Clarent Corporation Second Quarter Revenue of $63.2 Million Increases 123% Year-Over-Year; Growth Driven By Open Access Solution Adoption.Business Editors REDWOOD CITY Redwood City, city (1990 pop. 66,072), seat of San Mateo co., W Calif., on San Francisco Bay; inc. 1868. Manufactures include commmunications, electrical, electronic, and medical equipment. , Calif.--(BUSINESS WIRE)--July 19, 2001 Clarent In the Alliterative Morte Arthure, an alliterative verse work of Arthurian literature, Clarent is one of King Arthur's two magic swords. While Excalibur is a sword of warfare, Clarent is one of peace, used for knighting. (R) Corporation (Nasdaq:CLRN CLRN California Learning Resource Network CLRN Community Legal Resources Network CLRN Chemical Laboratory Response Network ), a leading provider of voice solutions for next generation networks, today reported financial results for the second quarter of 2001. Second Quarter 2001 Performance Net revenues for the second quarter of 2001 were $63.2 million, representing an increase of 123% from the second quarter 2000. Revenues related to Clarent's OpenAccess OpenAccess is a community effort to provide interoperability, including unified data exchange among integrated circuit design tools through an open standard data API and reference database supporting that API for IC design. (TM) solutions totaled $36 million, up 11% from the first quarter 2001. For the second quarter of 2001, excluding the effects of a previously announced $20 million charge for restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and inventory write-offs, as well as non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. related to the amortization of developed technology, deferred compensation, goodwill and other intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. , the Company reported a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net loss of $9.6 million, or $0.24 per basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share. The Company's results for the second quarter of 2001 in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with 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 , resulted in a net loss of $41.6 million, or $1.03 per basic and diluted share. "We are pleased with our revenue growth especially in light of current economic conditions," said Mike Vargo, 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. , Clarent Corporation. "This growth is driven primarily by the strong demand for our Clarent OpenAccess(TM) solution. During the second quarter our active trials of the Clarent OpenAccess(TM) solution grew from 70 to more than 100." For the six months ended June June: see month. 30, 2001, the Company reported net revenues of $124.3 million, an increase of 135% from the first six months of 2000, and pro forma net loss per share, excluding the $20 million charge for restructuring and inventory write-offs, as well as non-cash charges related to the amortization of developed technology, deferred compensation, goodwill and other intangible assets, of $0.30 per basic and diluted share. The Company results for the six months ended June 30, 2001 in accordance with generally accepted accounting principles, resulted in a net loss of $1.39 per basic and diluted share. Recent Highlights During the recent months, Clarent continued to set the pace in the open access market with several distribution agreements, leveraging the company's global strategy to build a channel network for the Clarent OpenAccess solution: -- Synergy Research report placing Clarent as Q1 2001 market share leader in Asia Pacific -- Communications Technology magazine selected the Clarent OpenAccess solution as Customer Premise Product of the Year by Communications Technology magazine -- Successful global launch of Clarent's Next Generation Network (NGN) solution -- Agreements with Cradle Technology, D-Link and Triumph Technology in Taiwan to distribute and promote Clarent's OpenAccess solution -- Agreement with Digital China to distribute Clarent's OpenAccess solutions in mainland China -- Agreement with General Dynamics, the pre-eminent government distributor to US federal, state and local government clients, a key vertical market -- Expansion into the Russian market with new customers and regional distributors -- Deployment of VoIP network for the historic Beijing Olympic Games Bid Committee vote -- Roll out of 55 global "Connect to Success" seminars, attracting more than 2,500 current and potential customers -- Expansion and strengthening of our management team with the appointment of Steven d'Alencon as Chief Marketing Officer and Tuck Newport as Vice President, Strategic Initiatives The Company will broadcast its second quarter 2001 investor conference call concerning these results and related matters live 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 today at 5:30 p.m. Eastern Time (2:30 p.m. Pacific Time). The broadcast will be hosted on the Company's Investor Relations Investor relations The process by which the corporation communicates with its investors. Web site located at www.clarent.com. About Clarent Clarent Corporation (Nasdaq:CLRN) is a leading provider of voice solutions for next generation networks. Clarent's solutions enable service providers to deploy a converged network The integration of the telephone system with IP-based data networks. See softswitch. (networking) converged network - A single network that can carry voice, video and data. (voice, data and applications). Clarent solutions reduce costs and increase operating efficiencies while delivering innovative new services that allow end users to manage their communications. Founded in 1996, Clarent is headquartered in Redwood City, Calif. and has offices in Asia, Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). ,
Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. and North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . For more information please visit
www.clarent.com.
Forward Looking Statements This release contains 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. that involve risks and uncertainties, including statements about the company's strategic developments and focus, the expected development of the communications market and the rate and extent of acceptance of the Clarent OpenAccess(TM) solution. These statements involve risks and uncertainties, including but not limited to the effectiveness of the Company's management during the transition of the Company's organization, the Company's ability to successfully expand sales and channels, utilize reduced resources effectively, improve operational productivity and efficiencies, develop new and enhanced products, achieve acceptable gross margins, retain customers, the ability of customers to pay Clarent, the regional concentration of revenue, ability to retain key employees, as well as uncertainties associated with the future development of the markets for IP-based communications and changes in the global economic market. These risks and uncertainties are described further in our periodic filings with the SEC. Trademarks Clarent, the Clarent logo, Clarent OpenAccess, NetPerformer, DynaStar Dynastar is a winter sports company based in the Chamonix valley, France. Founded in 1963, the name Dynastar was born when Les Plastiques Synthétiques, manufacturers of Starflex skis, collaborated with Dynamic on a new compound ski. , Clarent Command Center, Clarent ThroughPacket, Clarent CPG CPG central pattern generators. , PowerCell, SkyPerformer, ACTview and ServiceXchange are trademarks or registered trademarks, and "The Clearer. The Better" is a service mark of Clarent Corporation 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 other jurisdictions. All other trademarks, registered trademarks and service marks are the property of their respective owners.
