Copper Mountain Networks Announces Record Financial Results for the Second Quarter 1999.PALO ALTO Palo Alto, city, California Palo Alto (păl`ō ăl`tō), city (1990 pop. 55,900), Santa Clara co., W Calif.; inc. 1894. Although primarily residential, Palo Alto has aerospace, electronics, and advanced research industries. , Calif.--(BUSINESS WIRE)--July 22, 1999-- Copper Mountain Networks, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CMTN), today announced financial results for the second quarter of 1999. Revenues for the second quarter of 1999 were $22.9 million, an increase of $21.6 million over revenues of $1.3 million for the second quarter of 1998. The second quarter revenues represented an increase of $9.7 million, or 73%, over the $13.2 million in revenues reported for the first quarter of 1999. For the six months ended June June: see month. 30, 1999, Copper Mountain reported revenues of $36.1 million, a $34.5 million increase over revenue of $1.6 million reported for the same period of the prior year. Net income was $2.3 million or $0.09 per 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 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 for the second quarter of 1999, compared to a net loss of $3.5 million or a loss of $0.21 per pro forma diluted share for the same quarter of the prior year. Excluding the stock based compensation charge, net income was $3.9 million or $0.15 per pro forma diluted share for the second quarter of 1999, compared to net loss of $3.0 million or a loss of $0.18 per pro forma diluted share for the same quarter of the prior year. Net income for the six months ended June 30, 1999 was $1.3 million or $0.06 per pro forma diluted share, compared to a net loss of $6.8 million or a loss of $0.41 per pro forma diluted share for the same period of the prior year. Excluding the stock based compensation charge, net income was $4.6 million or $0.19 per pro forma diluted share for the current six month period, compared to a net loss of $5.8 million or a loss of $0.35 per pro forma diluted share for the same period of the prior year. "We are pleased with the financial results Copper Mountain reported for our first quarter as a public company," said Copper Mountain Networks, Inc. President and Chief Executive Officer, Rick Gilbert Gil·bert , Walter Born 1932. American biologist. He shared a 1980 Nobel Prize for developing methods of mapping the structure and function of DNA. . "Total revenues and net income for the current quarter exceeded our expectations as the pace of 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 deployments by our customers accelerated rapidly in Q2 1999, and we see strong demand for our products continuing through Q3 1999." "In addition to our strong financial performance, we introduced and made initial sales of the CopperEdge 150 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 Concentrator, a new member of our CopperEdge family that is optimized for use in mid-sized multi-tenant In the Software as a Service (SaaS) software architecture, multi-tenant refers to the ability of the hosting site to support multiple organizations ("tenants") at the same time. Multi-tenancy is a key feature of a true SaaS architecture. unit (MTU (1) (Maximum Transmission Unit, Maximum Transfer Unit) The largest frame size that can be transmitted over the network. For example, an Ethernet MTU is 1,500 bytes. Messages longer than the MTU must be divided into smaller frames. ) buildings such as office buildings, business parks, multi-family apartments, campuses, and hotels," added Gilbert. -0-
Highlights From the Second Quarter of 1999 Include:
-- Product functionality enhancements to the CopperEdge(tm) platform
to support toll-quality voice services over DSL and the
introduction of the CopperVIP(tm) (voice in packets)
interoperability program.
-- Technology and marketing partnership with TollBridge Technologies
for delivering IP-based multi-line voice over Digital Subscriber
Line (DSL) broadband access. In addition, Copper Mountain
unveiled partnerships with other leading voice gateway providers,
Jetstream Communications and CopperCom.
-- Technology partnership with MCK Communications to deliver the
industry's first simultaneous voice and data connectivity over
IDSL.
-- Certification of Ramp Networks, Inc. and ADC Kentrox customer
premise devices as CopperCompatible(tm) with Copper Mountain's
family of CopperEdge products.
-- Interconnectivity between Copper Mountain Networks' and Lucent
Technologies' access products that will reduce costs and provide
better overall system management for Competitive Local Exchange
Carriers and service providers, enabling them to deliver a
broader array of voice and data services.
-- Introduction of Copper Mountain's AutoDetect(tm) SDSL capability
which automatically learns the characteristics of the local loop
and determines the maximum SDSL speed that the line can sustain
thereby eliminating manually intensive testing process and
enabling cost effective accelerated deployments.
-- Closing of Copper Mountain's Initial Public Offering with
proceeds to the Company of approximately $90 million.
