SAN JOSE, Calif., Feb. 1 /PRNewswire-FirstCall/ -- Micrel, Incorporated , an industry leader in analog, high bandwidth communications and Ethernet IC solutions, today announced financial results for the fourth quarter and year ended December 31, 2006.
Revenues for the fourth quarter were $64.5 million, a decrease of 12% from third quarter revenues of $73.5 million and 1% lower than revenues of $65.1 million recorded in the year-ago period. Fourth quarter net income was $8.5 million, or $0.11 per diluted share compared with net income of $11.8 million, or $0.15 per diluted share in the third quarter and net income of $9.9 million, or $0.11 per diluted share in the year ago period. Non-GAAP net income was $10.2 million, or $0.13 per diluted share, compared with $12.3 million, or $0.15 per diluted share in the third quarter, and $9.9 million, or $0.11 per share in the fourth quarter of 2005. Non-GAAP results exclude the impact of revenue and cost of revenues related to intellectual property settlements, equity-based compensation, other unusual operating income and expense items, restructuring charges and related tax effects. A reconciliation of the adjustments made to GAAP net income, to compute non-GAAP net income, is contained in the financial tables of this press release.
For the year ended December 31, 2006, revenues were $276.3 million, a 10.4% increase from $250.4 million in 2005. Net income was $38.0 million, or $0.46 per diluted share, compared with net income of $25.4 million, or $0.29 per share in 2005. 2006 Non-GAAP net income was $45.3 million, a 42% increase from 2005 non-GAAP net income of $31.9 million. 2006 non-GAAP income per diluted share increased 53% to $0.55 from $0.36 per diluted share in 2005. Micrel's 2006 gross margin of 57.9% was the highest in the Company's history. 2006 GAAP operating income increased to $57.5 million, or 20.8% of revenues, compared with 2005 GAAP operating income of $33.1 million, or 13.2% of revenues. Non-GAAP operating income in 2006 increased more than 50% on a year-over-year basis to $65.3 million with non-GAAP operating margins improving to 23.9%, up from 17.2% in 2005. During 2006, the Company repurchased 6.7 million shares of common stock totaling $71.5 million.
"2006 was an excellent year for Micrel," stated Ray Zinn, president and CEO of Micrel. "On an annual basis, revenues, net income and earnings per share were each at the second highest level in the history of the Company. Gross margin increased for the fourth consecutive year and reached an all-time high, exceeding previous peak levels recorded in the year 2000 when revenues were 25% higher than 2006. In addition, operating income and net income increased significantly, and continued to grow much faster than our revenue growth rate, reflecting the operating leverage in our business model. The Company's cash flows also remained strong, with operating cash flows of $59 million in 2006."
"In the fourth quarter, our customers continued to carefully control their inventory levels and align their purchases with forecasted end demand for their products. With the market perception that semiconductor components are readily available, the electronics supply chain is relying on semiconductor suppliers to hold enough inventory to respond to short order lead times. This has led to an inventory correction that Micrel and the rest of the semiconductor industry is currently working through."
Fourth quarter bookings were slightly below third quarter levels primarily due to depressed order rates in December as customers attempted to minimize year-end inventory. This resulted in a book-to-bill ratio below one for the fourth quarter. As a result, the Company has less visibility than at the same time last quarter, making it difficult to accurately predict first quarter revenues. Order lead times for the Company's products remain fairly stable at four to six weeks, but a relatively high proportion of quarterly revenue must still be booked and shipped within the quarter to OEM customers, or resold through the Company's distributors. Although bookings in January have increased from December levels, quarter-to-date new order rates and distributor resales have not been sufficient to ensure revenue growth in the first quarter. Based upon current backlog levels and demand estimates, the Company projects first quarter 2007 revenues will decrease sequentially by 1% to 5%, and GAAP earnings per diluted share will be in a range of $0.08 to $0.09.
Zinn concluded, "While we are getting off to a relatively slow start in 2007, we believe that the inventory correction that we have been experiencing is bottoming. Order momentum has picked up over the last couple of weeks and is expected to improve over the balance of the quarter. The world economy appears to be healthy and customer forecasts are encouraging."
The Company will host a conference call at 5:00 p.m. Eastern time (2:00 p.m. Pacific time) on February 1, 2007. Chief Executive Officer Raymond Zinn and Chief Financial Officer Richard Crowley will present an overview of fourth quarter and fiscal year 2006 financial results, discuss current business conditions and then respond to questions.
The call is available, live, to any interested party on a listen only basis by dialing (800) 240-2134. For international callers, please dial (303) 262-2211. Interested callers should dial in at least five minutes before the scheduled start time and ask to be connected to the Micrel, Incorporated Conference Call. A live webcast will also be available through http://www.vcall.com/. An audio replay of the conference call will be available through February 8, 2007, by dialing (303) 590-3000 or (800) 405-2236 and entering access code number 11081417. The webcast replay will also be available on the Company's website at: http://www.micrel.com/.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This press release includes statements that qualify as forward-looking statements under the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements about the following topics: our expectations regarding future financial results, including revenues, earnings, order lead times, customer demand, customer and supply chain inventory levels and the nature of macro-economic and industry trends. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially. Those risks and uncertainties include, but are not limited to, such factors as: softness in demand for our products; customer decisions to cancel, reschedule, or delay orders for our products; the effect that lead times and channel inventories have on the demand for our products; economic or financial difficulties experienced by our customers; the effect of business conditions in the computer, telecommunications and industrial markets; the impact of any previous or future acquisitions; changes in demand for networking or high bandwidth communications products; the impact of competitive products and pricing and alternative technological advances; the accuracy of estimates used to prepare the Company's financial statements; the global economic situation; the ability of the Company's vendors and subcontractors to supply or manufacture the Company's products in a timely manner; the timely and successful development and market acceptance of new products and upgrades to existing products; softness in the economy and the U.S. stock markets as a whole; fluctuations in the market price of Micrel's common stock and other market conditions; the difficulty of predicting our future cash needs; the nature of other investment opportunities available to the Company from time to time; and Micrel's operating cash flow. For further discussion of these risks and uncertainties, we refer you to the documents the Company files with the SEC from time to time, including the Company's Annual Report on Form 10-K for the year ended December 31, 2005, and quarterly report on Form 10-Q for the quarter ended September 30, 2006. All forward-looking statements are made as of today, and the Company disclaims any duty to update such statements.
The Company's management uses non-GAAP measures to evaluate the performance of our business, to estimate future performance and to compensate employees. Since management finds this measure to be useful, we believe that our investors benefit from seeing our results "through the eyes" of management in addition to seeing our GAAP results. For comparison purposes, the Company makes reference to certain revenues, gross margin, operating margin, net income and earnings per share that have been computed on a non-GAAP basis. These non-GAAP results were reached by excluding revenue and cost of revenues related to intellectual property settlements, equity-based compensation expense, unusual other operating income or expense items, restructuring charges and their related tax-effects. We reference those results to allow a better comparison of results in the current period to those in prior periods and to provide meaningful insight to the Company's on-going operating performance. We have reconciled such non-GAAP results to the most directly comparable GAAP financial measures.
Our reference to these non-GAAP results should be considered in addition to results that are prepared under current accounting standards but should not be considered a substitute for results that are presented as consistent with GAAP. It should also be noted that our non-GAAP information may be different from the non-GAAP information provided by other companies.
Micrel Inc., is a leading global manufacturer of IC solutions for the worldwide analog, Ethernet and high bandwidth markets. The Company's products include advanced mixed-signal, analog and power semiconductors; high performance communication, clock management, Ethernet switch and physical layer transceiver ICs. Company customers include leading manufacturers of enterprise, consumer, industrial, mobile, telecommunications, automotive, and computer products. Corporation headquarters and state-of-the-art wafer fabrication facilities are located in San Jose, CA, with regional sales and support offices and advanced technology design centers situated throughout the Americas, Europe and Asia. In addition, the Company maintains an extensive network of distributors and sales representatives worldwide.
For further information, contact Richard Crowley at: Micrel, Incorporated, 2180 Fortune Drive, San Jose, California, 95131, (408) 944-0800; or visit our website at: http://www.micrel.com/.
MICREL, INCORPORATED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited) Three Months Ended Years Ended December September December December 31, 31, 2006 30, 2006 31, 2005 2006 2005 Net revenues $64,482 $73,482 $65,147 $276,307 $250,356 Cost of revenues(1) 27,598 30,449 27,675 116,244 116,564 Gross profit 36,884 43,033 37,472 160,063 133,792 Operating expenses: Research and development(1) 12,938 13,071 11,085 52,199 45,231 Selling, general and administrative(1) 11,568 11,867 14,215 49,099 46,159 Other operating expense (income) 53 (22) 0 966 9,282 Restructuring expense 168 35 -- 269 -- Total operating expenses 24,727 24,951 25,300 102,533 100,672 Income from operations 12,157 18,082 12,172 57,530 33,120 Other income, net 1,289 1,549 1,271 5,404 4,180 Income before income taxes 13,446 19,631 13,443 62,934 37,300 Provision for income taxes 4,919 7,828 3,592 24,912 11,942 Net income $8,527 $11,803 $9,851 $38,022 $25,358 Net income per share: Basic $0.11 $0.15 $0.12 $0.47 $0.29 Diluted $0.11 $0.15 $0.11 $0.46 $0.29 Shares used in computing per share amounts: Basic 78,372 80,671 85,619 81,550 87,055 Diluted 79,477 81,324 86,641 82,843 87,971 Non-GAAP income per share:(2) Basic $0.13 $0.15 $0.12 $0.56 $0.37 Diluted $0.13 $0.15 $0.11 $0.55 $0.36 Non-GAAP shares used in computing Non-GAAP income per share: Basic 78,372 80,671 85,619 81,550 87,055 Diluted 79,235 81,104 86,641 82,675 87,971 (1) Includes amortization of stock-based compensation as follows: Cost of revenues $395 $485 $32 $1,582 $159 Research and development 622 733 26 3,466 161 Selling, general and administrative 674 792 69 3,617 450 (2) Non-GAAP results were reached by excluding revenues and cost of revenues related to intellectual property settlements, equity-based compensation expense, unusual other operating income or expense items, restructuring charges and their related tax-effects. Non-GAAP results are presented to supplement our GAAP consolidated financial statements to allow a better comparison of results in the current period to those in prior periods and to provide meaningful insight to the Company's on-going operating performance. MICREL, INCORPORATED SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS (In thousands, except per share amounts) (Unaudited) Three Months Ended Years Ended December 31, September 30, December 31, December 31, 2006 2006 2005 2006 2005 GAAP gross profit $36,884 $43,033 $37,472 $160,063 $133,792 Adjustment for patent settlement income included in net revenues -- (2,890) -- (2,890) -- Adjustment for patent settlement costs included in cost of revenues -- 714 -- 714 -- Adjustment for stock- based compensation included in cost of revenues 395 485 32 1,582 159 Total adjustments to GAAP gross profit 395 (1,691) 32 (594) 159 Non-GAAP gross profit $37,279 $41,342 $37,504 $159,469 $133,951 GAAP income from operations $12,157 $18,082 $12,172 $57,530 $33,120 Adjustments to GAAP gross profit $395 $(1,691) $32 $(594) $159 Adjustment for stock- based compensation included in research and development 622 733 26 3,466 161 Adjustment for stock- based compensation Selling, general and administrative 674 792 69 3,617 450 Adjustment for other expense (income) 53 (22) -- 966 9,282 Adjustment for restructuring expense 168 35 -- 269 -- Total adjustments to GAAP income 1,912 (153) 127 7,724 10,052 Non-GAAP Income from operations $14,069 $17,929 $12,299 $65,254 $43,172 GAAP Net income $8,527 $11,803 $9,851 $38,022 $25,358 Total adjustments to GAAP income 1,912 (153) 127 7,724 10,052 Tax effect of adjustments to GAAP income (270) 649 (34) (428) (3,509) Non-GAAP income(2) $10,169 $12,299 $9,944 $45,318 $31,901 Non-GAAP income per share:(2) Basic $0.13 $0.15 $0.12 $0.56 $0.37 Diluted $0.13 $0.15 $0.11 $0.55 $0.36 Non-GAAP shares used in computing non-GAAP income per share: Basic 78,372 80,671 85,619 81,550 87,055 Diluted (1) 79,235 81,104 86,641 82,675 87,971 (1) Shares for the three and twelve months ended December 31, 2006 and shares for the three months ended September 30, 2006 have been adjusted to conform diluted outstanding shares calculated under FAS123R to diluted shares calculated under prior accounting standards (2) Non-GAAP results were reached by excluding revenues and cost of revenues related to intellectual property settlements, equity-based compensation expense, unusual other operating income or expense items, restructuring charges and their related tax-effects. Non-GAAP results are presented to supplement our GAAP consolidated financial statements to allow a better comparison of results in the current period to those in prior periods and to provide meaningful insight to the Company's on-going operating performance. MICREL, INCORPORATED SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP INCOME PER SHARE (Unaudited) Three Months Ended Years Ended December 31, September 30, December 31, December 31, 2006 2006 2005 2006 2005 Non-GAAP shares used in computing non-GAAP income per share (in thousands): Basic 78,372 80,671 85,619 81,550 87,055 Diluted (1) 79,235 81,104 86,641 82,675 87,971 BASIC: GAAP Net income per share $0.11 $0.15 $0.12 $0.47 $0.29 Adjustments to reconcile net income to Non-GAAP income per share: Adjustment for patent settlement income included in net revenues -- (0.04) -- (0.04) -- Adjustment for patent settlement costs included in cost of revenues -- 0.01 -- 0.01 -- Stock-based compensation effects included in: Cost of revenues -- -- -- 0.02 -- Research and development 0.01 0.01 -- 0.04 -- Selling, general and administrative 0.01 0.01 -- 0.05 0.01 Total stock-based compensation 0.02 0.02 -- 0.11 0.01 Adjustment for other expense (income) -- -- -- 0.01 0.11 Adjustment for restructuring expense -- -- -- -- -- Provision for income taxes -- 0.01 -- -- (0.04) Non-GAAP income per share(2) $0.13 $0.15 $0.12 $0.56 $0.37 DILUTED: Net income per share $0.11 $0.15 $0.11 $0.46 $0.29 Adjustments to reconcile net income to Non-GAAP income per share: Adjustment for patent settlement income included in net revenues -- (0.04) -- (0.04) -- Adjustment for patent settlement costs included in cost of sales -- 0.01 -- 0.01 -- Stock-based compensation effects included in: Cost of revenues -- -- -- 0.02 -- Research and development 0.01 0.01 -- 0.04 -- Selling, general and administrative 0.01 0.01 -- 0.05 0.01 Total stock-based compensation 0.02 0.02 -- 0.11 0.01 Adjustment for other expense (income) -- -- -- 0.01 0.10 Adjustment for restructuring expense -- -- -- -- -- Provision for income taxes -- 0.01 -- -- (0.04) Non-GAAP income per share(2) $0.13 $0.15 $0.11 $0.55 $0.36 (1) Shares for the three and twelve months ended December 31, 2006 and shares for the three months ended September 30, 2006 have been adjusted to conform diluted outstanding shares calculated under FAS123R to diluted shares calculated under prior accounting standards (2) Non-GAAP results were reached by excluding revenues and cost of revenues related to intellectual property settlements, equity-based compensation expense, unusual other operating income or expense items, restructuring charges and their related tax-effects. Non-GAAP results are presented to supplement our GAAP consolidated financial statements to allow a better comparison of results in the current period to those in prior periods and to provide meaningful insight to the Company's on-going operating performance. MICREL, INCORPORATED CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) December 31, December 31, 2006 2005 ASSETS CURRENT ASSETS: Cash, cash equivalents, restricted cash and short-term investments $109,938 $136,563 Accounts receivable, net 31,092 35,524 Inventories 37,189 30,419 Deferred income taxes 23,096 22,134 Other current assets 3,084 1,919 Total current assets 204,399 226,559 PROPERTY, PLANT AND EQUIPMENT, NET 78,665 77,554 INTANGIBLE ASSETS, NET 4,714 4,752 DEFERRED INCOME TAXES 11,122 10,264 OTHER ASSETS 1,343 411 TOTAL $300,243 $319,540 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $17,429 $20,552 Taxes payable -- 4,939 Deferred income on shipments to distributors 21,705 14,069 Other current liabilities 22,564 21,672 Current portion of long-term debt 80 147 Total current liabilities 61,778 61,379 LONG-TERM DEBT -- -- OTHER LONG-TERM OBLIGATIONS 453 475 SHAREHOLDERS' EQUITY: Common stock 15,841 73,848 Deferred stock compensation -- (294) Accumulated other comprehensive loss (35) (52) Retained earnings 222,206 184,184 TOTAL SHAREHOLDERS' EQUITY 238,012 257,686 TOTAL $300,243 $319,540Micrel, Incorporated
CONTACT: Richard Crowley of Micrel, Incorporated, +1-408-944-0800
Web site: http://www.vcall.com/
Web site: http://www.micrel.com/
SAN JOSE, Calif., Feb. 1 /PRNewswire-FirstCall/ -- Nextest Systems Corporation , a leading manufacturer of automatic test equipment (ATE) for cost-sensitive semiconductors, announced that it will establish its new corporate headquarters at 5345 Hellyer Avenue in San Jose, California. The new 128,000 square foot facility, located in the city's Edenvale district, offers more than twice the capacity of the current facility. Plans for the new building include a state-of-the-art manufacturing floor, increased facilities for research and development, as well as expanded training and customer conference rooms to facilitate meetings with customers and business partners. The new facility is currently targeted to be ready for occupation in September 2007.
"We are very pleased that Nextest has chosen to keep San Jose as the location for its corporate headquarters," stated Chuck Reed, Mayor of San Jose. "This move for Nextest makes sense for many reasons. Nextest is a fast-growing company with innovative technology that is essential to the fast-paced consumer semiconductor market. San Jose is a perfect fit because it offers a diverse community with an outstanding pool of engineering talent and a solid economy. We appreciate Nextest's commitment to this city and look forward to a strong and successful partnership for many years to come."
"This new facility enables us to accommodate expansion in critical areas such as manufacturing, R&D and customer support," commented Robin Adler, Chief Executive Officer of Nextest. "Our intention is to provide a work environment conducive to employee productivity, efficiency, and innovation as we continue to provide customers with new products and technologies that help make them successful. We believe San Jose is the perfect location for our new facility."
Nextest Systems Corporation is a low-cost leader in the design and manufacture of automatic test equipment (ATE) for Flash memory and System-On-Chip semiconductors. Nextest's products address the growing demand from manufacturers for ATE with increased throughput, functionality and reliability, while reducing time to market and cost of test. Nextest has shipped over 1,700 systems to more than 60 semiconductor companies worldwide. Further information is available at http://www.nextest.com/.
Nextest Agency Contact: GEM Design & Public Relations Connie Graybeal-Berar 408-529-4694Nextest Systems Corporation
CONTACT: Connie Graybeal-Berar of GEM Design & Public Relations,
+1-408-529-4694, or firstname.lastname@example.org, for Nextest Systems Corporation
Web site: http://www.nextest.com/
REDWOOD SHORES, Calif., Feb. 1 /PRNewswire-FirstCall/ -- Oracle Corporation today announced that Oracle President and CFO, Safra Catz, will present at the Credit Suisse Disruptive Technology Conference on Thursday, February 8, 2007, at 4:00 p.m. (PST), 7 p.m. (EST).
(Logo: http://www.newscom.com/cgi-bin/prnh/20020718/ORCLLOGO )
A live webcast of Ms. Catz's presentation will be available on Oracle's Investor Relations website at http://www.oracle.com/investor and will be archived for replay through 1:00 p.m. (PST) on Wednesday, February, 14, 2007.
Oracle Corporation is the world's largest enterprise software company. For more information about Oracle, please call Investor Relations at (650) 506-4073.Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20020718/ORCLLOGO
CONTACT: Krista Bessinger of Oracle Investor Relations, +1-650-506-4073,
or email@example.com, or Bob Wynne of Oracle Corporate Communications,
+1-650-506-5834, or firstname.lastname@example.org
Web site: http://www.oracle.com/
ST. LOUIS, Feb. 1 /PRNewswire-FirstCall/ -- Sigma-Aldrich , a leading $1.7 billion Life Science and High Technology Company, has enhanced its Bioactive Nutrient Explorer. This Internet-based tool has been specifically designed to help nutrition and animal scientists, medical researchers, biologists, and analytical chemists studying dietary plants and supplements locate the chemicals and kits they need to support their work.
The improved Bioactive Nutrient Explorer (http://sigma-aldrich.com/nutrition) now includes a searchable database of over 500 plants shown in the scientific literature to have physiological activities in key areas of research, such as cancer, diabetes, metabolism, and other disease or normal states.
The enhanced Bioactive Nutrient Explorer is designed to allow searches for compounds having a similar chemical structure of interest, e.g., flavonoids, or for plants containing a specific compound. Constructed using Adobe(R) Macromedia(R) Flash(R) software, the Bioactive Nutrient Explorer contains ~5,000 products representing ~1,400 chemicals, identifies the compounds found in a specific plant, and arranges them by chemical family and class.
To make the information matrix more robust, Dr. Libby Yunger of Sigma-Aldrich, developer of the Bioactive Nutrient Explorer, reviewed multiple scientific sources for documented physiological actions of herbs that were associated with disease intervention or prevention. "The Bioactive Nutrient Explorer is a unique and valuable resource for scientists investigating nutrition or plant biochemistry, either as their key focus or as an adjunct to their primary research area," said Vicki Caligur, Product Manager, Specialty Biochemistry.
With this enhancement, the Bioactive Nutrient Explorer now links information about areas of research that impact human health, plants that have demonstrated efficacy in those areas, and a chemical description of these plants. The direct interface with Sigma-Aldrich's online ordering system allows Sigma-Aldrich to be both a scientific partner and a leading supplier to these scientists with innovative products for plant biotechnology, support for food analysis, and extensive offering of research biochemicals.
About Sigma-Aldrich: Sigma-Aldrich is a leading Life Science and High Technology company. Its biochemical and organic chemical products and kits are used in scientific and genomic research, biotechnology, pharmaceutical development, the diagnosis of disease and as key components in pharmaceutical and other high technology manufacturing. The Company has customers in life science companies, university and government institutions, hospitals, and in industry. Over one million scientists and technologists use its products. Sigma-Aldrich operates in 35 countries and has 7,300 employees providing excellent service worldwide. Sigma-Aldrich is committed to Accelerating Customer Success through Leadership in Life Science, High Technology and Service. For more information about Sigma-Aldrich, please visit its award- winning Web site at sigma-aldrich.com.
Cautionary Statement: This release contains forward-looking statements relating to future performance, goals, strategic actions and initiatives and similar intentions and beliefs and other statements regarding the Company's expectations, goals, beliefs, intentions and the like, which involve assumptions regarding the Company's operations and conditions in the markets the Company serves. The Company does not undertake any obligation to update these forward-looking statements.Photo: http://www.newscom.com/cgi-bin/prnh/20050215/CGSIGMAALLOGO
CONTACT: Sean Battles of Sigma-Aldrich, +1-314-286-7616
Web site: http://www.sigma-aldrich.com/
SAN JOSE, Calif., Feb. 1 /PRNewswire-FirstCall/ -- Atmel(R) Corporation , a global leader in the development and fabrication of advanced semiconductor solutions, today announced unaudited selected financial results for the fourth quarter and year ended December 31, 2006. All revenues exclude those provided by the Company's Grenoble subsidiary which was sold in July, 2006.
Revenues, excluding Grenoble, for the fourth quarter of 2006 totaled $408.9 million, a sequential decrease of 5% compared to the $429.4 million reported in the third quarter of 2006, and a 4% increase compared to the $394.3 million reported in the fourth quarter of 2005.
Revenues, excluding Grenoble, for the year totaled $1.67 billion, representing a 7% increase over the $1.56 billion reported in 2005. The Company's cash, cash equivalents and short-term investments totaled $466.7 million at December 31, 2006.
Fourth Quarter 2006 and Recent Highlights -- Strategic restructuring initiatives announced to accelerate profitable growth and reduce costs -- A focus on the Company's high-growth, high-margin proprietary product lines -- Optimization of the Company's manufacturing operations; wafer fabrication facilities in North Tyneside, U.K. and Heilbronn, Germany placed for sale; fab-lite strategy adopted -- Redeployment of resources to accelerate development of leading-edge products -- Three new Vice Presidents named to bolster executive management team -- Atmel's AT91SAM7SE 32-bit Flash MCU named in EDN's Hot 100 Products of 2006 -- Atmel Launched New Driver-IC Family for Automotive High-temperature Applications -- Atmel's new AT90SC256144RCFT secure MCU targets e-government applications -- Atmel's AT90SC12836RCT secure MCU delivered for the Vitale 2 French National Health Card -- Atmel Unveiled Industry's First Microcontroller-transmitter RF ICs for Use With Simple Capacitive Sensors Serving Automotive TPMS Applications
"The fourth quarter was challenging as customers adjusted their ordering activity late in the quarter to balance their inventory levels," stated Steven Laub, Atmel's President and Chief Executive Officer. "The restructuring and cost-savings initiatives announced in December will help us successfully manage through the general market weakness that is expected to continue into the first quarter of 2007. Looking at the coming year and beyond, we are confident that our industry leading technology and new strategy will position Atmel for continued growth."
"Atmel's balance sheet remains strong. Cash, cash equivalents and short- term investments were $466.7 million at year-end, an increase of $128.1 million over the $338.6 million at December 31, 2005," said Robert Avery, Atmel's Vice President Finance and Chief Financial Officer. "Additionally, our cash position, net of debt, grew by $347.1 million as we redeemed all outstanding convertible debt and generated cash from operations and from the sale of our Grenoble subsidiary."
The Company anticipates that for the first quarter of 2007 revenues will likely decline approximately 4% to 8% on a sequential basis as customers continue to work through current inventory levels.
As previously announced, the NASDAQ Listing and Hearing Review Council, acting pursuant to its discretionary authority under NASDAQ Rule 4807(b), has called for review the NASDAQ Listing Qualifications Panel decision that established a deadline of February 9, 2007, for Atmel to file with the Securities and Exchange Commission its Quarterly Reports on Form 10-Q for the quarters ended June 30, 2006 and September 30, 2006, as well as any necessary restatements for prior financial periods. The Listing Council also determined to stay the Panel decision, including the February 9th deadline, as well as future Panel determinations to suspend the Company's securities from trading pending further action by the Listing Council. The Company believes this action will provide it with additional time beyond February 9, 2007 to complete the Company's previously announced independent investigation related to its stock option practices and accounting, and finalize and file with the SEC the delayed quarterly reports and any necessary restatements for prior financial periods. The Listing Council informed the Company that it may submit in writing additional information for the Listing Council's consideration. There can be no assurance that the outcome of the Listing Council's review will be favorable to Atmel or that Atmel will remain listed on the NASDAQ Global Select Market.
