Centillium Communications Announces Second Quarter 2005 Financial Results.FREMONT, 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 second quarter ended June 30, 2005. Revenues in the second quarter of 2005 were $18.6 million, compared with revenues of $17.2 million in the first quarter of 2005. The net loss in the second quarter of 2005 was $3.7 million, or a net loss of $0.10 per share, compared with a net loss of $6.4 million, or a net loss of $0.16 per share, in the first quarter of 2005. "During the second quarter, we announced our expanded Palladia pal·la·di·a n. A plural of palladium2. (TM)400 family of chipsets, which delivers the industry's first integrated Voice-over-IP (VoIP) solution for the ADSL See DSL. ADSL - Asymmetric Digital Subscriber Line market," 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. "The Palladia 400-2P includes two voice channels and targets home gateway applications, while the Palladia 400-4P with four voice channels was developed for small office/home office See SOHO. (SOHO Soho (sōhō`, sə–), district of Westminster, London, England, known for its continental restaurants. Once a fashionable quarter, it became popular among writers and artists in the 19th cent. ) applications. The two chipsets provide a superior solution for consumers demanding faster connectivity with more integrated features, such as VoIP," he said. "We also announced that OneAccess Networks, a developer of CPE (Customer Premises Equipment) Communications equipment that resides on the customer's premises. CPE - Customer Premises Equipment solutions based in France, selected our Palladia(TM)300 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). to power its next generation ADSL2/2+ access routers See edge router and remote access router. . Palladia 300's ADSL VPN (Virtual Private Network) A private network that is configured within a public network (a carrier's network or the Internet) in order to take advantage of the economies of scale and management facilities of large networks. routers, combined with OneAccess' multi-service access routers, offer customers industry-leading routing performance, security and VPN functionalities. Our collaboration with OneAccess will bring more secure and reliable broadband access to businesses, helping to drive 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 growth in Europe and worldwide. "We recently introduced our new 3G-NGN Entropia(TM)III software suite which adapts the IP Multimedia Subsystems An integrated network for telecommunications carriers that uses the IP protocol as its foundation for packetized voice, video and data. Supporting voice over IP (VoIP) in all its flavors (SIP, H.323, MGCP, etc. (IMS (1) See IP Multimedia Subsystem. (2) (Information Management System) An early IBM hierarchical DBMS for IBM mainframes. IMS was widely implemented throughout the 1970s under MVS and continues to be used under z/OS. ) architecture and can deliver over 1,000 channels of high quality voice. This processor enables the seamless convergence of mobile and fixed networks and offers service providers the flexibility to utilize an IP-based service infrastructure that will create a plethora of rich multimedia applications and provide enhanced services Enhanced service is service offered over commercial carrier transmission facilities used in interstate communications, that employs computer processing applications that act on the format, content, code, protocol, or similar aspects of the subscriber's transmitted information; tailored to consumer demands," said Aalaei. "We are pleased to have added Didier Boivin as our vice president of marketing. His extensive marketing and business development experience in the broadband access and VoIP markets will be invaluable to us as we strengthen our worldwide marketing and product development efforts," said Aalaei. A conference call discussing the second quarter 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 (210) 234-0001, pass code: 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) 369-1073. The conference call will also be webcast over the Internet; 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 semiconductor solutions that give consumers, enterprises and service providers the winning edge in broadband access. The company's complete, end-to-end 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), 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 Except for statements of historical fact, 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. 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, Fiber-to-the-Premises 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, Palladia, Entropia 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. - Summary Financial Data Attached -
CENTILLIUM COMMUNICATIONS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Six Months Ended
Ended June 30, June 30,
----------------- ------------------
2005 2004 2005 2004
------- -------- -------- --------
(In thousands, (In thousands,
except per share except per share
data) data)
Net revenues $18,647 $18,532 $35,843 $34,371
Cost of revenues 9,564 10,114 18,297 18,898
------- -------- -------- --------
Gross profit 9,083 8,418 17,546 15,473
Operating expenses:
Research and development 5,917 13,561 14,900 27,822
Selling, general and
administrative 7,222 6,116 13,313 11,850
------- -------- -------- --------
Total operating expenses 13,139 19,677 28,213 39,672
------- -------- -------- --------
Operating loss (4,056) (11,259) (10,667) (24,199)
Interest income, net 381 295 679 572
------- -------- -------- --------
Loss before provision for
income taxes (3,675) (10,964) (9,988) (23,627)
Provision for income taxes 41 46 81 72
------- -------- -------- --------
Net loss $(3,716) $(11,010) $(10,069) $(23,699)
======= ======== ======== ========
Basic and diluted net loss per
share $(0.10) $(0.29) $(0.26) $(0.62)
======= ======== ======== ========
Shares used to compute basic
and diluted net loss per share 39,042 38,066 38,944 37,979
======= ======== ======== ========
The three and six month periods ended June 30, 2005 include
stock-based compensation expenses of $4,000 and $4,000 compared to
$44,000 and $194,000 in the respective periods of 2004.
CENTILLIUM COMMUNICATIONS, INC.
CONSOLIDATED BALANCE SHEETS
June December
30, 31,
2005 2004
--------- ---------
(In thousands,
except share
and per share data)
ASSETS
Current assets:
Cash $38,588 $31,996
Short term investments 19,139 30,195
Accounts receivable - net of allowance for
doubtful accounts of $151 at June 30, 2005
and December 31, 2004 6,161 5,348
Inventory, net 4,270 6,100
Prepaids and other current assets 2,392 1,225
--------- ---------
Total current assets 70,550 74,864
Property and equipment, net 4,511 6,528
Other assets 1,030 553
--------- ---------
Total assets $76,091 $81,945
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $6,040 $5,599
Accrued payroll and related expenses 3,624 3,364
Accrued liabilities 18,961 16,786
--------- ---------
Total current liabilities 28,625 25,749
--------- ---------
Other long-term liabilities 1,494 864
Stockholders' equity:
Common stock; $0.001 par value:
Authorized shares: 100,000,000; Issued and
outstanding shares: 39,254,593 at June 30,
2005, 38,810,001 at December 31, 2004 39 39
Additional paid-in Capital 245,252 244,493
Accumulated deficit (199,224) (189,155)
Deferred Compensation (56) -
Accumulated other comprehensive loss (39) (45)
--------- ---------
Total stockholders' equity 45,972 55,332
--------- ---------
Total liabilities and stockholders' equity $76,091 $81,945
========= =========
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion