Occam Networks Announces Record Revenue for Q4 2004; Company More than Doubles Annual Revenue over 2003.SANTA BARBARA Santa Barbara (săn'tə bär`brə, –bərə), city (1990 pop. 85,571), seat of Santa Barbara co., S Calif., on the Pacific Ocean; inc. 1850. , Calif. -- Occam Networks Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). : OCCM OCCM Ocean Carbon Cycle Model OCCM On Condition Cyclic Maintenance OCCM Office of Commercial Communications Management OCCM Optimistic Concurrency Control Mechanism ), a supplier of innovative Ethernet Ethernet Telecommunications networking protocol introduced by Xerox Corp. in 1979. It was developed as an inexpensive way of sending information quickly between office machines connected together in a single room or building, but it rapidly became a standard computer and IP-based loop carrier equipment to telecommunications service providers A Telecommunications Service Provider or TSP is a type of Communications Service Provider that has traditionally provided telephone and similar services. This category includes ILECs, CLECs, and mobile wireless companies. worldwide, today reported results for the fourth quarter of 2004, which ended Dec. 31, 2004. The company reported revenue for the quarter of $6.5 million, setting a new record. Fourth quarter 2004 revenues represented an increase of 46 percent over the third quarter of 2004, the company's previous highest revenue quarter. During the quarter gross margins continued to improve, with the quarterly operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. reduced from $3.0 million ($3.2 million on a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis) in the third quarter to $2.0 million ($2.2 million on a GAAP basis) this quarter. Non-GAAP net loss excludes non-cash expenses Noun 1. non-cash expense - an expense (such as depreciation) that is not paid for in cash disbursal, disbursement, expense - amounts paid for goods and services that may be currently tax deductible (as opposed to capital expenditures) associated with amortization of deferred compensation. Annual revenue for 2004 was $17.3 million, more than doubling annual revenue of $7.9 million for 2003. Results for the fourth quarter of 2004 are unaudited and will be verified ver·i·fy tr.v. ver·i·fied, ver·i·fy·ing, ver·i·fies 1. To prove the truth of by presentation of evidence or testimony; substantiate. 2. when the company files its 10-K report and holds it earnings release call in March. There is still one specific calculation on warrant valuation that is being reviewed, but the results of the valuation are not expected to have a material effect on our operating results as reported today. The company will announce the date and time of the earnings call at a later date. "Occam experienced substantial revenue growth in 2004, with Q4 being our best revenue quarter ever," said Bob Howard-Anderson, 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. of Occam Networks. "In 2004, we significantly increased revenue, added 31 new customers for a total of 75 and increased our gross margins. We are very pleased with the company's progress. "In January January: see month. we announced additional funding from our existing investors of $5.5M which is not reflected in the Dec. 31, 2004 balance sheet," added Howard-Anderson. In addition to adding 31 new customers in 2004, Occam shipped the industry's first 48-port combination ADSL See DSL. ADSL - Asymmetric Digital Subscriber Line 2Plus and POTS blade, as well as a 48-port ADSL2Plus blade for the BLC BLC Boston Library Consortium BLC Bethany Lutheran College (Minnesota) BLC Back Light Compensation (video cameras) BLC Belo Corporation (stock symbol) BLC Broadband Loop Carrier 6000 System; elected three new board members, Kenneth R. Cole, Thomas Cole, Thomas, 1801–48, American landscape painter, b. England. He arrived in the United States in 1818 and moved to Ohio, where he was impressed by the beauty of the countryside. In 1825 he went to New York, where his landscape paintings began to be appreciated. Pardun, and 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. Bylin; added the BLC 6000 to the RUS list of materials; expanded its reseller An organization that sells hardware and software to the general public. Resellers purchase products from software publishers and hardware manufacturers. network; and renewed re·new v. re·newed, re·new·ing, re·news v.tr. 1. To make new or as if new again; restore: renewed the antique chair. 2. the company's ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. 9001:2000 Certification.
SUMMARY FINANCIAL INFORMATION:
OCCAM NETWORKS INC.
NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands $)
(Unaudited)
Three Months Ended
-------------------------------
Dec 31 Dec 31
2004 2003
---------------- --------------
Net revenue $6,481 $3,775
Cost of revenue 4,615 3,621
---------------- --------------
Gross Profit (loss) 1,866 154
Operating Expenses:
Research and product development 1,403 2,028
Sales and marketing 1,872 1,319
General and administrative 628 543
---------------- --------------
Total operating expenses 3,903 3,890
---------------- --------------
Loss from operations (2,037) (3,736)
Interest expense, net (55) (43)
---------------- --------------
Non-GAAP loss before income taxes (2,092) (3,779)
Income Tax (Benefit) Provision - (16)
---------------- --------------
Non-GAAP net loss $(2,092) $(3,763)
================ ==============
Reconciliation of non-GAAP
net loss to GAAP
net loss attributable to
common stockholders:
Non-GAAP net loss $(2,092) (3,763)
Non-GAAP exclusions:
Deferred stock-based
compensation (177) (281)
Beneficial conversion
feature on series A-2
preferred stock and
warrants (90) (3,038)
---------------- --------------
GAAP net loss attributable to
common stockholders: $(2,359) $(7,082)
================ ==============
OCCAM NETWORKS INC.
