Carrier Access Reports Progress in ILEC and Wireless Markets; Releases Fourth-Quarter and 2001 Year-End Results.Business Editors & Technology 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)--Jan. 22, 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 ), an equipment manufacturer that helps more than 1,800 telecommunications companies See telecom company. accelerate service revenue, lower operating costs operating costs npl → gastos mpl operacionales , and extend capital budgets, today reported results for its fourth quarter 2001 and for the year ended December December: see month. 31, 2001. Net revenue for fourth quarter 2001 increased to $21.5 million, compared to $20.9 million for third quarter 2001, and net revenue for 2001 decreased year over year to $100.7 million from $148.1 million in 2000. "Although reported annual revenue in 2001 decreased due to the decline of the competitive carrier market, we believe that we have successfully refocused the company on the healthiest segments of the market -- including 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". (ILECs) and wireless carriers," 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. . "Specifically, we completed purchase agreements with two major ILEC (Incumbent Local Exchange Carrier) A traditional local telephone company such as one of the Regional Bell companies (RBOCs). Contrast with CLEC. See ELEC and TELRIC. customers and gained important new accounts in the wireless market. Sales to the wireless market increased from 6 percent of sales in the third quarter to 14 percent of sales in the fourth quarter. We believe that the combination of our successful transition to these segments and the development of new products in these segments will drive our revenue growth in 2002." "Our cost saving plan effectively resulted in a significant fourth-quarter operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. reduction," said Carrier Access' CFO See Chief Financial Officer. , Timothy Anderson Anderson, river, Canada Anderson, river, c.465 mi (750 km) long, rising in several lakes in N central Northwest Territories, Canada. It meanders north and west before receiving the Carnwath River and flowing north to Liverpool Bay, an arm of the Arctic . "Implemented during the third quarter of 2001, the plan resulted in fourth-quarter cost reductions of $3.4 million, an 18.6 percent reduction from second-quarter spending levels. Last week, we made a five percent reduction of our workforce, primarily in the sales and production areas. We have streamlined our business, increased operational efficiency, and reduced production costs. In addition to cost savings, we increased our cash position and decreased inventory during the fourth quarter. With $36.6 million in cash 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 , 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. , and a plan to remain cash flow positive in 2002, we believe Carrier Access' strong balance sheet provides the foundation for our 2002 operating plan." 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 fourth quarter 2001, before goodwill amortization, was a loss of $.13 per share, or $3.1 million, compared to a third-quarter 2001 loss of $.13 per share, or $3.2 million. Pro forma net loss for 2001, before goodwill amortization and asset impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charge, was $.31 per share, or $7.6 million, compared to a net income of $.78 per share, or $19.4 million reported for 2000. The asset impairment charge was recorded in the third quarter of 2001, and was related to a write down of intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. associated with an acquisition that took place in October October: see month. of 2000. Net loss for fourth quarter 2001, including goodwill amortization, was $.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, or $3.7 million, compared to a net loss for third quarter 2001, including goodwill amortization, of $.33 per diluted share, or $8.2 million. Net loss for 2001, including goodwill amortization and asset impairment charge, was $.60 per diluted share or $14.9 million, compared to net income for 2000, including goodwill amortization, of $.74 per diluted share or $18.5 million. 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 719/457-2698, 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, February February: see month. 4, 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, or www.ccbn.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. 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, a change in overall demand for our products, problems with or at our distributors and/or 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 31, 2000, 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, and extend capital budgets by applying high-performance 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, 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)
Three Months Ended Twelve Months Ended
December 31, December 31,
Pro Forma Presentation
2001 2000 2001 2000
---- ---- ---- ----
Net revenue $21,535 $25,014 $100,706 $148,050
Cost of goods sold 12,336 11,879 54,091 66,769
-------- --------- --------- ---------
Gross profit 9,199 13,135 46,615 81,281
-------- --------- --------- ---------
Operating expenses excluding
goodwill amortization and
asset impairment charge:
Research and development 7,499 8,176 33,205 28,697
Sales and marketing 5,338 5,052 23,299 20,035
General and administrative 2,117 2,007 9,032 7,874
Amortization of deferred stock
compensation 38 155 449 497
-------- --------- --------- ---------
Total operating expenses excluding
goodwill amortization and asset
impairment charge 14,992 15,390 65,985 57,103
-------- --------- --------- ---------
Income (loss) from operations
before goodwill amortization and
asset impairment charge (5,793) (2,255) (19,370) 24,178
Other income, net 229 1,162 1,635 3,526
-------- --------- --------- ---------
Income (loss) before income taxes
and goodwill amortization and asset
impairment charge (5,564) (1,093) (17,735) 27,704
Income tax expense (benefit) (2,433) (838) (10,131) 8,326
-------- --------- --------- ---------
Income (loss) before goodwill
amortization and asset impairment
charge (3,131) (255) (7,604) 19,378
Goodwill amortization, net of tax 600 661 3,031 828
Asset impairment charge -- -- 4,220 --
-------- --------- --------- ---------
Net income (loss) after goodwill
amortization and asset impairment
charge $(3,731) $(916) $(14,855) $18,550
======== ========= ========= =========
Income (loss) per share before
goodwill amortization and asset
impairment charge:
Basic $(0.13) $(0.01) $(0.31) $0.79
Diluted $(0.13) $(0.01) $(0.31) $0.78
Income (loss) per share after
goodwill amortization and
asset impairment charge:
Basic $(0.15) $(0.04) $(0.60) $0.76
Diluted $(0.15) $(0.04) $(0.60) $0.74
Weighted average common shares:
Basic 24,740 24,514 24,695 24,428
Diluted 24,740 24,975 24,695 24,975
Carrier Access Corporation
Condensed Consolidated Balance Sheets
(in thousands)
Presented in conformity with
Generally Accepted Accounting
Principles (GAAP)
December 31, December 31,
2001 2000
ASSETS ---- ----
Current assets:
Cash and cash equivalents $24,741 $32,812
Securities available for sale 11,873 19,648
Accounts receivable, net 17,808 23,856
Income tax receivable 8,307 4,383
Inventory, net 36,500 30,711
Deferred income taxes 4,039 3,417
Prepaid expenses and other 2,673 7,226
--------- ---------
Total current assets 105,941 122,053
Property and equipment, net of
accumulated depreciation and
amortization 14,140 13,942
Goodwill and other intangibles,
net of amortization 9,354 16,879
Deferred income taxes 3,280 1,894
Other assets 142 231
--------- ---------
Total assets $132,857 $154,999
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $8,864 $15,746
Accrued expenses and other liabilities 5,560 6,456
--------- --------
Total current liabilities 14,424 22,202
Stockholders' equity:
Common stock $0.001 par value, 60,000
authorized and 24,673 shares issued and
outstanding at December 31, 2000, and
24,740 shares issued and outstanding at
December 31, 2001 30 30
Additional paid-in capital 85,808 86,135
Deferred compensation (466) (1,425)
Retained earnings 33,012 47,867
Accumulated other comprehensive income 49 190
-------- --------
Total stockholders' equity 118,433 132,797
-------- --------
Commitments and contingencies
Total liabilities and stockholders' equity $132,857 $154,999
========= =========
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 Twelve Months Ended
December 31, December 31,
2001 2000 2001 2000
---- ---- ---- ----
Net revenue $21,535 $25,014 $100,706 $148,050
Cost of goods sold 12,336 11,879 58,311 66,769
-------- --------- --------- ---------
Gross profit 9,199 13,135 42,395 81,281
-------- --------- --------- ---------
Operating expenses:
Research and development 7,499 8,176 33,205 28,697
Sales and marketing 5,338 5,052 23,299 20,035
General and administrative 2,117 2,002 4,813 7,877
Goodwill amortization 647 743 3,460 906
Asset impairment charge -- -- 4,220 --
Amortization of deferred stock
compensation 38 155 449 497
-------- --------- --------- ---------
Total operating expenses 15,639 16,128 69,446 58,012
-------- --------- --------- ---------
Income (loss) from operations (6,440) (2,993) (27,051) 23,269
Other income, net 229 1,162 1,635 3,526
-------- --------- --------- ---------
Income (loss) before income
taxes (6,211) (1,831) (25,416) 26,795
Income tax expense (benefit) (2,480) (915) (10,561) 8,245
-------- --------- --------- ---------
Net income (loss) $(3,731) $(916) $(14,855) $18,550
Income (loss) per share:
Basic $(0.15) $(0.04) $(0.60) $0.76
Diluted $(0.15) $(0.04) $(0.60) $0.74
Weighted average common shares:
Basic 24,740 24,514 24,695 24,428
Diluted 24,740 24,975 24,695 24,975
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