Occam Networks Announces Record Revenues for Q3 2005; Company Posts Fifth Consecutive Quarter of Record Revenues; Continues to Add Customers at the Rate of over a Dozen Per Quarter.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(R) 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 announced results for the third quarter of 2005, which ended Sept. 30, 2005. The company reported revenue for the quarter of $10.7 million, an increase of more than 20 percent over the $8.7 million reported for the second quarter of 2005, and a more than 140 percent increase over the $4.4 million reported for the third quarter of 2004. Occam also continued its trend of adding more than a dozen new customers in the quarter. "We are pleased to have achieved a new revenue record for the quarter, and to have continued our trend of significant quarter-over-quarter revenue and customer growth," 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. "We believe our business for Q4 is on track to deliver additional revenue increases and continued growth in our customer base." Occam's third quarter gross margins showed improvement over second quarter margins as a result of higher revenue and lower contract manufacturing costs. The company believes that increased revenue and lower manufacturing costs should result in further margin improvement in the fourth quarter and reconfirms its long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. gross margin target of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 40 percent. "We continue to focus on growing revenue and improving gross margins while controlling operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. ," said Howard-Anderson. The company reconfirmed its forecast that it will report operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. on a pro-forma, non-GAAP basis close to break even in the fourth quarter (excluding 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 the amortization of stock option expense). Occam expects that it may continue to report operating losses 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. on a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis in the fourth quarter (including non-cash charges for the amortization of stock option expense). OCCAM CONFERENCE CALL SCHEDULED TO REPORT Q3 2005 FINANCIAL RESULTS Starting at 1:30 p.m. PST PST Paroxysmal supraventricular tachycardia, see there on Tuesday Tuesday: see week. , Nov. 8, 2005, Occam Networks will conduct a conference call to report the results for Q3 2005. The call, which will be open to the public, can be accessed by dialing 800-351-6801 (for U.S. callers). The pass-code required for participation is 870042, and the call leader is Howard Howard, English noble family. Landowners in Norfolk from the 13th cent., the Howards obtained the duchy of Norfolk through the marriage of Sir Robert Howard to Margaret Mowbray, daughter of Thomas Mowbray, 1st duke of Norfolk. Bailey Bailey may refer to:
In the United Kingdom:
Callers will be put on "music hold" until Bob Howard-Anderson, president and CEO and Howard Bailey, CFO See Chief Financial Officer. of Occam Networks, join the call. The first portion of the call will include a presentation of financial information for Q3 2005. Bailey will then open the call to listeners for a question-and-answer period. For those unable to listen at the designated time, a recording of the call will be made available on the Occam Networks Web site (www.occamnetworks.com) for 72 hours after the call is completed.
OCCAM NETWORKS INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
(Unaudited)
Sept. 30, Dec. 31,
2005 2004
--------- ---------
ASSETS
Current assets:
Cash and cash equivalents $7,431 $4,432
Restricted cash 3,009 2,101
Accounts receivable, net 7,002 5,217
Inventories 2,874 6,611
Prepaid and other current assets 918 794
--------- ---------
Total current assets 21,234 19,155
Property and equipment, net 1,865 1,692
Other assets 205 213
--------- ---------
Total assets $23,304 $21,060
========= =========
LIABILITIES, REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable $3,213 $6,277
Accrued expenses 3,223 3,330
Current portion of long-term debt and
capital lease obligations 1,234 863
--------- ---------
Total current liabilities 7,670 10,470
Long-term debt and capital lease obligations 1,604 2,987
--------- ---------
Total liabilities 9,274 13,457
Redeemable preferred stock
Series A-2 convertible preferred stock,
$.001 par value, authorized 4,300 shares,
3,560 and 2,224 issued and outstanding at
Sept. 30, 2005 and at Dec. 31, 2004,
respectively, liquidation preference of
$106,800 and $66,723 at Sept. 30, 2005
and Dec. 31, 2004, respectively 34,869 20,993
Series A-2 convertible preferred stock
warrant 73 503
Stockholders' deficit:
Common stock, $0.001 par value, 750,000
shares authorized; 271,852 and 268,570
shares issued and outstanding at
Sept. 30, 2005 and Dec. 31, 2004,
respectively 272 269
Additional paid-in capital 87,656 87,294
Warrants 559 559
Deferred stock compensation (136) (633)
Accumulated deficit (109,263) (101,382)
--------- ---------
Total stockholders' deficit (20,912) (13,893)
--------- ---------
Total liabilities, redeemable preferred
stock and stockholders' deficit $23,304 $21,060
-------- --------
OCCAM NETWORKS INC.
NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands)
(Unaudited)
Three months ended
------------------------------------
Sept. 30, June 30, Sept. 30,
2005 2005 2004
------------------------------------
Sales $10,663 $8,740 $4,424
Cost of sales 7,709 6,771 3,686
-------- -------- ---------
Gross profit (loss) 2,954 1,969 738
Operating expenses:
Research and product
development 1,811 1,597 1,750
Sales and marketing 2,543 1,991 1,450
General and administrative 1,363 698 545
-------- -------- ---------
Total operating expenses 5,717 4,286 3,745
Loss from operations (2,763) (2,317) (3,007)
Interest expense, net (46) (56) (15)
-------- -------- ---------
Non-GAAP Loss before income
taxes (2,809) (2,373) (3,022)
Provision for income tax -- -- --
-------- -------- ---------
Non-GAAP net loss $(2,809) $(2,373) $(3,022)
Reconciliation of non-GAAP net
loss to GAAP net loss
attributable to common
stockholders:
Non-GAAP net loss $(2,809) $(2,373) $(3,022)
Non-GAAP exclusions:
Deferred stock-based compensation 158 162 188
Beneficial conversion feature on
series A-2 preferred stock and
warrants -- 35 131
-------- -------- ---------
GAAP net loss attributable to
common stockholders $(2,967) $(2,570) $(3,341)
-------- -------- ---------
OCCAM NETWORKS INC.
GAAP CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands)
(Unaudited)
Three months ended
------------------------------------
Sept. 30, June 30, Sept. 30,
2005 2005 2004
------------------------------------
Sales $10,663 $8,740 $4,424
Cost of sales 7,709 6,771 3,686
-------- -------- --------
Gross profit (loss) 2,954 1,969 738
Operating expenses (1):
Research and product
development 1,948 1,736 1,910
Sales and marketing 2,562 2,012 1,475
General and administrative 1,365 700 548
-------- -------- --------
Total operating expenses 5,875 4,448 3,933
Loss from operations (2,921) (2,479) (3,195)
Interest expense, net (46) (56) (15)
-------- -------- --------
Loss before income taxes (2,967) (2,535) (3,210)
Provision for income tax -- -- --
-------- -------- --------
Net loss (2,967) (2,535) (3,210)
Beneficial conversion feature -- (35) (131)
-------- -------- --------
Net loss attributable to common
stockholders $(2,967) $(2,570) $(3,341)
======== ======== ========
(1) Amortization of stock-based
compensation included in:
Research and product
development $137 $139 $160
Sales and marketing 19 21 25
General and administrative 2 2 3
-------- -------- --------
Total amortization of stock-
based compensation $158 $162 $188
-------- -------- ---------
Non-GAAP Disclosure Certain non-GAAP financial measures are included in this press release. Our GAAP results have been adjusted to exclude stock-based compensation charges associated with the issuance of stock options prior to the company's merger in May 2002. These non-GAAP financial measures are provided to enhance the user's overall understanding of our financial performance and our prospects for the future. Specifically, we believe non-GAAP measures can provide useful information to both management and investors by excluding certain 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) that are not indicative indicative: see mood. of our core operating results. Further, these non-GAAP financial measures are one of the primary indicators management uses for planning and forecasting future periods. In addition, since we have historically reported non-GAAP measures to the investment community, we believe the inclusion of non-GAAP measures provides consistency Consistency can refer to:
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 . A reconciliation of GAAP to non-GAAP net loss is included above. 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. Portions of this press release contain forward-looking statements regarding future events, Occam's future financial performance, and the performance of Occam's products. In particular, the press release contains forward-looking statements about trends in our revenue and operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: and statements concerning projected customer growth and anticipated reductions in manufacturing cost. These statements involve numerous risks and uncertainties, which could cause actual results or events to differ materially from any future results or events suggested in these forward-looking statements. These risks include, among others, the risk that our revenues will not increase as anticipated if our 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 product does not achieve market acceptance. In addition, we anticipate that our manufacturing costs will decline as we transition to a new contract manufacturer. Because we have not used this contract manufacturer in the past, we cannot be certain that it will be able to adequately meet all of our manufacturing needs, including our requirements related to product quality, timeliness of delivery, and order volume. Any failure of our new contract manufacturer to perform to our current expectations would have an adverse effect on our future revenues, results of operations, and operating margins. To the extent that we experience any product performance problems, as a result of manufacturing problems or otherwise, it would have an adverse effect on our business, margins, and operating results. 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. 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 enable 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. Occam and Occam BLC 6000 are either registered trademarks or trademarks of Occam Networks Inc. 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/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. other countries. All other trademarks mentioned are the property of their respective owners. |
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