Centigram Communications reports second quarter '97 results.SAN JOSE San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif.--(BUSINESS WIRE)--May 28, 1997--Centigram Communications 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 :CGRM CGRM Computer Graphics Reference Model (ISO) ) today reported net revenue of $24.9 million and a loss of $6.3 million, or $0.90 per share for the second quarter ended May 3, 1997, which compares to net revenue of $24.5 million and a loss of $1.3 million for the same period last year. As previously announced by the company, the loss includes one-time restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. in connection with a reduction in the company's operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. . Such charges related primarily to severance pay Severance Pay Compensation that an employer gives to someone who is about to lose their job. Notes: Severance pay is not always paid to employees. It depends on the situation in which the employee is losing their job and whether legislation requires severance to be paid. for affected employees including charges associated with the resignation of its 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. . Charges were also taken for the cancellation of the Voice-Tel acquisition. The loss from operations before restructuring charges and other one-time charges was $0.39 per share or $2.7 million. "While the employee reductions were difficult, the company and its board of directors are very serious about providing sustained bottom-line performance improvements and enhanced shareholder value," said Dennis Wolf Dennis Wolf (born October 30, 1978 in Tokmok, Kyrgyzstan) is an IFBB professional bodybuilder. To date, Dennis Wolf's most notable appearance was in the 2007 Mr. Olympia. He placed fifth in this competition. , Centigram's senior vice president of finance and CFO See Chief Financial Officer. . "The planned stock buy-back of up to 1 million shares announced during the quarter, and the reductions made to operating expenses, are representative of management's intention to improve Centigram's shareholder value," said Wolf. "We were disappointed by the weakness in our Customer Premise Equipment (CPE (Customer Premises Equipment) Communications equipment that resides on the customer's premises. CPE - Customer Premises Equipment ) business during the quarter," commented Dennis Barsema, Centigram cen·ti·gram n. A metric unit of mass equal to one hundredth (10-2) of a gram. centigram one-hundredth of a gram; abbreviated cg. senior vice president and general manager. "The CPE market softness is being experienced throughout our market sector. However, our Service Provider business during the quarter was brisk and represented approximately 51% of our sales," said Barsema. Centigram is a leading global provider of wireless and wireline messaging and communications solutions. Centigram delivers communications solutions by integrating voice, data and facsimile on its Series 6 communications server See network access server, modem server, terminal server and communications controller. (operating system) Communications Server - IBM's rebranding of ACF. , and by providing access to this multimedia information through a telephone or PC. The Series 6 platform is based on industry-standard hardware and software. Centigram also licenses TruVoice, its patented text-to-speech software. Centigram is headquartered at 91 East Tasman Drive, San Jose, Calif., 95134. Phone: 408/944-0250, fax: 408/428-3732, World Wide Web: http://www.centigram.com . Centigram has sales and support offices in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , Europe, Asia, Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. , and Australia. This press release contains 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. regarding the industry and the company. Actual results could differ materially from those projected in any forward-looking statements. These statements could affect the company's "Sales and Distribution" risks as reflected in their 10-K document for fiscal year ended November 2, 1996, and filed with the Securities and Exchange Commission. These risks specifically relate to "the company's future success will depend in part upon the ability of the company to continue to introduce new features and products as the company's markets evolve, new technologies become available, and customers demand additional functionality." -0- Note To Editors: Centigram and TruVoice are registered trademarks of Centigram Communications Corporation.
Centigram Communications Corporation
Consolidated Statements of Operations
(in thousands, except per share data)
Second Quarter
1997 1996
Net revenue $24,899 $24,533
Cost of goods sold 10,839 10,950
Gross profit 14,060 13,583
Operating expenses:
Research and development 5,451 4,961
Sales, general and administrative 11,917 10,483
Other 3,563 --
Total operating expenses 20,931 15,444
Operating income (loss) (6,871) (1,861)
Other income and expense, net 567 550
Income (loss) before income
taxes expense (6,304) (1,311)
Provision for income taxes -- --
Net income (loss) $(6,304) $(1,311)
Net income (loss) per share $(0.90) $(0.19)
Weighted average common shares
outstanding 6,994 6,806
Centigram Communications Corporation
Consolidated Balance Sheets
(in thousands)
May 3, Nov. 2,
1997 1996
Assets
Current assets:
Cash and cash equivalents $10,327 $12,668
Short-term investments 30,183 29,408
Trade receivables, net 25,283 27,741
Inventories 11,067 11,467
Deferred tax assets 1,424 1,424
Other current assets 1,823 3,108
Total current assets 80,107 85,816
Property and equipment, net 14,894 15,249
Intangible assets, net 2,529 2,004
Deposits and other assets 1,023 940
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$98,553 $104,009
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $8,177 $9,739
Accrued compensation 3,026 4,202
Accrued expenses and other liabilities 8,541 6,424
Current portion of capital lease obligations 151 154
Total current liabilities 19,895 20,519
Capital lease obligations 5 78
Stockholders' equity:
Common stock 7 7
Additional paid-in capital 89,772 88,767
Accumulated deficit (10,616) (4,992)
Unrealized loss on investments (123) (36)
Cumulative translation adjustments (87) (34)
Note receivable from officer (300) (300)
Total stockholders' equity 78,653 83,412
------- --------
$98,553 $104,009
CONTACT: Centigram Communications Corporation, San Jose Dennis P. Wolf, 408/428-3550 (Senior V.P. and CFO) Beverly Rindfleisch, 408/428-3722 (Sr. Dir. Corp. Comm See comms. .) |
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