Carrier Access Reports Second Quarter 2004 Financial Results; Company Reports Fifth Consecutive Quarter of Revenue Growth.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 NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : 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 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 technologies Noun 1. communications technology - the activity of designing and constructing and maintaining communication systems engineering, technology - the practical application of science to commerce or industry , today reported results for its second quarter ended June June: see month. 30, 2004. Revenue for the second quarter of 2004 was $30.8 million compared to first quarter 2004 revenue of $28.5 million, an 8% increase. Year over year revenue, including revenue from the Paragon acquisition, increased 152% from the $12.2 million reported for the second quarter of 2003. Net income for the second quarter of 2004 was $3.6 million, or $0.10 per share, compared with the $2.7 million, or $0.09 per share, reported in the first quarter of 2004, an increase of 32%. Year over year net income increased more than 29 times from the $122,000, or $0.00 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , reported for the second quarter of 2003. This marks the fifth consecutive quarter of revenue growth and eighth consecutive quarter of net income growth for Carrier Access. Revenue for the first six months of 2004 totaled $59.4 million, compared to $23.4 million for the same period of 2003, an increase of 154%. Net income for the first six months of 2004 was $6.3 million or $0.18 per share, compared with net income for the first six months of fiscal 2003 of $239,000 or $0.01 per share. In the second quarter, Carrier Access was added to the Russell 3000 Index The Russell 3000 Index is a stock market index of US stocks. The ticker is "RUA" or similar. See Russell Indexes page for main discussion. See also the iShares Russell 3000. as part of Russell Russell, English noble family. It first appeared prominently in the reign of Henry VIII when John Russell, 1st earl of Bedford, 1486?–1555, rose to military and diplomatic importance. Investment Group's annual re-evaluation of the closely watched indexes. The Russell 3000 measures the top 3,000 U.S. equities in terms of market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. . "The second quarter 2004 was another positive quarter for Carrier Access. Once again we met our financial expectations and gained increased interest from both current and potential customers for our wireless backhaul (1) The original definition of backhaul was to transmit a telephone call or data beyond its normal destination point and then back again in order to utilize available personnel (operators, agents, etc.) or network equipment that is not located at the destination location. and VoIP technologies," said Roger Koenig, chairman, 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 president, Carrier Access. "We continue to operate against a solid business plan, and maintain a long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. outlook and commitment to our three focus markets -- wireless, broadband and fiber access." Carrier Access will conduct a conference call and audio webcast to discuss its second quarter 2004 earnings today at 4:30 p.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT . This call is open to the public. Participants should dial 312-470-0008, domestically or internationally, at least fifteen minutes prior to the scheduled start time and reference Carrier Access. The audio webcast will be simultaneously si·mul·ta·ne·ous adj. 1. Happening, existing, or done at the same time. See Synonyms at contemporary. 2. Mathematics available and will also be available for replay until July July: see month. 20, 2005. To access the simultaneous audio webcast or replay, please visit the Carrier Access Investor Relations Investor relations The process by which the corporation communicates with its investors. page at www.carrieraccess.com/investors. About Carrier Access Carrier Access (NASDAQ: CACS) provides next-generation wireline and wireless broadband High-speed wireless transmission of data. What is "high" speed is always a changing number. Wireless systems are typically slower than land-based, wireline networks. In the past, wireless broadband started at 250 Kbps, whereas land-based broadband was generally considered to start at T1 access technologies that optimize optimize - optimisation communications services for service providers, enterprises and government agencies. Carrier Access products are designed to 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. 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 and VoIP. Our results of operations for the second quarter of fiscal 2004 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, growth rates through acquisition, 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, 2003, 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)
June 30, December 31,
2004 2003
-------- ------------
ASSETS
Current assets:
Cash and cash equivalents $93,401 $17,207
Marketable securities available for sale 28,646 19,335
Accounts receivable, net
14,917 18,333
Inventory, net 30,068 26,135
Prepaid expenses and other 3,197 4,708
---------- ------------
Total current assets 170,229 85,718
Property and equipment, net 6,294 7,012
Goodwill 6,748 6,748
Intangibles, net 7,034 7,692
Other assets 209 372
---------- ------------
Total assets $190,514 $107,542
========== ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $9,569 $12,862
Accrued compensation payable 2,616 2,905
Deferred rent 888 912
Accrued expenses and other liabilities 1,806 1,469
---------- ------------
Total liabilities 14,879 18,148
Stockholders' equity:
Common stock, 34 27
Additional paid-in capital 186,560 106,571
Deferred compensation -- (12)
Accumulated deficit (10,925) (17,185)
Accumulated other comprehensive loss (34) (7)
---------- ------------
Total stockholders' equity 175,635 89,394
---------- ------------
Total liabilities and stockholders' equity $190,514 $107,542
========== ============
CARRIER ACCESS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share amounts)
Three Months Six Months
Ended Ended
June 30, June 30,
------------- --------------
2004 2003 2004 2003
---- ---- ---- ----
Revenue, net $30,845 12,156 $59,391 23,359
Cost of sales 16,894 6,687 32,506 12,841
-------- ------ -------- -------
Gross profit 13,951 5,469 26,885 10,518
-------- ------ -------- -------
Operating expenses:
Research and development 4,692 2,540 8,662 5,149
Sales and marketing 4,041 2,744 8,617 5,419
General and administrative 1,892 1,298 3,617 2,531
Bad debt expense (recoveries) (98) (1,147) (281) (2,559)
Intangible asset amortization 307 - 654 -
-------- ------ -------- -------
Total operating expenses 10,834 5,435 21,269 10,540
-------- ------ -------- -------
Income (loss) from operations 3,117 34 5,616 (22)
Other income, net 491 88 711 172
-------- ------ -------- -------
Income before income taxes 3,608 122 6,327 150
Income tax expense (benefit) 52 - 67 (89)
-------- ------ -------- -------
Net income $3,556 $122 $6,260 $239
======== ====== ======== =======
Income per share:
Basic $0.11 $0.00 $0.20 $0.01
Diluted $0.10 $0.00 $0.18 $0.01
Weighted average common shares:
Basic 33,744 24,798 32,010 24,781
Diluted 35,790 25,489 34,243 25,266
CARRIER ACCESS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)
Six Months Ended
June 30,
----------------------
2004 2003
---------- ---------
Cash flows from operating activities:
Net income $6,260 $239
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization expense 2,289 2,037
Provision for (recoveries of) doubtful
accounts, net (281) (2,559)
Provision for (recoveries of) inventory
obsolescence (224) (249)
Stock-based compensation 31 61
Changes in operating assets and
liabilities:
Accounts receivable 3,697 165
Income taxes receivable -- 6,891
Inventory (3,709) (1,081)
Prepaid expenses and other 1,674 (1,065)
Accounts payable and accrued expenses (3,269) (709)
---------- ---------
Net cash provided by operating
activities 6,468 3,730
---------- ---------
Cash flows from investing activities:
Purchases of property and equipment (913) (398)
Purchases of marketable securities (18,046) (6,555)
Sales and maturities of marketable securities
available for sale 8,708 5,795
---------- ---------
Net cash used by investing
activities (10,251) (1,158)
---------- ---------
Cash flows from financing activities:
Proceeds from stock offering 78,372 --
Proceeds from exercise of stock options 1,605 20
---------- ---------
Net cash provided by financing
activities 79,977 20
Net increase in cash and cash equivalents 76,194 2,592
Cash and cash equivalents at beginning of
period 17,207 14,900
---------- ---------
Cash and cash equivalents at end of period $93,401 $17,492
========== =========
Supplemental cash flow disclosures:
Income tax refunds $ -- $6,980
========== =========
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