Symmetricom Reports Fiscal 4th Quarter and Year-End Results.Business Editors SAN JOSE San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif.--(BUSINESS WIRE)--July 31, 2002 Symmetricom, Inc. (Nasdaq:SYMM SYMM Synchronized Multimedia (W3C Working Group) ), a leading supplier of network synchronization (1) See synchronous and synchronous transmission. (2) Ensuring that two sets of data are always the same. See data synchronization. (3) Keeping time-of-day clocks in two devices set to the same time. See NTP. and timing solutions for the global telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. industry, today reported results for its fourth quarter and fiscal year ended June June: see month. 30, 2002. Fiscal fourth quarter net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight were $17.7 million, compared with $17.1 million in the prior quarter. The net loss from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the quarter was $2.0 million, or $0.09 per share, including net restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). costs of $0.4 million, or $0.02 per share. Excluding the net restructuring cost, the net loss for the fiscal fourth quarter was $1.7 million, or $0.07 per share, compared with a net loss of $1.5 million, or $0.07 per share in the prior quarter. Net sales for fiscal 2002 were $72.6 million, a 52 percent decline from the $152.7 million for the prior year. The net loss from continuing operations for fiscal 2002 was $5.7 million, or $0.25 per share. This compares with net earnings from continuing operations in the same period last year of $28.8 million or $1.15 per share on a fully 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. Both years include one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. items including gains on the sale of investments, write down of investments, charges for restructuring and the release of tax valuation reserves. Excluding these one-time items, the net loss from continuing operations for the year ended June 30, 2002 was $6.0 million, or $0.26 per share. This compares with net earnings from continuing operations excluding one-time items during the same period last year of $18.3 million or $0.73 per share on a fully diluted basis. Fourth Quarter Highlights -- Implemented expense reduction programs, reduced headcount by 28 percent and, as a result are now leaner and more efficient. -- $54.2 million of cash, cash equivalents, and investments are on hand to help facilitate future growth. -- Repurchased $10.9 million of stock under our buyback plan. -- Consolidated three separate manufacturing facilities in Puerto Rico into one facility in order to achieve greater manufacturing efficiencies. -- Implemented a new ERP system. -- Improved our accounts receivable DSO to 48 days compared to 54 days at June 30, 2001. -- Reduced inventories by $6.8 million, a 27 percent reduction from June 30, 2001. -- Launched four broadband products into lab trials and entered into a joint marketing agreement with Alcatel. Fiscal Year 2002 Highlights -- Implemented expense reduction programs, reduced headcount by 28 percent and, as a result are now leaner and more efficient. -- $54.2 million of cash, cash equivalents, and investments are on hand to help facilitate future growth. -- Repurchased $10.9 million of stock under our buyback plan. -- Consolidated three separate manufacturing facilities in Puerto Rico into one facility in order to achieve greater manufacturing efficiencies. -- Implemented a new ERP system. -- Improved our accounts receivable DSO to 48 days compared to 54 days at June 30, 2001. -- Reduced inventories by $6.8 million, a 27 percent reduction from June 30, 2001. -- Launched four broadband products into lab trials and entered into a joint marketing agreement with Alcatel. "We have worked hard during the year to meet the challenges caused by the telecom industry's downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. . We have redoubled re·dou·ble v. re·dou·bled, re·dou·bling, re·dou·bles v.tr. 1. To double. 2. To repeat. 3. Games To double the doubling bid of (an opponent) in bridge. v. efforts to meet customers' technical and service needs, put into place new marketing programs, taken prudent actions to reduce our expenses and acted on significant opportunities to diversify diversify To acquire a variety of assets that do not tend to change in value at the same time. To diversify a securities portfolio is to purchase different types of securities in different companies in unrelated industries. our business and leverage our operations when market growth resumes," said Tom Steipp, chief executive officer. "As a result, we have had relatively consistent performance over the last year, backed by strong asset management and a strong balance sheet." Outlook for Q1 FY03 Symmetricom expects fiscal first quarter FY03 revenues to be within a range of $13 and $18 million. The company expects to record a net loss from operations for the quarter between $0.11 and $0.18 per share. These estimates are exclusive of pending acquisitions. INVESTOR CONFERENCE CALL As previously announced, management will hold a conference call to discuss these results today, July July: see month. 31, 2002 at 1:30 p.m. Pacific Time. Those wishing to join should dial 630/395-0017, passcode "Symmetricom". Please reference the conference leader: Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs Steipp. A live webcast of the conference call will also be available via the company's website at www.symmetricom.com or www.vcall.com. A replay of the call will be available for one week following the submission Submission Elliott, Anne reluctantly gives up her fiancé on her family’s advice. [Br. Lit.: Jane Austen Persuasion in Magill I, 734] of the transcript A generic term for any kind of copy, particularly an official or certified representation of the record of what took place in a court during a trial or other legal proceeding. A transcript of record to the SEC. To access the replay, please dial 800/839-8789. About Symmetricom Symmetricom, Inc. (Nasdaq:SYMM) makes wireline and wireless communication possible for businesses and consumers, improving global network traffic and increasing the value of the copper telephone wire infrastructure. The company's intelligent synchronization products are essential for the transmission of voice, data and video over any network, and the company's 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). products extend the reach and 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 of broadband services See broadband and broadband service provider. from the Internet backbone (communications, networking) Internet backbone - High-speed networks that carry Internet traffic. These communications networks are provided by companies such as AT&T, GTE, IBM, MCI, Netcom, Sprint, UUNET and consist of high-speed links in the T1, T3, OC1 and OC3 ranges. over the "last mile." Symmetricom's customers include the world's largest carriers and service providers. The Company is headquartered in San Jose, Calif., with offices worldwide. For more information visit http://www.symmetricom.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. This press release contains forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. information within the meaning of Section 27A of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , and Section 21E of the Securities Exchange Act of 1934, as amended, and is subject to the safe harbor created by those Sections. These 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. include statements concerning market demand, the expectation that Symmetricom will complete the TrueTime and Datum The singular form of data; for example, one datum. It is rarely used, and data, its plural form, is commonly used for both singular and plural. acquisitions, the impact of the availability of our new products and access to new markets, the introduction of new products and initiatives, the success of new marketing agreements, the expectation that the Datum merger will close in the fourth calendar quarter of 2002, the estimated close of the TrueTime merger in the third calendar quarter of 2002, expectations of operating synergies as a result of the acquisitions, and estimates for Q1 of fiscal year 2003 revenues and net loss. Symmetricom's actual results could differ materially from those projected or suggested in these forward-looking statements. Factors that could cause future actual results to differ materially from the results projected in or suggested by such forward-looking statements include: the risk that the TrueTime or Datum acquisition might not be completed, the expected operating synergies from the acquisitions are not realized, reduced rates of demand for wireless and wireline 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. products and high-bandwidth applications, increased competition, timing of orders, cancellation cancellation (See: cancel) CANCELLATION. Its general acceptation, is the act of crossing a writing; it is used sometimes to signify the manual operation of tearing or destroying the instrument itself. Hyde v. Hyde, 1 Eq. Cas. Abr. 409; Rob. or delay of customer orders, failure of new products to pass interoperability The capability of two or more hardware devices or two or more software routines to work harmoniously together. For example, in an Ethernet network, display adapters, hubs, switches and routers from different vendors must conform to the Ethernet standard and interoperate with each other. testing and field trials, difficulties in manufacturing products to specification, customer acceptance of new products, customer delays in qualification and field trials of key new products, and the risk factors listed from time to time in Symmetricom's reports filed with the Securities and Exchange Commission, including but not limited to, the 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. for the year ended June 30, 2001 and the report on Form 10-Q Form 10-Q See 10-Q. for the quarter ended March 31, 2002. Note: Financial schedules attached
SYMMETRICOM, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(unaudited)
Three months ended Twelve months ended
June 30, June 30,
2002 2001 2002 2001
---- ---- ---- ----
Net sales $17,691 $ 39,240 $ 72,643 $152,668
Cost of sales 11,324 21,026 45,076 85,003
Non-recurring charges 287 -- 452 --
-------- --------- --------- ---------
Gross profit 6,080 18,214 27,115 67,665
Operating expenses:
Research and
development 2,839 2,936 11,316 12,908
Selling, general
and administrative 6,233 8,925 24,776 31,050
Amortization of goodwill
and intangibles 410 490 1,583 1,960
Non-recurring charges
(gains) 337 62 581 (37)
-------- --------- --------- ---------
Operating income (loss) (3,739) 5,801 (11,141) 21,784
Gain on investments -- -- 1,487 11,325
Interest income 278 599 1,342 2,432
Interest expense (172) (163) (661) (664)
-------- --------- --------- ---------
Earnings (loss) before
income taxes (3,633) 6,237 (8,973) 34,877
Income tax expense
(benefit) (1,606) 1,199 (3,278) 6,053
-------- --------- --------- ---------
Net earnings (loss)
from continuing
operations (2,027) 5,038 (5,695) 28,824
Gain from discontinued
operations, net of tax -- 506 410 506
-------- --------- --------- ---------
Net earnings (loss) $(2,027) $ 5,544 $ (5,285) $ 29,330
======== ========= ========= =========
Earnings per share- basic:
Earnings (loss) from
continuing operations $ (0.09) $ .21 $ (0.25) $ 1.23
Earnings from discontinued
operations -- .02 .02 .02
-------- --------- --------- ---------
Net earnings (loss) $ (0.09) $ .23 $ (0.23) $ 1.25
-------- --------- --------- ---------
Weighted average shares
outstanding-basic 22,193 23,684 22,572 23,474
======== ========= ========= =========
Earnings per share- diluted:
Earnings (loss) from
continuing operations $ (0.09) $ .20 $ (0.25) $ 1.15
Earnings from
discontinued
operations -- .02 .02 .02
-------- --------- --------- ---------
Net earnings (loss) $ (0.09) $ .22 $ (0.23) $ 1.17
-------- --------- --------- ---------
Weighted average shares
outstanding - diluted 22,193 25,019 22,572 25,005
======== ========= ========= =========
SYMMETRICOM, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
June 30, June 30,
2002 2001
------- -------
ASSETS
Current assets:
Cash and cash equivalents $ 52,521 $ 44,989
Short-term investments 1,640 15,683
Accounts receivable, net 9,399 23,425
Inventories, net 18,397 25,242
Prepaids and other current assets 5,981 5,562
---------- ----------
Total current assets 87,938 114,901
Property, plant and equipment, net 21,877 23,379
Goodwill, net 3,704 3,704
Other intangible assets, net 7,419 8,088
Deferred tax assets 8,872 4,831
Notes receivable and other 500 500
---------- ----------
$ 130,310 $ 155,403
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 5,051 $ 5,328
Accrued compensation 4,157 7,526
Other accrued liabilities 9,260 14,229
Current maturities of long-term
obligations 610 494
---------- ----------
Total current liabilities 19,078 27,577
Long-term obligations 6,574 7,184
Deferred income taxes 469 525
---------- ----------
Total liabilities 26,121 35,286
---------- ----------
Stockholders' equity:
Preferred stock -- --
Common stock 29,441 30,747
Stockholder note receivable (555) (555)
Accumulated other comprehensive income (118) 1,490
Retained earnings 75,421 88,435
---------- ----------
Total stockholders' equity 104,189 120,117
---------- ----------
$ 130,310 $ 155,403
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