Carrier Access Reports Third-Quarter 2001 Financial 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)--Oct. 18, 2001 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 third quarter ended September September: see month. 30, 2001. Net revenue for third quarter 2001 was $20.9 million, compared to net revenue of $29.4 million for second quarter 2001. Net loss, before goodwill amortization and 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. , for the third quarter increased to a loss of $0.13 cents 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 $3.2 million, from the loss of $0.05 cents per diluted share, or $1.3 million, net loss reported for the second quarter of 2001. Net loss, including goodwill amortization and impairment, for the third quarter of 2001 was $0.33 per diluted share, or $8.2 million. This compared to a net loss, including goodwill amortization, of $0.08 cents per diluted share, or $2.1 million, in the second quarter of 2001. In third quarter 2000, Carrier Access reported net revenue of $40.2 million and net income of $4.2 million before goodwill amortization. As previously announced, in that quarter the company recorded a non-cash $4.2 million goodwill impairment in 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. 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. related to previous acquisitions. The company also said it took a charge for excess and slow-moving inventory of $2.5 million in that quarter. "The September quarter performance was lower than expected due to the impact of recent economic changes on our service provider customers. Specifically, the timing of some orders that were forecasted for the third quarter were delayed due to slow-downs in new city deployments and purchasing freezes from some customers, including an 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. ," said 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. Roger Koenig. "In spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite the disappointment in revenue closure during the last quarter, we believe that our mission to deliver broadband access See broadband and wireless broadband. and service creation, at lower total costs, is well aligned with the economic demands of our customers going forward. Carrier Access is a company with a high ability to endure today's market. We have $35.6 million in cash, 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. , a plan to increase our cash position through inventory reduction, and a focus on the healthiest segments of the market. We gained important new customers and continued to aggressively develop new product solutions during the last quarter. Carrier Access is moving forward with the same vision that launched our company in 1995. Then and now, we see unfilled opportunities and believe in our ability to deliver leadership and growth," said Koenig. Carrier Access will hold a conference call 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 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 ten to 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. EDT, October 29, 2001. 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 and service creation and our ability to endure today's market. 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 SEC. 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 Consolidated Balance Sheets
(in thousands)
(unaudited)
September 30, December 31,
ASSETS 2001 2000
------------- ------------
Current assets:
Cash and cash equivalents $21,269 $32,812
Marketable securities available for sale 14,374 19,648
Accounts receivable, net 15,827 23,059
Income tax receivable 1,982 4,383
Inventory, net 38,841 31,355
Deferred income taxes 8,129 3,417
Prepaid expenses and other 1,966 1,895
------------- -------------
Total current assets 102,388 116,569
Property and equipment, net of accumulated
depreciation and amortization 15,053 13,942
Goodwill and other intangibles, net of
amortization 9,925 16,879
Deferred income taxes 3,253 1,894
Other assets 187 231
------------- -------------
Total assets $130,806 $149,515
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $4,350 $10,262
Accrued expenses and other liabilities 4,407 6,456
------------- -------------
Total current liabilities 8,757 16,718
Stockholders' equity:
Common stock $0.001 par value, 60,000
authorized and 24,673 shares issued and
outstanding at December 31, 2000, and
24,737 shares issued and outstanding at
September 30, 2001 30 30
Additional paid-in capital 86,189 86,135
Deferred compensation (1,015) (1,425)
Retained earnings 36,742 47,867
Accumulated other comprehensive income 103 190
------------- -------------
Total stockholders' equity 122,049 132,797
------------- -------------
Commitments and Contingencies
Total liabilities and stockholders' equity $130,806 $149,515
============= =============
Carrier Access Corporation
Condensed Income Statements
(in thousands, except per share amounts)
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2001 2000 2001 2000
---- ---- ---- ----
Net revenue $20,899 $40,184 $79,171 $123,036
Cost of goods sold 13,622 19,042 41,755 54,890
-------- --------- --------- ----------
Gross profit 7,277 21,142 37,416 68,146
-------- --------- --------- ----------
Operating expenses excluding
goodwill amortization and
impairment:
Research and development 8,015 7,437 25,706 20,521
Sales and marketing 6,128 5,883 17,961 14,983
General and administrative 1,945 2,381 6,967 5,874
Amortization of deferred stock
compensation 104 114 360 341
-------- --------- --------- ----------
Total operating expenses excluding
goodwill amortization and asset
impairment charge 16,192 15,815 50,994 41,719
-------- --------- --------- ----------
Income (loss) from operations before
goodwill amortization and asset
impairment charge (8,915) 5,327 (13,578) 26,427
Other income, net 350 842 1,407 2,363
-------- --------- --------- ----------
Income (loss) before income taxes
and goodwill amortization and
asset impairment charge (8,566) 6,169 (12,171) 28,790
Income tax expense (benefit) (5,371) 1,974 (7,657) 9,213
-------- --------- --------- ----------
Income (loss) before goodwill
amortization and asset impairment
charge (3,194) 4,195 (4,514) 19,577
Goodwill amortization, net of tax 784 111 2,390 111
Asset impairment charge 4,220 - 4,220 -
-------- --------- --------- ----------
Net income (loss) after goodwill
amortization and asset impairment
charge $(8,198) $4,084 $(11,124) $19,466
======== ========= ========= ==========
Income (loss) per share before
goodwill amortization and asset
impairment charge:
Basic ($0.13) $0.17 ($0.18) $0.81
Diluted ($0.13) $0.17 ($0.18) $0.78
Income (loss) per share after
goodwill amortization and asset
impairment charge:
Basic ($0.33) $0.17 ($0.45) $0.80
Diluted ($0.33) $0.16 ($0.45) $0.78
Weighted average common shares:
Basic 24,709 24,514 24,688 24,349
Diluted 24,709 25,087 24,688 24,996
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