CLARENT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited - in thousands, except per share amounts)
Three Months Ended Six Month Period Ended
June 30, June 30,
2001 2000 2001 2000
---- ---- ---- ----
Net revenue:
Product & software $ 56,158 $ 25,255 $ 111,693 $ 47,333
Maintenance & service 6,994 3,058 12,651 5,563
--------- --------- --------- ---------
Total revenue 63,152 28,313 124,344 52,896
Cost of revenue:
Product & software 20,752 9,020 35,296 17,331
Inventory write-downs 6,056 -- 6,056 --
Maintenance & service 5,048 2,080 8,296 3,718
Amortization of
developed technology 693 -- 1,386 --
--------- --------- --------- ---------
Total cost of revenue 32,549 11,100 51,034 21,049
--------- --------- --------- ---------
Gross profit 30,603 17,213 73,310 31,847
Operating expenses:
Research & development 16,475 5,566 31,233 9,906
Sales & marketing 24,801 11,819 49,626 22,874
General & administrative 8,239 2,583 16,651 5,024
Amortization of
compensation 1,925 932 3,945 2,310
Amortization of goodwill &
other intangibles 9,109 225 18,218 451
Restructuring costs 14,141 -- 14,141 --
--------- --------- --------- ---------
Total operating
expenses 74,690 21,125 133,814 40,565
Loss from operations (44,087) (3,912) (60,504) (8,718)
Other income, net 2,841 4,399 5,609 8,514
--------- --------- --------- ---------
Net income (loss) before
income taxes (41,246) 487 (54,895) (204)
Provision for income taxes 321 259 636 284
--------- --------- --------- ---------
Net income (loss) $ (41,567) $ 228 $ (55,531) $ (488)
========= ========= ========= =========
Basic and diluted net income
(loss) per share $ (1.03) $ 0.01 $ (1.39) $ (0.02)
========= ========= ========= =========
Shares used to compute basic
net income (loss) per
share 40,258 32,934 39,941 32,174
========= ========= ========= =========
Shares used to compute diluted
net income (loss) per
share 40,258 38,166 39,941 32,174
========= ========= ========= =========
CLARENT CORPORATION
PROFORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Excluding Amortization of compensation,
developed technology, goodwill and
intangible assets; Inventory
write-downs and Restructuring costs)
(Unaudited - in thousands, except per share amounts)
Three Months Ended Six Month Period Ended
June 30, June 30,
2001 2000 2001 2000
---- ---- ---- ----
Net revenue:
Product & software $ 56,158 $ 25,255 $ 111,693 $ 47,333
Maintenance & service 6,994 3,058 12,651 5,563
--------- --------- --------- ---------
Total revenue 63,152 28,313 124,344 52,896
Cost of revenue:
Product & software 20,752 9,020 35,296 17,331
Maintenance & service 5,048 2,080 8,296 3,718
--------- --------- --------- ---------
Total cost of revenue 25,800 11,100 43,592 21,049
--------- --------- --------- ---------
Gross profit 37,352 17,213 80,752 31,847
Operating expenses:
Research & development 16,475 5,566 31,233 9,906
Sales & marketing 24,801 11,819 49,626 22,874
General & administrative 8,239 2,583 16,651 5,024
--------- --------- --------- ---------
Total operating
expenses 49,515 19,968 97,510 37,804
Loss from operations (12,163) (2,755) (16,758) (5,957)
Other income, net 2,841 4,399 5,609 8,514
--------- --------- --------- ---------
Net income (loss) before
income taxes (9,322) 1,644 (11,149) 2,557
Provision for income taxes 321 259 636 284
--------- --------- --------- ---------
Net income (loss) $ (9,643) $ 1,385 $ (11,785) $ 2,273
========= ========= ========= =========
Basic and diluted net income
(loss) per share $ (0.24) $ 0.04 $ (0.30) $ 0.07
========= ========= ========= =========
Shares used to compute basic
net income (loss) per
share 40,258 32,934 39,941 32,174
========= ========= ========= =========
Shares used to compute diluted
net income (loss) per
share 40,258 38,166 39,941 32,174
========= ========= ========= =========
CLARENT CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, December 31,
2001 2000
(Unaudited) (Audited)
ASSETS
Current assets:
Cash, cash equivalents,
restricted cash & short
term investments $ 186,054 $ 260,614
Accounts receivable, net 99,204 61,610
Inventories 33,663 17,487
Prepaid and other current assets 17,146 11,342
-------- --------
Total current assets 336,067 351,053
Property and equipment, net 51,980 36,630
Goodwill and other intangibles, net 112,101 131,701
Deferred tax assets 16,306 15,988
Other assets 25,729 18,996
-------- --------
Total assets $542,183 $554,368
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 24,549 $ 14,337
Line of credit 10,014 --
Deferred revenue 23,844 13,947
Restructuring accrual 5,011 --
Other accrued liabilities 25,439 29,386
-------- --------
Total current liabilities 88,857 57,670
Deferred tax liabilities 14,920 14,534
Restructuring accrual - long term 6,795 --
Total stockholders' equity 431,611 482,164
-------- --------
Total liabilities and
stockholders' equity $ 542,183 $ 554,368
========= ========
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion