Blue Wave Systems Inc. Reports Third Quarter/Nine Months Results.DALLAS--(BUSINESS WIRE)--April 30, 1999-- $3 Million in New ComStruct(TM) Orders Result in Record 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. of Customer Orders Blue Wave Systems Inc. (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 , NMS See NetWare Management System. : BWSI), the leading board-level DSP (1) (Digital Signal Processor) A special-purpose CPU used for digital signal processing applications (see definition #2 below). It provides ultra-fast instruction sequences, such as shift and add, and multiply and add, which are commonly used in math-intensive solutions provider, today announced net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for its third fiscal quarter ended March 31, 1999 were $6,700,000, as compared with $8,004,000 for the comparable period last year. Revenues during the company's third quarter of fiscal 1999 were negatively impacted by subcontractor One who takes a portion of a contract from the principal contractor or from another subcontractor. When an individual or a company is involved in a large-scale project, a contractor is often hired to see that the work is done. delays on $1.3 million of initial product deliveries into two military/aerospace programs. The fulfillment ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. of these orders is expected to commence in the June June: see month. quarter. The company reported a net loss for the third quarter of $(456,000), or $(.03) per share, as compared with a net loss applicable to common stock of $(511,000), or $(.05) per common share, during the comparable period last year. For the nine months ended March 31, 1999, the company reported net sales of $21,303,000, compared with $25,661,000 during the comparable period last year. The net loss for the nine months ended March 31, 1999 was $(1,197,000), or $(.09) per share, as compared with a net loss applicable to common stock of $(1,235,000), or $(.12) per share during the comparable period last year. The backlog of customer orders was $16,100,000 at March 31, 1999, a record for the company, as compared with $11,298,000 at June 30, 1998. "Although we experienced product delivery delays, we otherwise had an excellent quarter in terms of bookings, margin, and expense control," commented Charles Charles, archduke of Austria Charles, 1771–1847, archduke of Austria; brother of Holy Roman Emperor Francis II. Despite his epilepsy, he was the ablest Austrian commander in the French Revolutionary and Napoleonic wars; however, he was handicapped by D. Brockenbush, chief financial officer. "We have taken the necessary actions to correct the supplier issues and we now expect to begin deliveries in the June quarter. Looking forward, our record backlog, continued strong gross margins, and significantly reduced expense base, position Blue Wave to report significantly improved results during fiscal 2000." "Our products continue to demonstrate considerable value in a variety of communications applications," commented Rob Shaddock shaddock: see grapefruit. , executive vice president. "In addition to approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $3 million in commercial market orders for ComStruct, we also won an additional $4 million in new orders in the quarter for communications applications in the mil/aero marketplace. We believe this is the most rapidly growing segment of the mil/aero market for dense DSP-based subsystems. "One of the pillars of our communications processing strategy is to offer our customers solutions that allow them to rapidly deploy their products and remove much of the technical burden associated with high-density high-den·si·ty adj. Having a high concentration: high-density urban areas. systems," continued Shaddock. "We can now leverage Blue Wave's ComStruct offering with alliances that we have established with complementary businesses such as Motorola's Computer Group, and a range of third party telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. vendors to provide customers with a highly integrated telecommunications subsystem A unit or device that is part of a larger system. For example, a disk subsystem is a part of a computer system. A bus is a part of the computer. A subsystem usually refers to hardware, but it may be used to describe software. . Leveraging and expanding our alliance base will continue to be key elements of our strategy moving forward." Blue Wave's DSP-based Solutions Blue Wave Systems (NASDAQ, NMS: BWSI) is the world's leading supplier of board-level DSP solutions and provides digital signal processing See DSP. Digital Signal Processing - (DSP) Computer manipulation of analog signals (commonly sound or image) which have been converted to digital form (sampled). (DSP) boards and subsystems to more than one-half of the world's top 40 industrial companies. Blue Wave Systems is principally involved in the development and sale of embedded Inserted into. See embedded system. DSP computers for a variety of industries. The company resulted from the merger of Mizar Mi·zar n. The double star in the middle of the handle of the Big Dipper. [Arabic mi'zar, cloak, Mizar, from 'azara, to surround; see , Inc. and Loughborough Loughborough (lŭf`bərə), town (1991 pop. 44,895), Leicestershire, central England, on the Soar River. It is a market town with engineering works. Manufactures include hosiery, shoes, pharmaceuticals, boilers, and pottery. Sound Images Ltd. in April 1998.
BLUE WAVE SYSTEMS INC.
