Carrier Access Reports Second 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)--July 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 second quarter ended June June: see month. 30, 2003. Net revenue for second quarter 2003 was $12.2 million, compared to net revenue of $11.2 million for the first quarter 2003, an increase of 9%, and an increase of 3% over the net revenue of $11.8 million reported for the second quarter 2002. Net income for the second quarter 2003 was $122,000, or $.00 per share, an increase from first quarter 2003 net income of $117,000, or $.00 per share, and an increase from a net loss of $20.8 million, or $.84 per share, reported for the second quarter 2002. Revenue for the first six months of fiscal 2003 totaled $23.4 million, compared to $28.3 million for the same period of 2002. Net income for the first six months of fiscal 2003 was $239,000, or $0.01 per share, compared with a net loss for the first six months of fiscal 2002 of $29.8 million, or $1.20 per share. During the first and second quarters of 2003, the company recovered significant amounts 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 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 cash and cash equivalents, together with securities available for sale, of $29.1 million as of June 30, 2003. 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. . "We are pleased with our second quarter 2003 results. We saw an increase in revenue and continued our focus on cost control. More importantly, we saw positive customer developments in three major new deployment Installing, setting up, testing and running. This military term, which means the placement of troops and equipment in the field, is widely used with computers as an alternate to the word "implementation. initiatives. These three service provider initiatives are: the conversion of traditional telephone circuits to Voice over Internet Protocol See Internet and TCP/IP. (networking) Internet Protocol - (IP) The network layer for the TCP/IP protocol suite widely used on Ethernet networks, defined in STD 5, RFC 791. IP is a connectionless, best-effort packet switching protocol. (VoIP); deployment of Fiber To The User (FTTU FTTU Fiber to the User ); and competitive service bundling bundling, courtship custom, thought to have originated in Holland and the British Isles. It was extended to America, particularly to New England, and most widely practiced in the years prior to the Revolution of 1776. for broadband access See broadband and wireless broadband. . Our products connect end users to these major new access services and allow both technology and cost breakthroughs for our customers. We believe we are positioned to win in the deployment of these new services, and that our opportunities are increasing," 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, July July: see month. 21, 2004. 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 new customer initiatives and the ability to attain revenue with these new customers initiatives, as well as our growth prospects and market share gains in broadband access 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 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 December: see month. 31, 2002 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. 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 3.0 million voice and data lines for customers and meet the industry's highest appropriate 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. are trademarks of Carrier Access Corporation. Any other trademark is the trademark of its respective owner.
CARRIER ACCESS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
2003 2002 2003 2002
--------- -------- -------- ---------
Net revenue $12,156 $11,806 $23,359 $28,252
Cost of goods sold 6,687 8,277 12,841 19,509
--------- -------- -------- ---------
Gross profit 5,469 3,529 10,518 8,743
--------- -------- -------- ---------
Operating expenses:
Research and development
(exclusive of stock based
compensation expense of $12
and $43, respectively, for
the quarter ended June 30,
2003 and 2002 and $35 and
$122, respectively for the
six months ended June 30,
2003 and 2002) 2,528 5,735 5,113 14,664
Sales and marketing (exclusive
of stock based compensation
expense of $0 and $0,
respectively, for the quarter
ended June 30, 2003 and 2002
and $0 and $5, respectively
for the six months ended June
30, 2003 and 2002) 2,744 4,727 5,419 10,023
General and administrative
(exclusive of stock based
compensation expense of $0
and $0, respectively, for the
quarter ended June 30, 2003
and 2002 and $25 and $2,
respectively for the six
months ended June 30, 2003
and 2002) 1,298 4,088 2,506 6,467
Bad debt expense (recoveries),
net (1,147) 2,635 (2,559) 5,401
Intangible amortization -- 72 -- 144
Stock-based compensation
expense 12 43 61 129
--------- -------- -------- ---------
Total operating expenses 5,435 17,300 10,540 36,828
--------- -------- -------- ---------
Income (loss) from operations 34 (13,771) (22) (28,085)
Other income, net 88 223 172 464
--------- -------- -------- ---------
Income (loss) before income taxes 122 (13,548) 150 (27,621)
Income tax expense (benefit) -- 7,221 (89) 2,158
--------- -------- -------- ---------
Net income (loss) $122 $(20,769) $239 $(29,779)
========= ======== ======== =========
Income (loss) per share:
Basic $0.00 $(0.84) $0.01 $(1.20)
Diluted $0.00 $(0.84) $0.01 $(1.20)
Weighted average common shares:
Basic 24,792 24,755 24,781 24,749
Diluted 25,806 24,755 25,661 24,749
CARRIER ACCESS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands, except share information)
June 30, December 31,
ASSETS 2003 2002
------------- ------------
Current assets:
Cash and cash equivalents $17,492 $14,900
Securities available for sale 11,586 10,828
Accounts receivable, net 10,992 8,598
Income tax receivable 98 6,989
Inventory, net 25,464 24,134
Prepaid expenses and other 2,247 1,198
------------- ------------
Total current assets 67,879 66,647
Property and equipment, net of accumulated
depreciation and amortization 7,823 9,462
Goodwill and other intangibles, net of
amortization 151 146
Other assets 193 182
------------- ------------
Total assets $76,046 $76,437
============= ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $5,715 $5,437
Accrued expenses and other liabilities 3,899 4,886
------------- ------------
Total current liabilities 9,614 10,323
Stockholders' equity:
Preferred stock $0.001 par value, 5,000
shares authorized and no shares issued or
outstanding -- --
Common stock $0.001 par value, 60,000 shares
authorized and 24,798 shares issued and
outstanding at June 30, 2003 and 24,771
shares issued and outstanding at December
31, 2002 30 30
Additional paid-in capital 85,825 85,780
Deferred compensation (29) (65)
Accumulated deficit (19,404) (19,643)
Accumulated other comprehensive income 10 12
------------- ------------
Total stockholders' equity 66,432 66,114
------------- ------------
Commitments and contingencies
Total liabilities and stockholders' equity $76,046 $76,437
============= ============
CARRIER ACCESS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In thousands)
Six Months Ended
June 30,
-------------------
2003 2002
--------- ---------
Cash flows from operating activities:
Net income (loss) $239 $(29,779)
Adjustments to reconcile net income (loss) to net
cash provided (used) by operating activities:
Depreciation and amortization expense 2,037 1,997
Provision for (recoveries of) doubtful accounts,
net (2,559) 5,401
Provision for inventory obsolescence (249) 2,970
Stock-based compensation 60 129
Deferred income tax benefit -- 7,318
Changes in operating assets and liabilities:
Accounts receivable 165 2,348
Income taxes receivable 6,891 (3,195)
Inventory (1,081) 7,491
Prepaid expenses and other (1,065) 1,013
Accounts payable and accrued expenses (709) (940)
--------- ---------
Net cash provided (used) by operating activities 3,729 (5,247)
--------- ---------
Cash flows from investing activities:
Purchases of property and equipment (398) (534)
Purchases of marketable securities, gross (6,555) (8,019)
Sales of marketable securities 5,796 6,847
--------- ---------
Net cash provided (used) by investing activities (1,157) (1,706)
--------- ---------
Cash flows from financing activities:
Proceeds from exercise of stock options 20 21
--------- ---------
Net increase (decrease) in cash and cash
equivalents 2,592 (6,932)
Cash and cash equivalents at beginning of period 14,900 24,741
--------- ---------
Cash and cash equivalents at end of period $17,492 $17,809
========= =========
Supplemental cash flow disclosures:
Cash received (paid) for income taxes $6,890 $(1,973)
--------- ---------
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