Centillium Communications Announces Fourth Quarter and Fiscal Year 2003 Financial Results.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)--Jan. 29, 2004 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 reported its fourth quarter and fiscal year 2003 financial results. Revenues for the quarter ended December December: see month. 31, 2003 were $25.7 million, an increase of 4.2% from revenues of $24.7 million for the fourth quarter of 2002, and a 31.4% decrease from the $37.5 million of revenues for the third quarter of 2003. Revenues for the twelve months ended December 31, 2003 were $125.0 million, an increase of 19% from revenues of $105.0 million for the twelve months ended December 31, 2002. Under 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). ), the net loss for the fourth quarter of 2003 was $10.3 million, or $0.27 per share, compared with a net loss of $10.4 million, or $0.30 per share, for the fourth quarter of 2002 and net income of $382,000, or $0.01 per share, for the third quarter of 2003. The net loss for the 2003 fiscal year was $13.4 million, or $0.37 per share, compared to a net loss of $33.3 million, or $0.96 per share, for fiscal year 2002. The fourth quarter and fiscal 2003 net loss includes an expense of approximately $3.0 million, or $0.08 per share, for net additional inventory reserves. "Fourth quarter revenues to non-Japan customers improved to over $10 million from approximately $6 million in the previous quarter. However, the improvement in non-Japan revenue was not enough to offset a significant decline in revenues to customers in Japan due in part to lower than expected 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 subscriber subscriber, n the person, usually the employee, who represents the family unit in relation to the prepayment plan. Other family members are dependents. Also called certificate holders or enrollees. net adds in Japan and some lingering lin·ger v. lin·gered, lin·ger·ing, lin·gers v.intr. 1. To be slow in leaving, especially out of reluctance; tarry. See Synonyms at stay1. 2. channel inventory," said Faraj Aalaei, 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. and Co-founder of Centillium. A conference call discussing the fourth quarter and fiscal year 2003 financial results will follow this release at 2:45 p.m. Pacific time (5:45 p.m. Eastern time). An audio webcast of the call will be available simultaneously on Centillium's website under investor relations Investor relations The process by which the corporation communicates with its investors. at www.centillium.com. A replay will also be available on the above website approximately two hours after the conclusion of the conference call for approximately 2 weeks. 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 There are a number of cities, towns, and regions known as Lakeview: Canada
Forward Looking Statements Except for statements of historical fact, this 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. 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 rate and breadth of deployment of broadband access See broadband and wireless broadband. in general and Centillium's DSL technology solutions in particular, especially in Japan; 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 and technology. Centillium undertakes no obligation to update 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 occurring after the date of this press release. Information about potential factors that could affect Centillium's financial results is included in Centillium's Annual Report on Form 10-K/A and in other documents on file with the Securities and Exchange Commission. Centillium Communications 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.
Centillium Communications, Inc.
Condensed Consolidated Statements of Operations -- Unaudited
(In thousands, except per share data)
For the Twelve
For the Three Months Ended Months Ended
----------------------------- -------------------
12/31/03 9/30/03 12/31/02 12/31/03 12/31/02
--------- --------- --------- --------- ---------
Net revenues $25,721 $37,498 $24,689 $124,976 $104,972
Cost of revenues 18,301 20,706 13,602 71,153 59,500
--------- --------- --------- --------- ---------
Gross profit 7,420 16,792 11,087 53,823 45,472
Gross profit margin 28.8% 44.8% 44.9% 43.1% 43.3%
Operating expenses:
Research and
development 12,166 11,117 11,442 46,162 50,754
Sales and marketing 3,287 2,874 2,738 12,142 14,686
General and
administrative 2,416 2,675 1,914 9,734 9,660
Amortization of
acquisition
related
intangibles - - 42 83 167
Impairment of
goodwill - - 5,835 - 5,835
--------- --------- --------- --------- ---------
Total operating
expenses 17,869 16,666 21,971 68,121 81,102
--------- --------- --------- --------- ---------
Operating income
(loss) (10,449) 126 (10,884) (14,298) (35,630)
Interest and other,
net 222 280 339 1,072 1,794
Gain on non-current
investment - - - - 440
--------- --------- --------- --------- ---------
Income (loss) before
taxes (10,227) 406 (10,545) (13,226) (33,396)
Provision (benefit)
for income taxes 43 24 (152) 133 (95)
--------- --------- --------- --------- ---------
Net income (loss) $(10,270) $382 $(10,393) $(13,359) $(33,301)
========= ========= ========= ========= =========
Basic earnings (loss)
per share $(0.27) $0.01 $(0.30) $(0.37) $(0.96)
========= ========= ========= ========= =========
Diluted earnings
(loss) per share $(0.27) $0.01 $(0.30) $(0.37) $(0.96)
========= ========= ========= ========= =========
Common shares
outstanding 37,704 36,972 34,967 36,433 34,641
========= ========= ========= ========= =========
Common shares
outstanding
assuming dilution 37,704 41,099 34,967 36,433 34,641
========= ========= ========= ========= =========
(a) The three months ended December 31, 2003, September 30, 2003, and
December 31, 2002 includes expenses of $367,000, $381,000 and
$1,106,000 respectively, for stock based compensation expense.
(b) The twelve months ended 12/31/03 includes $1,426,000 for stock
based compensation expense.
(c) The twelve months ended 12/31/02 includes expenses of (i)
$3,797,000 for stock based compensation, (ii) $2,700,000 for
product obsolescence, and (iii) $650,000 for restructuring
charges.
Centillium Communications, Inc.
Consolidated Summary Financial Data -- Unaudited
(In thousands)
December December
31, 2003 31, 2002
Balance Sheet Data: --------- ---------
Cash, cash equivalents and short-term
investments $89,626 $102,002
Accounts receivable, net 12,476 2,864
Inventories 11,908 4,130
Other assets 11,614 13,443
--------- ---------
Total assets $125,624 $122,439
========= =========
Accounts payable $7,434 $8,485
Accruals and other current liabilities 22,010 19,338
Long-term liabilities 143 793
--------- ---------
Total liabilities 29,587 28,616
Total stockholders' equity 96,037 93,823
--------- ---------
Total liabilities and stockholders' equity $125,624 $122,439
========= =========
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