CallWave Announces Financial Results for Fourth Quarter and Year End of Fiscal 2006.SANTA BARBARA Santa Barbara (săn'tə bär`brə, –bərə), city (1990 pop. 85,571), seat of Santa Barbara co., S Calif., on the Pacific Ocean; inc. 1850. , Calif. -- CallWave CallWave, Inc. develops modernized voicemail services. Company Information CallWave’s service offerings include Visual Voicemail for email, Visual Voicemail widgets and Visual Fax-to-Email. , Inc. (Nasdaq:CALL), a leading provider of On-Demand On-Demand refers to a service or feature which addresses the user's need for instant gratification and immediacy of use. In most cases the value proposition for an on-demand service is wrapped up in the fact that the user or consumer of the service avoids a significant up-front communications services to service providers and consumers, today reported financial results for the fourth quarter and fiscal year ended June June: see month. 30, 2006. Total revenue for the fourth quarter of 2006 was $7.7 million compared to $11.6 million reported in the fourth quarter of 2005, primarily due to the expected churn churn: see butter. in the dial-up Refers to using the regular "dial-up" telephone network to send data from a computer to a remote network or to a remote device. The computer's digital data are converted to analog signals in the same frequency range as human voice by a modem. subscriber subscriber, n the person, usually the employee, who represents the family unit in relation to the prepayment plan. Other family members are dependents. Also called certificate holders or enrollees. base. Net loss for the fourth quarter 2006 was $1.1 million, or $(0.05) per share, compared to a net income of $2.1 million, or $0.10 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 reported in the fourth quarter of 2005. Total revenue for fiscal year 2006, was $36.6 million compared to $45.5 million reported in fiscal year 2005. Net loss for fiscal year 2006 was $2.0 million, compared to net income of $11.6 million in the previous year. CallWave ended fiscal year 2006 with $61 million in cash, cash equivalents, and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has compared with $57.2 million in the prior year. In 2006 CallWave recorded a tax provision of $3.1 million compared to a tax benefit of $2.1 million in 2005. Dave Hofstatter, 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 CallWave, said, "2006 was an important time for CallWave, highlighted by positive cash flow even as we invested in new convergence convergence Mathematical property of infinite series, integrals on unbounded regions, and certain sequences of numbers. An infinite series is convergent if the sum of its terms is finite. opportunities. We are encouraged by the growing convergence of fixed, mobile and internet communications. Our strategy and technology are well aligned with that trend, and we are seeing early market acceptance of our On-Demand technology as a scalable, more flexible deployment Installing, setting up, testing and running. This military term, which means the placement of troops and equipment in the field, is widely used with computers as an alternate to the word "implementation. option." Conference Call Details The CallWave Fourth Quarter 2006 teleconference and Webcast is scheduled to begin at 5:00 p.m. Eastern Time, on Thursday Thursday: see week. , August 17, 2006. To access the live Webcast, please visit the investor relations Investor relations The process by which the corporation communicates with its investors. section of the Company's website http://www.callwave.com at least 30 minutes prior to the scheduled time In rallying, the Scheduled Time of any crew is the time, calculated at the beginning of the event, that they should arrive at any given control. It is different from Due Time in that Due Time is dynamic, ie it can change throughout the event as competitors drop time; whereas to download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. any necessary audio or plug-in An auxiliary program that works with a major software package to enhance its capability. For example, plug-ins are widely used in image editing programs such as Photoshop to add a filter for some special effect. software. An audio replay of the call will also be available to investors beginning at 8:00 p.m. ET on August 17, 2006, through August 31, 2006, by dialing 800-405-2236, or 303-590-3000, and entering the passcode 11067582#. About CallWave CallWave (Nasdaq:CALL) is an On-Demand communications services company, helping service providers reduce customer churn and drive revenues by enabling new landline Land based. Refers to standard telephone and data communications systems that use in-ground and telephone pole cables in contrast to wireless cellular and satellite services. , Internet and mobile convergence applications. Founded in 1998, CallWave is headquartered in Santa Barbara, California Santa Barbara is a city in California, United States. It is the county seat of Santa Barbara County, California. As of the 2000 census, the city had a total population of 92,325. . For further information, please visit www.callwave.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement Except for the historical statements contained herein, the foregoing 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. , including statements regarding, among other matters, our future financial performance. These forward-looking statements are subject to risks and uncertainties, and actual results could differ materially due to several factors, including but not limited to the ability to forecast consumer behavior and recognize or respond to emerging trends, changing preferences or competitive factors, the market acceptance of our new products and product enhancements, claims regarding alleged infringement The encroachment, breach, or violation of a right, law, regulation, or contract. The term is most frequently used in reference to the invasion of rights secured by Copyright, patent, or trademark. of third parties' intellectual property rights, the ability to maintain or expand our customer and partner relationships and other risks and uncertainties. Please consult the various reports and documents filed by CallWave with the U.S. Securities and Exchange Commission, including but not limited to CallWave's quarterly report for the fiscal quarter ended March 31, 2006, for factors potentially affecting the Company's future financial results. All forward-looking statements are made 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 CallWave disclaims any responsibility to update or revise any forward-looking statement provided in this news release. The results for the fourth quarter of fiscal 2006 are not necessarily indicative indicative: see mood. of CallWave's operating results for any future periods. CallWave is a registered trademark of CallWave, Inc. All other trademarks are the property of their respective holders.
