Ciprico Reports Fourth Quarter and Year-End Results.Business Editors MINNEAPOLIS--(BUSINESS WIRE)--Oct. 21, 2003 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 fourth quarter and year ended September September: see month. 30, 2003. Sales for the quarter were $6.1 million, a decrease of 13 percent over the fourth quarter of fiscal 2002. Ciprico recorded a net loss for the quarter of $1.6 million or $0.33 per share versus a loss of $1.1 million or $0.22 per share for the same period last year, which included an income tax benefit of $820,000 or $0.17 per share. For the year ended September 30, 2003, sales were $31.2 million, a decrease of 1 percent from fiscal 2002. Ciprico recorded a net loss for fiscal 2003 of $3.9 million or $0.84 per share compared with a net loss of $6.5 million or $1.33 per share for fiscal 2002, which included an income tax benefit of $1.9 million, or $0.40 per share. Included in the fourth quarter and year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 2003 results is a charge of $500,000 or $0.11 per share related to a workforce reduction of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 17% and the closure of our European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. offices. Excluding these charges, the loss per share would have been $0.23 per share for the quarter and $0.73 per share for fiscal 2003. For fiscal 2002, a similar workforce reduction charge of $370,000 or $0.08 per share was included in the fourth quarter and year-end results. Total 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. , excluding these charges, decreased $601,000 or 14 percent for the fourth quarter versus the same period last year, and decreased $4.7 million or 24 percent for the full fiscal year. 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 continue to focus on profitability and completed the previously announced annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. cost reductions of $2 million. We have also continued our strong focus on managing our balance sheet as seen with the positive cash flow in the fourth quarter, despite our challenging operating results. Margins in the fourth quarter benefited from a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. product mix in our military and broadcast segments. Kill continued, "We are disappointed with our sales performance this past quarter. Our broadcast business was down significantly over prior quarters reflecting softer demand from all of our OEM's. While sales in our military segment were improved this past quarter, our sales were still below historical run rates and did not meet our expectations. Our funnel of military opportunities remains healthy and growing and we are actively working a number of programs to closure. Kill went on to say, "Our new products continue to present us with growth and market expansion opportunities. We have recently released the 2 Gb speed versions of both our TALON(TM) and DiMeda(TM) products. Our new DiMeda 1700, an affordable high-performance NAS (1) See network access server. (2) (Network Attached Storage) A specialized file server that connects to the network. A NAS device contains a slimmed-down operating system and a file system and processes only I/O requests by supporting the popular offering, is generating early excitement with customers and prospects and is expected to launch by the end of the calendar year. We continue to explore new market opportunities with this product family, which offers an innovative solution to both simplify and accelerate applications of "digital media workflows" in military, broadcast, and other digital media applications. Kill concluded, "We improved our bottom line performance this year and have taken the necessary actions to further realign re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. our costs given the short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. sales impacts. We remain focused on achieving our goal of break-even operating performance. Our financial position and liquidity remain strong. We continue to evaluate strategic opportunities to further leverage our technology capabilities, unique market position and strength of our balance sheet in order to maximize In a graphical environment, to enlarge a window to the full size of the screen. See Win Maximize windows. shareholder value. We are focused on achieving growth and profitability in our markets." The Company will host a conference call on Wednesday Wednesday: see week. , October October: see month. 22 at 11:00 a.m. Eastern Time and 10:00 a.m. Central 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 800-218-0713. A replay will be available through October 27, 2003 at 800-405-2236, replay code 556112. 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 geopolitical ge·o·pol·i·tics n. (used with a sing. verb) 1. The study of the relationship among politics and geography, demography, and economics, especially with respect to the foreign policy of a nation. 2. a. and economic factors affecting the markets in which 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 broadcast and entertainment, military and government, and medical imaging 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 Three Months Year
share amounts) Ended Ended
September 30, September 30,
2003 2002 2003 2002
----------------- ------------------
NET SALES $6,101 $7,034 $31,215 $31,440
Cost of sales 3,602 4,525 19,840 20,523
-------- -------- -------- ---------
GROSS PROFIT 2,499 2,509 11,375 10,917
OPERATING EXPENSES:
Research and development 1,608 1,908 6,214 8,767
Sales and marketing 1,529 1,813 6,638 8,699
General and administrative 496 513 2,388 2,491
Restructuring charges 500 370 500 370
-------- -------- -------- ---------
Total operating expenses 4,133 4,604 15,740 20,327
-------- -------- -------- ---------
LOSS FROM OPERATIONS (1,634) (2,095) (4,365) (9,410)
Other income, primarily interest 69 205 450 956
-------- -------- -------- ---------
LOSS BEFORE INCOME TAXES (1,565) (1,890) (3,915) (8,454)
Income tax benefit - (820) - (1,950)
-------- -------- -------- ---------
NET LOSS $(1,565) $(1,070) $(3,915) $(6,504)
======== ======== ======== =========
Shares used to calculate loss per
share:
Basic and diluted 4,674 4,853 4,676 4,895
NET LOSS PER COMMON SHARE:
Basic and diluted $(0.33) $(0.22) $(0.84) $(1.33)
======== ======== ======== =========
SALES INFORMATION
Comparative information on sales by market and geographic location for
the period ended September 30 are shown in the charts below (in
millions).
