BreezeCOM Reports Record Second Quarter Revenues and First Profitable Quarter.Business and Technology Editors TEL AVIV Tel Aviv (tĕl əvēv`), city (1994 pop. 355,200), W central Israel, on the Mediterranean Sea. Oficially named Tel Aviv–Jaffa, it is Israel's commercial, financial, communications, and cultural center and the core of its largest , Israel Israel, in the Bible Israel (ĭz`rēəl, ĭz`rāəl) [as understood by Hebrews,=he strives with God], according to the book of Genesis, name given to Jacob as eponymous ancestor of the Hebrews, the chosen people of God. & CARLSBAD Carlsbad, cities, United States Carlsbad (kärlz`băd). 1 City (1990 pop. 63,126), San Diego co., S Calif., on the Pacific coast; settled in the 1880s, inc. 1952. , Calif.--(BUSINESS WIRE)--July 31, 2000 - $24.5 Million Revenues, 139% Year-Over-Year Increase - 57% Sequential Revenue Growth - $2.6 Million Net Income BreezeCOM Ltd. (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 : BRZE), a leading developer and manufacturer of broadband wireless See wireless broadband. access products, today announced record revenues for the second quarter ended June 30, 2000, its first profitable quarter. Revenues for the second quarter were $24.5 million, a 139 percent increase over revenues of $10.3 million reported in the second quarter of 1999, and a 57 percent increase over first quarter 2000 revenues of $15.6 million. Net 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. for the second quarter of 2000 was $807,000, compared with an 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. of $(969,000) in the same period in 1999, and a loss of $(414,000) in the first quarter of 2000. The Company reported net income of $2.6 million, or $0.08 per 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 a net loss of $(1.5 million), or $(0.14) per diluted share, in the second quarter of 1999, and a net loss of $(256,000), or $(0.01) per share, for the first quarter of 2000. Revenues for the six months ended June 30, 2000 were $40.1 million, a 91 percent increase over revenues of $20.9 million for the same period in 1999. Net operating income for the first six months was $393,000, compared with a net operating loss of $(1.4 million) in the 1999 first six months. Net income for the first six months of 2000 was $2.3 million, or $0.08 per diluted common share, compared with a net loss of $(2.3 million), or $(0.21) per diluted share, in the same period last year. "We are proud to announce our record results for the second quarter of 2000, our first profitable quarter," said Zvi Slonimski, 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. of BreezeCOM. "These excellent results are primarily attributable to the exceptional acceptance of our products by ISPs and CLECs, which now represent approximately 70 percent of our sales. Our substantial growth has been in the US ISP (1) See in-system programmable. (2) (Internet Service Provider) An organization that provides access to the Internet. Connection to the user is provided via dial-up, ISDN, cable, DSL and T1/T3 lines. market, where we continue to gain market share. On account of our BreezeACCESS licensed band products, we have accomplished major new accounts worldwide." "We believe that our technology, the wide array of products we offer, both in the licensed and the unlicensed frequency bands, and our financial strength" concluded Mr. Slonimski, "have made us one of the leading companies in the broadband wireless access market." About BreezeCOM BreezeCOM is a leading developer and manufacturer of broadband wireless access products and wireless LANs A local area network that transmits over the air typically in the 2.4 GHz or 5 GHz unlicensed frequency band. It does not require line of sight between sender and receiver. Wireless base stations (access points) are wired to an Ethernet network and transmit a radio frequency over an area , targeted to public operators, ISPs and private enterprises. BreezeCOM products employ broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). , narrowband In communications, transmission rates up to T1 speeds (1.544 Mbps). The upper limit is moving target. At one time, narrowband meant 150 bps (that is 150 bits per second!). Then, the upper limit became 2,400 bps. Later, it moved to 64 Kbps. Contrast with wideband and broadband. and spread spectrum radios, 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 (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 ) modems and point-to-multipoint wireless packet switching A network technology that breaks up a message into small packets for transmission. Unlike circuit switching, which requires the establishment of a dedicated point-to-point connection, each packet in a packet-switched network contains a destination address. technologies optimized for high-speed Internet See broadband. access. For more information on BreezeCOM, visit www.breezecom.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. that are subject to risks and uncertainties. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, general business conditions in the industry, changes in demand for products, the timing and cancellation of orders and other risks detailed from time to time in BreezeCOM's filing with the Securities and Exchange Commission, including BreezeCOM's Form F-1. This release and prior releases are available on the KCSA KCSA Krannert Center Student Association KCSA Kentucky Crushed Stone Association (Frankfort, KY) KCSA Kyiv City State Administration KCSA Kalamazoo Christian School Association KCSA Kentucky-Canadian Studies Association Public Relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most Worldwide website at www.kcsa.com. BreezeACCESS is a trademark of BreezeCOM. All other names are the property of their respective owners.
BREEZECOM LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
June 30, December 31,
2000 1999
----------- -----------
(Unaudited) (Audited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 39,891 $ 4,795
Short-term deposits 66,065 4,059
Marketable securities 2,597 6,143
Trade receivables 8,168 7,035
Other accounts receivable
and prepaid expenses 4,669 2,580
Inventory 19,110 8,685
------- -------
Total current assets 140,500 33,297
------- -------
Long Term Investments 11,156 -
Severance pay fund 994 725
PROPERTY AND EQUIPMENT, NET 4,202 2,598
Total assets $ 156,852 $ 36,620
======= =======
LIABILITIES AND
SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Trade payables $ 12,033 $ 6,458
Other accounts payable
and accrued expenses 10,033 4,421
------- -------
Total current liabilities 22,066 10,879
------- -------
ACCRUED SEVERANCE PAY 2,376 1,842
SHAREHOLDERS' EQUITY:
Share capital -
Preferred B Shares of NIS 0.01 par
value: Authorized 2,500,000 shares; - 6
Issued and outstanding: 2,424,242
shares as of December 31,1999;
Preferred A Shares of NIS 0.01 par
value: Authorized 1,000,000 shares;
Issued and outstanding: 947,930
shares as of December 31,1999; - 2
Ordinary shares of NIS 0.01 par value:
Authorized: 85,080,000 shares as of
June 30,2000 and December 31, 1999;
Issued and outstanding: 25,321,264
shares as of June 30,2000 and
11,720,872 as of December 31, 1999 71 38
Additional paid-in capital 145,607 39,472
Deferred compensation (8) (18)
Accumulated deficit (13,260) (15,601)
Total shareholders' equity 132,410 23,899
------- -------
Total liabilities
and shareholders' equity $ 156,852 $ 36,620
========== =========
BREEZECOM LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands (except per share data)
Three Months Six Months
ended June 30, ended June 30,
1999 2000 1999 2000
------- ------- ------- -------
(Unaudited) (Unaudited)(Unaudited)(Unaudited)
Sales $ 10,274 $ 24,504 $ 20,962 $ 40,095
Cost of sales 5,437 13,086 11,173 21,341
Gross profit 4,837 11,418 9,789 18,754
Operating expenses:
Research and development, net 1,726 3,082 3,326 5,339
Selling and marketing, net 3,560 6,493 6,781 11,163
General and administrative 520 1,036 1,111 1,859
Total operating expenses 5,806 10,611 11,218 18,361
Operating Income (loss) (969) 807 (1,429) 393
Financial income
(expenses), net (90) 1,790 (434) 1,948
Other expenses (470) - (470) -
Net Income (loss)
for the period $ (1,529) $ 2,597 $ (2,333) $ 2,341
======== ======== ======== ========
Basic Earning
(loss) per share $ (0.14) $ 0.10 $ (0.21) $ 0.10
======== ======== ======== ========
Weighted average number
of shares used in
computing basic earnings
(loss) per share 11,199 25,250 11,199 22,353
======== ======== ======== ========
Diluted Earnings per share $ - $ 0.08 $ - $ 0.08
======== ======== ======== ========
Weighted average number of
shares used in computing
diluted earnings per share - 31,925 - 28,814
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