridge (disambiguation). Cambridge, Massachusetts is a city in the Greater Boston area of Massachusetts, United States. , BBN is a provider of internetworking-related technologies, data analysis software and collaborative systems. For its fiscal year ended June 30, 1995, BBN had revenue of $215 million. To access BBN's World Wide Web site: http://www.bbn.com. -0-
BOLT BERANEK AND NEWMAN INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended
September 30
Dollars in thousands, except per-share data 1995 1994
Revenue:
Services $51,568 $44,376
Products 9,558 7,367
61,126 51,743
Costs and expenses:
Cost of services 37,339 28,563
Cost of products 3,279 2,599
Research and development expenses 5,660 5,888
Selling, general and administrative expenses 25,922 16,185
72,200 53,235
Loss from operations (11,074) (1,492)
Interest income 1,585 617 Interest expense (1,134) (1,126) Minority interests (69) 296 Other income (expense), net (9) (3) Loss before income taxes (10,701) (1,708) Provision (benefit) for income taxes (2,050) 100 Net loss $(8,651) $ (1,808) Net loss per share $ (.49) (.11) Shares used in per-share calculations 17,518,000 16,614,000 Note to the Consolidated Statements of Operations: (1) Results for the three months ended September 30, 1994 included revenue of $4.1 million and an operating loss of $1.5 million at LightStream Corporation. LightStream Corporation, an 80%-owned subsidiary of the Company, sold substantially all of its assets to Cisco Systems, Inc.on January 11, 1995. -0-
BOLT BERANEK AND NEWMAN INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
The following is a summary of business segments information for the three months ended September 30, 1995 and 1994. All data are shown net of intersegment transactions:
Three Months Ended
September 30
Dollars in thousands 1995 1994
Revenue:
Internetworking $ 27,793 $ 23,781
Data analysis software 10,945 8,047
Collaborative systems and
acoustic technologies 22,388 19,915
$ 61,126 $ 51,743
Income (loss) from operations:
Internetworking $ (5,783) $ (838)
Data analysis software (4,960) (316)
Collaborative systems and
acoustic technologies (88) 279
Unallocated corporate expenses (243) (617)
$(11,074) $( 1,492)
-0-
BOLT BERANEK AND NEWMAN INC.
CONSOLIDATED BALANCE SHEETS
September 30 June 30
Dollars in thousands 1995 1995
(unaudited)
Assets:
Cash and cash equivalents $ 61,453 $110,792
(includes restricted cash
of $8,419 at September 30,
1995 and $12,134 at June 30, 1995)
Short-term investments 37,011 --
Accounts receivable, net 57,864 53,933
Other current assets 8,422 3,606
Total current assets 164,750 168,331
Property, net 33,072 30,075
Goodwill, net 17,459 17,927
Other assets 2,718 3,133
$217,999 $219,466
Liabilities and Shareholders' Equity:
Payables and other liabilities $ 39,093 $33,803
Accrued restructuring 8,840 9,216
Deferred revenue 15,491 16,914
Total current liabilities 63,424 59,933
6% convertible subordinated
debentures due 2012 73,484 73,510
Minority interests 1,341 3,471
Redeemable convertible preferred stock 8,000 --
Shareholders' equity,
net of treasury stock 71,750 82,552
$217,999 $219,466
CONTACT: Bolt Beranek and Newman Peter W. Thonis, (617) 873-3512 Internet: pthonis@bbn.com |
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