CALLWAVE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
For the Three For the Year
Months Ended Ended
June 30, June 30,
----------------- -----------------
2006 2005 2006 2005
-------- -------- -------- --------
Revenues $7,684 $11,610 $36,594 $45,518
Cost of sales 2,813 3,865 13,088 13,026
-------- -------- -------- --------
Gross profit 4,871 7,745 23,506 32,492
Operating expenses:
Sales and marketing 1,491 1,812 6,293 9,533
Research and development 1,773 1,814 6,805 6,868
General and administrative 3,387 2,470 11,508 7,622
Loss on disposal of fixed
assets 33 4 23 4
-------- -------- -------- --------
Total operating expenses 6,684 6,100 24,629 24,027
-------- -------- -------- --------
Operating income (loss) (1,813) 1,645 (1,123) 8,465
Other gains and losses
Impairment loss - - (253) -
Interest income (expense), net 737 370 2,479 1,032
-------- -------- -------- --------
Income before income taxes (1,076) 2,015 1,103 9,497
Income tax provision (benefit) - (49) 3,086 (2,105)
-------- -------- -------- --------
Net income (loss) $(1,076) $2,064 $(1,983) $11,602
======== ======== ======== ========
Net income (loss) per share:
Basic $(0.05) $0.10 $(0.10) $0.72
Diluted $(0.05) $0.10 $(0.10) $0.57
Weighted-average common
shares outstanding:
Basic 20,733 19,691 20,615 16,171
Diluted 20,733 21,076 20,615 20,295
CALLWAVE, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
As of As of
June 30, 2006 June 30, 2005
-------------- --------------
ASSETS
Current assets:
Cash and cash equivalents $24,040 $16,828
Marketable securities 36,907 39,996
Restricted cash - 335
Accounts receivable; net of allowance
for doubtful accounts of $370 and
$601 2,834 5,676
Inventory - 454
Stockholder receivable 52 -
Prepaid income tax 88 113
Other current assets 921 476
-------------- --------------
Total current assets 64,842 63,878
Property and equipment, net 2,014 2,024
Deferred tax asset - 2,929
Intangibles, net 533 -
Other assets 66 414
-------------- --------------
Total assets $67,455 $69,245
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $451 $801
Accrued payroll 735 1,014
Deferred revenues 92 1,587
Other current liabilities 1,515 1,447
-------------- --------------
Total current liabilities 2,793 4,849
-------------- --------------
Stockholders' equity:
Common stock 72,119 70,296
Deferred compensation - (545)
Other comprehensive loss (143) (24)
Accumulated deficit (7,314) (5,331)
-------------- --------------
Total stockholders' equity 64,662 64,396
-------------- --------------
Total liabilities and stockholders'
equity $67,455 $69,245
============== ==============
CALLWAVE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
For the Year Ended
June 30,
---------------------
2006 2005
---------- ----------
Cash flows from operating activities:
Net income (loss) $(1,983) $11,602
Operating activity adjustments
Depreciation and amortization 826 801
Stock based compensation expense 543 188
Deferred income taxes 2,929 (1,265)
Bad debt expense 2,445 1,487
Inventory write off 314 -
Impairment of long lived assets 253 -
Loss on disposal of fixed assets 23 4
Changes in operating assets & liabilities:
Restricted cash 335 -
Accounts receivable, net of bad debt
expense 397 (3,473)
Inventory 140 (454)
Prepaid income tax 25 (113)
Other assets (349) 116
Accounts payable (350) (444)
Accrued payroll and other liabilities (220) 1,160
Income tax payable 10 (1,158)
Deferred revenue (1,495) (814)
---------- ----------
Net cash provided by operating activities 3,843 7,637
Cash flows from investing activities:
Purchase of intangible assets (550) -
Net (increase) decrease in marketable
securities 2,968 (33,017)
Purchases of property and equipment (822) (1,086)
---------- ----------
Net cash used in investing activities 1,596 (34,103)
---------- ----------
Cash flows from financing activities:
Exercises of stock options and warrants 1,773 1,882
Proceeds from initial public offering - 37,200
Costs incurred in initial public offering - (1,975)
---------- ----------
Net cash provided by financing activities 1,773 37,107
---------- ----------
Net increase in cash and cash equivalents 7,212 10,641
Cash and cash equivalents at beginning of the
period 16,828 6,187
---------- ----------
Cash and cash equivalents at end of the period $24,040 $16,828
========== ==========
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion