Ciprico Reports First Quarter Results in Line with Expectations; 43% Sequential Revenue Growth Fueled by Strong Military Demand.Business Editors MINNEAPOLIS--(BUSINESS WIRE)--Jan. 22, 2002 Ciprico Inc. (Nasdaq:CPCI See CompactPCI. ), a leading manufacturer and marketer of high-performance Adj. 1. high-performance - modified to give superior performance; "a high-performance car" superior - of high or superior quality or performance; "superior wisdom derived from experience"; "superior math students" storage and system solutions, today announced results for the first quarter ended December December: see month. 31, 2001 that were in line with its previous guidance. Sales for the quarter were $7.2 million, which represented sequential One after the other in some consecutive order such as by name or number. growth of 43 percent over the fourth quarter of fiscal 2001. Sales for the same quarter of the prior year were $9.1 million. Ciprico recorded a net loss for the quarter of ($2.5 million), or ($0.50) per share versus a loss of ($86,000) or ($0.02) per share for the same period last year. Selling, general and administrative expenses for the quarter were $3.0 million, an 8% decrease from the prior year. Research and development expenses increased $1.2 million, or 101 percent, to $2.5 million for the period. Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. H. Kill, Ciprico 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. , said, "We saw improved sales in our military segment which more than doubled from our previous quarter and were up 22 percent over last year. We are encouraged by this trend and believe we are well positioned to take advantage of increased spending in this sector given our expertise with military and surveillance imagery imagery /im·age·ry/ (im´aj-re) 1. the formation of a mental representation of something perceived by the senses. 2. applications and our ruggedized product capabilities. Our broadcast business is showing signs of improvement from the end of fiscal 2001. We believe the spending levels in the broadcast market will improve throughout 2002 based on improved order activity of our large OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and customers. "We are excited about our progress in new product developments and remain committed to our R&D investments. Development is ramping up in anticipation The performance of an act or obligation before it is legally due. In patent law, the publication of the existence of an invention that has already been patented or has a patent pending, of market launch for new storage solutions, including the 2 Gb FibreSTORE product and TALON(TM), our unique solution for ruggedized military applications. Both are expected to be released in the next two quarters, followed by the initial product release within our Digital Media Appliance A stand-alone hardware device or software environment dedicated to a specific task. See hardware appliance and software appliance. family later in 2002. We believe our innovative system solutions can both simplify and accelerate applications of "digital media workflows" in Broadcast, Military and Enterprise applications and will provide us new opportunities to expand our markets. While heavily investing in R&D, we remained focused on our expense levels as seen in our SG&A reduction this past quarter." Kill continued, "It continues to be a challenge to provide any meaningful financial guidance. We believe at this time that revenues for the second quarter of fiscal 2002 will be in the range of $7.5 to $9.0 million, and we anticipate a loss per share in the range of ($0.36) to ($0.48) per share, depending on sales mix sales mix See product mix. and timing of R&D projects. Our aggressive investments in strategic and product developments are critical to our long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. success. We remain optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op over our long-term growth prospects and will continue to invest in each of our markets." Ciprico will host a conference call on Wednesday Wednesday: see week. , January January: see month. 23 at 10:00 a.m. Central Time and 11:00 a.m. Eastern Time, to discuss this release. The conference call will be broadcast live via 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 at www.ciprico.com. The conference call will also be available live via telephone at 1-800-360-9865. A replay will be available until January 31, 2002 at 800-428-6051, replay code 224514. Certain statements in this news release are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. and should be read in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with cautionary statements in Ciprico's SEC filings, reports to shareholders and other news releases. Such 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. , which reflect our current view of future events and financial performance, involve known and unknown risks that could cause actual results and facts to differ materially from those expressed in the forward-looking statements for a variety of reasons. Some of these reasons include the ability to achieve and maintain profitability; the impact of an economic downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. in the markets we are concentrated; the impact on revenues and earnings of the timing of product enhancements and new product releases; market acceptance of new products; sales and distribution issues; competition; dependence on suppliers; limited backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. and the historic and recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. pattern of a disproportionate dis·pro·por·tion·ate adj. Out of proportion, as in size, shape, or amount. dis  pro·por percentage of total quarterly sales
occurring the last month and weeks of a quarter. Investors should take
such risks into account when making investment decisions. Shareholders
and other readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date on which
they are made. Ciprico undertakes no obligation to update publicly or
revise any forward-looking statements.About Ciprico Ciprico designs, manufactures and markets storage and system solutions for digital media applications within the military and government, broadcast and entertainment, and enterprise markets. Ciprico solutions combine storage, networking and computing computing - computer technologies to simplify and accelerate digital media workflows. Ciprico is headquartered in Minneapolis Minneapolis (mĭn'ēăp`əlĭs), city (1990 pop. 368,383), seat of Hennepin co., E Minn., at the head of navigation on the Mississippi River, at St. Anthony Falls; inc. 1856. , MN. More information about Ciprico is available at www.ciprico.com.
