Carrier Access Reports First Quarter 2005 Financial 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. -- 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 reported results for its first quarter ended March 31, 2005. Revenue for the first quarter of fiscal 2005 was $12.4 million compared with $28.5 for the first quarter of fiscal 2004. Net loss for the first quarter of fiscal 2005 was $5.06 million, or $0.15 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 compared with net income for the first quarter of fiscal 2004 of $2.70 million, or $0.09 per diluted share. Carrier Access president, 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. and chairman Roger Koenig stated: "Despite a disappointing first quarter, we continue to view 2005 positively and anticipate improving our financial results in Q2 and throughout the remainder of 2005. As we previously stated, our revenue in the first quarter was negatively impacted by lower than anticipated sales in our converged access business and by lower than expected orders and constrained con·strain tr.v. con·strained, con·strain·ing, con·strains 1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See Synonyms at force. 2. budgets within our major wireless customers." Koenig further added: "During the first quarter we shipped our FLEXengine technology into a major wireless customer and recorded revenue for our newly released Adit adit (ăd`ĭt), in mining, underground passage excavated nearly horizontally, with one end open to the earth's surface, usually used to service a mine. The adit end is the furthermost end from the surface, i.e., the location where miners work. 3104 IP Business Gateway. We continue to believe that we are well positioned in our Converged Access and Wireless Access markets and that we will benefit in these areas as demand for new services grow." Carrier Access will hold a conference call today at 4:30 p.m. ET to review these first quarter results. Guidance for the second quarter 2005 will be issued during this conference call. The call is open to the public. Those who wish to participate should dial 210-839-8500, domestically or internationally, at least fifteen minutes prior to the scheduled start time for the call and reference Carrier Access. Investors may listen to a live audio webcast of the conference call at www.carrieraccess.com. An online replay of the conference call, as well as the text of the Company's earnings release, will be available on the Investor Relations Investor relations The process by which the corporation communicates with its investors. site at http://www.carrieraccess.com. About Carrier Access Corporation Carrier Access (NASDAQ: CACS) provides consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: access technology designed to streamline streamline, path of a fluid flowing steadily and without appreciable turbulence. A body is said to be streamlined if its shape offers the least possible resistance to a current of air, water, or other fluid. the communication network operations of service providers, enterprises and government agencies. Carrier Access products enable customers to consolidate Consolidate To combine the assets, liabilities, and other financial items of two or more entities into one. Notes: This term is generally used in the context of consolidated financial statements. and upgrade access capacity, and implement converged IP services while lowering costs and accelerating service revenue. Carrier Access' technologies help our customers do more with less. For more information, visit www.carrieraccess.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 about our ability to attain revenue and maintain our balance sheet, incumbent Refers to an entity that is currently in power. For example, in politics, the "incumbent senator" is the person who holds that office today. An "incumbent company" is an organization that has been providing goods and services for some time. See ILEC. vendor status, direct and indirect sales channels as well as our growth prospects in wireless. Our results of operations for the first quarter of fiscal 2005 and quarter over quarter revenue and net income growth are not necessarily indicative indicative: see mood. of the results that may be expected for any future period. 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, OEM's 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 December: see month. 31, 2004, and other documents periodically filed with the Securities and Exchange Commission. We do not undertake any obligation to revise or update any forward-looking statements, whether as a result of new information, future events, or otherwise.
CARRIER ACCESS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands, except per share amounts)
March 31, December 31,
2005 2004
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $56,865 $70,928
Marketable securities available for sale 47,154 37,755
Accounts receivable, net 17,027 17,700
Income tax receivable 86 161
Inventory, net 32,126 29,652
Prepaid expenses and other 4,986 4,513
------------ ------------
Total current assets 158,244 160,709
Property and equipment, net 12,135 12,239
Goodwill 7,588 7,588
Intangibles, net 6,104 6,412
Other assets 228 218
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Total assets $184,299 $187,166
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $11,077 $11,246
Accrued compensation payable 3,260 2,917
Deferred revenue 2,151 137
Accrued expenses and other liabilities 904 1,101
------------ ------------
Total liabilities 17,392 15,401
Stockholders' equity:
Preferred stock -- --
Common stock 35 34
Additional paid-in capital 188,595 188,147
Accumulated deficit (21,347) (16,286)
Accumulated other comprehensive income (376) (130)
------------ ------------
Total stockholders' equity 166,907 171,765
------------ ------------
Total liabilities and stockholders' equity $184,299 $187,166
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CARRIER ACCESS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share amounts)
Three Months Ended
March 31,
--------------------
2005 2004
---------- ---------
Revenue, net of allowances for sales returns $12,444 $28,547
Cost of sales 8,103 15,612
---------- ---------
Gross profit 4,341 12,935
---------- ---------
Operating expenses:
Research and development 4,799 3,975
Sales and marketing 3,320 4,577
General and administrative 1,613 1,716
Bad debt expense (recoveries) 57 (183)
Goodwill and other intangible amortization 307 350
---------- ---------
Total operating expenses 10,096 10,435
---------- ---------
Income (loss) from operations (5,755) 2,500
Other income, net 694 219
---------- ---------
Income (loss) before income taxes (5,061) 2,719
Income taxes -- 15
---------- ---------
Net income (loss) ($5,061) $2,704
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Income (loss) per share
Basic and diluted ($0.15) $0.09
Weighted average common shares outstanding:
Basic 34,502 29,318
Diluted 34,502 31,724
CARRIER ACCESS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)
Three Months Ended
March 31,
------------------
2005 2004
-------- ---------
Cash flows from operating activities:
Net income (loss) ($5,061) $2,704
Adjustments to reconcile net income to net cash
provided (used) by operating activities:
Depreciation and amortization expense 1,031 1,206
Provision for (recoveries of) doubtful accounts,
net 57 (183)
Provision for (recoveries of) inventory
obsolescence (235) 395
Stock-based compensation -- 5
Changes in operating assets and liabilities:
Accounts receivable 616 808
Income taxes receivable 75 --
Inventory (2,239) (2,521)
Prepaid expenses and other (483) 604
Deferred Revenue 2,014 (445)
Accounts payable and accrued expenses (23) (8)
-------- ---------
Net cash provided (used) by
operating activities (4,248) 2,565
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Cash flows from investing activities:
Purchases of property and equipment (619) (552)
Purchases of marketable securities (14,182) --
Sales and maturities of marketable securities
available for sale 4,537 5,721
-------- ---------
Net cash used by investing
activities (10,264) 5,169
-------- ---------
Cash flows from financing activities:
Proceeds from stock offering -- 83,607
Offering Costs -- (5,055)
Proceeds from exercise of stock options 449 976
-------- ---------
Net cash provided by financing
activities 449 79,528
Net decrease in cash and cash equivalents (14,063) 87,262
Cash and cash equivalents at beginning of period 70,928 17,207
-------- ---------
Cash and cash equivalents at end of period $56,865 $104,469
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