Carrier Access Reports First-Quarter 2002 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 23, 2002 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 ending March 31, 2002. Net revenue for first quarter 2002 was $16.4 million, compared to net revenue of $21.5 million for the fourth quarter 2001. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net loss for the first quarter 2002, before goodwill amortization and other charges, was a loss of $.24 per share, or $6.0 million, compared to a fourth-quarter 2001 loss of $.13 per share, or $3.1 million. In the first quarter of 2002, the company increased its allowance for bad debt by $2.7 million and took a charge for excess and slow-moving Adj. 1. slow-moving - moving slowly; "slow-moving cars" slow - not moving quickly; taking a comparatively long time; "a slow walker"; "the slow lane of traffic"; "her steps were slow"; "he was slow in reacting to the news"; "slow but steady growth" inventory of $1.4 million. The bad debt and inventory charges were increased due to the abrupt decline in the financial condition of certain customers. The company also reported that it took a $534,000 charge to cover severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when expense associated with the termination of approximately 100 employees in the first quarter 2002. Net loss for the first quarter 2002, including goodwill amortization and other charges, was $.36 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, or $9.0 million, compared to a net loss for the fourth quarter 2001, including goodwill amortization, of $.15 per diluted share, or $3.7 million. "Although our first-quarter financial performance was disappointing, we believe we made significant gains. We completed new agreements 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, enterprise channel, continued the expansion into cable business services, and introduced the Axxius(TM) 800, which we believe was well received at several major wireless service providers. We will continue to develop products that address the needs of our customers and carefully manage our expenses. We are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op regarding our strategy to accelerate growth in our target markets," 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 888/690-9483, 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, 2002. 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 future growth in broadband access See broadband and wireless broadband. and service creation particularly in the enterprise, cable, 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. , a change in overall demand for our products, problems with or at our 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, 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, 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, 2001, 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 Carrier Access is an equipment manufacturer that helps more than 1,800 telecommunications companies accelerate revenue, lower operating costs operating costs npl → gastos mpl operacionales , and extend capital budgets by applying high-performance Adj. 1. high-performance - modified to give superior performance; "a high-performance car" superior - of high or superior quality or performance; "superior wisdom derived from experience"; "superior math students" broadband access and service creation technologies. Founded in 1992, Carrier Access serves global service providers, wireless, incumbent, and competitive carriers. Carrier Access' products are held to the highest possible reliability and 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 OSMINE (Operations Systems Modification of Intelligent Network Elements) A system from Telcordia for verifying compatibility with Telcordia-designed operating systems. 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 , 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 Corporation
Condensed Comparative Income Statements
(in thousands, except per-share amounts)
Presented in conformity with Generally Accepted
Accounting Principles (GAAP)
Three Months Ended March 31,
2002 2001
---- ----
Net revenue $16,446 $28,838
Cost of goods sold 11,232 13,779
------ ------
Gross profit 5,214 15,059
------ ------
Operating expenses:
Research and development 8,929 8,519