Consolidated Statements of Operations
(unaudited)
For the Three For the Nine
Months Ended Months Ended
3/31/99 3/31/98 3/31/99 3/31/98
Net sales $6,700,000 $8,004,000 $21,303,000 $25,661,000
Cost of sales 3,028,000 3,628,000 9,756,000 11,389,000
---------- ---------- ----------- -----------
Gross margin 3,672,000 4,376,000 11,547,000 14,272,000
Operating expenses:
Product development
and engineering 1,328,000 1,918,000 4,184,000 5,543,000
Sales and marketing 1,944,000 1,883,000 6,071,000 5,942,000
General and
administrative 833,000 886,000 2,418,000 3,153,000
------- ------- --------- ---------
Total operating
expenses 4,105,000 4,687,000 12,673,000 14,638,000
Operating income (loss) (433,000) (311,000) (1,126,000) (366,000)
Other income (expense):
Interest income 9,000 135,000 77,000 427,000
Interest expense (41,000) (45,000) (163,000) (75,000)
Other income 18,000 61,000 59,000 131,000
------ ------ ------ -------
Total other income (14,000) 151,000 (27,000) 483,000
Income (loss) from
continuing operations
before provision
(benefit) for
income taxes (447,000) (160,000) (1,153,000) 117,000
Provision (benefit)
for income taxes 9,000 (113,000) 44,000 (154,000)
----- ------- ------ -------
Income (loss)
from continuing
operations (456,000) (47,000) (1,197,000) 271,000
Loss from discontinued
operations (first
quarter of fiscal 1998),
net of tax benefit
of $62,000 ----- ----- ----- (137,000)
----- ----- ----- -------
Net income (loss) (456,000) (47,000) (1,197,000) 134,000
Preference share dividends,
accretion and amortization
of issuance costs of
preference shares ----- (464,000) ----- (1,369,000)
----- ------- ----- ---------
Net income (loss)
applicable to
common stock ($456,000) ($511,000) ($1,197,000) ($1,235,000)
========= ========= =========== ===========
Basic net income
(loss) per share:
Continuing
operations ($.03) ($.05) ($.09) ($.11)
Discontinued
operations ----- ----- ----- ($.01)
----- ----- ----- ----
($.03) ($.05) ($.09) ($.12)
==== ==== ==== ====
Diluted net income
(loss) per share:
Continuing
operations ($.03) ($.05) ($.09) ($.11)
Discontinued
operations ----- ----- ----- ($.01)
----- ----- ----- ----
($.03) ($.05) ($.09) ($.12)
==== ==== ==== ====
Weighted average common
shares outstanding:
Basic 13,120,000 11,075,000 13,053,000 10,674,000
Diluted 13,120,000 11,075,000 13,053,000 10,674,000
BLUE WAVE SYSTEMS INC.
Consolidated Balance Sheets
ASSETS
3/31/99 6/30/98
(unaudited)
Current assets:
Cash and cash equivalents $1,136,000 $1,060,000
Restricted cash 807,000 835,000
Marketable securities, at fair value ----- 3,062,000
Accounts receivable, net of
allowances of $184,000 and
$336,000, respectively 6,196,000 4,975,000
Inventories, net 3,890,000 4,156,000
Prepaid expenses and other 609,000 612,000
Deferred tax asset 903,000 903,000
------- -------
Total current assets 13,541,000 15,603,000
---------- ----------
Plant and equipment:
Machinery and equipment 6,842,000 7,320,000
Furniture and fixtures 3,409,000 2,876,000
--------- ---------
10,251,000 10,196,000
Less accumulated depreciation (6,665,000) (5,838,000)
Plant and equipment, net 3,586,000 4,358,000
--------- ---------
Deferred tax asset - noncurrent 469,000 478,000
Other assets 87,000 105,000
------ -------
Total assets $17,683,000 $20,544,000
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
3/31/99 6/30/98
Current liabilities:
Accounts payable $4,178,000 $2,402,000
Accrued compensation 147,000 706,000
Other current liabilities 1,888,000 3,625,000
Line of credit 1,411,000 2,302,000
--------- ---------
Total current liabilities 7,624,000 9,035,000
--------- ---------
Deferred income taxes 841,000 870,000
Noncurrent liabilities -- other 223,000 366,000
Long-term debt 807,000 835,000
------- -------
Total liabilities 9,495,000 11,106,000
--------- ----------
Stockholders' equity:
Common stock 136,000 135,000
Additional paid-in capital 23,103,000 22,973,000
Net unrealized gain on
marketable securities ----- -----
Retained earnings (13,405,000) (12,208,000)
Cumulative translation adjustment (245,000) (61,000)
---------- --------
9,589,000 10,839,000
Less - treasury stock, at cost (1,401,000) (1,401,000)
---------- -----------
Total stockholders' equity 8,188,000 9,438,000
---------- ---------
Total liabilities and
stockholders' equity $17,683,000 $20,544,000
=========== ===========
-0- 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. which are based on expectations of the Company but involve a number of risks and uncertainties, including, but not limited to, technological change, quarterly fluctuations, integration of Mizar and Loughborough Sound Images, dependence on the defense industry, dependence on key suppliers and employees, competition, and Year 2000 compliance. The foregoing list should not be construed as exhaustive and the Company disclaims any obligation subsequently to revise forward-looking statements to reflect unanticipated events. For a further explanation of risk factors please see the Company's most recent SEC filings. The Company further cautions users who may utilize published bookings and backlog information as tools to forecast the company's revenue during a given timeframe since certain purchase orders may be subject to 1) cancellation cancellation (See: cancel) CANCELLATION. Its general acceptation, is the act of crossing a writing; it is used sometimes to signify the manual operation of tearing or destroying the instrument itself. Hyde v. Hyde, 1 Eq. Cas. Abr. 409; Rob. and, 2) revision (programming) revision - A release of a piece of software which is not a major release or a bugfix, but only introduces small changes or new features. to delivery schedules. The comparative historical reported results give retroactive Having reference to things that happened in the past, prior to the occurrence of the act in question. A retroactive or retrospective law is one that takes away or impairs vested rights acquired under existing laws, creates new obligations, imposes new duties, or attaches a effect to the merger with Loughborough Sound Images Ltd. ("LSI LSI: see integrated circuit. (Large Scale Integration) Between 3,000 and 100,000 transistors on a chip. See SSI, MSI, VLSI and ULSI. ") which occurred on April 27, 1998. The merger was accounted for as a pooling of interests Pooling of Interests An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together. Notes: The opposite of pooling of interests is the purchase acquisition method. . |
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