Carrier Access Reports Fourth Quarter Revenue Shortfall.Business Editors BOULDER, Colo.--(BUSINESS WIRE)--Dec. 29, 2000 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 leading provider of broadband access See broadband and wireless broadband. equipment, today announced that it will report lower than expected operating results for the fourth quarter ended December 31, 2000. The revenue shortfall is due principally to reduced shipments to two large customers. The company indicated that when it reports final operating results on Thursday, January 18, 2001, it expects to report revenue for the fourth quarter between $26 and $27 million, and fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of , excluding charges related to acquisitions, is anticipated to be between ($.02) and ($.04). The company announced that a large OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and customer has recently advised Carrier Access that it does not intend to take the majority of an $8 million order that was scheduled for shipment in the fourth quarter of 2000. Carrier Access had updated quarterly purchase amounts with this customer in a renewed OEM agreement executed in November 2000. Another major customer has also informed Carrier Access that capital budget restraints will prevent them from ordering their normal quarterly equipment purchases. This customer has traditionally purchased between $3 and $7 million of Carrier Access equipment during each calendar quarter for the last five quarters. "Obviously we are extremely surprised and disappointed by the recent developments so late in the quarter," stated Roger Koenig, Chief Executive Officer of Carrier Access. "Although the tone of our other business is good, the effects of reduced purchases by these two customers will have a significant impact on our quarterly revenue. "Unfortunately, due to many of our service provider customers conserving cash at the end of the year combined with the late notice by two major customers, it was not possible for our sales team to make up the revenue shortfall. We continue to believe that, despite recent challenges in the competitive communications services industry, Carrier Access is very well positioned as an equipment value leader in broadband access and service delivery." The company is completing its planning process for the upcoming year and intends to provide sales and income statement guidance for fiscal year 2001 when it announces its final results for the current year on January 18, 2001, in accordance with its normal practice. 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 The foregoing statements regarding anticipated quarterly results are preliminary and forward-looking. Final results could differ, depending upon any adjustments made during the course of the quarterly close, review of actual shipment data and expenses and fiscal year audit. A number of the risks and uncertainties in our business are discussed in detail in the Company's SEC reports, including the 1999 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. Report and Form 10-Q Form 10-Q See 10-Q. Report for the quarter ended September 30, 2000. About Carrier Access Carrier Access is a leading provider of broadband access equipment to communications service providers, including competitive local exchange carriers, incumbent local exchange carriers ILEC, short for incumbent local exchange carrier, is a local telephone company in the United States that was in existence at the time of the break up of AT&T into the Regional Bell Operating Companies (RBOCs) also known as the "Baby Bells". , independent operating companies, 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 last mile for the provisioning of enhanced voice and high-speed data services by service providers to businesses, government and enterprise end users. Carrier Access' Access Bank(R), 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. (TM), Access Navigator(TM), and Wide Bank(R) family products are connected to T1, DSL DSL in full Digital Subscriber Line Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary , digital radio, T3, and optical access and transport networks. Additional information about Carrier Access and its products can be found at www.carrieraccess.com. For More Information Additional information about Carrier Access and its products can be found at www.carrieraccess.com. Access Bank and Wide Bank are registered trademarks, and Access Navigator, Access with no limits, Adit, and the Carrier Access logo are trademarks of Carrier Access Corporation. All other trademarks are the property of their respective companies. |
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