Catapult Communications Reports Record Revenues and Net Income for Second Quarter of Fiscal Year 2002.Business Editors MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--April 25, 2002 Catapult catapult (kăt`əpŭlt'), mechanism used to throw missiles in ancient and medieval warfare. At first, catapults were specifically designed to shoot spears or other missiles at a low trajectory (see bow and arrow). Communications Corporation (Nasdaq:CATT) reported today record quarterly revenues and net income for its second fiscal quarter ended March 31, 2002. Total revenues for the quarter were $12.1 million, a 13 percent increase from the $10.7 million reported for the second quarter of fiscal year 2001. Net income during the second quarter of fiscal 2002 increased 27 percent to $3.7 million from the $2.9 million reported for the second quarter of fiscal year 2001. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the second fiscal quarter were $0.28 compared to $0.22 in same quarter last year. "Catapult continues to grow and gain market share," said Dr. Richard Ri·chard , Joseph Henri Maurice Known as "Rocket." 1921-2000. Canadian hockey player. A right wing for the Montreal Canadiens (1942-1960), he led his team to eight Stanley Cup championships and was the first player to score 50 goals in a A. Karp, Catapult's Chairman 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. . "I am pleased to report that we are not just meeting, but exceeding our sales targets and we are more profitable than ever before. Moreover, our focus on delivering third generation (3G) digital test systems has enabled us to concentrate our resources on capturing and maintaining market share. During the second quarter of fiscal year 2002, our sales in Europe continued to be strong, as expected. Our customers there are developing equipment rapidly, and therefore we continue to see significant upcoming opportunities in this region. We also saw a considerable rebound rebound (rē´bownd), n/v 1. a recovery from illness. n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus rebound adjective in our North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. sales during the quarter. However, there are still challenges, which suggests that the North American outlook still justifies conservatism. "Catapult is now shipping product that supports CDMA (Code Division Multiple Access) A method for transmitting simultaneous signals over a shared portion of the spectrum. The foremost application of CDMA is the digital cellular phone technology from QUALCOMM that operates in the 800 MHz band and 1.9 GHz PCS band. 2000 protocols on our DCT (Discrete Cosine Transform) An algorithm that is widely used for data compression. Similar to Fast Fourier Transform, DCT converts data (pixels, waveforms, etc.) into sets of frequencies. The first frequencies in the set are the most meaningful; the latter, the least. 2000 Digital Communications Transmitting text, voice and video in binary form. See communications. Test System. Catapult is the first company to provide simulation-testing solutions for both of the major 3G technologies -- UMTS (Universal Mobile Telecommunications System) The GSM implementation of the 3G wireless phone system. Part of IMT-2000, UMTS provides service in the 2 GHz band and offers global roaming and personalized features. (Universal Mobile Telecommunications System Universal Mobile Telecommunications System (UMTS) is one of the third-generation (3G) cell phone technologies. Currently, the most common form uses W-CDMA as the underlying air interface, is standardized by the 3GPP, and is the European answer to the ITU ) and CDMA 2000 (Code Division Multiple Access). The current quarter will be our first test case for CDMA 2000 sales, particularly in the North American marketplace," added Karp. BUSINESS OUTLOOK Looking forward, Catapult provides the following preliminary guidance with respect to expected future results: -- Revenue of $11 million and fully diluted earnings per share of $0.20 for the third quarter of fiscal year 2002. -- Revenue of $12 million and fully diluted earnings per share of $0.25 for the fourth quarter of fiscal year 2002. -- Revenue of $46 million and fully diluted earnings per share $0.98 cents for the full fiscal year 2002. Catapult Communications will be discussing its second quarter results, along with its outlook for the remainder of fiscal year 2002, on a conference call today, beginning at 2:15 p.m. PDT PDT abbr. Pacific Daylight Time PDT Pacific Daylight Time PDT n abbr (US) (= Pacific Daylight Time) → hora de verano del Pacífico PDT . Dialing (888) 819-9918 can access the conference call. International and local participants can dial (706) 679-8546. Please reference Catapult Communications. The conference call will also be available on 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 from the Investor section of the Company's website. An online replay of this teleconference will be available on the Company's website at www.catapult.com. A digital recording will also be available two hours after the completion of the conference call until May 9, 2002. To access, US/Canada participants should call (800) 642-1687 or International and local participants, call (706) 645-9291 and enter the Conference ID No. 3676820. ABOUT CATAPULT Catapult Communications is the leading provider of advanced digital telecom test systems to global equipment manufacturers and service providers including Lucent, Motorola, NEC (NEC Corporation, Tokyo, www.nec.com, www.necus.com) An electronics conglomerate known in the U.S. for its monitors. In Japan, it had the lion's share of the PC market until the late 1990s (see PC 98). NEC was founded in Tokyo in 1899 as Nippon Electric Company, Ltd. , NTT DoCoMo (NTT Mobile Communications Network, Inc., Japan) Founded in 1991, NTT DoCoMo is a spinoff of Japan's NTT (Nippon Telegraph and Telephone Corporation) which provides wireless services, including cellular, paging, satellite and maritime and in-flight telephone services. and Nortel. Catapult delivers test solutions for over 200 protocols and variants -- spanning 3G (cdma2000 and UMTS), VoIP, GPRS (General Packet Radio Service) The first high-speed digital data service provided by cellular carriers that used the GSM technology. GPRS added a packet-switched channel to GSM, which uses dedicated, circuit-switched channels for voice conversations. , SS7, Intelligent Network, ATM, ISDN ISDN in full Integrated Services Digital Network Digital telecommunications network that operates over standard copper telephone wires or other media. and other network environments. The Company is committed to providing testing tools that are at the forefront of the technology curve, enabling customers to get to market faster with advanced products that reliably implement industry protocol standards. Catapult is headquartered at 160 South Whisman Road, Mountain View, CA 94041. Tel: 650-960-1025. International offices are located in the U.K., Germany, France, Finland, Canada, Japan and Australia. Information about Catapult can be found on the Web at www.catapult.com. FORWARD LOOKING STATEMENTS Statements in this press release regarding the company's business outlook and expected financial results for future periods and the continued growth of the company's business are based on current information and expectations and involve a number of risks and uncertainties. Actual results may differ materially from those projected in such statements due to various factors, including but not limited to: the rate at which cellular carriers continue the build-out of 3G networks; risk associated with the company's international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. including the risk of economic slowdowns in Europe and Japan; unanticipated fluctuations in the company's quarterly operating results; the dependence on a limited number of customers and the resulting effect of delays or cancellations by such customers of their orders; the timing of customer orders, shipments and acceptances; inability by the company to meet its production and/or product development schedules; failure by the company to manage its expense levels and unanticipated expenses; the company's dependence on customer outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. of test systems; the demand for telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. equipment in general, and, in particular, for software-based telecommunications test systems; new and enhanced product offerings by competitors; and the recent economic slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. . For other factors that may cause actual results to differ from those projected, please refer to the company's 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. , Forms 10-Q and other filings with the Securities and Exchange Commission.
Catapult Communications Corporation
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands except share and per share data; unaudited)
For the three For the six
months ended months ended
March 31, March 31,
2002 2001 2002 2001
Revenues:
Product sales $ 10,573 $ 9,440 $ 20,099 $ 17,812
Services 1,554 1,301 2,911 2,664
Total revenues 12,127 10,741 23,010 20,476
Cost of revenues:
Product sales 803 1,105 1,417 1,784
Services 275 140 538 290
Total cost of
revenues 1,078 1,245 1,955 2,074
Gross profit 11,049 9,496 21,055 18,402
Operating expenses:
Research and
development 1,807 1,255 3,445 2,234
Sales and marketing 2,696 2,710 5,470 5,235
General and
administrative 1,636 1,482 2,815 2,719
Total operating
expenses 6,139 5,447 11,730 10,188
Operating income 4,910 4,049 9,325 8,214
Interest income 323 893 756 1,668
Other expense, net (56) (414) (234) (505)
Income before income
taxes 5,177 4,528 9,847 9,377
Provision for income
taxes 1,450 1,585 2,758 3,282
Net Income $ 3,727 $ 2,943 $ 7,089 $ 6,095
Earnings per share:
Basic $ 0.29 $ 0.23 $ 0.54 $ 0.47
Diluted $ 0.28 $ 0.22 $ 0.53 $ 0.46
Shares used in per
share calculation:
Basic 13,044,000 12,919,000 13,026,000 12,894,000
Diluted 13,393,000 13,438,000 13,373,000 13,287,000
Catapult Communications Corporation
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
March 31, Sept 30,
2002 2001
(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 24,580 $ 44,202
Short-term investments 43,767 17,274
Accounts receivable, net 10,275 7,234
Inventory 1,032 1,124
Other current assets 1,562 1,026
Total current assets 81,216 70,860
Total non-current assets 1,780 1,973
Total assets $ 82,996 $ 72,833
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued liabilities $ 9,520 $ 7,134
Deferred revenue 2,609 2,209
Total current liabilities 12,129 9,343
Total stockholders' equity 70,867 63,490
Total liabilities and
stockholders' equity $ 82,996 $ 72,833
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