Carrier Access Reports First Quarter 2003 Financial Results.Business Editors/High-Tech Writers 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, 2003 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 ), a manufacturer of 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). communications equipment, today announced financial results for its first quarter ended March 31, 2003. Net revenue for first quarter 2003 was $11.2 million, compared to net revenue of $11.5 million for the fourth quarter 2002. The company reported net revenue of $16.4 million of revenue in the first quarter of 2002. Net income for the first quarter 2003 was $.00 per share, or $117,000, an improvement from a fourth quarter 2002 loss of $.32 per share, or $8.0 million. During the first quarter of 2003, the company recovered a significant amount of aged receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed , and accordingly has changed its estimates for allowance for doubtful accounts Allowance for Doubtful Accounts An estimation made by a company and documented on its balance sheet for receivables that might go uncollected. Notes: It is standard practice for a company to have funds set aside for money that cannot be collected. . Carrier Access also reported that its cash and cash equivalents, together with securities available for sale, increased to $29.8 million as of March 31, 2003 from $25.7 million on December December: see month. 31, 2002. The company continues to maintain a strong balance sheet with no long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. . The company received an income tax refund Tax refund Money back from the government when too much tax has been paid or withheld from a salary. of $6.9 million in the first quarter related to the company's 2002 federal income tax filings. "This quarter showed significant progress in our return to profitability, due in part to the positive effects of our 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). . The gross margin improvement during the quarter reflected ongoing cost management, plus shipments of new higher margin products. Although current revenue was roughly flat, we are pleased with being able to manage expenses while delivering new products and adding new customers," said Roger Koenig, 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. . Carrier Access will hold a conference call today at 4:30 p.m. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. to review these results. The call is open to the public. Those who wish to participate should dial 415-228-4835, domestically or internationally, at least fifteen minutes prior to the scheduled start time for the call and reference Carrier Access. Carrier Access has also scheduled this event to be broadcast live via web cast and replayed until 5:00 p.m. EST, May 7, 2003. To access this web cast please go to the Investor Relations Investor relations The process by which the corporation communicates with its investors. page at www.carrieraccess.com/investors, or www.companyboardroom.com. 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 our plan to restructure and associated cost reduction measures, expense levels and revenue projections, gross margins, new customers and the ability to attain revenue with these new customers, our products, market conditions, our financial position and our growth prospects and market share gains in broadband access See broadband and wireless broadband. and service creation particularly in the RBOC (Regional Bell Operating Company) The Bell telephone companies that were spun off of AT&T by court order in 1984 (the Divestiture). Also known as the "Baby Bells," the initial seven RBOCs were Nynex, Bell Atlantic, BellSouth, Southwestern Bell, US West, , business enterprise and wireless markets. 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, changes in 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 carriers and telecommunications companies See telecom company. , market acceptance of our products, problems with or at our customers, distributors and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. suppliers, 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, 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 December 31, 2002 and other documents periodically filed with the Securities and Exchange Commission. We disclaim dis·claim v. dis·claimed, dis·claim·ing, dis·claims v.tr. 1. To deny or renounce any claim to or connection with; disown. 2. To deny the validity of; repudiate. 3. 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 Corporation Founded in 1992, Carrier Access manufactures broadband communications equipment that enables telecommunications companies to accelerate service revenue, lower operating costs operating costs npl → gastos mpl operacionales , and extend capital budgets. The company focuses on three segments of telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. : wireless infrastructure, enterprise service delivery, and fiber access. Its products have delivered more than 2.5 million voice and data lines for customers and meet the industry's highest reliability and broadband interoperability The capability of two or more hardware devices or two or more software routines to work harmoniously together. For example, in an Ethernet network, display adapters, hubs, switches and routers from different vendors must conform to the Ethernet standard and interoperate with each other. standards, including Telcordia (Telcordia Technologies, Piscataway, NJ, www.telcordia.com) A telecommunications software, engineering and consulting organization. Telcordia was originally founded as Bellcore in 1984 by the regional Bell telephone companies (RBOCs) after they were split apart from AT&T due to court (TM) TIRKS/OSMINE, NEBS NEBS Network Equipment Building System (Bell Telephone Labs) NEBS Network Equipment Building Standards NEBS New England Business Services NEBS New England Barbecue Society NEBS Neue Europäische Bewegung Schweiz Level 3 and 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. 9001. For more information visit www.carrieraccess.com. Carrier Access, the Carrier Access logo and tagline tag line also tag·line n. 1. An ending line, as in a play or joke, that makes a point. 2. An often repeated phrase associated with an individual, organization, or commercial product; a slogan. , and Solve for X are trademarks of Carrier Access Corporation. Any other trademark is the trademark of its respective owner.