GAAP CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands $)
(Unaudited)
Three Months Ended
-------------------------------
Dec 31 Dec 31
2004 2003
---------------- --------------
Net Revenue $6,481 $3,775
Cost of revenue 4,615 3,621
---------------- --------------
Gross Profit (loss) 1,866 154
Operating Expenses (1):
Research and product development 1,555 2,236
Sales and marketing 1,894 1,367
General and administrative 631 568
---------------- --------------
Total operating expenses 4,080 4,171
---------------- --------------
Loss from operations (2,214) (4,017)
Interest expense, net (55) (43)
---------------- --------------
Loss before beneficial conversion
feature and interest
attributable to common stock
potentially subject to
rescission (2,269) (4,060)
Income Tax (Benefit) Provision - (16)
---------------- --------------
Net loss $(2,269) $(4,044)
================ ==============
Beneficial conversion feature on
series A-2 preferred stock and
warrants (90) (3,038)
---------------- --------------
Net loss attributable to common
stockholders $(2,359) $(7,082)
================ ==============
(1) Amortization of deferred
stock-based compensation
included in:
Research and product
development $152 $208
Sales and marketing 22 48
General and administrative 3 25
---------------- --------------
$177 $281
================ ==============
OCCAM NETWORKS INC.
Consolidated Balance Sheet
(In thousands $)
(Unaudited)
-------------------------------
Dec 31 Dec 31
2004 2003
---------------- --------------
Assets
Cash and cash equivalents $4,432 $14,586
Restricted cash 2,101 935
Accounts receivable 5,217 2,342
Inventories 6,611 2,254
Prepaid and other current assets 873 1,077
---------------- --------------
Total current assets 19,234 21,194
Property and equipment, net 1,692 1,937
Other assets 183 273
---------------- --------------
Total assets $21,109 $23,404
================ ==============
Liabilities, Preferred Stock
and Stockholders' Equity
Accounts payable $6,301 $3,001
Accrued expenses 3,330 2,377
Capital lease obligations and
notes payable, current 956 708
---------------- --------------
Total current liabilities 10,587 6,086
Capital lease obligations and
notes payable, non-current 3,072 998
---------------- --------------
Total liabilities 13,659 7,084
Preferred stock 20,993 16,381
Preferred warrant 431 -
Common stock 268 267
Additional paid in capital 87,295 87,238
Warrants 454 454
Deferred stock compensation (634) (1,627)
Accumulated deficit (101,357) (86,393)
---------------- --------------
(13,974) (61)
---------------- --------------
Total Liabilities,
Preferred Stock and
Stockholders' Equity $21,109 $23,404
================ ==============
Cautionary Note Concerning 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. This press release contains forward-looking statements concerning our revenues and operating results for the fourth quarter of 2004 and for fiscal year 2004. The estimates disclosed in this press release are preliminary and have not been reviewed by Occam's outside accountants. These estimates could change materially as a result of outside accountant review. Occam's business, operating results, and financial condition are subject to numerous risks and uncertainties. These risks include, among others, the risk that our revenues will not increase as anticipated if our BLC 6000 product does not achieve market acceptance. For example, BLC 6000 products could fail to achieve market acceptance based on competitive factors, an unwillingness of telecommunication telecommunication Communication between parties at a distance from one another. Modern telecommunication systems—capable of transmitting telephone, fax, data, radio, or television signals—can transmit large volumes of information over long distances. companies to make substantial capital expenditures, or a failure of these products to perform to industry standards, which may change based on technological developments. Additional risks associated with our business include general market conditions affecting the decisions of communications service providers A Communications Service Provider or CSP is a company that transports information electronically. The term encompasses public and private companies in the wireline, wireless, Internet, cable, satellite, and managed services businesses. to purchase Occam's equipment, changes in service providers' business models, the rate our customers deploy their networks, our customers' ability to secure financing, the timing of order and shipments of products, mix of products sold, changes in the prices of components, Occam's ability to maintain production volumes and secure key components, and Occam's ability to develop new products. Please refer to Occam's most recent quarterly report on Form 10-Q Form 10-Q See 10-Q. , annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and other filings Occam makes with the SEC for additional factors that could cause actual results to differ materially from those contained in any forward-looking statements provided today. Use of Non-GAAP Financial Measures To supplement its consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge 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 GAAP, Occam Networks uses non-GAAP measures of 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, which are adjusted from GAAP results, principally to reflect 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. for amortization of deferred compensation. These non-GAAP adjustments are provided to enhance investors' overall understanding of Occam's current financial performance and prospects. These measures are not in accordance 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 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. . Occam believes the presentation of non-GAAP results provides useful information to management and investors by excluding certain expenses that it believes are not indicative of core operating results. These non-GAAP results are one of the primary indicators management uses for planning and forecasting in future periods. In addition, because the company has historically reported non-GAAP results, it believes the inclusion of non-GAAP numbers provides consistency for financial reporting. The presentation of this additional non-GAAP information should not be considered in isolation or as a substitute for the results prepared in accordance with generally accepted accounting principles in the United States. About Occam Networks Inc. Occam Networks Inc. develops and markets innovative Broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). Loop Carrier networking equipment that enables telephone companies to deliver voice, data and video services. Based on Ethernet and Internet Protocol See Internet and TCP/IP. (networking) Internet Protocol - (IP) The network layer for the TCP/IP protocol suite widely used on Ethernet networks, defined in STD 5, RFC 791. IP is a connectionless, best-effort packet switching protocol. (IP) technologies, Occam's equipment allows telecommunications service providers to profitably deliver traditional phone services, as well as advanced Voice over IP, residential and business broadband, and digital television services through a single, all-packet access network. Occam is headquartered in Santa Barbara, Calif. Additional information can be found at www.occamnetworks.com. |
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