Carrier Access Corporation Reports First Quarter 1999 Operating Results.BOULDER Boulder, city, United States Boulder, city (1990 pop. 83,312), seat of Boulder co., N central Colo.; inc. 1871. A Rocky Mountain resort and a suburb of Denver, it is the seat of the Univ. of Colorado (1876). , Colo.--(BUSINESS WIRE)--April 22, 1999-- Carrier Access Corporation (CAC See Consumer Advisory Council. ) (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 ), a leading provider of multi-service digital access equipment to competitive communications carriers, Thursday Thursday: see week. reported its operating results for the three months ended March 31, 1999. Revenue for the first quarter increased to $21.7 million, from $18.2 million in the fourth quarter of fiscal 1998, a sequential One after the other in some consecutive order such as by name or number. increase of 19 percent. As compared with the same quarter of the preceding year, revenues increased from $7.2 million, an increase of 201 percent. Net income for the first quarter was $4.9 million, or 19 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. 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. , which represents an increase in net income of 48 percent as compared with fourth quarter net income of $3.3 million, or 13 cents per share diluted. Net income for the first quarter increased 562 percent as compared with normalized net income for the quarter ended March 31, 1998 of $740,000 or 5 cents per share diluted. Normalized net income for the first quarter of 1998 excludes the preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. dividend requirement, which terminated ter·mi·nate v. ter·mi·nat·ed, ter·mi·nat·ing, ter·mi·nates v.tr. 1. To bring to an end or halt: in July July: see month. 1998 when the preferred stock converted to common stock. "We are very pleased with our operating results for the first quarter. We achieved greater than expected gross margins on our product families, which drove our record earnings. Gross margin improvements were achieved by our continued implementation of manufacturing cost reduction programs," stated Roger Koenig, Chairman, President and Chief Executive Officer of CAC. "In addition we are extremely encouraged with the rollout of our Access Navigator See Netscape Navigator, Netscape and Norton Navigator. Navigator - Netscape Navigator product family. We now have our first competitive customers using the Access Navigator with live traffic, providing bundled service offerings to their customers, with complete CAC solutions. We started shipping the Access Navigator in January January: see month. and now have over 30 ongoing trials. In addition, four competitive carrier customers are now using the product in their networks. CAC can now provide digital last mile connectivity using complete CAC solutions from the competitive carrier co-location Placing equipment owned by a customer or competitor in an organization's own facility. Telephone companies often allow co-location in order to provide the best interconnection between devices. to the customer site. "We would like to thank our employees and customers for the successful rollout of the Access Navigator. Their commitment to the trial, product rollout and network integration was crucial. We look forward to continued customer engagements with the Access Navigator and anticipate the connectivity between Access Navigator and Access Bank products to provide our competitive carriers with increased functionality and profitability." As of March 31, 1999 the company's 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 equaled $58.6 million, and shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. equaled $70.8 million. About Carrier Access Corporation Carrier Access Corporation is a leading provider of Multi-service Digital Access (MDA (1) (Monochrome Display Adapter) The first IBM PC monochrome video display standard for text. Due to its lack of graphics, MDA cards were often replaced with Hercules cards, which provided both text and graphics. See PC display modes and Hercules Graphics. ) equipment to competitive telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. carriers, including competitive local exchange carriers, Internet service providers Internet service provider (ISP) Company that provides Internet connections and services to individuals and organizations. For a monthly fee, ISPs provide computer users with a connection to their site (see data transmission), as well as a log-in name and password. , and wireless carriers. Carrier Access products are used in the digital last mile for the provisioning of enhanced voice and high-speed high-speed adj. 1. Operated or designed for operation at high speed: a high-speed food processor. 2. Taking place at high speed: a high-speed chase. 3. data services by carriers to businesses and government end users. CAC Access Bank and Wide Bank family products provide service distribution from T1, HDSL See DSL. HDSL - High bit-rate Digital Subscriber Line , digital radio and T3 access transmission technologies. Additional information about CAC and its products can be found at www.carrieraccess.com.
Carrier Access Corporation
Condensed Income statements
(in thousands, except for per share data)
(unaudited)
Three Months Ended
March 31, March 31,
1999 1998
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Net revenue $ 21,684 $ 7,243
Cost of goods sold 8,884 3,768
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Gross profit 12,800 3,475
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Operating expenses:
Research and development 2,323 843
Sales and marketing 2,279 975
General and administrative 930 531
Amortization of deferred
stock compensation 205 104
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Total operating expenses 5,737 2,453
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Income from operations 7,063 1,022
Other income, net 556 168
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Income before income taxes 7,619 1,190
Income tax expense 2,707 450
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Net income 4,912 740
Preferred stock dividend requirement --- 658
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Net income available to
common stockholders $ 4,912 $ 82
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Net income per share:
Basic $ 0.21 $ 0.01
Diluted $ 0.19 $ 0.01
Weighted average common shares:
Basic 23,741 14,381
Diluted 25,218 15,417
Carrier Access Corporation
Condensed BALANCE SHEETS
(in thousands)
March 31,
1999 December 31,
(unaudited) 1998
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Assets
Current as sets:
Cash and cash equivalents $ 30,304 $ 31,201
Securities available for sale 28,258 22,777
Accounts receivable, net 9,925 8,493
Inventory, net 5,510 5,053
Deferred income taxes 1,292 1,198
Prepaid expenses and other
current assets 1,038 804
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Total current assets 76,327 69,526
Property and equipment, net 2,934 2,599
Deferred income taxes 118
Other assets 72 70
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Total assets $ 79,451 $ 72,313
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and
accrued expenses $ 7,760 $ 6,913
Income taxes payable 903 2,000
Other current liabilities 38 42
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Total current liabilities 8,701 8,955
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Stockholders' equity:
Common stock and additional
paid-in-capital 62,258 59,983
Deferred stock option compensation (2,172) (2,377)
Retained earnings 10,664 5,752
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Total stockholders' equity 70,750 63,358
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Total liabilities and
stockholders' equity $ 79,451 $ 72,313
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