Centillium Communications Announces Filing of Annual Report On Form 10-K.Business Editors/High-Tech Writers FREMONT Fremont (frē`mŏnt). 1 City (1990 pop. 173,339), Alameda co., W Calif., on San Francisco Bay; inc. 1956. Long an agricultural center, with champagne vineyards founded (1870) by Leland Stanford, it still ships fruits and vegetables. , Calif.--(BUSINESS WIRE)--March 27, 2002 High Demand for DSL DSL in full Digital Subscriber Line Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary Services in Japan Driving Orders for Centillium Inventory Previously Believed Excess or Obsolete OBSOLETE. This term is applied to those laws which have lost their efficacy, without being repealed, 2. A positive statute, unrepealed, can never be repealed by non-user alone. 4 Yeates, Rep. 181; Id. 215; 1 Browne's Rep. Appx. 28; 13 Serg. & Rawle, 447. ; Favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. Adjustment of $5.4 Million Required to Inventory Carrying Value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. Centillium Communications, Inc. (Nasdaq:CTLM CTLM Imaging Computed tomography laser mammography A diagnostic technique using lasers to produce a 3-D cross-sectional image of the breast without x-rays. See Mammography. ), innovator of broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). communications technology Noun 1. communications technology - the activity of designing and constructing and maintaining communication systems engineering, technology - the practical application of science to commerce or industry , today announced the filing of its 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. with the Securities and Exchange Commission. The financial statements contained in the Company's Form 10-K, prepared in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ), reflect a favorable adjustment of $5.4 million to increase inventory carrying value as compared to the financial statements released with the quarterly earnings release on January January: see month. 30, 2002. "The acceleration of DSL subscriber growth in Japan has recently increased demand for our DSL products," said Faraj Aalaei, chief executive officer and co-founder of Centillium Communications, Inc. "During the period from May to August 2001, net new DSL subscribers in Japan averaged 100,000 subscribers per month. Since October October: see month. 1, 2001, net new monthly DSL subscribers in Japan averaged 285,000. As of February 28, 2002 there were 2.1 million DSL subscribers in Japan, compared with 510,000 at the end of August 2001. This rapid increase of subscriber additions has recently allowed both our customers in Japan and the DSL service providers equipped by these customers to quickly deplete de·plete v. 1. To use up something, such as a nutrient. 2. To empty something out, as the body of electrolytes. most of their previously existing inventory of DSL equipment and semiconductors," continued Mr. Aalaei. GAAP and SEC rules require that companies consider possible effects on financial statements of subsequent events through the issuance date of a full set of financial statements, which occurs upon the filing of an Annual Report on Form 10-K with the SEC. The financial statements contained in Centillium's January 30, 2002 earnings release included inventory write-downs related to G.lite and first generation multi-mode DSL chipset A group of chips designed to work as a unit to perform a function. For example, a modem chipset contains all the primary circuits for transmitting and receiving. A PC chipset provides the electronic interfaces between all subsystems (see PC chipset for illustration). inventory, which the Company believed to be excess or obsolete. Due to the rapid acceleration of growth in the DSL subscriber market in Japan, Centillium received orders subsequent to year-end for most of the inventory it had previously written down in the fourth quarter and has therefore made the appropriate favorable adjustments to the December 31, 2001 financial statements. The pro forma financial statements Pro forma financial statements A firm's financial statements as adjusted to reflect a projected or planned transaction. "What-if" analysis. in the January 2002 earnings release remain unchanged because those pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma results excluded the effect of the original inventory write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. . The Company will host a conference call today to discuss the current business environment as well as the financial effect of the favorable adjustment to inventory carrying value. The conference call will take place at 2:00 P.M. Pacific time (5:00 P.M. Eastern time) and will be web cast over 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 . To listen to the call, visit the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of the Centillium web site at www.centillium.com. The web cast will be recorded and available for replay on the Company's web site approximately three hours after the conclusion of the conference call. About Centillium Communications Centillium Communications, Inc. combines technical innovation and customer commitment to make broadband communications -- in business and at home -- a practical reality. The Company designs and markets communications chipsets for Digital Subscriber Line See DSL. (communications, protocol) Digital Subscriber Line - (DSL, or Digital Subscriber Loop, xDSL - see below) A family of digital telecommunications protocols designed to allow high speed data communication over the existing copper telephone lines between end-users and (DSL) central office and customer premises equipment See CPE. and for carrier- and enterprise-class Voice over Packet (VoP) gateways and switches. The Centillium Communications headquarters are located at 47211 Lakeview Blvd., Fremont, CA 94538. Additional information is available at www.centillium.com. Forward Looking Statements 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. that involve risks and uncertainties. Actual results may differ materially from those indicated by such forward-looking statements based on a variety of risks and uncertainties, including the risks and uncertainties relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc rate and breadth of deployment of broadband access See broadband and wireless broadband. in general and Centillium's DSL technology solutions in particular; the effects of the introduction of additional DSL standards in Japan, including whether the version of DSL employed by the Company will remain dominant; Centillium's ability to continue and expand on its relationships with communications equipment manufacturers; and the successful development and market acceptance of Centillium's new products. The Company assumes no obligation to update these forward-looking statements to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . Information about potential factors that could affect Centillium's financial results is included in Centillium's most recent Annual Report on Form 10-K, on file with the Securities and Exchange Commission. Note to Editors: Centillium Communications and the Centillium Logo are trademarks of Centillium Communications, Inc. All rights reserved.
Centillium Communications, Inc.