For the quarter ended September 30:
2003 2002
------------- -------------
% of % of
Market Sales Total Sales Total
----------------------------------------------------------------------
Broadcast & Entertainment $3.1 51% $2.8 40%
Military & Government 2.9 47 3.7 53
Other 0.1 2 0.5 7
------ ------ ------ ------
Total $6.1 100% $7.0 100%
====== ====== ====== ======
2003 2002
------------- -------------
% of % of
Geographic Location Sales Total Sales Total
----------------------------------------------------------------------
Domestic $5.7 93% $6.6 94%
International 0.4 7 0.4 6
------ ------ ------ ------
Total $6.1 100% $7.0 100%
====== ====== ====== ======
For the year ended September 30:
2003 2002
------------- -------------
% of % of
Market Sales Total Sales Total
----------------------------------------------------------------------
Broadcast & Entertainment $20.1 64% $15.0 48%
Military & Government 10.6 34 14.9 47
Other 0.5 2 1.5 5
------ ------ ------ ------
Total $31.2 100% $31.4 100%
====== ====== ====== ======
2003 2002
------------- -------------
% of % of
Geographic Location Sales Total Sales Total
----------------------------------------------------------------------
Domestic $29.7 95% $28.6 91%
International 1.5 5 2.8 9
------ ------ ------ ------
Total $31.2 100% $31.4 100%
====== ====== ====== ======
CIPRICO INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands) September 30, September 30,
2003 2002
---------------------------
ASSETS
Current assets:
Cash and cash equivalents $5,159 $6,413
Marketable securities and short term
investments 16,766 18,071
Accounts receivable, less allowance 4,016 3,590
Inventories, net 3,928 3,145
Income taxes receivable - 789
Other current assets 453 898
------------- -------------
Total current assets 30,322 32,906
Property and equipment, net 1,972 2,608
Marketable securities - 2,547
Other assets 42 54
------------- -------------
$32,336 $38,115
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $2,151 $2,724
Accrued expenses 1,887 2,755
Deferred revenue 312 398
------------- -------------
Total current liabilities 4,350 5,877
Shareholders' equity:
Capital stock 47 48
Additional paid-in capital 34,840 35,188
Retained deficit (6,881) (2,966)
Deferred compensation from restricted
stock (20) (32)
------------- -------------
Total shareholders' equity 27,986 32,238
------------- -------------
$32,336 $38,115
============= =============
CIPRICO INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands) Year Ended
September 30,
2003 2002
-----------------
Cash flows from operating activities:
Net loss $(3,915) $(6,504)
Depreciation and amortization 1,802 2,631
Changes in operating assets and liabilities (1,361) 3,075
-------- --------
Net cash flows used in operating activities (3,474) (798)
-------- --------
Cash flows from investing activities:
Equipment purchases, net (1,166) (1,335)
Purchases of marketable securities (26,392) (34,460)
Proceeds from sale or maturity of marketable
securities 30,244 37,480
-------- --------
Net cash flows provided by investing activities 2,686 1,685
-------- --------
Cash flows from financing activities:
Repurchase of common stock (692) (972)
Proceeds from issuance of common stock 226 121
-------- --------
Net cash flows used in financing activities (466) (851)
-------- --------
Net increase (decrease) in cash and cash equivalents (1,254) 36
Cash and cash equivalents at beginning of period 6,413 6,377
-------- --------
Cash and cash equivalents at end of period 5,159 6,413
Marketable securities and short term investments,
current 16,766 18,071
Marketable securities, non-current - 2,547
-------- --------
Total cash and marketable securities $21,925 $27,031
======== ========
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion