Carrier Access Announces Anticipated Third-Quarter Results.Business Editors/High-Tech Writers BOULDER, Colo.--(BUSINESS WIRE)--Sept. 27, 2001 Carrier Access Corporation (Nasdaq:CACS CACS Center for Advanced Computer Studies CACS Computer Audit, Control and Security CACS Carrier Access Corporation (stock symbol) CACs Criteria Air Contaminants CACS Center for Alaskan Coastal Studies CACS Coronary Artery Calcium Scoring ), an equipment manufacturer that helps more than 1,800 telecommunications companies, today announced it will report lower-than-expected operating results for the third quarter, ending Sept. 30, 2001. The company expects to report revenue for the third quarter between $20 and $22 million, and fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of , excluding charges related to acquisitions and write down of goodwill, are anticipated to be between ($0.17) and ($0.19). These preliminary results are based on management's initial analysis of operating results. The company will announce final results for the third quarter as planned after market close on Thursday, Oct. 18, 2001. The company believes revenue and earnings will be lower than expected due to overall economic weakness and capital market constraints impacting telecommunications service providers. In addition, the timing for some orders, forecasted for the third quarter, was delayed due to wireless and wireline service providers' capital budget reductions and purchasing freezes. The company also announced it will take an inventory charge of up to $2.5 million dollars against inventory reserves. In addition, management has finished reviewing the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of long-term intangible assets related to previous acquisitions and intends to record a non-cash $4.2 million goodwill write down in its fiscal third quarter. "Although the short-term outlook is uncertain, we remain optimistic about the future of the industry and the strength of our solutions," said Carrier Access 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. Roger Koenig. "End-user demand continues to be strong for broadband communications products like high-speed Internet access and wireless services. And, due to our strong balance sheet and cost-effective solutions, we continue to believe in our company's overall strength and ability to fulfill demand for broadband services." Forward-Looking Statement 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. Caution This press release contains forward-looking statements regarding anticipated preliminary quarterly results. We caution that actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors including, but not limited to, continuing uncertainty regarding general economic conditions, the pace of capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. by competitive carriers and telecommunications companies, overall demand for our products, problems with or at our distributors, changing market conditions and growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. within our industry, the financial stability of our customers, the introduction of new competition and technologies, potential discrepancies between management's initial and final analyses of operating results of the third quarter of 2001 and possible accounting entries made before the announcement of final results, and other risks and uncertainties including those factors discussed in the company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended Dec. 31, 2000, and other documents periodically filed with the SEC. We disclaim any obligation or intention to revise or update any forward-looking statements, whether as a result of new information, future events, or otherwise. About Carrier Access Carrier Access is an equipment manufacturer that helps more than 1,800 telecommunications companies accelerate revenue, lower operating costs, and extend capital budgets by applying high-performance broadband access and service creation technologies. Founded in 1992, Carrier Access' products are held to the highest possible reliability standards, including certifications like OSMINE (Operations Systems Modification of Intelligent Network Elements) A system from Telcordia for verifying compatibility with Telcordia-designed operating systems. , ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. 9000, and NEBS Level 3. For more information, visit www.carrieraccess.com. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion