CacheFlow Announces Third Quarter Fiscal 2002 Results; Net Sales of $10.9 Million; Pro Forma Net Loss of $0.29 Per Share.Business Editors/High-Tech Writers SUNNYVALE Sunnyvale, city (1990 pop. 117,229), Santa Clara co., W Calif., near San Francisco; settled 1849, inc. 1912. A city in Silicon Valley, its many manufactures include semiconductors; machinery and instruments; electrical, electronic, and aerospace products; , Calif.--(BUSINESS WIRE)--Feb. 14, 2002 CacheFlow Inc. (Nasdaq:CFLO CFLO Central Florida Lyric Opera ), today reported final results for its third quarter of fiscal year 2002 ended January January: see month. 31, 2002. Third quarter 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 were $10.9 million, and 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 quarter was $12.2 million, or a loss of $0.29 per share. In the corresponding quarter a year ago, net sales were $21.2 million, and the pro forma net loss was $18.3 million, or $0.49 per share. Actual net loss for the quarter, including deferred stock compensation, amortization of intangibles and asset impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. , was $21.0 million or $0.50 per share. In the corresponding quarter a year ago, actual net loss, including deferred stock compensation, amortization of intangibles and the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of in-process technology, was $119.2 million or $3.19 per share. The reconciliation of pro forma net loss and actual net loss is detailed in the attached 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 Statement of Operations See Income statement. . As previously announced, the company has commenced a strategic 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). to significantly reduce its 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. and more closely align align (  līn),v to move the teeth into their proper positions to conform to the line of occlusion. its organization with current market conditions, future revenue expectations and the company's planned future product direction focused on enabling organizations to improve security, control and performance of their web-based infrastructure. This restructuring will result in a 45-50 percent reduction in headcount head count or head·count n. 1. The act of counting people in a particular group. 2. The number of people counted in this way. Noun 1. from the 410 individuals employed at the end of the company's third fiscal quarter ended January 31, 2002. CacheFlow plans to incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. a restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. in the fourth quarter of fiscal 2002 primarily for severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when and other employee-related costs, asset impairment charges, and facility closure costs. The company will host a conference call to discuss final third quarter fiscal 2002 results as well as the specifics of its restructuring on February February: see month. 14, 2002 at 2:00 pm Pacific Time. Call-in call-in adj. Being in a format such that listeners or viewers are invited to have their telephone conversations with the host or guests on a show broadcast to other listeners: a call-in radio show. n. numbers for the conference call are 800-837-5479 for domestic callers and 212-676-5361 for international callers. The call will also be webcast live on the company's website at www.cacheflow.com. "The actions we are taking will enable us to resize Verb 1. resize - change the size of; make the size more appropriate size - make to a size; bring to a suitable size rescale - establish on a new scale the business to more closely address current economic conditions and to focus the company on our most significant market opportunity," said Brian NeSmith Brian NeSmith is a technology entrepreneur and CEO of Blue Coat Systems, Inc. NeSmith graduated from the Massachusetts Institute of Technology in 1984, holding a Bachelors Degree in electrical engineering. , CacheFlow President and Chief Executive Officer. "Based on our business analysis and understanding of customer needs, we believe that there is a growing market opportunity for security infrastructure products that merge content control, protection, and acceleration to enable organizations to grow their businesses over the Web." About CacheFlow Inc. CacheFlow develops and markets secure content networking appliances designed to protect, control and accelerate business communications. CacheFlow's family of optimized appliances and its innovative suite of content control technologies enable organizations to ensure web security and conduct e-business (Electronic-BUSINESS) Doing business online. The term is often used synonymously with e-commerce, but e-business is more of an umbrella term for having a presence on the Web. . Based in Sunnyvale, California Sunnyvale ([sʌniveil]) is a city in Santa Clara County, California, United States. It is one of the major cities that make up the Silicon Valley. As of the 2000 census, the city population was 131,760. , with offices and partners worldwide, CacheFlow can be contacted via telephone at 408-220-2200, fax at 408-220-2250 or email at info@cacheflow.com. CacheFlow Inc. 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. The statements contained in this press release that are not purely historical are forward-looking statements, including statements regarding the Company's strategic restructuring, future product deliveries, and future operating results as well as statements regarding CacheFlow's expectations, beliefs, intentions or strategies regarding the future. All forward-looking statements included in this press release are based upon information available to CacheFlow as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" , and CacheFlow assumes no obligation to update any such forward-looking statements. Forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from those projected. These risks include the inability to deliver planned future products, ability to meet future financial expectations and additional risks relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc CacheFlow's business as set forth in CacheFlow's most recently filed Form 10-Q Form 10-Q See 10-Q. for the quarter ended October 31, 2001, and other reports filed from time to time with the Securities and Exchange Commission. Note to Editors: CacheFlow is a registered trademark of CacheFlow Inc. in the U.S. and worldwide. All other trademarks mentioned in this document are the property of their respective owners.
CACHEFLOW INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited; in thousands, except per share amounts)
Three Months Ended Nine Months Ended
Jan 31, Jan 31,
2002 2001 2002 2001
--------- --------- --------- ---------
Net sales $ 10,893 $ 21,225 $ 44,533 $ 76,218
Cost of goods sold 5,246 7,738 19,648 27,929
--------- --------- --------- ---------
Gross profit 5,647 13,487 24,885 48,289
Operating expenses:
Research and development 9,167 7,496 27,842 17,742
Sales and marketing 6,389 22,367 23,379 53,705
General and administrative 2,214 3,425 7,391 7,991
Goodwill amortization 2,168 29,718 27,798 54,299
Acquired in-process
technology -- 32,200 -- 32,200
Restructuring -- -- 2,558 --
Impairment of assets 2,768 -- 123,756 --
Stock compensation 3,839 38,942 16,996 57,507
--------- --------- --------- ---------
Total operating expenses 26,545 134,148 229,720 223,444
--------- --------- --------- ---------
Operating loss (20,898) (120,661) (204,835) (175,155)
Interest income (expense)
and other, net (17) 1,682 1,343 5,395
--------- --------- --------- ---------
Net loss before
income taxes (20,915) (118,979) (203,492) (169,760)
Provision for
income taxes (102) (227) (347) (396)
--------- --------- --------- ---------
Net loss $ (21,017) $(119,206) $(203,839) $(170,156)
========= ========= ========= =========
Basic and diluted
net loss per
common share $ (0.50) $ (3.19) $ (4.94) $ (4.89)
========= ========= ========= =========
Shares used in
computing basic and
diluted net loss
per common share 41,907 37,311 41,235 34,778
========= ========= ========= =========
Pro forma net loss per share, excluding
certain non-cash and non-recurring items:
Net loss available to
common stockholders $ (21,017) $(119,206) $(203,839) $(170,156)
Add non-cash and
non-recurring items:
Goodwill amortization 2,168 29,718 27,798 54,299
Acquired in-process
technology -- 32,200 -- 32,200
Restructuring -- -- 2,558 --
Impairment of assets 2,768 -- 123,756 --
Stock compensation 3,839 38,942 16,996 57,507
--------- --------- --------- ---------
Pro forma net loss $ (12,242) $ (18,346) $ (32,731) $ (26,150)
========= ========= ========= =========
Pro forma basic and
diluted net loss
per common share
excluding certain
non-cash and
non-recurring items $ (0.29) $ (0.49) $ (0.79) $ (0.75)
========= ========= ========= =========
Shares used in
computing pro
forma basic and
diluted net loss
per common share 41,907 37,311 41,235 34,778
========= ========= ========= =========
CACHEFLOW INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
Jan 31, April 30,
2002 2001
--------- ---------
ASSETS
Current assets:
Cash and cash equivalents $ 11,403 $ 55,356
Short-term investments 40,391 26,208
Restricted investments -- 765
Accounts receivable, net 7,063 14,365
Inventories 3,627 7,018
Prepaid expenses and other current assets 1,885 3,240
--------- ---------
Total current assets 64,369 106,952
Property and equipment, net 10,529 12,563
Restricted investments 1,991 1,991
Goodwill, net 12,255 164,264
Other assets 1,278 1,462
--------- ---------
Total assets $ 90,422 $ 287,232
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,934 $ 6,761
Accrued payroll and related benefits 3,450 6,034
Deferred revenue 7,836 7,371
Other accrued liabilities 4,728 8,906
--------- ---------
Total current liabilities 17,948 29,072
Deferred revenue 1,598 1,409
--------- ---------
Total liabilities 19,546 30,481
Commitments
Stockholders' equity:
Common stock 4 4
Additional paid-in capital 886,819 896,773
Treasury stock (1,906) (3,994)
Notes receivable from stockholders (80) (573)
Deferred stock compensation (8,082) (33,348)
Accumulated deficit (805,929) (601,901)
Accumulated other comprehensive loss 50 (210)
--------- ---------
Total stockholders' equity 70,876 256,751
--------- ---------
Total liabilities and stockholders' equity $ 90,422 $ 287,232
========= =========
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