Corsair Reports Strong Earnings With First Quarter 2000 Results; Revenue and Earnings Exceed Expectations Due to PrePay Subscriber Growth.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)--April 18, 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 first quarter ended March 31, 2000. Net income for the first quarter of 2000 was $2.8 million, compared with a net loss of $2.1 million reported in the first quarter of 1999. Excluding charges that are not expected to recur, aggregating $3.0 million, Corsair reported a net income of $898,000 in the first quarter of 1999. Net revenues for the first quarter of 2000 were $16.1 million, compared with net revenues of $15.3 million recorded in the first quarter of 1999. First quarter of 2000 earnings per share were $0.15 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 a loss of $0.12 per share on approximately 18.0 million shares outstanding in the first quarter of 1999. Excluding charges that are not expected to recur, the 1999 first quarter earnings would have been approximately $0.03 per share compared with the 2000 first quarter earnings of $0.15 per share. 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. "I am very proud of our achievements in the first quarter," 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. "Our continued profitability was largely due to the strong acceptance and continued success of our PrePay pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. product. Our PrePay
installations now support over 9.0 million subscribers around the world.
Furthermore, at the CTIA/Wireless 2000 show, we showcased key product
and partnership initiatives designed to leverage our strengths and
expand our market opportunities."First, we announced a significant new implementation of our PrePay product called PrePay Open, which will greatly expand our addressable Reachable. When something is addressable, it can be identified and manipulated independently of its surroundings. For example, screen pixels and RAM memory are addressable. Each of the screen's picture elements can be individually turned on and off, and each of the memory's bytes can be market. This new product now supports mixed-infrastucture environments as well as the more broadly-based GSM (Global System for Mobile Communications) A digital cellular phone technology based on TDMA that is the predominant system in Europe, but also used worldwide. Developed in the 1980s, GSM was first deployed in seven European countries in 1992. , CDMA (Code Division Multiple Access) A method for transmitting simultaneous signals over a shared portion of the spectrum. The foremost application of CDMA is the digital cellular phone technology from QUALCOMM that operates in the 800 MHz band and 1.9 GHz PCS band. and TDMA (Time Division Multiple Access) A satellite and cellular phone technology that interleaves multiple digital signals onto a single high-speed channel. For cellular, TDMA triples the capacity of the original analog method (FDMA). networks and allows carriers to offer roaming The ability to use a communications device such as a cellphone or PDA and be able to move from one cell or access point to another without losing the connection. solutions in these mixed environments. Secondly, we announced PhoneFuel, our first mobile commerce application for the PrePay platform, which allows carriers to provide enhanced account management services to their subscribers via the Web or WAP (1) (Wireless Access Point) See access point. (2) (Wireless Application Protocol) A standard for providing cellular phones, pagers and other handheld devices with secure access to e-mail and text-based Web pages. (Wireless Application Protocol) enabled phones. As the convergence convergence Mathematical property of infinite series, integrals on unbounded regions, and certain sequences of numbers. An infinite series is convergent if the sum of its terms is finite. of voice and data drive the wireless phone to become the next key access technology for 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 , applications such as PhoneFuel will allow carriers to meet user demand for increased functionality and convenience. "Finally, we announced a strategic alliance and joint distribution agreement with Lightbridge, Inc. This new alliance will provide immediate benefits to wireless carriers by allowing them to quickly enhance their service offerings. We believe that this relationship will yield very positive results for both companies in the coming months," he said. Conference Call Corsair's management will hold a conference call to discuss these results today, April 18, at 1:30 p.m. Pacific Standard Time. Those wishing to join should dial 703/871-3077 at approximately 1:20 p.m. A replay will be available for one week by calling 703/925-2533, passcode 3685198. About Corsair Communications, Inc. 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 9 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, acceptance of the Company's PrePay product, future products and the benefits of the company's relationship with Lightbridge, Inc. 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, Inc. with the U.S. Securities and Exchange Commission.
Condensed Consolidated Statement of Operations
(In thousands, except share data; unaudited)
Three Months Ended
March 31
2000 1999
-------- --------
Revenues:
Hardware revenue $ 4,712 $ 8,519
Software revenue 7,192 2,923
Service revenue 4,204 3,836
-------- --------
Total revenues 16,108 15,278
Cost of revenues:
Hardware revenue costs 3,882 3,985
Software revenue costs 329 231
Service revenue costs 1,027 1,538
-------- --------
Total cost of revenues 5,238 5,754
-------- --------
Gross profit (deficit) 10,870 9,524
Operating costs and expenses:
Research and development 2,855 3,482
Sales and marketing 3,310 3,942
General and administrative 1,463 1,601
Business discontinuation -- 856
-------- --------
Total operating
costs and expenses 7,628 9,881
-------- --------
Operating income (loss) 3,242 (357)
Loss on sale of assets -- (2,176)
Interest income (expense), net 801 399
-------- --------
Income (loss)
before income taxes 4,043 (2,134)
Income taxes 1,253 --
Loss on debt extinguishment --
-------- --------
Net income (loss) $ 2,790 $ (2,134)
======== ========
Basic net income
(loss) per share $ 0.16 $ (0.12)
======== ========
Shares used in basic
per share calculation 17,178 18,032
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Shares used in diluted
per share calculation 18,508 18,032
======== ========
Condensed Consolidated Balance Sheet Information
(In thousands; unaudited)
March 31, December 31,
2000 1999
------- -------
Assets
Current assets:
Cash and cash equivalents $ 6,286 $13,686
Short-term investments 52,873 39,263
Trade accounts receivable, net 9,156 11,548
Evaluation inventory 486 1,163
Inventories, net 3,206 3,183
Prepaids and other assets 2,074 1,475
Current portion-notes receivable 395 385
------- -------
Total current assets 74,476 70,703
Notes receivable 1,223 1,325
Property and equipment, net 3,424 3,458
Other assets 1,195 1,197
------- -------
$80,318 $76,683
======= =======
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 1,602 $ 2,273
Accrued expenses 9,510 10,245
Current portion of
notes payable 764 737
Current portion of capital
lease obligations 41 80
Deferred revenue 8,648 6,063
------- -------
Total current liabilities: 20,565 19,398
------- -------
Notes payable,
net of current portion 469 670
------- -------
Total liabilities 21,034 20,068
------- -------
Total stockholders' equity 59,284 56,615
------- -------
$80,318 $76,683
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