About Copper Mountain Networks Founded in January January: see month. 1996 with offices in Palo Alto and San Diego, California “San Diego” redirects here. For other uses, see San Diego (disambiguation). San Diego is a coastal Southern California city located in the southwestern corner of the continental United States. As of 2006, the city has a population of 1,256,951. , Copper Mountain Networks, Inc. develops and markets a comprehensive family of DSL solutions that enable high-speed high-speed adj. 1. Operated or designed for operation at high speed: a high-speed food processor. 2. Taking place at high speed: a high-speed chase. 3. internetworking internetworking - The interconnection of two or more networks, usually local area networks so that data can pass between hosts on the different networks as though they were one network. This requires some kind of router or gateway. over existing copper facilities. The Company's mission is to enable carriers and other service providers to offer a full range 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" , cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. data and voice services over DSL that are easy to deploy, use, and manage. Copper Mountain's CopperRocket(tm) CPE (Customer Premises Equipment) Communications equipment that resides on the customer's premises. CPE - Customer Premises Equipment family addresses the bandwidth bandwidth Measurement of the capacity of a communications signal. For digital signals, the bandwidth is the data speed or rate, measured in bits per second (bps). For analog signals, it is the difference between the highest and lowest frequency components, measured in hertz , reliability, ease-of-use, and cost concerns of remote offices and users. Its carrier-class CopperEdge(tm) DSL concentrators and CopperView(tm) network management solutions offer a robust and scalable platform for carriers and multi-tenant unit service providers to generate a high return on investment while satisfying the ever-increasing user demand for bandwidth. For more information, please visit the Company's World Wide Web site at http://www.coppermountain.com. For Investor Relations Investor relations The process by which the corporation communicates with its investors. information, call our toll free number at 877-463-6268 or contact us via e-mail at IR@coppermountain.com. Portions of this release contain 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. regarding future events and are subject to risks and uncertainties. We wish to caution you that there are some factors that could cause actual results to differ materially from the results indicated by such statements. These factors include, but are not limited to: quarterly fluctuations in operating results attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the timing and amount of orders for our products, factors effecting the rate of DSL deployment by our customers, market acceptance of our products, our ability to keep pace with rapidly changing product requirements and factors affecting the demand for DSL technologies. We refer you to the documents we file from time to time with the Securities and Exchange Commission, specifically the section titled Risk Factors in our Registration Statement on Form S-1 (No. 333-73153). -0-
Copper Mountain Networks, Inc.
Condensed Statements of Operations
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
1999 1998 1999 1998
Net revenue $ 22,890 $ 1,281 $ 36,106 $ 1,598
Cost of revenue 10,815 795 17,199 1,012
Gross profit 12,075 486 18,907 586
Operating expenses:
Research and development 3,274 1,788 5,838 3,561
Sales and marketing 3,319 954 5,900 1,679
General and
administrative 1,336 721 2,463 1,256
Amortization of
deferred stock
compensation 1,601 568 3,294 1,003
Total operating
expenses 9,530 4,031 17,495 7,499
Income (loss) from
operations 2,545 (3,545) 1,412 (6,913)
Other income, net 657 -- 802 80
Income (loss) before
income taxes 3,202 (3,545) 2,214 (6,833)
Provision for
income taxes 859 -- 907 --
Net income (loss) $ 2,343 $ (3,545) $ 1,307 $ (6,833)
Basic net income
(loss) per share $ 0.17 $ (2.88) $ 0.16 $ (5.66)
Basic common stock
equivalents 13,567 1,230 7,954 1,208
Diluted net income
(loss) per share $ 0.09 $ (2.88) $ 0.06 $ (5.66)
Diluted common stock
equivalents 25,595 1,230 23,687 1,208
Pro forma diluted net
income (loss)
per share (1) $ 0.09 $ (0.21) $ 0.06 $ (0.41)
Pro forma diluted
common equivalent
shares (1) 25,595 16,565 23,687 16,542
Pro forma diluted net
income (loss) per
share (1) excluding
deferred stock
compensation $ 0.15 $ (0.18) $ 0.19 $ (0.35)
Pro forma diluted
common equivalent
shares (1) 25,595 16,565 23,687 16,542
Condensed Balance Sheets
Assets June 30, Dec. 31,
1999 1998
Current assets:
Cash and S-T Investments $ 106,770 $ 18,529
Accounts receivable 15,516 8,026
Inventory 6,251 4,668
Other current assets 1,315 476
Total current assets 129,852 31,699
Property and equip, net 5,294 3,214
Other assets 1,397 1,296
$ 136,543 $ 36,209
Liabilities and Stockholder's Equity
Current liabilities:
Accounts payable $ 7,222 $ 4,371
Accrued liabilities 6,416 2,219
Current notes payable 984 783
Total current liabilities 14,622 7,373
Notes payable 1,572 1,965
Other liabilities 68 28
Total stockholders' equity 120,281 26,843
$ 136,543 $ 36,209
-0- (1) Pro forma net income (loss) per share has been computed using the weighted-average number of shares of common stock outstanding during the period including any dilutive common stock equivalents and the pro forma effect of converting 15,334,824 shares of preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. as if they were outstanding at the beginning of all periods presented. The preferred stock automatically converted upon the closing of the Company's initial public offering, which occurred in May 1999. The pro forma data is presented for informational purposes only and should not be considered as a substitute for the historical financial data presented 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 . Copper Mountain Networks Announces Record Financial Results For The Second Quarter 1999 Note to Editors: Copper Mountain and all Copper Mountain product names are trademarks of Copper Mountain Networks, Inc. Other brand and product names are trademarks of their respective holders. |
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