Castelle Reports Financial Results for the Third Quarter and Nine Months of 2005.MORGAN Morgan, American family of financiers and philanthropists. Junius Spencer Morgan, 1813–90, b. West Springfield, Mass., prospered at investment banking. HILL, Calif. -- Castelle (Nasdaq:CSTL CSTL Chemical Science and Technology Laboratory CSTL Clinical Study Team Leader ), a market leader in fax solutions for small to medium-sized Me´di`um-sized` a. 1. Having a medium size; as, a medium-sized man s>. Adj. 1. medium-sized - intermediate in size medium-size, moderate-size, moderate-sized workgroups See workgroup, workgroup-based network and Windows for Workgroups. and enterprise applications, today announced financial results for the third quarter and nine months ended September September: see month. 30, 2005. Sales for the third quarter of 2005 totaled $2.70 million, up 1% from $2.69 million reported in the third quarter of 2004. For the nine months of 2005, sales were $8.14 million, up 3% from $7.92 million in comparable period last year. Net income for the third quarter of 2005 was $248,000, or $0.05 per fully 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, compared to $130,000, or $0.03 per fully diluted share, in the third quarter of 2004. Income before taxes for the third quarter of 2005 was $248,000, up 10%, as compared to $225,000 in the same period last year. For the first nine months of 2005, net income was $699,000, or $0.16 per fully diluted share, compared to $405,000, or $0.09 per fully diluted share, in the first nine months of 2004. Income before taxes for the first nine months of 2005 was $699,000, down 3%, as compared to $719,000 in the same period last year. Castelle's balance sheet remained strong, with cash and cash equivalents at $6.29 million as of September 30, 2005. The Company continues to operate with virtually 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. . "Despite a competitive fax server market, our latest results indicate that demand for Castelle fax servers remains steady," said Scott McDonald Scott Douglas McDonald (born 21 August 1983, Melbourne, Australia) is a professional football (soccer) player who currently plays in Scotland for Celtic as a striker. After a £400,000 bid from Rangers was rejected in January 2007,[1] , President and 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. of Castelle. "With FaxPress Premier(TM), the newest addition to our fax server family, we are transitioning to new markets and opportunities -- enterprise level applications and support for digital environments. FaxPress Premier has enabled us to not only upgrade our existing customers but, more importantly, enter into the digital market, the most lucrative and fastest growing segment of the fax server market." Mr. McDonald also noted that the Company's performance is consistent with statements in a recent report by Davidson Da·vid·son , Jo(seph) 1883-1952. American sculptor best remembered for his vigorous portrait busts of Woodrow Wilson, Franklin D. Roosevelt, and Albert Einstein, among others. Consulting, an industry leading independent research firm, which ranks Castelle seventh in global market share, having passed three competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. to move up from tenth Tenth can mean: In mathematics:
About Castelle Castelle, a market leader in "all-in-one (1) A combination computer printer, scanner, copy machine and fax machine. Some all-in-ones exclude the fax capability or make it an option. (2) A desktop computer that houses every component except the keyboard and mouse inside the same case as the monitor. " network fax solutions for business and enterprise, develops office automation systems that allow organizations to easily implement faxing over local area networks and the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the . Castelle's network fax servers, FaxPress(TM) and FaxPress Premier, provide a simple way to integrate fax with email, desktop and back-end (programming) back-end - Any software performing either the final stage in a process, or a task not apparent to the user. A common usage is in a compiler. A compiler's back-end generates machine language and performs optimisations specific to the machine's architecture. applications. Castelle products are designed to be easy to use and maintain, and provide an economical way for companies to share resources over the network. Castelle was founded in 1987 and is headquartered in Morgan Hill, California Morgan Hill (IPA: /ˈmɔrgɨn ˈhɪl/) is a city located in the southern part of Santa Clara County, California, USA. . Its products are available through a worldwide network of distributors, resellers, and online retailers. Visit Castelle online at www.castelle.com. If you would like to be added to Castelle's investor email list, please contact Karin Karin is a common feminine given name in various Germanic languages (geographically including Germany, Scandinavia, and Holland), Japanese, and in some French-speaking areas. Smith at ksmith@castelle.com. FaxPress(TM) and FaxPress Premier(TM) are trademarks of Castelle. All other trademarks are the property of their respective owners. Forward-Looking Statements 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. This press release may contain forward-looking statements, including but not limited to references to upgrading existing customers and entering the digital market. These statements are subject to risks and uncertainties, including but not limited to the impact on our results from fluctuations in demand for our products, introduction of new products by our competitors, the timely development, acceptance and pricing of our products and general economic conditions as they affect our customers. Investors are referred to the full discussion of risks and uncertainties associated with forward-looking statements as contained in our reports to the Securities and Exchange Commission, including our Forms 10-K and 10-Q. The Company assumes no obligation to update the forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. information.
CASTELLE
Condensed Consolidated Statements of Earnings
(in thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
September September September September
30, 30, 30, 30,
2005 2004 2005 2004
------------ ----------- ------------ -------------
Sales:
Products $ 1,946 $ 2,079 $ 5,955 $ 6,181
Services 755 606 2,186 1,734
------------ ----------- ------------ -------------
Total net
sales 2,701 2,685 8,141 7,915
Cost of sales:
Products 772 674 1,988 1,905
Services 250 207 778 621
------------ ----------- ------------ -------------
Total cost of
sales 1,022 881 2,766 2,526
------------ ----------- ------------ -------------
Gross profit 1,679 1,804 5,375 5,389
------------ ----------- ------------ -------------
Operating
expenses:
Research and
development 395 470 1,252 1,312
Sales and
marketing 646 612 1,862 1,882
General and
administrative 416 486 1,633 1,459
------------ ----------- ------------ -------------
Total
operating
expenses 1,457 1,568 4,747 4,653
------------ ----------- ------------ -------------
Operating
income 222 236 628 736
Other
income/(expense),
net 26 (11) 71 (17)
------------ ----------- ------------ -------------
Income before
income taxes 248 225 699 719
Provision for
income taxes - 95 - 314
------------ ----------- ------------ -------------
Net income $ 248 $ 130 $ 699 $ 405
============ =========== ============ =============
Net income per
common share:
Basic $ 0.06 $ 0.04 $ 0.18 $ 0.11
============ =========== ============ =============
Diluted $ 0.05 $ 0.03 $ 0.16 $ 0.09
============ =========== ============ =============
Shares used in per
share calculation:
Basic 3,940 3,647 3,875 3,573
============ =========== ============ =============
Diluted 4,567 4,353 4,494 4,414
============ =========== ============ =============
As a percentage of
net sales:
Sales:
Products 72.0% 77.4% 73.1% 78.1%
Services 28.0% 22.6% 26.9% 21.9%
------------ ----------- ------------ -------------
Total net
sales 100.0% 100.0% 100.0% 100.0%
Cost of sales:
Products 28.6% 25.1% 24.4% 24.1%
Services 9.3% 7.7% 9.6% 7.8%
------------ ----------- ------------ -------------
Total cost of
sales 37.9% 32.8% 34.0% 31.9%
------------ ----------- ------------ -------------
Gross profit 62.1% 67.2% 66.0% 68.1%
------------ ----------- ------------ -------------
Operating
expenses:
Research and
development 14.6% 17.5% 15.4% 16.6%
Sales and
marketing 23.9% 22.8% 22.9% 23.8%
General and
administrative 15.4% 18.1% 20.0% 18.4%
------------ ----------- ------------ -------------
Total
operating
expenses 53.9% 58.4% 58.3% 58.8%
------------ ----------- ------------ -------------
Operating
income 8.2% 8.8% 7.7% 9.3%
Other
income/(expense),
net 1.0% (0.4%) 0.9% (0.2%)
------------ ----------- ------------ -------------
Income before
income taxes 9.2% 8.4% 8.6% 9.1%
Provision for
income taxes 0.0% 3.5% 0.0% 4.0%
------------ ----------- ------------ -------------
Net income 9.2% 4.9% 8.6% 5.1%
============ =========== ============ =============
CASTELLE
Condensed Consolidated Balance Sheets
(in thousands, except per share data)
(Unaudited)
September 30, 2005 December 31, 2004
------------------ ------------------
Assets:
Current Assets:
Cash and cash equivalents $ 6,291 $ 5,599
Accounts Receivable, net 1,029 857
Inventories 1,319 1,785
Prepaid expenses and other
current assets 154 130
Deferred taxes 231 231
------------------ ------------------
Total current assets 9,024 8,602
Property and equipment, net 286 203
Other non-current assets 46 50
Deferred taxes, non-current 1,292 1,292
------------------ ------------------
Total assets $ 10,648 $ 10,147
================== ==================
Liabilities and Shareholders'
Equity
Current liabilities:
Long-term debt, current
portion $ 16 $ 15
Accounts payable 198 511
Accrued liabilities 761 1,073
Deferred revenue 1,514 1,253
------------------ ------------------
Total current
liabilities 2,489 2,852
Long-term debt, net of
current portion 1 14
------------------ ------------------
Total liabilities 2,490 2,866
Shareholders' equity 8,158 7,281
------------------ ------------------
Total liabilities and
shareholder's
equity $ 10,648 $ 10,147
================== ==================
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