Centillium Communications Announces Fourth Quarter and 2005 Financial Results; 2005 Net Revenues $76.1 Million, Up 7%; Cuts 2005 Net Loss by 74%.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. -- 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. ), a leading provider of broadband access See broadband and wireless broadband. solutions, today announced financial results for the fourth quarter and year ended Dec. 31, 2005. Net revenues in the fourth quarter of 2005 were $20.3 million, compared with net revenues of $20.0 million in the third quarter of 2005. The gross margin in the fourth quarter of 2005 was 59.7 percent, compared with 56.5 percent in the prior quarter. The net loss in the fourth quarter of 2005 was $394,000, or $0.01 per share, compared with a net loss of $822,000, or $0.02 per share, in the third quarter of 2005. For the year ended Dec. 31, 2005, net revenues were $76.1 million, compared with $71.2 million in 2004. The net loss in 2005 was $11.3 million, or a net loss of $0.29 per share, compared with a net loss of $43.1 million, or a net loss of $1.13 per share, in the prior year. "I am pleased with our financial performance and diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. results in 2005," said Faraj Aalaei, co-founder 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 Centillium. "Compared with the prior year, we reduced our 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. by more than 30 percent, increased our gross margin by 680 basis points and reduced our net loss by 74 percent, or $31.8 million, while growing our revenues by 7 percent," said Aalaei. "We also made significant progress in both our geographic and product diversification strategies in 2005. Our revenues outside of Japan were $27.1 million, up 77 percent, compared with $15.3 million in 2004. Revenues outside of Japan accounted for 36 percent of total revenues in 2005, compared with 22 percent in 2004. Our non-DSL revenues, including Voice over Internet Protocol See Internet and TCP/IP. (networking) Internet Protocol - (IP) The network layer for the TCP/IP protocol suite widely used on Ethernet networks, defined in STD 5, RFC 791. IP is a connectionless, best-effort packet switching protocol. (VoIP) and Optical revenues, more than tripled to $15.8 million, from $4.4 million in 2004. Our non-DSL revenues accounted for 21 percent of total revenues in 2005, compared with 6 percent in 2004. We remain committed to our diversification strategies and achieving profitability, and we look forward to further progress in the quarters to come," he said. "We were pleased that our Atlanta Atlanta (ətlăn`tə, ăt–), city (1990 pop. 394,017), state capital and seat of Fulton co., NW Ga., on the Chattahoochee R. and Peachtree Creek, near the Appalachian foothills; inc. 1847. (TM) product family was recently awarded the 2005 Product of the Year award by two publications: INTERNET TELEPHONY Another term for IP telephony and VoIP. In the late 1990s, some people made a distinction between Internet Telephony and VoIP: Internet telephony referred to voice over the public Internet, while VoIP referred to voice over private IP networks. (R) magazine and analogZONE. INTERNET TELEPHONY has recognized Centillium for its telephony Meaning "sound over distance," it refers to electronically transmitting the human voice. In the beginning, telephony dealt only with analog signals in the circuit-switched networks of the telephone companies. technology innovation for three consecutive years, and analogZONE selected our products based on strong technical merit, design innovation and marketability Marketability A negotiable security is said to have good marketability if there is an active secondary market in which it can easily be resold. marketability The ease with which an investment may be bought and sold in the secondary market. ," said Aalaei. A conference call to review the fourth quarter and 2005 financial results will follow this release at 2:00 p.m. Pacific time/5:00 p.m. Eastern time. To listen to the call, please dial (517) 623-4705, passcode: Centillium. A replay will be made available approximately one hour after the conclusion of the call and will remain available for approximately one week. To access the replay, dial (203) 369-0591. The conference call will also be webcast 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 ; visit the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of the Centillium Communications website at www.centillium.com to access the call from the website. This webcast will be recorded and available for replay on the Centillium website approximately two hours after the conclusion of the conference call for approximately two weeks. About Centillium Communications Centillium Communications, Inc. is a leading innovator of high performance, cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. semiconductor solutions that give consumers, enterprises and service providers the winning edge in broadband access. The company's complete, end-to-end end-to-end a pattern of anastomosis in which severed ends are matched and united, in contrast with other patterns such as end-to-side or side-to-side. Usually applied to anastomosis of the intestine. system-on-chip solutions accelerate development time-to-market for "last mile" products with 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 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 ), Fiber-To-The-Premises (FTTP (Fiber To The Premises) The installation of optical fiber from the carrier directly into the home or office. Also called "fiber to the home" (FTTH). See PON and FTTC. See also FTP. ) and Voice-over-Internet Protocol (VoIP) technologies. Centillium products include digital and mixed-signal integrated circuits A mixed-signal integrated circuit combines analog circuits with digital signal processing (DSP) circuits on a single semiconductor die. An integrated circuit that includes both analog and digital circuitry (but no DSP), like a 555 timer, is generally not considered a mixed-signal and related software for DSL and FTTP central office and customer premises equipment See CPE. and VoIP solutions for carrier- and enterprise-class gateways and consumer telephony. Centillium is a global company with headquarters in Fremont, CA. Additional information is available at www.centillium.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement under Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 This press release includes statements that are 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. within the meaning of U.S. federal securities laws. For example, this press release speaks to Centillium's ongoing focus on increasing revenues, general progress in its businesses, achieving profitability, improving gross margins and product and geographic diversity, and controlling expenses and the benefits, capabilities, significance and expected success of Centillium's recently announced products, solutions and relationships. Actual results may differ materially from those indicated by such forward-looking statements based on a variety of risks and uncertainties, including without limitation the risks and uncertainties relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the rate and breadth of deployment of broadband access in general, especially DSL, FTTP and VoIP technologies, and Centillium's technology solutions in particular; the successful development and market acceptance of Centillium's new products and technology; Centillium's dependence on a few significant customers for a substantial portion of its revenue; Centillium's ability to continue and expand on its relationships with new customers; the timing, rescheduling or cancellation of significant customer orders and Centillium's ability, as well as the ability of its customers, to manage inventory; Centillium's ability to specify, develop or acquire, complete, introduce, market and transition to volume production new products and technologies in a cost-effective and timely manner; competitive pressures and other factors such as the qualification, availability and pricing of competing products and technologies and the resulting effects on sales and pricing of Centillium's products; the timing of customer-industry qualification and certification of Centillium's products and the risks of non-qualification or non-certification; Centillium's ability to timely and accurately predict market requirements and evolving industry standards and to identify opportunities in new markets; changes in Centillium's product or customer mix; the satisfactory completion of the audits of Centillium's financial statements and systems of internal control; intellectual property disputes and customer indemnification Indemnification Used in insurance policy agreements as to compensation for damage or loss. In the context of corporate governance, Director Indemnification uses the bylaws and/or charter to indemnify officers and directors from certain legal expenses and judgements resulting from claims and other types of litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. risk; the effectiveness of Centillium's expense and product cost control and reduction efforts; and Centillium's ability to attract, retain and motivate qualified personnel, including executive officers and other key management and technical personnel. Centillium undertakes no obligation to update forward-looking statements for any reason. Information about potential factors that could affect Centillium's financial results is included in Centillium's 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. and in other documents on file with the Securities and Exchange Commission. Centillium Communications, Atlanta and the Centillium Logo are trademarks of Centillium Communications, Inc. in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and certain other countries. All rights reserved.
CENTILLIUM COMMUNICATIONS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Twelve Months Ended
--------------------------- ------------------
December September December December December
31, 30, 31, 31, 31,
2005 2005 2004 2005 2004
------- ------- --------- -------- --------
(In thousands, except per (In thousands,
share data) except per share
data)
Net revenues $20,291 $19,993 $ 16,412 $ 76,127 $ 71,151
Cost of revenues 8,168 8,690 8,500 35,155 37,679
-------- -------- --------- --------- ---------
Gross profit 12,123 11,303 7,912 40,972 33,472
Operating expenses:
Research and development 7,312 7,399 13,963 29,611 53,743
Selling, general and
administrative 5,722 5,135 5,932 24,171 23,706
-------- -------- --------- --------- ---------
Total operating
expenses 13,034 12,534 19,895 53,782 77,449
-------- -------- --------- --------- ---------
Operating loss (911) (1,231) (11,983) (12,810) (43,977)
Interest income, net 546 448 279 1,674 1,070
-------- -------- --------- --------- ---------
Loss before provision
for income taxes (365) (783) (11,704) (11,136) (42,907)
Provision for income
taxes 29 39 46 149 155
-------- -------- --------- --------- ---------
Net loss $ (394) $ (822) $(11,750) $(11,285) $(43,062)
======== ======== ========= ========= =========
Basic and diluted net
loss per share $ (0.01) $ (0.02) $ (0.30) $ (0.29) $ (1.13)
======== ======== ========= ========= =========
Shares used to compute
basic and diluted net
loss per share 39,932 39,427 38,543 39,312 38,210
======== ======== ========= ========= =========
CENTILLIUM COMMUNICATIONS, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
December 31, December 31,
2005 2004
------------ ------------
(In thousands, except
share and per share data)
ASSETS
Current assets:
Cash and cash equivalents $ 39,440 $ 31,996
Short-term investments 21,900 30,195
Accounts receivable - net of allowance for
doubtful accounts of $169 at December 31,
2005 and $151 at December 31, 2004 7,177 5,348
Inventories 3,609 6,100
Other current assets 1,780 1,225
---------- ----------
Total current assets 73,906 74,864
Property and equipment, net 3,529 6,528
Other assets 912 553
---------- ----------
Total assets $ 78,347 $ 81,945
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 5,987 $ 5,599
Accrued compensation and related expenses 4,247 3,364
Accrued liabilities 19,133 16,786
---------- ----------
Total current liabilities 29,367 25,749
---------- ----------
Other long-term liabilities 2,368 864
Stockholders' equity:
Common stock; $0.001 par value:
Authorized shares: 100,000,000; Issued and
outstanding shares: 40,205,940 at December
31, 2005, 38,810,001 at December 31, 2004 40 39
Additional paid-in capital 247,081 244,493
Accumulated deficit (200,440) (189,155)
Deferred compensation (24) -
Accumulated other comprehensive loss (45) (45)
---------- ----------
Total stockholders' equity 46,612 55,332
---------- ----------
Total liabilities and stockholders' equity $ 78,347 $ 81,945
========== ==========
|
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion