Corsair Reports Record Fourth Quarter and 1999 Results; Net Income Increases 98% in the Quarter.Business Editors 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)--Feb. 8, 2000 Corsair corsair: see Barbary States; piracy. Communications, Inc. (Nasdaq:CAIR CAIR Council on American-Islamic Relations CAIR Clean Air Interstate Rule (EPA) CAIR Center for AIDS Intervention Research CAIR Changing Attitudes in Recovery CAIR California Association for Institutional Research ), a leading provider of software and system solutions for the global wireless industry, today announced results for the fourth quarter and year ended Dec. 31, 1999. Net income for the fourth quarter of 1999 was $5.7 million, compared with a net income of $2.9 million reported in the third quarter of 1999 and compared with a net loss of $754,000 reported in the fourth quarter of 1998. Net revenues for the fourth quarter of 1999 were $17.8 million, up 4 percent from net revenues of $17.1 million recorded in the third quarter of 1999, and up 16 percent from net revenues of $15.3 million recorded in the fourth quarter of 1998. Fourth quarter earnings per share were $0.31 on approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 18.5 million shares outstanding, compared with $0.16 per share on approximately 18.1 million shares outstanding in the third quarter of 1999, and compared with a loss of $0.04 per share on approximately 17.9 million shares outstanding in the fourth quarter of 1998. All per share amounts are computed on a 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. basis. Net income for the fiscal year ended Dec. 31, 1999 was $8.8 million, compared with a net loss of $6.9 million for the fiscal year ended Dec. 31, 1998. Net revenues for 1999 were $66.2 million, up 2 percent from $65.2 million reported in 1998. Earnings per share for the year ended Dec. 31, 1999 were $0.48 on approximately 18.3 million shares outstanding compared with a loss of $0.39 per share on approximately 17.8 million shares outstanding at Dec. 31, 1998. All per share amounts were computed on a diluted basis. &uot;I am very proud of Corsair's achievements in 1999,&uot; said Tom Meyer Mey·er , Annie Florance Nathan 1867-1951. American writer and a founder of Barnard College at Columbia University (1889). Her plays include The Dominant Sex (1911) and Black Souls (1932). , president and chief executive officer. &uot;Early in the year, we laid out an aggressive financial model and transition plan for the company and were able to bring the business in line with this model several quarters ahead of schedule. We achieved these results by maintaining focus on our business objectives and successfully ramping our PrePay pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. product. We are pleased to report that
we have in excess of 7 million subscribers on our PrePay system. 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 our commitment to expand the distribution of this product, we will be announcing a set of new product initiatives at Wireless 2000 on February February: see month. 28, 2000 in New Orleans New Orleans (ôr`lēənz –lənz, ôrlēnz`), city (2006 pop. 187,525), coextensive with Orleans parish, SE La., between the Mississippi River and Lake Pontchartrain, 107 mi (172 km) by water from the river mouth; founded . This set of initiatives includes a new implementation of our PrePay product that will allow us to sell into mixed infrastructure environments. These initiatives will allow us to pursue significant incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. opportunities in the PrePay product domain and we have already secured a beta agreement with a major wireless carrier to begin product testing. We are anticipating an exciting 2000 and look forward to sharing news on product advancements, new partnerships and continued strong results from our PrePay program throughout the year,&uot; he said. About Corsair Communications Corsair is a leading provider of software and system solutions for the global wireless industry. The company's products include systems for fraud prevention and prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay ment n. billing. Corsair's
PhonePrint wireless fraud prevention system is currently installed in
over 180 markets worldwide, and has prevented more than 300 million
fraudulent The description of a willful act commenced with the Specific Intent to deceive or cheat, in order to cause some financial detriment to another and to engender personal financial gain. cellular calls. The company's PrePay(TM) wireless
billing system supports more than 7 million wireless subscribers. More
information can be found on the company's website at
http://www.corsair.com.Note: This press 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. regarding the future financial performance of the company, as well as future products that involve risks and uncertainties. Actual results may differ materially because of various risks, including risks associated with product sales and installation, the ability to bring new products to market, successful completion of potential transactions, economic and political instability instability /in·sta·bil·i·ty/ (-stah-bil´i-te) lack of steadiness or stability. detrusor instability in international markets, demand for Corsair's products and services, continued growth of the wireless telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. industry, and other risks associated with Corsair's business. For an expanded discussion on such risks, please see the documents filed by Corsair Communications with the U.S. Securities and Exchange Commission.