Pro Forma Condensed Consolidated Statements of Operations - Unaudited
(In Thousands, Except Per Share Data)
For the For the
Three Months Ended Twelve Months Ended
12/31/01 9/30/01 12/31/00 12/31/01 12/31/00
Net revenues $ 34,477 $ 46,804 $ 24,341 $ 159,507 $ 56,474
Cost of revenues 15,873 23,421 12,353 78,265 30,792
Gross profit 18,604 23,383 11,988 81,242 25,682
Gross profit % 54% 50% 49% 51% 45%
Operating expenses:
Research and
development 13,411 14,269 9,338 50,884 28,942
Sales and marketing 3,666 4,273 3,015 15,472 10,404
General and
administrative 2,062 2,513 2,848 9,591 7,392
Total operating
expenses 19,139 21,055 15,201 75,947 46,738
Operating income (loss) (535) 2,328 (3,213) 5,295 (21,056)
Interest and other, net 615 830 1,509 3,544 3,836
Loss on long-term
investments -- -- -- (990) --
Income (loss)
before income taxes 80 3,158 (1,704) 7,849 (17,220)
Provision for
(benefit from)
income taxes (120) 286 8 400 8
Pro forma net
income (loss) $ 200 $ 2,872 $ (1,712) $ 7,449 $ (17,228)
========= ======== ======== ========= =========
Pro forma diluted
earnings (loss) per
common share (a) $ 0.01 $ 0.08 $ (0.05) $ 0.20 $ (0.59)
========= ======== ======== ========= =========
Weighted average
common shares
outstanding,
assuming dilution 35,243 35,899 31,738 36,411 29,071
========= ======== ======== ========= =========
(a) Pro forma net loss per share does not consider the impact of
common stock equivalents and assumes the conversion of convertible
preferred stock into common stock.
The pro forma Consolidated Statements of Operations exclude purchased
in-process research and development, recurring deferred stock
compensation, certain other stock compensation and the amortization of
acquisition related intangibles. In addition, the fourth quarter 2001
pro forma net income excludes a non-recurring charge for inventory
obsolescence and a non-recurring charge related to a reduction in
force completed in October 2001. This pro forma information is not
prepared in accordance with generally accepted accounting principles.
Centillium Communications, Inc.
Reconciliation of Pro Forma Adjustments Unaudited
(In Thousands, Except Per Share Data)
For the For the
Three Months Ended Twelve Months Ended
12/31/01 9/30/01 12/31/00 12/31/01 12/31/00
Pro forma net
income (loss) $ 200 $ 2,872 $ (1,712) $ 7,449 $(17,228)
========= ======== ======== ======== ========
Amortization of
deferred stock
compensation 2,587 3,326 6,258 15,346 25,610
Amortization of
goodwill and
other acquisition
related intangibles 821 822 413 3,285 827
Purchased in-process
research and
development -- -- -- 7,422 --
Stock based
compensation and
related payroll
tax expense on
option exercises 81 10 (158) 183 2,333
Excess and obsolete
inventory 681 -- -- 681 --
Reduction in force 225 -- -- 225 --
GAAP net loss $ (4,195) $ (1,286) $ (8,225) $(19,693) $(45,998)
========= ======== ======== ======== ========
Centillium Communications, Inc.
Condensed Consolidated Statements of Operations - Unaudited
(In Thousands, Except Per Share Data)
For the For the
Three Months Ended Twelve Months Ended
12/31/01 9/30/01 12/31/00 12/31/01 12/31/00
Net revenues $ 34,477 $46,804 $ 24,341 $159,507 $ 56,474
Cost of revenues 16,716 23,579 12,748 79,781 32,251
Gross Profit 17,761 23,225 11,593 79,726 24,223
Operating expenses:
Research and
development 14,979 16,038 11,729 59,034 41,879
Sales and
marketing 4,107 4,763 4,193 17,953 15,497
General and
administrative 2,784 3,432 4,984 13,879 15,846
Amortization of
goodwill and
other acquisition
related intangibles 821 822 413 3,285 827
In-process research
and development -- -- -- 7,422 --
Total operating
expenses 22,691 25,055 21,319 101,573 74,049
Operating loss (4,930) (1,830) (9,726) (21,847) (49,826)
Interest and other, net 615 830 1,509 3,544 3,836
Loss on long-term
investments -- -- -- (990) --
Loss before income
taxes (4,315) (1,000) (8,217) (19,293) (45,990)
Provision for
(benefit from)
income taxes (120) 286 8 400 8
Net loss $ (4,195) $(1,286) $ (8,225) $(19,693) $(45,998)
======== ======= ========= ======== ========
Basic and diluted
net loss per share $ (0.12) $ (0.04) $ (0.26) $ (0.59) $ (2.00)
======== ======= ========= ======== ========
Weighted average
shares of common
stock outstanding
used in computing
basic and diluted
net loss per share 33,995 33,782 31,738 33,495 22,950
======== ======= ========= ======== ========
Centillium Communications, Inc.
Summary Financial Data Unaudited
(In Thousands)
December 31,
Balance Sheet Data: 2001 2000
Cash, cash equivalents and short-term investments $110,853 $ 87,684
Accounts receivable, net 4,042 16,883
Inventories, net 9,356 9,183
Other assets 19,957 14,193
-------- --------
Total assets $144,208 $127,943
======== ========
Accounts payable $ 7,854 $ 13,133
Accruals and other current liabilities 14,881 7,430
Long-term debt and other long-term liabilities 315 510
-------- --------
Total liabilities 23,050 21,073
Total stockholders' equity 121,158 106,870
-------- --------
Total liabilities and stockholders' equity $144,208 $127,943
======== ========
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion