Catapult Communications Reports Record Revenues and Strong Earnings for First Quarter Fiscal Year 2002; Positive Cash Flow Further Strengthens Balance Sheet.Business Editors/High-Tech Writers MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Jan. 24, 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 quarterly revenues and net income for its first fiscal quarter ended December December: see month. 31, 2001. Total revenues for the first quarter of fiscal 2002 reached a record $10.9 million, a 12 percent increase over revenues reported for the comparable quarter a year ago. This increase is largely the result of strong sales from the Company's third generation (3G) digital cellular test products, particularly in the European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. region. Net income for the first fiscal quarter of 2002 increased to $3.4 million, compared to $3.2 million reported for the first quarter of fiscal year 2001. The increase in net income was primarily driven by lower than expected expenses as a result of hiring later in the quarter than anticipated and by an exceptionally strong gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. resulting from favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. product mix. 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 first fiscal quarter were $0.25 compared to $0.24 reported for the first quarter of fiscal year 2001. "As I review the results of yet another successful quarter, I am pleased that we continue to exceed our targets. This quarter's results included record revenues and high profitability. This directly translates into a further strengthened balance sheet," 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 KARP Korean Association of Retired Persons , 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. . "Catapult leads the digital telecom test sector as a result of our ability to deliver consistently high quality products and unrivaled support to our customers." "As announced earlier this month, we're we're Contraction of we are. we're we are strengthening our leadership position by expanding our third generation or 3G digital telecom test systems to support cdma2000 protocols. This development is primarily directed at suppliers to the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. market, where our sales have been slower to recover than previously expected. In Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). ,
where manufacturers continue to move as rapidly as they can, we are
seeing positive results with all of our customers. We now have four
fully staffed offices that are positioned close to our key customers
there, such as Nokia Nokia (nō`kēä), town (1996 pop. 26,326), Western Finland prov., SW Finland, on Lake Näsijärvi. It is an industrial community where wood and rubber products are manufactured. , Ericsson Er·ics·son , John 1803-1889.American engineer and inventor who built the first ironclad warship, the Monitor (1862), which engaged the Confederate Merrimack in a famous naval battle of the Civil War (March 9, 1862). , Siemens, Alcatel and the European development labs of Nortel and Lucent. Revenues from the European region have thus far exceeded our early expectations. In Japan, we remain confident in our market position as 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. maintains its strong dedication to 3G deployment and KDDI and J-Phone have announced 2002 start dates for their 3G service," added Karp. BUSINESS OUTLOOK Looking forward, Catapult provides the following preliminary guidance with respect to expected future results: -- Revenue and fully diluted earnings per share for the second quarter of fiscal 2002 are currently expected to be in the range of $11.25-12.0 million and $0.23-0.25, respectively. -- Revenue and fully diluted earnings per share for the full fiscal 2002 year are currently expected to be approximately $46 million and $0.95, respectively. Catapult Communications will be discussing its first 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 . The conference call can be accessed by dialing 719/457-2646 (please reference Catapult Communications) or from the Investor section of the Company's website. Questions in advance of the conference call can be sent to ir@catapult.com. A digital replay of the conference will be available until Thursday, February 7, 2002 by calling 719/457-0820, passcode No. 690413 or by accessing the Company's website. 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 and Nortel. Catapult delivers test solutions for over 200 protocols and variants -- spanning 3G, cdma2000, 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, and ISDN ISDN in full Integrated Services Digital Network Digital telecommunications network that operates over standard copper telephone wires or other media. 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 Ireland, the U.K., Germany, France, Finland, Canada, Japan and Australia. Information about Catapult Communications 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. -0--
Catapult Communications Corporation
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands except share and per share data; unaudited)
For the three months ended
December 31,
2001 2000
---------- ----------
Revenues:
Product sales $ 9,526 $ 8,372
Services 1,357 1,363
Total revenues 10,883 9,735
---------- ----------
Cost of revenues:
Product sales 614 679
Services 263 150
Total cost of revenues 877 829
---------- ----------
Gross profit 10,006 8,906
Operating expenses:
Research and development 1,638 979
Sales and marketing 2,774 2,525
General and administrative 1,179 1,237
Total operating expenses 5,591 4,741
---------- ----------
Operating income 4,415 4,165
Interest income 433 775
Other expense, net (178) (91)
Income before income taxes 4,670 4,849
Provision for income taxes 1,308 1,697
Net Income $ 3,362 $ 3,152
========== ==========
Earnings per share:
Basic $ 0.26 $ 0.24
========== ==========
Diluted $ 0.25 $ 0.24
========== ==========
Shares used in per share calculation:
Basic 13,008,000 12,870,000
========== ==========
Diluted 13,353,000 13,178,000
========== ==========
Catapult Communications Corporation
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
Dec 31, Sept 30,
2001 2001
------- -------
(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $46,472 $44,202
Short-term investments 16,392 17,274
Accounts receivable, net 8,817 7,234
Inventory 1,032 1,124
Other current assets 996 1,026
------- -------
Total current assets 73,709 70,860
Total non-current assets 1,907 1,973
------- -------
Total assets $75,616 $72,833
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued liabilities $ 6,437 $ 7,134
Deferred revenue 1,927 2,209
------- -------
Total current liabilities 8,364 9,343
Total stockholders' equity 67,252 63,490
Total liabilities and ------- -------
stockholders' equity $75,616 $72,833
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