Corsair Communications, Inc.
Condensed Consolidated Statement of Operations
(In thousands, except share data; unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
1999 1998 1999 1998
Revenues:
Hardware revenue $ 5,961 $ 6,596 $ 31,961 $ 34,089
Software revenue 7,989 4,273 20,083 13,717
Service revenue 3,846 4,443 14,163 17,412
-------- -------- -------- --------
Total revenues 17,796 15,312 66,207 65,218
Cost of revenues:
Hardware revenue costs 3,783 3,372 17,124 17,151
Software revenue costs 330 338 1,336 1,317
Service revenue costs 1,634 1,903 5,854 8,094
-------- -------- -------- --------
Total cost of revenues 5,747 5,613 24,314 26,562
-------- -------- -------- --------
Gross profit 12,049 9,699 41,893 38,656
-------- -------- -------- --------
Operating costs and
expenses:
Research and development 2,740 4,661 11,312 18,289
Sales and marketing 3,082 4,641 13,421 16,775
General and
administrative 1,572 2,006 6,606 8,501
Merger related expenses -- -- -- 4,191
Business discontinuation -- -- 856 --
-------- -------- -------- --------
Total operating costs
and expenses 7,394 11,308 32,195 47,756
-------- -------- -------- --------
Operating income (loss) 4,655 (1,609) 9,698 (9,100)
Loss on sale of assets -- -- (2,176) --
Interest income, net 548 491 1,817 2,460
-------- -------- -------- --------
Income (loss) before
income taxes 5,203 (1,118) 9,339 (6,640)
Income tax expense
(benefit) (484) (364) 498 --
Loss on debt
extinguishment -- -- -- (226)
-------- -------- -------- --------
Net income (loss) $ 5,687 $ (754) $ 8,841 $ (6,866)
======== ======== ======== ========
Basic net income (loss)
per share before
Extraordinary item $ 0.33 $ (0.04) $ 0.50 $ (0.38)
Extraordinary item -- -- -- (0.01)
-------- -------- -------- --------
Basic net income (loss)
per share $ 0.33 $ (0.04) $ 0.50 $ (0.39)
======== ======== ======== ========
Shares used in basic per
share calculation 17,492 17,926 17,700 17,749
======== ======== ======== ========
Diluted net income (loss)
per share before
Extraordinary item $ 0.31 $ (0.04) $ 0.48 $ (0.38)
======== ======== ======== ========
Extraordinary item -- -- -- (0.01)
======== ======== ======== ========
Basic net income (loss)
per share $ 0.31 $ (0.04) $ 0.48 $ (0.39)
======== ======== ======== ========
Shares used in diluted
per share calculation 18,484 17,926 18,315 17,749
======== ======== ======== ========
Corsair Communications, Inc.
Condensed Consolidated Balance Sheet
(In thousands; unaudited)
Dec. 31, Dec. 31,
1999 1998
Assets
Current assets:
Cash and cash equivalents $13,686 $ 4,196
Short-term investments 39,263 34,377
Trade accounts receivable, net 11,548 14,134
Evaluation inventory 1,163 2,597
Inventories, net 3,183 5,676
Prepaids and other assets 1,475 2,266
Current portion-notes receivable 385 --
------- -------
Total current assets 70,703 63,246
Notes receivable 1,325 --
Property and equipment, net 3,458 7,422
Other assets and intangibles 1,197 892
------- -------
$76,683 $71,560
======= =======
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 2,273 $ 1,706
Accrued expenses 10,245 7,731
Current portion of notes payable 737 639
Current portion of capital lease obligations 80 609
Deferred revenue 6,063 7,137
------- -------
Total current liabilities: 19,398 17,822
------- -------
Notes payable, net of current portion 670 1,407
Capital lease obligations, net of current portion -- 217
------- -------
Total liabilities 20,068 19,446
------- -------
Total stockholders' equity 56,615 52,114
------- -------
$76,683 $71,560
======= =======
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