Sales and marketing 5,297 5,415
General and administrative 5,145 2,274
Goodwill and other intangible
amortization 72 975
Amortization of deferred stock
compensation 86 182
------ ------
Total operating expenses 19,529 17,365
------ ------
Loss from operations (14,315) (2,306)
Other income, net 241 581
------ ------
Loss before income taxes (14,074) (1,725)
Income tax benefit (5,063) (873)
------ ------
Net loss $(9,011) $ (852)
====== ======
Loss per share:
Basic $ (0.36) $ (0.03)
Diluted $ (0.36) $ (0.03)
Weighted average common shares:
Basic 24,742 24,679
Diluted 24,742 24,679
Carrier Access Corporation
Pro Forma Condensed Comparative Income Statement
(in thousands, except per-share amounts)
(unaudited)
Three Months Ended
March 31, 2002 March 31, 2001
-------------- ---------------
As Pro Forma As Pro Forma
Repor- Adjust- Pro Repor- Adjust- Pro
ted(1) ments Forma ted(1) ments Forma
Net revenue $16,446 $ -- $16,446 $28,838 $ -- $28,838
Cost of goods
sold 11,232 (1,458)(2)(3) 9,774 13,779 -- 13,779
------ ------ ------ ------ ------ ------
Gross profit 5,214 1,458 6,672 15,059 -- 15,059
------ ------ ------ ------ ------ ------
Operating
expenses:
Research
and devel-
opment 8,929 (256)(3) 8,673 8,519 -- 8,519
Sales and
marketing 5,297 (204)(3) 5,093 5,415 -- 5,415
General and
adminis-
trative 5,145 (2,777)(3)(4) 2,368 2,275 -- 2,275
Goodwill and
other intan-
gible amort-
ization 72 (72) -- 975 (975) --
Amortization
of deferred
stock compen-
sation 86 -- 86 182 -- 182
------ ------ ------ ------ ------ ------
Total operating
expenses 19,529 (3,309) 16,220 17,366 (975) 16,391
------ ------ ------ ------ ------ ------
Loss from
opera-
tions (14,315) 4,767 (9,548) (2,307) 975 (1,332)
Other income,
net 241 -- 241 581 -- 581
------ ------ ------ ------ ------ ------
Loss before
income
taxes (14,074) 4,767 (9,307) (1,726) 975 (751)
Income tax
benefit (5,063) 1,716 (3,347) (873) 172 (701)
------ ------ ------ ------ ------ ------
Net loss $(9,011) $3,051 $(5,960) $ (853) $ 803 $ (50)
====== ===== ====== ====== ====== ======
Loss per share:
Basic $ (0.36) $ 0.12 $ (0.24) $(0.03) $ 0.03 $ 0.00
Diluted $ (0.36) $ 0.12 $ (0.24) $(0.03) $ 0.03 $ 0.00
Weighted average
common shares:
Basic 24,742 24,742 24,742 24,679 24,679 24,679
Diluted 24,742 24,742 24,742 24,679 24,679 24,679
(1) In accordance with Generally Accepted Accounting Principles
(GAAP).
(2) Additional inventory reserves of $1,437.
(3) Severance expense of $21, $256, $204, and $53 in cost of goods
sold, research and development, sales and marketing, and general
and administrative expenses, respectively.
(4) Additional bad debt expense of $2,724.
Carrier Access Corporation
Condensed Consolidated Balance Sheets
(in thousands)
Presented in conformity with Generally Accepted
Accounting Principles (GAAP)
March 31, December 31,
2002 2001
---- ----
ASSETS
Current assets:
Cash and cash equivalents $ 23,675 $ 24,741
Securities available for sale 9,552 11,873
Accounts receivable, net 13,052 17,808
Income tax receivable 6,670 8,468
Inventory, net 29,012 36,500
Deferred income taxes 9,273 3,958
Prepaid expenses and other 1,132 2,673
------- -------
Total current assets 92,366 106,021
Property and equipment, net
of accumulated depreciation
and amortization 13,612 14,140
Goodwill and other intangibles,
net of amortization 9,285 9,354
Deferred income taxes 3,273 3,361
Other assets 155 141
------- -------
Total assets $118,691 $133,017
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 4,640 $ 8,864
Accrued expenses and other
liabilities 4,383 5,560
------- -------
Total current liabilities 9,023 14,424
Stockholders' equity:
Preferred stock $0.001 par value,
5,000 shares authorized and no
shares issued or outstanding at
March 31, 2002, and December 31,
2001 -- --
Common stock $0.001 par value,
60,000 shares authorized and
24,754 shares issued and
outstanding at March 31, 2002,
and 24,740 shares issued and
outstanding at December 31, 2001 30 30
Additional paid-in capital 85,769 85,968
Deferred compensation (179) (466)
Retained earnings 24,001 33,012
Accumulated other comprehensive
income 47 49
------- -------
Total stockholders' equity 109,668 118,593
------- -------
Commitments and contingencies
Total liabilities and stockholders'
equity $118,691 $133,017
======= =======
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