CARRIER ACCESS CORPORATION
CONDENSED CONSOLIDATED COMPARATIVE STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per share amounts)
Three Months Ended
March 31,
2003 2002
---- ----
Net revenue $11,203 $16,446
Cost of goods sold 6,154 11,232
-------- --------
Gross profit 5,049 5,214
-------- --------
Operating expenses:
Research and development 2,585 8,929
Sales and marketing 2,675 5,297
General and administrative 1,234 2,379
Bad debt expense (recovery) (1,412) 2,766
Goodwill and other intangible amortization -- 72
Amortization of deferred stock compensation 23 86
-------- --------
Total operating expenses 5,105 19,529
-------- --------
Loss from operations (56) (14,315)
Other Income, net 84 241
-------- --------
Income (loss) before income taxes 28 (14,074)
Income tax benefit (89) (5,063)
-------- --------
Net income (loss) $117 $(9,011)
======== ========
Income (loss) per share:
Basic $0.00 $(0.36)
Diluted $0.00 $(0.36)
Weighted average common shares:
Basic 24,771 24,742
Diluted 24,950 24,742
CARRIER ACCESS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands)
March December
31, 31,
ASSETS 2003 2002
-------- --------
Current assets:
Cash and cash equivalents $15,300 $14,900
Securities available for sale 14,474 10,828
Accounts receivable, net 8,559 8,598
Income tax receivable 107 6,989
Inventory, net 25,641 24,134
Prepaid expenses and other 1,213 1,198
-------- --------
Total current assets 65,294 66,647
Property and equipment, net of accumulated
depreciation and amortization 8,602 9,462
Goodwill and other intangibles, net of amortization 153 146
Other assets 190 182
-------- --------
Total assets $74,239 $76,437
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $3,869 $5,437
Accrued expenses and other liabilities 4,103 4,886
-------- --------
Total current liabilities 7,972 10,323
Stockholders' equity:
Preferred stock $0.001 par value, 5,000 shares
authorized and no shares issued or outstanding at
March 31, 2003 and December 31, 2002 -- --
Common stock $0.001 par value, 60,000 shares
authorized and 24,771 shares issued and outstanding
at March 31, 2003 and 24,771 shares issued and
outstanding at December 31, 2002 30 30
Additional paid-in capital 85,806 85,780
Deferred compensation (42) (65)
Accumulated deficit (19,528) (19,643)
Accumulated other comprehensive income 1 12
-------- --------
Total stockholders' equity 66,267 66,114
-------- --------
Commitments and contingencies
Total liabilities and stockholders' equity $74,239 $76,437
======== ========
CARRIER ACCESS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In thousands)
Three Months
Ended March 31,
2003 2002
---- ----
Cash flows from operating activities:
Net income (loss) $117 $(9,011)
Adjustments to reconcile net income (loss) to net
cash provided (used) by operating activities:
Depreciation and amortization expense 1,079 671
Provision for (recoveries of) doubtful accounts (1,412) 2,762
Provision for inventory obsolescence -- 1,797
Stock-based compensation 48 86
Deferred income tax benefit -- (5,227)
Changes in operating assets and liabilities:
Accounts receivable 1,450 1,994
Income taxes receivable 6,882 1,798
Inventory (1,507) 5,691
Prepaid expenses and other (29) 1,522
Accounts payable and accrued expenses (2,351) (5,403)
-------- --------
Net cash provided (used) by operating activities 4,277 (3,320)
-------- --------
Cash flows from investing activities:
Purchases of property and equipment (220) (68)
Purchases and sales of marketable securities, net (3,657) 2,318
-------- --------
Net cash provided (used) by investing activities (3,877) 2,250
-------- --------
Cash flows from financing activities:
Proceeds from exercise of stock options -- 4
-------- --------
Net decrease in cash and cash equivalents 400 (1,066)
Cash and cash equivalents at beginning of period 14,900 24,741
-------- --------
Cash and cash equivalents at end of period $15,300 $23,675
======== ========
Supplemental cash flow disclosures:
Cash received for income taxes $(6,972) $(1,632)
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