CIPRICO INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Amounts in thousands except
per share amounts) Three Months Ended
December 31,
2001 2000
---------------------------
NET SALES $7,215 $9,066
Cost of sales 4,496 5,210
-------- --------
GROSS PROFIT 2,719 3,856
OPERATING EXPENSES:
Research and development 2,475 1,234
Sales and marketing 2,397 2,705
General and administrative 641 614
-------- --------
Total operating expenses 5,513 4,553
-------- --------
LOSS FROM OPERATIONS (2,794) (697)
Other income, primarily interest 302 567
-------- --------
LOSS BEFORE INCOME TAXES (2,492) (130)
Income tax benefit -- (44)
-------- --------
NET LOSS $ (2,492) $ (86)
======== ========
Shares used to calculate loss per share:
Basic and diluted 4,935 5,041
NET LOSS PER COMMON SHARE:
Basic and diluted $ (.50) $ (.02)
======== ========
SALES INFORMATION
Comparative information on sales by market and geographic location for
the period ended December 31 are shown in the charts below (in
millions).
2001 2000
----------------------- -----------------------
Market Sales % of Total Sales % of Total
----------------------------------------------------------------------
Broadcast/Entertainment $ 2.3 32% $ 4.4 48%
Military/Government 4.5 63 3.7 41
Other 0.4 5 1.0 11
---------- --------- ----------- --------
Total $ 7.2 100% $ 9.1 100%
========== ========= =========== ========
2001 2000
----------------------- -----------------------
Geographic Location Sales % of Total Sales % of Total
----------------------------------------------------------------------
Domestic $ 6.2 86% $ 7.6 84%
International 1.0 14 1.5 16
---------- --------- ----------- --------
Total $ 7.2 100% $ 9.1 100%
========== ========= =========== ========
CIPRICO INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands) December 31, September 30,
2001 2001
-------------------------------------
ASSETS
Current assets:
Cash and cash equivalents $3,053 $6,377
Marketable securities 18,491 17,499
Accounts receivable,
less allowance 3,735 3,841
Inventories 6,132 5,254
Income taxes receivable 869 869
Other current assets 548 701
--------- ---------
Total current assets 32,828 34,541
Property and equipment, net 3,672 3,904
Marketable securities 5,108 6,139
Other assets 30 95
--------- ---------
$41,638 $44,679
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $2,238 $2,570
Accrued expenses 2,283 2,206
Deferred revenue 486 373
--------- ---------
Total current liabilities 5,007 5,149
Shareholders' equity:
Capital stock 49 50
Additional paid-in capital 35,600 36,013
Retained earnings 1,046 3,538
Deferred compensation from
restricted stock (64) (71)
--------- ---------
Total shareholders' equity 36,631 39,530
--------- ---------
$41,638 $44,679
========= =========
CIPRICO INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands) Three Months Ended
December 31,
2001 2000
--------------------------------
Cash flows for operating activities:
Net loss $ (2,492) $ (86)
Depreciation and amortization 580 542
Changes in operating assets and
liabilities (792) (1,760)
------------ -----------
Net cash flows used in operating
activities (2,704) ( 1,304)
------------ -----------
Cash flows from investing activities
Equipment purchases (318) (583)
Purchases of marketable securities (9,931) (11,337)
Proceeds from sale or maturity of
marketable securities 9,970 11,318
------------ -----------
Net cash flows used in investing
activities (279) (602)
------------ -----------
Cash flows from financing activities
Repurchase of common stock (341) --
Proceeds from issuance of common
stock -- 87
------------ -----------
Net cash flows provided by (used in)
financing activities (341) 87
------------ -----------
Net decrease in cash and cash
equivalents (3,324) (1,819)
Cash and cash equivalents at
beginning of period 6,377 3,496
------------ -----------
Cash and cash equivalents at end of
period 3,053 1,677
Marketable securities, current 18,491 21,876
Marketable securities, non-current 5,108 10,080
------------ -----------
Total cash and marketable securities $ 26,652 $ 33,633
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