As previously announced on July 25, 2006, the Audit Committee of the Company's Board of Directors initiated an independent investigation regarding the timing of past stock option grants and other potentially related issues. On October 30, 2006, the Company announced that the Audit Committee, with the assistance of independent legal and forensic accounting experts, had reached a determination that, in connection with the requirements of Accounting Principles Board Opinion No. 25, Accounting for Stock Issued to Employees ("APB25"), the actual measurement dates for certain stock options differed from the recorded measurement dates for such stock options. Based on the Audit Committee's determination, the Company expects that the difference in these measurement dates will result in material non-cash, stock-based compensation expenses.
The Audit Committee has not completed its work nor reached final conclusions, including with regard to the accounting and tax implications of the stock option investigation. The Audit Committee is making every effort to complete its investigation, and the Company will make every effort to file its restated financial statements as soon as practicable after the completion of the investigation.
The financial information in this release was compiled by the management of Atmel Corporation and has not been audited or reviewed by the Company's independent registered public accounting firm. The financial information is preliminary and subject to potentially material adjustment depending on the outcome of the investigation. Any reliance placed on this unaudited and unreviewed financial information is to be done with the full understanding and acceptance of the foregoing uncertainties. As a result of the continuing investigation, the Company does not believe it will file its 2006 Form 10-K by the due date of March 1, 2007 and is unable to provide additional financial information for the fourth quarter of 2006 at this time.
Atmel will hold a teleconference at 2:00 p.m. PT today to discuss fourth quarter selected financial results. The conference call will be webcast live and can also be monitored by dialing 1-800-374-0405 or 1-706-634-5185. The conference ID number is 6844657 and participants are encouraged to initiate their calls at least 10 minutes in advance of the 2:00 p.m. PT start time to ensure a timely connection. The webcast is hosted at http://www.atmel.com/ir/ and will be archived for 12 months.
A replay of the February 1 conference call will be available today at approximately 5:00 p.m. PT and will run for 48 hours. The replay access numbers are 1-800-642-1687 within the U.S. and 1-706-645-9291 for all other locations. The passcode is 6844657.
Atmel is a worldwide leader in the design and manufacture of microcontrollers, advanced logic, mixed-signal, nonvolatile memory and radio frequency (RF) components. Leveraging one of the industry's broadest intellectual property (IP) technology portfolios, Atmel is able to provide the electronics industry with complete system solutions. Focused on consumer, industrial, security, communications, computing and automotive markets, Atmel ICs can be found Everywhere You Are(R).
Safe Harbor for Forward-Looking Statements
Information in this release regarding Atmel's forecasts, outlook, expectations and beliefs are forward-looking statements that involve risks and uncertainties. These statements include statements about Atmel's expectations for first quarter 2007 revenues, statements about Atmel's restructuring plans and other initiatives, statements regarding demand for semiconductor products, statements regarding Atmel's future growth potential, statements regarding the timing of the completion of the Audit Committee's independent review and the filing of the Company's delayed and restated SEC reports and statements regarding the status of and determinations resulting from the Audit Committee's independent review. All forward-looking statements included in this release are based upon information available to Atmel as of the date of this release, which may change, and we assume no obligation to update any such forward-looking statement. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to such differences include the final conclusions of the Audit Committee (and the timing of such conclusions) concerning matters relating to stock option grants, the impact of competitive products and pricing, timely design acceptance by our customers, timely introduction of new technologies, ability to ramp new products into volume, industry wide shifts in supply and demand for semiconductor products, industry and/or Company overcapacity, effective and cost efficient utilization of manufacturing capacity, financial stability in foreign markets, and other risks detailed from time to time in Atmel's SEC reports and filings, including our Form 10-K, filed on March 16, 2006 and subsequent Form 10-Q reports.
The Audit Committee has not completed its work in connection with its review of past stock option grants and other potentially related issues, including with regard to the accounting and tax implications of the stock option investigation, and the determinations discussed in this press release are preliminary. In addition, the investigation and possible conclusions have had and may in the future have an impact on the amount and timing of previously awarded stock-based compensation and other additional expenses to be recorded; accounting adjustments to our financial statements for the periods in question; our ability to file required reports with the SEC on a timely basis; our ability to meet the requirements of the NASDAQ Global Select Market for continued listing of our shares; potential claims and proceedings relating to such matters, including shareholder or employee litigation and action by the SEC and/or other governmental agencies; and negative tax or other implications for the Company resulting from any accounting adjustments or other factors.
Contact: Robert Pursel, Director of Investor Relations, 1-408-487-2677 Atmel Corporation Selected Financial Highlights (Dollars in millions) (Unaudited) Three Months Ended Twelve Months Ended Dec. 31, Sept. 30, Dec. 31, Dec. 31, Dec. 31, 2006 2006 2005 2006 2005 Net revenues (excluding Grenoble) $408.9 $429.4 $394.3 $1,667.7 $1,561.1 Net Grenoble revenues $0.0 $12.9 $30.9 $83.1 $114.6 Revenue by Business Segment ASIC (excluding Grenoble) 30.4% 28.6% 29.5% 29.2% 31.7% Microcontroller 24.8% 25.4% 21.9% 25.2% 20.2% RF and Automotive 22.1% 24.2% 23.6% 23.1% 22.9% Non-Volatile Memory 22.7% 21.8% 25.0% 22.5% 25.2% Revenue by Geography (excluding Grenoble) Asia 52.3% 53.0% 55.5% 51.5% 54.5% Europe 35.0% 32.3% 29.7% 33.2% 30.8% North America 12.7% 14.7% 14.8% 15.3% 14.7% Dec. 31, Sept. 30, Dec. 31, 2006 2006 2005 Assets Cash and cash equivalents $410.4 $425.5 $290.7 (Note 1) Short-term investments $56.3 $58.5 $47.9 Accounts receivable, net $227.5 $245.3 $235.3 Liabilities Current portion of long-term debt $86.1 $88.0 $112.1 Convertible notes -- -- $142.7 Long-term debt less current portion $82.9 $99.1 $133.2 (Note 1) December 31, 2005 cash and cash equivalents exclude balances held by the Grenoble subsidiary.Atmel Corporation
CONTACT: Robert Pursel, Director of Investor Relations of Atmel,
Web site: http://www.atmel.com/
SAN JOSE, Calif., Feb. 1 /PRNewswire-FirstCall/ -- Bookham, Inc. , a leading provider of optical components, modules and subsystems, today announced financial results for its second quarter of fiscal 2007, ended December 30, 2006.
Revenue in the second quarter of fiscal 2007 was $56.3 million, compared with $56.4 million in the first quarter of fiscal 2007 and $60.7 million in the second quarter of fiscal 2006.
Revenue from customers other than Nortel was $41.8 million, unchanged from the prior quarter and approximately 58 percent higher than the second quarter of fiscal 2006. Revenue from Nortel in the second quarter was $14.5 million, essentially flat with the first quarter and down from $34.3 million, which included $13.8 million of last-time buy revenue, in the same quarter a year ago.
Under generally accepted accounting principles (GAAP), gross margin in the second quarter was 15 percent. This compares with GAAP gross margin of 17 percent in the first quarter and 27 percent in the same period a year ago.
GAAP net loss in the second quarter was $21.3 million, or a net loss of $0.31 per share. This compares with a GAAP net loss of $22.9 million, or $0.38 per share, in the first quarter and a GAAP net loss of $11.9 million, or $0.28 per share, in the second quarter of fiscal 2006.
Bookham provides certain supplemental non-GAAP financial measures, including non-GAAP net loss excluding non-cash stock and option-based compensation, charges such as impairment and restructuring, litigation settlement/recovery, early debt extinguishment, and acquired in-process research and development, along with a measure of Adjusted EBITDA, that also excludes these charges, plus the impact of taxes, net interest income/expense, depreciation and amortization, and net foreign currency translation gain/loss, to provide investors with the opportunity to use the same financial metrics as management to evaluate the Company's performance. Bookham also believes these non-GAAP measures enhance the comparability and transparency of results for the period. These measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. A reconciliation table of GAAP to non-GAAP measures is included in the financial tables section of this release, and further discussion of these measures is also included later in this release.
Second quarter non-GAAP net loss, which excludes non-cash stock and option-based compensation of $1.9 million, was $18.0 million, or a net loss of $0.26 per share. This compares with a non-GAAP net loss of $15.7 million, or $0.26 per share in the first quarter. Please see additional information in the section "Non-GAAP Financial Measures" below.
Second quarter Adjusted EBITDA was negative $10.4 million, compared with Adjusted EBITDA of negative $7.7 million in the prior quarter and positive $0.7 million in the second quarter of fiscal 2006.
Cash, cash equivalents and restricted cash at the end of the second quarter were $51.5 million, compared with $58.2 million at the end of the first quarter.
Outlook and Guidance
"For several quarters we have discussed that our sales to Nortel would decline significantly in the March quarter, due mainly to the completion of the guaranteed purchase agreement at the end of December. Based on current forecasts, we believe revenue from Nortel will account for between 5 and 10 percent of our total March quarter revenue, compared with 26 percent in the second quarter, resulting from a higher than previously expected inventory build-up and the completion of the purchase agreement," said Dr. Giorgio Anania, president and CEO of Bookham Inc. "At the same time, we expect modest sequential growth in our non-Nortel revenue in the third quarter because of normal seasonality and some inventory draw-down at selected customers. While non-Nortel revenue continues to grow, the anticipated increase will not make up for the expected decline in Nortel sales in the March quarter.
"Given these recent developments, we are immediately undertaking an aggressive overhead cost reduction plan, which when fully implemented is designed to save an additional $6 million to $7 million per quarter in the September 2007 quarter. The savings will come mainly from reductions in our workforce, consolidation at our UK semiconductor operation, and shifting more development activities to China," said Dr. Anania. "By taking these additional actions, we believe our Adjusted EBITDA quarterly breakeven level can be achieved at a quarterly revenue level of approximately $55 million to $57 million.
"While we have lowered our March quarter revenue forecast, I believe this will be the low point in calendar 2007 and that revenue will rebound over the remainder of the year. We believe that the continued strong interest and design-in activity we are experiencing for our new products, and an expected rebound in Nortel revenue as the inventory situation is worked through, will drive revenue recovery over the next few quarters," said Dr. Anania. "Taking into account our planned overhead reductions, we expect to achieve Adjusted EBITDA breakeven by the end of the September quarter, assuming our revenue goals can be achieved."
The following forecasts are based on current expectations. These statements are forward looking, and actual results may differ materially. Please see the Safe Harbor statement in this release for a description of certain important risk factors that could cause actual results to differ, and refer to Bookham's annual and quarterly reports on file with the Securities and Exchange Commission (SEC) for a more complete description of the risks. Furthermore, our outlook excludes items that may be required by GAAP such as restructuring and related costs, acquisition or disposal related costs, impairments of goodwill and other long-lived assets for which the likelihood and amounts are not determinable at this time, extraordinary items, as well as the expensing of stock options and restricted stock grants under SFAS 123R.
For the third quarter of fiscal 2007, ending March 31, 2007, excluding restructuring and other non-recurring charges, the Company expects:
-- Revenue in the range of $44 million to $48 million -- Non-GAAP gross margin to be between 8 percent and 12 percent -- Adjusted EBITDA of approximately negative $12 million to negative $16 million Conference Call
Bookham is scheduled to hold a conference call to discuss its second quarter fiscal 2007 financial results today at 5:00 p.m. ET/2:00 p.m. PT. To access the call, dial 1- 973-935-2048. A live webcast of the call will also be available via the Investors section of the Company's website at http://www.bookham.com/.
A replay of the conference call will be available through Feb. 8, 2007. To access the replay, dial 1-973-341-3080. The conference code for the replay is 8341089.
Bookham, Inc. is a global leader in the design, manufacture and marketing of optical components, modules and subsystems. The company's optical components, modules and subsystems are used in various applications and industries, including telecommunications, data communications, aerospace, industrial and military. Since 2002, the company has acquired the optical components businesses from Nortel Networks and Marconi, as well as Ignis Optics, Inc., the business of Cierra Photonics Inc., New Focus, Inc., and Onetta, Inc. The company has manufacturing facilities in the UK, US, Canada, China and Switzerland; and offices in the US, UK, Canada, France and Italy and employs approximately 2000 people worldwide. More information on Bookham, Inc. is available at http://www.bookham.com/
NOTE: Bookham and all other Bookham, Inc. product names and slogans are trademarks or registered trademarks of Bookham, Inc. in the USA or other countries.
Safe Harbor Statement
Any statements in this announcement about the future expectations, plans or prospects of Bookham, including statements containing the words "believe," "plan," "anticipate," "expect," "estimate," "will," "ongoing" and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including factors described in Bookham's most recent quarterly report on Form 10-Q. These include continued demand for optical components, transfer of test and assembly operations to China, changes in inventory and product mix, no further degradation in the $/£ exchange rate and the continued ability of the Company to maintain requisite financial resources. The forward-looking statements included in this announcement represent Bookham's view as of the date of this release. Bookham anticipates that subsequent events and developments may cause Bookham's views to change. However, Bookham disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this document. Those forward-looking statements should not be relied upon as representing Bookham's views as of any date subsequent to the date of this announcement.
Non-GAAP Financial Measures
The Company provides non-GAAP measures of net loss and Adjusted EBITDA as supplemental financial information regarding the Company's operational performance.
Non-GAAP Net Loss
Non-GAAP net loss is calculated as net loss excluding the impact of impairment charges, restructuring costs, non-cash compensation related to stock and options granted to employees and directors, and certain other one- time charges and credits specifically identified where applicable. The Company evaluates its performance using, among other things, non-GAAP net loss in evaluating the Company's historical and prospective operating financial performance, as well as its operating performance relative to its competitors. Specifically, management uses this non-GAAP measure to further understand the Company's "core operating performance." The Company believes its "core operating performance" represents the Company's on-going performance in the ordinary course of its operations. Accordingly, management excludes from "core operating performance" those items, such as impairment charges, restructuring programs and costs relating to specific major projects which are non- recurring, as well as non-cash compensation related to stock and options. Management does not believe these items are reflective of the Company's ongoing operations and accordingly excludes those items from non-GAAP net loss.
The Company believes that providing non-GAAP net loss to its investors, in addition to corresponding income statement measures, provides investors the benefit of viewing the Company's performance using the same financial metrics that the management team uses in making many key decisions and understanding how the core business and its results of operations may look in the future. The Company further believes that providing this information allows the Company's investors greater transparency and a better understanding of the Company's core financial performance. Additionally, non-GAAP net loss has historically been presented by the Company as a complement to net loss, thus increasing the consistency and comparability of the Company's earnings releases. The non-GAAP adjustments, and the basis for excluding them, are discussed further below.
A pro-forma subtotal within the Company's determination of non-GAAP net loss specifically excludes from the Company's net loss the non-cash compensation related to stock and options granted to employees and directors under SFAS 123R - Share-Based Payment subsequent to the Company's adoption of this accounting standard on July 3, 2005, and under APB 25 for earlier comparative periods. Management uses this non-GAAP information to compare this specific non-cash expense with similar expenses of competitors and other companies.
Non-GAAP financial measures are not in accordance with, or an alternative for, generally accepted accounting principles in the United States. Non-GAAP net loss should not be considered in isolation from or as a substitute for financial information presented in accordance with generally accepted accounting principles, and may be different from non-GAAP net loss used by other companies. The GAAP measure most directly comparable to non-GAAP net loss is net loss. A reconciliation of non-GAAP net loss to net loss is set forth in the schedules below.
Adjusted EBITDA is calculated as net loss excluding the impact of taxes, net interest income/expense, depreciation and amortization, net foreign currency translation gains/losses, as well as restructuring, impairment, non-cash compensation related to stock and options, and certain other one-time charges and credits related to early extinguishment of debt and amounts related to settlement of certain litigation. The Company uses Adjusted EBITDA in evaluating the Company's historical and prospective cash usage, as well as its cash usage relative to its competitors. Specifically, management uses this non-GAAP measure to further understand and analyze the cash used in/generated from the Company's core operations. The Company believes that by excluding these non-cash and non-recurring charges, more accurate expectations of our future cash needs can be assessed in addition to providing a better understanding of the actual cash used in or generated from core operations for the periods presented. Management does not believe the excluded items are reflective of the Company's ongoing operations and accordingly excludes those items from Adjusted EBITDA. The Company believes that providing Adjusted EBITDA to its investors, in addition to corresponding GAAP cash flow measures, provides investors the benefit of viewing the Company's performance using the same financial metrics that the management team uses in making many key decisions that impact the Company's cash position and understanding how the cash position may look in the future. The Company further believes that providing this information allows the Company's investors greater transparency and a better understanding of the Company's core cash position. Furthermore, similar non-GAAP measures have historically been presented by the Company as a complement to its GAAP presentation. The non-GAAP adjustments, and the basis for excluding them, are discussed further below.
Non-GAAP financial measures are not in accordance with, or an alternative for, generally accepted accounting principles in the United States. Adjusted EBITDA should not be considered in isolation from or as a substitute for financial information presented in accordance with generally accepted accounting principles, and may be different from non-GAAP measures used by other companies. The GAAP measure most directly comparable to Adjusted EBITDA is net loss. A reconciliation of Adjusted EBITDA to GAAP net loss is set forth in the financial schedules section below.
Impairment of Goodwill, Intangibles and other Long-Lived Assets
GAAP requires the Company to compare the fair value of its long-lived assets to their carrying amount on the Company's financial statements. If the carrying amount is greater than its fair value, then an impairment must be recognized in the GAAP presentation, and included as a charge to earnings in the statement of operations. In particular this is the case regarding businesses acquired by the Company. If the carrying amount of the acquired businesses, including recorded goodwill, is greater than its fair value, then an impairment of the goodwill must be recognized in the GAAP presentation, and included as a charge to earnings in the Company's statement of operations. The Company excludes the impairment of long-lived assets, for the purposes of calculating non-GAAP net loss and Adjusted EBITDA, when it evaluates the continuing core operational performance of the Company. The Company believes that these items do not reflect expected future operating expenses nor does the Company believe that they provide a meaningful evaluation of current versus past core operational performance.
The Company has incurred expenses, which are included in its GAAP statement of operations, primarily due to the write-down of certain property and equipment that has been identified for disposal, workforce related charges such as retention bonuses, severance, benefits and employee relocation costs related to formal restructuring plans, termination costs and building costs for facilities not required for ongoing operations, and costs related to the relocation of certain facilities and equipment from buildings which the Company has disposed of or plans to dispose of. The Company excludes these items, for the purposes of calculating non-GAAP net loss and Adjusted EBITDA, when it evaluates the continuing operational performance of the Company. The Company does not believe that these items reflect expected future operating expenses nor does it believe that they provide a meaningful evaluation of current versus past core operational performance.
Early Extinguishment of Debt
The Company has recorded an expense related to the extinguishment of its debt, which is included in its GAAP statement of operations. The Company excludes this item, for the purposes of calculating non-GAAP net loss and Adjusted EBITDA, when it evaluates the continuing performance of the Company. The Company does not believe that this item reflects expected future expenses nor does it believe that it provides a meaningful evaluation of current versus past core operational performance.
The Company has recorded an expense related to the settlement of an on-going litigation, net of insurance recoveries, which is included in its GAAP statement of operations. The Company excludes this item, for the purposes of calculating non-GAAP net loss and Adjusted EBITDA, when it evaluates the continuing performance of the Company. The Company does not believe that this item reflects expected future expenses nor does it believe that it provides a meaningful evaluation of current versus past core operational performance.
Foreign Currency Translation Gains/Losses
The Company records gains and losses related to the translation of intercompany balances denominated in currencies other than the functional currencies of the local legal entities, the translation of certain other ending balance sheet accounts denominated in currencies other than the function currencies of the local legal entities, and contracts entered into to mitigate the exposure to these translation gains and losses. The Company excludes this item, for the purposes of calculating Adjusted EBIDTA, when it evaluates the cash usage and prospective cash usage of the Company. Management does not believe this excluded item is reflective of its ongoing operations.
Non-GAAP financial measures are not in accordance with, or an alternative for, generally accepted accounting principles in the United States. Non-GAAP measures should not be considered in isolation from or as a substitute for financial information presented in accordance with generally accepted accounting principles, and may be different from non-GAAP measures used by other companies. The GAAP measure most directly comparable to non-GAAP net loss is net loss. The GAAP measure most directly comparable to Adjusted EBITDA is net loss. A reconciliation of each of these non-GAAP financial measures to GAAP information is set forth below.
BOOKHAM, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) December 30, July 1, 2006 2006 (unaudited) ASSETS Current assets: Cash and cash equivalents $45,378 $37,750 Restricted cash 6,156 1,428 Accounts receivable, net 33,811 33,779 Inventories 49,909 53,860 Current deferred tax asset 348 348 Prepaid expenses and other current assets 9,258 11,436 Total current assets 144,860 138,601 Long-term restricted cash 0 4,119 Goodwill 8,881 8,881 Other intangible assets, net 15,758 19,667 Property and equipment, net 37,206 52,163 Non-current deferred tax asset 12,568 12,911 Other assets 420 455 Total assets $219,693 $ 236,797 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $28,425 $26,143 Current deferred tax liability 12,568 12,911 Accrued expenses and other liabilities 24,759 37,337 Total current liabilities 65,752 76,391 Non-current deferred tax liability 348 348 Other long-term liabilities 2,786 4,989 Deferred gain on sale leaseback 20,924 19,928 Total liabilities 89,810 101,656 Stockholders' equity: Common stock 696 580 Additional paid-in capital 1,085,953 1,053,626 Accumulated other comprehensive income 41,997 35,460 Accumulated deficit (998,763) (954,525) Total stockholders' equity 129,883 135,141 Total liabilities and stockholders' equity $219,693 $ 236,797 BOOKHAM, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (unaudited) Three Months Ended December 30, September 30, 2006 2006 Net revenues $56,328 $56,391 Cost of revenues 48,103 46,950 Gross profit 8,225 9,441 Operating expenses: Research and development 11,525 11,493 Selling, general and administrative 12,081 12,859 Amortization of intangible 2,484 2,274 Restructuring charges 1,301 2,901 Impairment of long-lived assets - 1,901 Loss (gain) on sale of property and equipment 270 (1,100) Legal settlement - 490 Total operating expenses 27,661 30,818 Operating loss (19,436) (21,377) Other income/(expense), net (1,862) (1,517) Loss before income taxes (21,298) (22,894) Income tax (provision)/benefit (50) 4 Net loss $(21,348) $(22,890) Basic and diluted loss per share: Net loss per share $(0.31) $(0.38) Weighted average shares of common stock outstanding (basic and diluted) 68,561 60,178 Stock based compensation included in the following: Cost of sales $608 $ 574 Research and development 448 460 Selling, general and administrative 871 889 Total $1,927 $1,923 BOOKHAM, INC. RECONCILIATION OF GAAP NET LOSS TO CERTAIN NON-GAAP MEASURES (in thousands, except per share amounts) (unaudited) Three Months Ended December 30, September 30, 2006 2006 Net Loss Adjusted Net Loss Adjusted EBIDTA EBIDTA GAAP net loss $(21,348) $(21,348) $(22,890) $(22,890) Stock compensation 1,927 1,927 1,923 1,923 Pro forma (19,421) (19,421) (20,967) (20,967) Adjustments: Depreciation expense - 3,315 - 4,228 Amortization expense - 2,484 - 2,274 Income tax provision, net 50 50 (4) (4) Interest income, net - (182) - (134) Foreign currency losses, net - 2,044 - 1,651 Restructuring charges 1,301 1,301 2,901 2,901 Impairment of intangibles & other long-lived assets - - 1,901 1,901 Legal settlement - - 490 490 Non-GAAP measures $(18,070) $(10,409) $(15,679) $(7,660) Non-GAAP measures per share (basic and diluted) $(0.26) $(0.15) $(0.26) $(0.13) Weighted average shares of common stock outstanding (basic and diluted) 68,561 68,561 60,178 60,178Bookham, Inc.
CONTACT: Jim Fanucchi of Summit IR Group Inc., +1-408-404-5400, or
email@example.com; or Steve Abely, Chief Financial Officer, +1-408-383-1400, or
Web site: http://www.bookham.com/
PISCATAWAY, N.J., Feb. 1 /PRNewswire-FirstCall/ -- The board of directors of American Standard Companies Inc. yesterday declared a quarterly dividend of 18 cents per share of common stock.
The dividend is payable on March 20, 2007, to shareholders of record on March 1, 2007.
American Standard is an $11.2 billion global manufacturer with market- leading positions in three businesses: air conditioning systems and services, sold under the Trane(R) and American Standard(R) brands for commercial, institutional and residential buildings; bath and kitchen products, sold under such brands as American Standard(R) and Ideal Standard(R); and vehicle control systems, including electronic braking and air suspension systems, sold under the WABCO(R) name to the world's leading manufacturers of heavy-duty trucks, buses, SUVs and luxury cars. The company employs approximately 62,000 people and has manufacturing operations in 28 countries. American Standard is included in both the S&P 500 and the Dow Jones Sustainability North America Index, which recognizes the top 20 percent of leaders in corporate sustainability in North America.
Additional information is available at http://www.americanstandard.com/.American Standard Companies Inc.
CONTACT: Skip Colcord, +1-732-980-3065, firstname.lastname@example.org;
or Shelly London, +1-732-980-6175, email@example.com; Investors:
Bruce Fisher, +1-732-980-6095, firstname.lastname@example.org; or Todd Gleason,
Web site: http://www.americanstandard.com/
OLATHE, Kan., Feb. 1 /PRNewswire-FirstCall/ -- Garmin International Inc., a unit of Garmin Ltd. , today announced that it will air a 30-second television commercial during Super Bowl XLI on February 4th in Miami. The spot airs midway through the Super Bowl's second quarter.
(Logo: http://www.newscom.com/cgi-bin/prnh/20061026/CGTH082LOGO )
To view the Multimedia News Release, go to: http://www.prnewswire.com/mnr/garmin/26722/
The commercial is Garmin's first Super Bowl ad and the first-ever for any consumer electronics manufacturer that specializes in GPS navigation -- and is the company's latest effort to expose a global audience to the Garmin brand. Garmin is a worldwide leader in the design, manufacture, and sale of GPS enabled devices for consumers.
"The Super Bowl showcases some of the world's most recognizable brands, and our participation demonstrates Garmin's desire to be counted among them," said Jon Cassat, Garmin's director of marketing communications. "The popularity of GPS navigation is expected to continue growing rapidly in 2007, so we felt it was important to further establish Garmin as the market leader in this important and increasingly ubiquitous consumer technology."
The theme of the commercial is "Grab your Garmin, Take on the World" -- demonstrating how Garmin personal navigation devices can save the everyday consumer time, money, and hassles. Taken to the extreme, the commercial is a humorous 1960s-style sci-fi piece. The commercial's quirky low-tech production treatment is in playful contrast to Garmin's cutting edge GPS technology and other advertisers' use of complex computer effects.
The spot begins with an "Average Joe" finding himself lost and unfolding a road map for help. The map continues to unfurl and expand -- quickly taking over the car -- eventually turning into the dreaded "Maposaurus." Thankfully, another motorist -- armed with his Garmin nuvi(R) -- morphs into a superhero who battles and defeats the dreaded map monster. An earnest yet over-the-top heavy metal band adds narration to the epic battle.
Garmin's nuvi line of Personal Travel Assistants was introduced in late 2005, and has quickly become the standard by which other personal navigation devices are judged -- thanks to its elegant design, simple user interface, and rich set of features.
The project was conceived and produced with the help of Minneapolis-based Fallon Worldwide, one of the world's most critically acclaimed, creatively driven branding ad agencies which was also responsible for Garmin's infectious and highly successful "Give a Garmin" 2006 holiday campaign.
"To an engineer, these devices are literally rocket science, but in the hands of the consumer, they're anything but," said Fallon group creative director Brian Tierney. "We purposely went for a look and feel that would make the technology approachable and the brand likeable to the consumer -- all while communicating the core idea that in the arena of personal navigation, Garmin is the no-holds-barred champion."
For more updates, insights, and a full-length music video of Garmin's Super Bowl commercial, visit http://www.garmin.com/ and http://garmin.blogs.com/ .
Through its operating subsidiaries, Garmin Ltd. designs, manufactures, markets, and sells navigation devices and applications -- most of which are enabled by GPS technology. Garmin is a leader in consumer and general aviation navigation and its products serve the automotive/mobile, outdoor/fitness, marine, and aviation markets. Garmin Ltd. is incorporated in the Cayman Islands, and its principal subsidiaries are located in the United States, Taiwan and the United Kingdom. For more information, visit Garmin's virtual pressroom at http://www.garmin.com/pressroom or contact the Media Relations department at 913-397-8200. Garmin and nuvi are registered trademarks and Personal Travel Assistant is a trademark of Garmin Ltd. or its subsidiaries.
All other brands, product names, company names, trademarks and service marks are the properties of their respective owners. All rights reserved. Garmin is not an official sponsor of Super Bowl XLI.
Notice on forward-looking statements:
This release includes forward-looking statements regarding Garmin Ltd. and its business. The forward-looking events and circumstances discussed in this release may not occur and actual results could differ materially as a result of known and unknown risk factors and uncertainties affecting Garmin, including, but not limited to, the risk factors listed in the Annual Report on Form 10-K for the year ended December 31, 2005 filed by Garmin with the Securities and Exchange Commission (Commission file number 0-31983). A copy of Garmin's Form 10-K can be downloaded at http://www.garmin.com/aboutGarmin/invRelations/finReports.html . No forward- looking statement can be guaranteed. Forward-looking statements speak only as of the date on which they are made and Garmin undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.Photo: http://www.newscom.com/cgi-bin/prnh/20061026/CGTH082LOGO
CONTACT: Ted Gartner or Jessica Myers, both of Garmin International
Inc., +1-913-397-8200, email@example.com ; or Rosemary Abendroth of
Fallon Worldwide, +1-612-758-2765, firstname.lastname@example.org
Web site: http://www.garmin.com/
SAN JOSE, Calif., Feb. 1 /PRNewswire-FirstCall/ -- ZiLOG(R), Inc. the creator of the Z80(R) microprocessor and a leading innovator of integrated embedded flash microcontrollers (MCU) and universal remote control solutions, today reported results for its 2007 fiscal year third quarter ended December 30, 2006. Sales for the quarter were $20.7 million, an 18 percent increase over sales of $17.6 million for the comparable period a year ago and a decrease from sales of $21.2 million for the immediately preceding quarter. The increase in sales from a year ago reflects continued growth in new product sales including embedded flash MCU and Universal remote control solutions. Embedded flash sales were $3.6 million for the quarter, an increase of 89 percent from the comparable quarter a year ago, reflecting growth in the health & fitness and digital communications markets. Additionally, net sales of universal remote control solutions including the CRIMZON family of solutions increased 38 percent as compared to the third fiscal quarter a year ago, reflecting growth in the home entertainment and consumer gaming markets.
"We were pleased that we exceeded the high-end of our previous sales guidance range this quarter, in a period that is seasonally challenging for us due to our high concentration of consumer market products. We continue to experience strong demand for our new embedded flash and universal remote control solutions," stated Perry Grace, ZiLOG's Executive Vice President and Chief Financial Officer. "Additionally, after an extensive recruiting search we were excited to announce the addition of Darin Billerbeck to the management team as the new Chief Executive Officer and as a member of the Board of Directors. Darin's extensive industry experience including that at Intel where he most recently managed a flash business, will allow us to continue to refine our market focus and strategy," added Grace.
GAAP gross margin for the quarter was 47 percent of sales as compared to 46 percent of sales in the preceding quarter and 45 percent of sales for the comparable period a year ago. The Company reported adjusted EBITDA (as defined below) of positive $0.3 million in the quarter as compared to positive $0.2 million in the preceding quarter and negative $1.8 million in the third fiscal quarter a year ago.
GAAP net loss for the quarter was $1.6 million or 10 cents per share as compared to a GAAP net loss of $2.3 million or 14 cents per share in the previous quarter and a GAAP net loss of $3.1 million or 19 cents per share in the third fiscal quarter a year ago. The net loss for the quarter includes special charges of $0.1 million, non-cash charges for amortization of intangibles of $0.3 million and FAS 123R stock-based compensation charges of $0.4 million. On a Non-GAAP basis (excluding special charges, amortization of intangible assets and charges for stock-based compensation expense) the Company reported a net loss for the third fiscal quarter of $0.8 million or 5 cents per share as compared to a non-GAAP net loss of $0.7 million or 4 cents per share in the previous quarter and a loss of $2.2 million or 13 cents per share for the third fiscal quarter a year ago. The reduction in cash and cash equivalents for the quarter includes the distribution of $2.8 million in December 2006 to the Series A Preferred shareholders of ZiLOG MOD III Inc. following its final liquidation.
Sales for the nine months ended December 30, 2006 were $62.9 million, an increase of 7 percent as compared to $58.7 million for the comparative nine month period a year ago. GAAP net loss for the nine months ended December 30, 2006 was $5.4 million or 33 cents per share as compared to a GAAP net loss of $14.0 million or 86 cents per share for the nine months ended December 31, 2005.
The company shipped approximately 900 development tool kits for the quarter, bringing total tool kits shipped since the introduction of its integrated embedded Flash MCU's to over 39,000. Additionally, the Company added another 116 new embedded Flash silicon customers in the quarter, taking the cumulative increase in customers to more than 2,900 since introduction.
NON-GAAP FINANCIAL INFORMATION
Included above and within the attached schedules are certain Non-GAAP financial measures. Management believes that these Non-GAAP measures are useful measures of operating performance and liquidity because they may exclude the impact of certain items such as; amortization of intangible assets, stock-based compensation, depreciation, non-operating interest, income taxes and special charges. However, these Non-GAAP measures should be considered in addition to, not as a substitute for, or superior to, net income (loss) and net cash provided by (used in) operating activities, or other financial measures prepared in accordance with GAAP.
Three Months Ended Dec. Sep. Jul. Mar. Dec. 30, 30, 01, 31, 31, 2006 2006 2006 2006 2005 Reconciliation of Non-GAAP Net Loss to GAAP Net Loss Non-GAAP net loss ($0.8) ($0.7) ($0.7) ($2.0) ($2.2) Non-GAAP adjustments: Special charges and credits 0.1 0.9 0.1 (0.1) 0.3 Cost of sales relating to inventory adjustments - - - 0.5 - Amortization of intangible assets 0.3 0.3 0.4 0.3 0.5 Non-cash stock-based compensation R&D 0.1 0.1 0.1 - - Non-cash stock-based compensation SG&A 0.3 0.3 0.2 0.1 0.1 Total non-GAAP adjustments 0.8 1.6 0.8 0.8 0.9 GAAP Net loss ($1.6) ($2.3) ($1.5) ($2.8) ($3.1) Non-GAAP Net Loss
Non-GAAP net loss excludes special charges and credits, adjustments to cost of sales relating to certain inventory adjustments and non-cash charges relating to the amortization of intangible assets and stock-based compensation. We believe that Non-GAAP net loss is a useful measure as it excludes certain special charge items as well as certain non-cash charges, which facilitates a comparison of the Company's operating performance. However, this Non-GAAP measure should be considered in addition to, not as a substitute for, or superior to, the net loss measured in accordance with GAAP.
Three Months Ended Reconciliation of Net Loss and Cash Dec. Sep. Jul. Mar. Dec. Flow From Operating 30, 30, 01, 31, 31, Activities to EBITDA 2006 2006 2006 2006 2005 Reconciliation of net loss to EBITDA: Net loss (1.6) (2.3) (1.5) (2.8) (3.1) Depreciation and amortization 1.1 1.1 1.1 0.9 1.2 Interest income (0.3) (0.3) (0.3) (0.2) (0.2) Provision for income taxes 0.6 0.4 0.6 0.6 - EBITDA ($0.2) ($1.1) ($0.1) ($1.5) ($2.1) Reconciliation of EBITDA to net cash provided by (used in) operating activities: EBITDA (0.2) (1.1) (0.1) (1.5) (2.1) Provision for income taxes (0.6) (0.4) (0.6) (0.6) - Interest income 0.3 0.3 0.3 0.2 0.2 Stock-based compensation 0.4 0.4 0.3 0.1 0.1 Changes in other operating assets and liabilities (1.8) 2.2 (0.2) 1.1 (0.1) Net cash provided by (used in) operating activities ($1.9) $1.4 ($0.3) ($0.7) ($1.9) Non-GAAP EBITDA
Management believes that Non-GAAP EBITDA ("EBITDA"), that is Earnings or loss Before Interest, Taxes, Depreciation and Amortization is a useful measure of financial performance. We believe that the disclosure of EBITDA helps investors more meaningfully evaluate our liquidity position by the elimination of non-cash related items such as depreciation and amortization. We believe that our investor base regularly uses EBITDA as a measure of the liquidity of our business. Our management uses EBITDA as a supplement to cash flow from operations as a way to assess the cash generated from our business available for capital expenditures and the servicing of other requirements including working capital. However, we recommend that investors carefully review the GAAP financial information included as part of our Quarterly Reports on Form 10-Q, our Annual Reports on Form 10-K, and our quarterly earnings releases, compare GAAP financial information with the non-GAAP financial results disclosed in our quarterly earnings releases and investor calls, and read the associated reconciliation.
Three Months Ended Reconciliation of Net Loss and Dec. Sep. Jul. Mar. Dec. Cash Flow From Operating 30, 30, 01, 31, 31, Activities to Adjusted EBITDA 2006 2006 2006 2006 2005 Reconciliation of net loss to Adjusted EBITDA: Net loss (1.6) (2.3) (1.5) (2.8) (3.1) Depreciation and amortization 1.1 1.1 1.1 0.9 1.2 Interest income (0.3) (0.3) (0.3) (0.2) (0.3) Provision for income taxes 0.6 0.4 0.6 0.6 - Special charges and credits 0.1 0.9 0.1 (0.1) 0.3 Stock-based compensation 0.4 0.4 0.3 0.2 0.1 Adjusted EBITDA $0.3 $0.2 $0.3 ($1.4) ($1.8) Reconciliation of Adjusted EBITDA to net cash provided by (used in) operating activities: Adjusted EBITDA 0.3 0.2 0.3 (1.4) (1.8) Special charges and credits (0.1) (0.9) (0.1) 0.1 (0.3) Provision for income taxes (0.6) (0.4) (0.6) (0.6) - Interest income 0.3 0.3 0.3 0.2 0.3 Changes in other operating assets and liabilities (1.8) 2.2 (0.2) 1.0 (0.1) Net cash provided by (used in) operating activities (1.9) 1.4 (0.3) (0.7) (1.9) Non-GAAP Adjusted EBITDA
EBITDA reflects our Earnings Before Interest, Taxes, Depreciation and Amortization. Management uses separate "Adjusted EBITDA" calculations for purposes of determining certain employees' incentive compensation and, subject to meeting specified Adjusted EBITDA amounts, for accelerating the vesting of EBITDA-linked stock options. Adjusted EBITDA, as we define it, excludes interest, income taxes, effects of changes in accounting principles and non- cash charges such as depreciation, amortization, in-process research and development, and stock-based compensation expense. It also excludes cash and non-cash charges associated with reorganization items and special charges and credits, which represent operational restructuring charges, including asset write-offs, employee termination costs, and lease termination costs. Adjusted EBITDA also excludes changes in operating assets and liabilities which are included in net cash used by operating activities. Our management uses Adjusted EBITDA as a supplement to cash flow from operations as a way to assess the cash generated from our business available for capital expenditures. This Non-GAAP Adjusted EBITDA measure allows management to monitor cash generated from the operations of the business. However, this Non- GAAP measure should be considered in addition to, not as a substitute for, or superior to, net loss and net cash provided or used by operating activities prepared in accordance with GAAP.
About ZiLOG, Inc.
Founded in 1974, ZiLOG won international recognition for designing one of the first architectures in the microprocessors and microcontrollers industry. Today, ZiLOG is a leading global supplier of 8-bit micro logic devices. It designs and markets a broad portfolio of devices for embedded control and communication applications used in consumer electronics, home appliances, security systems, point of sales terminals, personal computer peripherals, as well as industrial and automotive applications. ZiLOG is headquartered in San Jose, California, and employs over 550 people worldwide with sales offices throughout Asia, Europe and North America. For more information about ZiLOG and its products, visit the Company's website at: http://www.zilog.com/. ZiLOG, Z8, Z80, EZ80, Z8 ENCORE!, Encore!XP and Zneo are registered trademarks of ZiLOG, Inc. in the United States and in other countries. EZ80ACCLAIM! and CRIMZON are trademarks of ZiLOG, Inc. in the United States and in other countries. Other product and or service names mentioned herein may be trademarks of the companies with which they are associated.
This release contains forward-looking statements (including those related to strong demand in our new embedded flash production) relating to expectations, plans or prospects for ZiLOG, Inc. that are based upon the current expectations and beliefs of ZiLOG's management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. For example, our competitors may introduce or market embedded flash products which are perceived as superior to ours or cost less and/or provide additional functionality, and as a result, our embedded flash business may suffer.
Design wins are defined as the projected two-year net sales for a customer's new product design for which the Company has received at least a $1,000 purchase order for its devices. Design win estimates are determined based on projections from customers and may or may not come to fruition. Whether or not ZiLOG achieves anticipated revenue from design wins depends on such things as how quickly the Company is able to bring design wins into production and whether or not the project in question is a commercial success. Notwithstanding changes that may occur with respect to matters relating to the forward-looking statements, ZiLOG does not expect to, and disclaims any obligation to update such statements until release of its next quarterly earnings announcement or in any other manner. ZiLOG, however, reserves the right to update such statements or any portion thereof at any time for any reason.
The financial information presented herein is unaudited and is subject to change as a result of subsequent events or adjustments, if any, arising prior to the filing of the Company's Form 10-Q for the quarter ended December 30, 2006.
For a detailed discussion of these and other cautionary statements, please refer to the risk factors discussed in filings with the U.S. Securities and Exchange Commission ("SEC"), including but not limited to the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2006, and any subsequently filed reports. All documents also are available through the SEC's Electronic Data Gathering Analysis and Retrieval system (EDGAR) at http://www.sec.gov/ or from the Company's website at http://www.zilog.com/.
ZiLOG, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in millions except per share data) Three Months Ended Nine Months Ended Dec. 30, Dec. 31, Dec. 30, Dec. 31, 2006 2005 2006 2005 Net sales $20.7 $17.6 $62.9 $58.7 Cost of sales 11.0 9.7 32.9 34.1 Gross margin 9.7 7.9 30.0 24.6 Gross margin % 47% 45% 48% 42% Operating expenses: Research and development 5.2 5.2 15.4 16.0 Selling, general and administrative 5.3 5.0 17.1 17.7 Special charges 0.1 0.3 1.1 2.5 Amortization of intangible assets 0.3 0.6 1.0 1.6 Total operating expenses 10.9 11.1 34.6 37.8 Operating loss (1) $(1.2) $(3.2) (4.6) $(13.2) Other income (expense): Interest income 0.3 0.2 0.9 0.6 Other, net (0.1) (0.1) (0.1) (0.0) Loss before provision for income taxes (1.0) (3.1) (3.8) (12.7) Provision for income taxes 0.6 - 1.6 1.3 Net loss $(1.6) $(3.1) $(5.4) $(14.0) Basic and diluted net loss per share $(0.10) $(0.19) $(0.33) $(0.86) Weighted-average shares used in computing basic and diluted net loss per share 16.7 16.4 16.6 16.3 (1) Includes stock based compensation charges as follows (2006 amounts reflect adoption of FAS123R): Research and development $0.1 $- 0.3 $- Selling, general and administrative 0.3 0.1 0.8 0.6 Total stock based compensation included in operating loss $0.4 $0.1 1.1 $0.6 ZiLOG, INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in millions) Dec. 30, Mar. 31, 2006 2006 ASSETS Current assets: Cash and cash equivalents $21.0 $27.0 Accounts receivable, net 8.8 9.6 Inventories 9.5 7.6 Deferred tax asset 0.4 0.4 Prepaid expenses and other current assets 2.1 2.2 Total current assets 41.8 46.8 Assets held for sale 3.1 1.8 Property, plant and equipment, net 7.0 7.5 Goodwill 6.7 6.7 Intangible assets, net 3.7 4.8 Other assets 2.9 4.0 Total assets $65.2 $71.6 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $9.0 $9.9 Income taxes payable 0.5 0.5 Accrued compensation and employee benefits 2.8 2.5 Estimate due to ZiLOG-Mod III Inc. Series A Preferred shareholders on liquidation of subsidiary - 2.5 Other accrued liabilities 2.0 2.4 Deferred income on shipments to distributors 6.9 6.1 Total current liabilities 21.2 23.9 Deferred tax liability 0.4 0.4 Other non-current liabilities 5.7 5.5 Total liabilities 27.3 29.8 Stockholders' equity: Common stock 0.2 0.2 Deferred stock based compensation - (0.6) Additional paid-in capital 124.1 123.2 Treasury stock (7.2) (7.2) Accumulated deficit (79.2) (73.8) Total stockholders' equity 37.9 41.8 Total liabilities and stockholders' equity $65.2 $71.6 ZiLOG, INC. UNAUDITED CONDENSED CONSOLIDATED CASH FLOWS (in millions) Three Months Ended Nine Months Ended Dec. 30, Dec. 31, Dec. 30, Dec. 31, 2006 2005 2006 2005 CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $(1.6) $(3.1) $(5.4) $(14.0) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Amortization of fresh-start intangible assets 0.3 0.6 1.0 1.6 Depreciation and amortization 0.8 0.7 2.3 1.9 Stock-based compensation 0.4 0.1 1.1 0.6 Changes in operating assets and liabilities: Accounts receivable (1.0) (0.3) 0.7 3.2 Inventories (0.9) 1.1 (1.9) 2.6 Prepaid expenses and other current and non-current assets 0.6 0.5 1.4 1.9 Accounts payable 0.7 (0.9) (0.9) (1.4) Accrued compensation and employee benefits (0.2) - 0.3 (0.5) Other accrued liabilities, deferred income on shipments to distributors, income taxes and accrued special charges (1.0) (0.6) 0.6 (1.7) Net cash provided by (used in) operating activities $(1.9) $(1.9) $(0.8) $(5.8) CASH FLOWS FROM INVESTING ACTIVITIES: Assets held for sale (0.6) - (1.3) - Due MOD III Preferred Series A (2.8) - (2.6) - Capital expenditures (0.2) (2.0) (1.7) (3.7) Net cash used in investing activities (3.6) (2.0) (5.6) (3.7) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of common stock under employee stock plans 0.3 - 0.4 0.1 Stock purchases - - - (0.1) Net cash provided by (used in) financing activities 0.3 - 0.4 - Increase (decrease) in cash and cash equivalents (5.2) (3.9) (6.0) (9.5) Cash and cash equivalents at beginning of period 26.2 28.0 27.0 33.6 Cash and cash equivalents at end of period $21.0 $24.1 $21.0 $24.1 SELECTED UNAUDITED TRENDED FINANCIAL INFORMATION (Amounts in millions except percentages, selected key metrics and per share amounts) Three Months Ended Dec. 30, Sep. 30, Jul. 01, Mar. 31, Dec. 31, 2006 2006 2006 2006 2005 Sales & expenses Information: Net sales $20.7 $21.2 $21.0 $20.1 $17.6 Cost of sales 11 11.4 10.5 11.3 9.7 Gross margin $9.7 $9.8 $10.5 $8.8 $7.9 Gross margin % 47% 46% 50% 44% 45% Operating expenses: Research and development 5.2 5.0 5.2 5.0 5.2 Selling, general and administrative 5.3 5.8 6.0 6.0 5.0 Special charges and credits 0.1 0.9 0.1 (0.1) 0.3 Amortization of intangible assets 0.3 0.3 0.4 0.3 0.6 Total operating expenses $10.9 $12.0 $11.7 $11.2 $11.1 Operating loss (1.2) (2.2) (1.2) (2.4) (3.2) Interest and other (income) expense (0.2) (0.3) (0.3) (0.2) (0.1) Loss before provision for income taxes $(1.0) $(1.9) $(0.9) $(2.2) $(3.1) Provision for income taxes 0.6 0.4 0.6 0.6 - Net loss $(1.6) $(2.3) $(1.5) $(2.8) $(3.1) Weighted average basic and diluted shares 16.7 16.6 16.6 16.6 16.4 Basic and diluted loss per share $(0.10) $(0.14) $(0.09) $(0.17) $(0.19) Sales Information: Net Sales - by product category Micrologic products - Embedded Flash $3.6 $3.7 $2.4 $1.6 $1.9 Micrologic products - Non Flash 13.8 14.1 14.2 14.2 11.5 Total Micrologic $17.4 $17.8 $16.6 $15.8 $13.4 Other products 3.3 3.4 4.4 4.3 4.2 Total Net Sales $20.7 $21.2 $21.0 $20.1 $17.6 Net Sales - by channel OEM $10.1 $8.6 $8.6 $8.9 $7.6 Distribution 10.6 12.6 12.4 11.2 10.0 Total net sales $20.7 $21.2 $21.0 $20.1 $17.6 Net Sales - by region America's $9.2 $8.3 $7.9 $8.1 $7.5 Asia (including Japan) 9.5 10.1 10.0 8.9 7.8 Europe 2.0 2.8 3.1 3.1 2.3 Total net sales $20.7 $21.2 $21.0 $20.1 $17.6 Selected Key Indices (as defined in our Form 10Q/10K) Days sales outstanding 38 33 41 42 47 Net sales to inventory ratio (annualized) 8.7 9.9 9.1 10.6 8.8 Weeks of inventory at distributors 13 13 10 10 11 Current ratio 2.0 1.8 1.9 2.0 2.0 Other selected financial data Depreciation and amortization, excluding fresh start intangibles) $0.8 $0.8 $0.7 $0.6 $0.7 Amortization of fresh-start intangibles $0.3 $0.3 $0.4 $0.3 $0.5 Special charges and credits $0.1 $0.9 $0.1 $(0.1) $0.3 Stock-based compensation - R&D $0.1 $0.1 $0.1 $- $- Stock-based compensation - SG&A $0.3 $0.3 $0.2 $0.1 $0.1 Capital expenditures $0.2 $0.9 $0.6 $0.4 $2.0ZiLOG, Inc.
CONTACT: Stew Chalmers, Director Corporate Communications of ZiLOG,
Web site: http://www.zilog.com/
REDWOOD CITY, Calif., Feb. 1 /PRNewswire-FirstCall/ -- Tumbleweed Communications Corp. , a leading provider of messaging security products, today reported financial results for its fourth quarter and full year ended December 31, 2006.
Tumbleweed reported record revenue of $62.0 million for the year ended December 31, 2006, an increase of 24% year-over-year, and non-GAAP net income of $2.2 million, or $0.04 per share, for the full year. GAAP net loss was $4.9 million, which included stock-based compensation expense of $4.6 million and $2.5 million for the amortization of intangible assets. These results include an expense of $933,000, or $(0.02) per share, recognized in the fourth quarter of 2006, for transition of the Company's hardware products to an improved appliance platform.
Cash and cash equivalents were $30.5 million at December 31, 2006 compared to $27.0 million a year ago.
"The results we delivered in 2006 demonstrate that the actions that we have taken to strengthen the company's business have been successful," said James P. Scullion, Chief Executive Officer of Tumbleweed. "We delivered our fourth consecutive year of revenue growth, record license revenue, our first full year of non-GAAP profitability and our ninth consecutive quarter of positive cash flow from operations."
"Leading global enterprises continue to select Tumbleweed's solutions because of our expertise in messaging security and the ease of use of our products -- we are critical to their businesses. In 2006, we increased our customer base to more than 2,400 active accounts and count seven of the top 10 global financial institutions, nearly 50% of the Fortune 100 companies, and many leading healthcare providers and government agencies among our customers. I am very pleased with the momentum we built as we closed the year and believe we are in a strong position to leverage our success and leadership into 2007 and beyond," concluded Scullion.
Total revenue for the fourth quarter of 2006 was $16.7 million, an 11% increase from $15.1 million in the third quarter of 2006 and a 41% increase from $11.8 million in the fourth quarter of 2005. Product revenue for the fourth quarter of 2006 was $8.7 million, up 20% from $7.3 million in the third quarter of 2006 and up 94% from the fourth quarter of 2005. Service revenue for the fourth quarter of 2006 was $7.6 million, up from $7.5 million in the third quarter of 2006 and $7.0 million in the fourth quarter of 2005. Tumbleweed reported a non-GAAP net loss for the fourth quarter of 2006 of $242,000, or $(0.00) per share, compared to non-GAAP net income of $172,000, or $0.00 per share, in the third quarter of 2006 and a non-GAAP net loss of $549,000, or $(0.01) per share, for the fourth quarter of 2005. Non-GAAP results exclude stock-based compensation expense of $840,000 in the fourth quarter of 2006, $1.1 million in the third quarter of 2006, and $62,000 in the fourth quarter of 2005, and the amortization of intangible assets in the amounts of $438,000 in each of third and fourth quarters of 2006 and $831,000 in the fourth quarter of 2005.
GAAP net loss for the fourth quarter of 2006 was $1.5 million, as compared to $1.4 million in both the third quarter of 2006 and the fourth quarter of 2005.
The fourth quarter and full year 2006 results included an expense of $933,000, or $(0.02) per share, for the estimated loss on inventory as a result of the Company's decision to transition its hardware products from a proprietary design to a standard product offering. This transition is expected to provide increased product performance and customer satisfaction while allowing the Company to focus on its core security software expertise.
Revenue for the year ended December 31, 2006 was $62.0 million, a 24% increase from $50.0 million for the previous year. Product revenue was $28.7 million in 2006, up 37% from $20.9 million in 2005. Net income on a non-GAAP basis was $2.2 million or $0.04 per share for the full year 2006, compared with a non-GAAP net loss of $171,000, or $(0.00) per share, for the full year 2005.
On a GAAP basis, the net loss for the full year 2006, was $4.9 million, or $(0.10) per share, compared to a net loss of $3.9 million, or $(0.08) per share, for the full year 2005.
Recent Announcements * Tumbleweed received a SC Magazine Best of 2006 Award in the Anti-Spam category. Tumbleweed's MailGate(R) 5550 product line was selected as a "Recommended" product by SC Magazine editors who recognized the best products reviewed over the course of 2006. SC Magazine described the MailGate Appliance(TM) 5550 as "simple to use but with plenty of power" while providing "a range of powerful anti-spam services behind a deceptively simple interface." * Tumbleweed introduced its Adaptive Image Filtering (AIF) technology, specifically designed to combat the ever-increasing amount of image spam. Tumbleweed's Message Protection Lab found as much as 36 percent of all spam was image-based, yet it is not consistently blocked as a result of outdated signature and reputation-based technologies. Tumbleweed's AIF technology analyzes email images using wavelet transform, an image-processing technique that reduces the image to a mathematical formula that represents the structure of the image but allows "fuzzy matching." This image processing takes into account the image-randomizing practices that spammers rely on to circumvent email filters. Financial Outlook First Quarter of 2007: * The Company currently expects total revenue for the first quarter of 2007 to be between $14.0 million and $15.5 million. * Non-GAAP results are currently expected to range from a loss of $700,000 to income of $200,000, or ($0.01) to $0.00 per share. * GAAP results are currently expected to range from a net loss of $2.0 million to $1.1 million, or $(0.04) to $(0.02) per share, after including an estimated $900,000 for stock-based compensation and $400,000 for the amortization of intangible assets. * Per share amounts are based on an estimated 50.6 million shares outstanding. Full Year 2007: * The Company's currently expects revenue for the full year 2007 to be between $70 million and $75 million. * Non-GAAP income for 2007 is currently expected to be in a range of $5.2 million and $7.5 million, or $0.10 to $0.15 per share. * Including an estimated $3.5 million for stock-based compensation expense and the amortization of intangible assets of $1.2 million, GAAP income is currently estimated to be $500,000 to $2.8 million, or $0.01 to $0.05 per share. * Per share amounts are based on an estimated 51.0 million shares outstanding. Conference Call Information
Tumbleweed management will host a conference call on Thursday, February 1, 2007 at 2:00 p.m. PST (5:00 p.m. EST) to discuss the fourth quarter and full year 2006 results. The call can be accessed by dialing (800) 218-0713 and giving the company name, "Tumbleweed." Participants are asked to call the assigned number approximately 10 minutes before the conference call begins. A replay of the conference call will be available after 5:00 p.m. PST on February 1, 2006 through February 8, 2007 by dialing (800) 405-2236 and entering pass code 11080171#. The conference call and supplemental financial information will also be available on the investor relations portion of the Tumbleweed website.
Safe Harbor Statement
Tumbleweed cautions that forward-looking statements contained in this press release are based on current plans and expectations, and that a number of factors could cause the actual results to differ materially from the guidance given at this time. These factors are described in the Safe Harbor statement below.
Except for the historical information contained herein, the matters discussed in this press release may constitute forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those projected, particularly with respect to its expectations about Tumbleweed's financial outlook for the first quarter of 2007 and for the 2007 year as a whole (including estimated revenue and revenue growth, income and earnings per share on both a GAAP and a non-GAAP basis), as well as its beliefs about Tumbleweed's ability to leverage its success and leadership, in addition to its expectation that the transition of its hardware products to a standard product offering will provide increased product performance and customer satisfaction while allowing Tumbleweed to focus on its core expertise. In some cases, forward-looking statements can be identified by terminology such as "may," "will," "should," "potential," "continue," "expects," "anticipates," "intends," "plans," "believes," "estimates," and similar expressions. For further cautions about the risks of investing in Tumbleweed, we refer you to the documents Tumbleweed files from time to time with the Securities and Exchange Commission, particularly Tumbleweed's Form 10-K filed March 16, 2006 and Form 10-Q filed November 9, 2006, and such filings for the periods referred to above, to be filed subsequently.
Tumbleweed assumes no obligation to update information contained in this press release. Although this release may remain available on Tumbleweed's website or elsewhere, its continued availability does not indicate that Tumbleweed is reaffirming or confirming any of the information contained herein as of a later date.
The non-GAAP financial information included in this press release is not prepared in accordance with generally accepted accounting principals ("GAAP") as it excludes amortization of intangible assets, stock-based compensation expense, and merger-related and other costs. Management believes that the presentation of non-GAAP information may provide useful information to investors because Tumbleweed has historically provided this information and understands that some investors consider it useful in evaluating Tumbleweed's expenses. Management also uses this non-GAAP information, along with GAAP information, in evaluating Tumbleweed's expenses and to compare Tumbleweed's performance with that of its competitors. The non-GAAP results should not be considered a substitute for financial information presented in accordance with generally accepted accounting principles, and may be different from non-GAAP measures used by other companies.
Tumbleweed Communications , the industry's leading pure play messaging security vendor, provides world-class innovative messaging security solutions for organizations of all sizes. Organizations rely on Tumbleweed's solutions to securely manage their Internet communications, spanning email management to file transfers. Tumbleweed has more than 2,400 customers worldwide, representing industries such as Finance, Healthcare, and the U.S. Government. The world's most security conscious organizations rely upon Tumbleweed technology including Bank of America Securities, JP Morgan Chase & Co., the U.S. Food and Drug Administration, and the U.S. Department of Defense. Our award-winning products build on thirteen years of R&D and 25 security patents in the U.S. alone -- many of which are licensed by other security vendors. More information can be found at tumbleweed.com.
Tumbleweed Communications Corp. Condensed Consolidated Balance Sheets December 31, 2006 (in 000s) 12/31/2006 12/31/2005 ASSETS (unaudited) (unaudited) CURRENT ASSETS Cash and cash equivalents $30,511 $26,952 Accounts receivable, net 12,506 9,068 Other current assets 1,938 1,311 TOTAL CURRENT ASSETS 44,955 37,331 Goodwill 48,074 48,074 Intangible assets, net 1,470 3,978 Property and equipment, net 1,820 1,076 Other assets 612 645 TOTAL ASSETS $96,931 $91,104 LIABILITIES & EQUITY CURRENT LIABILITIES Accounts payable $1,808 $527 Accrued liabilities 7,522 5,661 Accrued merger-related and other costs 97 178 Deferred revenue 20,003 17,935 TOTAL CURRENT LIABILITIES 29,430 24,301 LONG TERM LIABILITIES Accrued merger-related and other costs, excluding current portion -- 55 Deferred revenue, excluding current portion 4,728 5,011 Other long term liabilities 63 123 TOTAL LONG TERM LIABILITIES 4,791 5,189 TOTAL LIABILITIES 34,221 29,490 STOCKHOLDERS' EQUITY Common stock 51 50 Additional paid-in capital 359,238 353,424 Treasury stock (796) (796) Deferred stock compensation expense -- (165) Accumulated other comprehensive loss 29 31 Accumulated deficit (295,812) (290,930) TOTAL STOCKHOLDERS' EQUITY 62,710 61,614 TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $96,931 $91,104 Tumbleweed Communications Corp. Condensed Consolidated Statements of Operations December 31, 2006 (in 000s, except per share data) Three Months Ended Twelve Months Ended December 31, December 31, (unaudited) (unaudited) 2006 2005 2006 2005 REVENUES Product revenue $8,731 $4,496 $28,683 $20,945 Service revenue 7,597 6,961 29,664 26,103 Intellectual property and other revenue 366 361 3,647 2,953 NET REVENUE 16,694 11,818 61,994 50,001 COST OF REVENUE Cost of product revenue (1) 1,092 849 4,316 2,597 Provision for excess inventory 933 -- 933 323 Cost of service revenue (1) 1,901 1,395 6,750 5,407 Amortization of intangible assets 234 510 1,467 2,040 GROSS PROFIT 12,534 9,064 48,528 39,634 OPERATING EXPENSES Research and development (1) 3,833 2,921 14,836 12,107 Sales and marketing (1) 8,016 6,015 28,002 25,194 General and administrative (1) 2,308 1,576 10,622 6,013 Amortization of intangible assets 204 321 1,041 1,284 Merger-related and other costs (credits) -- -- -- (96) TOTAL OPERATING EXPENSES 14,361 10,833 54,501 44,502 OPERATING LOSS (1,827) (1,769) (5,973) (4,868) Other income, net 363 327 1,206 982 NET LOSS BEFORE TAXES (1,464) (1,442) (4,767) (3,886) Provision for income taxes 56 -- 115 23 NET LOSS $(1,520) $(1,442) $(4,882) $(3,909) BASIC AND DILUTED NET LOSS PER SHARE $(0.03) $(0.03) $(0.10) $(0.08) RECONCILIATION TO NON-GAAP NET INCOME (LOSS) NET LOSS $(1,520) $(1,442) $(4,882) $(3,909) Stock-based compensation expense 840 62 4,605 510 Amortization of intangible assets 438 831 2,508 3,324 Merger-related and other costs -- -- -- (96) NON-GAAP NET INCOME (LOSS) $(242) $(549) $2,231 $(171) NON-GAAP BASIC AND DILUTED NET INCOME (LOSS) PER SHARE $(0.00) $(0.01) $0.04 $(0.00) WEIGHTED AVERAGE SHARES: BASIC 50,310 49,243 50,007 48,627 DILUTED 50,310 49,243 50,007 48,627 (1) Stock-based compensation expense (credit) is classified as follows: Cost of product revenue $3 $-- $9 $-- Cost of service revenue $36 1 142 2 Research and development 287 (2) 1,256 219 Sales and marketing 69 54 569 168 General and administrative 445 9 2,629 121 $840 $62 $4,605 $510Tumbleweed Communications Corp.
CONTACT: Investors, Scott Wilson of the Blueshirt Group,
+1-415-489-2188, email@example.com, for Tumbleweed Communications
Corp.; or Tim Conley, SVP Finance and CFO of Tumbleweed Communications Corp.,
+1-650-216-2000, firstname.lastname@example.org; or Media, Dan Gould of SHIFT
Communications, +1-415-591-8428, email@example.com, for Tumbleweed
Web site: http://www.tumbleweed.com/
FREMONT, Calif., Feb. 1 /PRNewswire-FirstCall/ -- ActivIdentity Corporation , a global leader in digital identity assurance, will announce financial results for its first fiscal quarter ended December 31, 2006, on Thursday, February 8, 2007, and will host an audio Web cast of its quarterly conference call at 2 p.m. PST (5 p.m. EST) the same afternoon.
The public is invited to listen to the live audio Web cast of ActivIdentity's conference call on the investor relations section of the company's Web site at http://www.actividentity.com/. A replay of the Web cast will be available approximately two hours after the conclusion of the call through March 8, 2007, and an audio replay of the conference call will also be available approximately two hours following the conclusion of the call. The audio replay will remain available until 11:59 p.m. PST on February 12, 2007 and can be accessed by dialing 800-642-1687 or 706-645-9291 and entering the confirmation code 7993732.
ActivIdentity(R) Corporation is the trusted provider of identity assurance solutions for the enterprise, government, healthcare, and financial services markets worldwide. The company provides the only fully-integrated platform enabling organizations to issue, manage and use identity devices and credentials for secure access, secure communications, legally binding digital transactions, as well as intelligent citizen services.
ActivIdentity customers experience multiple benefits including increased network security, protection against identity theft and online fraud, enhanced workforce productivity, business process efficiencies, and regulatory compliance.
ActivIdentity solutions include Smart Employee ID, Enterprise Single Sign On, Strong Authentication, Secure Information and Transactions, and Smart Citizen ID.
More than 15 million users and 4,000 customers worldwide rely on solutions from ActivIdentity. Headquartered in Fremont, Calif., the company has development centers in the United States, Australia, France, and sales and service centers in more than ten countries. For more information, visit http://www.actividentity.com/.
ActivIdentity and ActivCard are registered trademarks in the United States and/or other countries. All other trademarks are the property of their respective owners in the United States and/or other countries.Photo: http://www.newscom.com/cgi-bin/prnh/20051108/SFTU161LOGO
CONTACT: Don King of McGrath/Power, +1-941-748-9695, for ActivIdentity
Web site: http://www.actividentity.com/
SAN JOSE, Calif., Feb. 1 /PRNewswire-FirstCall/ -- Secure Computing Corporation , a leading enterprise gateway security company, today announced record billings of $77.5 million in the fourth quarter and GAAP revenue of $51.6 million for the quarter. This represents a 71% increase in revenue compared to $30.2 million in the same quarter last year. Fourth quarter non-GAAP revenue was $63.2 million. This represents a 109% increase compared to the same quarter last year. On a GAAP basis, net loss was $27.4 million or $0.44 per share. Fourth quarter non-GAAP net income was $5.3 million or $0.07 per fully-diluted share.
"The fourth quarter was exceptional with all product lines meeting or beating their targets," said John McNulty, chairman, president and chief executive officer of Secure Computing. "In 2005 we embarked on a strategy to significantly increase our presence in the industry and to define and become the leader in the enterprise gateway security market. The bold move of acquiring two sizable companies in 2006, has laid a strong foundation for our Company. The results we announced today are a clear indicator that we're on target and our customers and partners are endorsing our strategy."
Fourth Quarter Financial Highlights: * Record billings for the fourth quarter were $77.5 million. This represents a 150% increase compared to $31.0 million in the same quarter last year and a 26% increase compared to billings of $61.6 million in the prior quarter. * GAAP revenue for the fourth quarter was $51.6 million. This represents a 71% increase compared to $30.2 million in the same quarter last year and an 18% increase compared to revenue of $43.7 million in the prior quarter. Non-GAAP revenue for the quarter was $63.2 million. This represents a 109% increase compared to the same quarter last year and a 30% increase compared to non-GAAP revenue of $48.7 million in the prior quarter. * GAAP gross profit in the fourth quarter was 70% of revenue or $36.1 million. Non-GAAP gross profit in the fourth quarter was 75% of revenue or $47.2 million. These non-GAAP results compare to 75% of revenue, or $22.2 million, in the year ago quarter and 76% of revenue, or $37.0 million, in the prior quarter. * GAAP fourth quarter operating expenses were $45.6 million, or 88% of revenue. Non-GAAP operating expenses for the quarter were $38.6 million or 61% of revenue. These non-GAAP results compare to 55% of revenue in the year ago quarter and 64% in the prior quarter. * GAAP operating loss for the fourth quarter was $9.5 million. Fourth quarter non-GAAP operating income was $8.6 million or 14% of revenue, compared to 21% in the same quarter last year and 12% in the prior quarter. * GAAP net loss for the fourth quarter was $27.4 million or $0.44 per share. Fourth quarter non-GAAP net income was $5.3 million or $0.07 per fully-diluted share, compared to non-GAAP net income of $6.7 million, or $0.17 per fully diluted share in the same quarter last year. * Deferred revenue increased $27.1 million, or 28%, bringing the total deferred revenue balance to $122.3 million at the end of December. * Days sales outstanding (DSOs) were 111 days. As we have experienced in previous quarters, the change in DSOs correlates to the change in deferred revenue. Excluding the impact of the increase in deferred revenue, DSOs were 64 days. * Cash and investments were $8.7 million at December 31, 2006. Cash generated from operations in the quarter was $10.1 million.
"I believe our performance in the fourth quarter highlights our team's ability to effectively execute throughout the organization," said Tim Steinkopf, senior vice president of operations and chief financial officer. "Billings, non-GAAP revenue and earnings per share all significantly exceeded our expectations. With the CyberGuard integration complete and the vast majority of the CipherTrust integration now behind us, we believe we are well positioned for a strong 2007."
About Secure Computing
Secure Computing , a leading provider of enterprise gateway security, delivers a comprehensive set of solutions that help customers protect their critical Web, email and network assets. Over half of the Fortune 50 and Fortune 500 are part of our more than 19,000 global customers in 106 countries, supported by a worldwide network of more than 2,000 partners. The company is headquartered in San Jose, Calif., and has offices worldwide. For more information, see http://www.securecomputing.com/.
Secure Computing's Outlook Publication Procedures
Secure Computing publishes an Outlook section in its quarterly operating results press release. The company continues its current practice of having corporate representatives meet privately during the quarter with investors, the media, investment analysts and others. At these meetings Secure Computing refers any questions regarding the current outlook back to the quarterly results press release Outlook section. The quarterly results press release, which includes the Outlook section, is available to the public on the company's Web site (http://www.securecomputing.com/). Unless Secure Computing is in a Quiet Period (described below), the public can continue to rely on the Outlook section that is part of this quarterly operating results press release as still being the company's current expectations on matters covered, unless Secure Computing publishes a notice stating otherwise.
From the close of business on March 15, 2007, until publication of a press release regarding the first quarter 2007 operating results, Secure Computing will observe a Quiet Period. During the Quiet Period, the Outlook section and other forward-looking statements contained in this operating results press release as well as in the company's filings with the SEC, should be considered to be historical, speaking as of prior to the Quiet Period only and not subject to update by the company. During the Quiet Period, Secure Computing representatives will not comment concerning the Outlook section or Secure Computing's financial results or expectations.
The forward-looking statements in this Outlook section are based on current expectations and are subject to risks, uncertainties and assumptions described under the sub-heading "Forward-Looking Statements." Actual results may differ materially from the expectations expressed below.
For the first quarter of 2007 billings are expected to be in the range of $68 to $70 million. On a GAAP basis, revenues are expected to be between $49 and $51 million and GAAP net loss, before the impact of any NOL utilization on tax expense, is expected to be $13.0 to $14.0 million.
On a non-GAAP basis for the first quarter of 2007, revenues are expected to be between $59 and $61 million and non-GAAP income is expected to be between $2.0 and $3.0 million, or $0.03 and $0.04 per fully diluted share assuming a fully diluted weighted average count of approximately 72.5 million.
We expect to generate cash from operations of approximately $12.0 million. Forward Looking Statements
This release contains forward-looking statements concerning revenues, aggregate margins, operating expenses and profitability for this and future quarters, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements in this release involve risks and uncertainties that could cause actual results to differ materially from current expectations. In order to meet these projections, the company must continue to obtain new enterprise relationships with major clients and overall demand for its products must continue to grow at current or greater levels. The company also must be able to motivate and retain key employees and staff current and future projects in a cost-effective manner and must effectively control its marketing, research, development and administrative costs, including personnel expenses. There can be no assurance that demand for the company's products will continue at current or greater levels, or that the company will continue to grow revenues, or be profitable. There are also risks that the company's pursuit of providing network security technology might not be successful, or that if successful, it will not materially enhance the company's financial performance; that changes in customer requirements and other general economic and political uncertainties and weaknesses in geographic regions of the world could impact the company's relationship with its customers, partners and alliances; and that delays in product development, competitive pressures or technical difficulties could impact timely delivery of next-generation products; and other risks and uncertainties that are described from time to time in Secure Computing's periodic reports and registration statements filed with the Securities and Exchange Commission. The company specifically disclaims any responsibility for updating these forward- looking statements.
Use of Non-GAAP Financial Measures
Secure Computing provides financial statements that are prepared in accordance with GAAP. In addition, this press release also provides financial measures of results of operations that are not calculated in accordance with GAAP. Our non-GAAP results are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our Management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our historical and prospective financial performance and make operating decisions. Management also believes that these non-GAAP financial measures enhance the investors' ability to evaluate the company's operating results and to compare current operating results to historical operating results. A reconciliation of the GAAP to non-GAAP financial measures for the fourth quarter and year to date, along with the use and economic substance of each non-GAAP financial measure, are provided at the end of this press release.
Editorial Contact: Mary Catherine Bassett firstname.lastname@example.org 678-904-3681 Investor Contact: Jane Underwood email@example.com 408-979-6186 Condensed Statement of Operations (Unaudited, in thousands, except for per share amounts) Three Months Ended Twelve Months Ended December 31, December 31, 2006 2005 2006 2005 Revenues: Products $33,858 $22,374 $115,628 $79,339 Services 17,728 7,860 61,069 29,836 Total revenues 51,586 30,234 176,697 109,175 Cost of revenues: Products 8,922 6,217 31,540 16,876 Services 3,758 1,280 11,756 5,173 Amortization of purchased intangibles 2,837 --- 5,862 --- Total cost of revenues 15,517 7,497 49,158 22,049 Gross profit 36,069 22,737 127,539 87,126 Operating expenses: Selling and marketing 27,177 10,515 84,505 42,309 Research and development 10,519 4,162 34,073 16,781 General and administrative 4,222 1,879 13,608 7,189 Amortization of purchased intangibles 3,636 101 10,626 496 Litigation settlement --- --- 2,500 --- 45,554 16,657 145,312 66,775 Operating (loss)/income (9,485) 6,080 (17,773) 20,351 Other (expense)/income (2,522) 679 (120) 1,631 (Loss)/income before tax (12,007) 6,759 (17,893) 21,982 Income tax (expense)/ benefit (15,416) (185) (9,505) (608) Net (loss)/income $(27,423) $6,574 $(27,398) $21,374 Preferred stock accretion (897) --- (3,550) --- Charge from beneficial conversion of preferred stock --- --- (12,603) --- Net (loss)/income applicable to common shareholders $(28,320) $6,574 (43,551) $21,374 Basic (loss)/earnings per share $(0.44) $0.18 $(0.76) $0.59 Weighted average shares outstanding - basic 64,594 36,876 57,010 36,338 Diluted (loss)/ earnings per share $(0.44) $0.17 $(0.76) $0.57 Weighted average shares outstanding - diluted 64,594 38,728 57,010 37,709 Condensed Consolidated Balance Sheets Subject to Reclassification (In thousands) Dec. 31, Dec. 31, 2006 2005 Assets Cash and cash equivalents $8,249 $50,039 Investments 457 31,140 Accounts receivable, net 63,637 29,795 Inventory, net 4,078 2,174 Deferred income taxes --- 3,604 Other current assets 13,948 4,869 Total current assets 90,369 121,621 Property and equipment, net 14,300 3,841 Goodwill 533,658 39,230 Intangibles, net 78,388 1,814 Other assets 7,413 5,257 Total assets $724,128 $171,763 Liabilities and stockholders' equity Accounts payable 12,442 2,997 Accrued payroll 12,035 4,690 Accrued expenses 6,365 2,377 Acquisition reserves 1,418 389 Deferred revenue 86,612 29,097 Current portion of long-term debt 900 --- Total current liabilities 119,772 39,550 Acquisition reserve, net of current portion 1,591 364 Deferred revenue, net of current portion 35,671 9,966 Deferred tax liability 7,672 --- Debt, net of current portion 84,123 --- Total liabilities 248,829 49,880 Convertible preferred stock 65,558 --- Stockholders' equity Common stock 651 370 Additional paid-in capital 538,616 205,970 Accumulated deficit (127,248) (83,698) Accumulated other comprehensive loss (2,278) (759) Total stockholders' equity 409,741 121,883 Total liabilities and stockholders' equity $724,128 $171,763 Condensed Consolidated Statement of Cash Flows Subject to Reclassification (Unaudited, in thousands) Twelve months ended December 31, 2006 2005 Operating activities Net (loss)/income $(27,398) $21,374 Adjustments to reconcile net (loss)/income from continuing operations to net cash provided by operating activities: Depreciation 4,554 2,214 Amortization of intangible assets 17,011 881 Loss on disposals of property and equipment and intangible assets 999 486 Amortization of debt fees 155 --- Utilization of acquired NOL 302 --- Deferred income taxes 8,184 --- Share-based compensation 10,556 --- Changes in operating assets and liabilities, excluding effects of acquisitions: Accounts receivable (12,112) (9,532) Inventories 161 621 Other current assets (38) 619 Accounts payable 5,300 419 Accrued payroll 3,076 630 Accrued expenses (4,263) 845 Acquisition reserves (14,297) (619) Deferred revenue 43,933 9,616 Net cash provided by operating activities 36,123 27,554 Investing activities Proceeds from sales/maturities of investments 46,434 13,193 Purchases of investments (15,406) (29,921) Purchase of property and equipment, net (11,841) (2,496) Increase in intangibles and other assets, excluding effects of acquisitions (1,785) (4,867) Cash paid for business acquisitions, net of cash acquired (256,743) --- Net cash used for investing activities (239,341) (24,091) Financing activities Proceeds from revolving debt 8,500 --- Proceeds from long-term debt, net of transaction fees 86,868 --- Proceeds from issuance of preferred stock and warrant, net of transaction fees 69,945 --- Proceeds from issuance of common stock 8,144 8,738 Repayments of long-term debt and revolver (10,500) --- Net cash provided by financing activities 162,957 8,738 Effect of exchange rates (1,529) (61) Net (decrease)/increase in cash and cash equivalents (41,790) 12,140 Cash and cash equivalents, beginning of period 50,039 37,899 Cash and cash equivalents, end of period $8,249 $50,039 Reconciliation of Consolidated GAAP Financial Measures to Non-GAAP Financial Measures (Unaudited, in thousands, except per share amounts) Three Months Ended Twelve Months Ended December 31, December 31, 2006 2005 2006 2005 NET REVENUES: GAAP net revenues $51,586 $30,234 $176,697 $109,175 Fair value adjustment to CipherTrust deferred revenue (A) 3,798 -- 5,187 -- VSOE adjustment to CipherTrust product revenue (B) 7,793 -- 11,342 -- Non-GAAP net revenues $63,177 $30,234 $193,226 $109,175 GROSS PROFIT: GAAP gross profit $36,069 $22,737 $127,539 $87,126 Fair value adjustment to CipherTrust deferred revenue (A) 2,659 -- 3,700 -- VSOE adjustment to CipherTrust product revenue (B) 5,455 -- 8,110 -- Stock-based compensation (C) 223 -- 923 -- Amortization of acquired intangible assets (D) 2,837 -- 5,862 -- Non-GAAP gross profit $47,243 $22,737 $146,134 $87,126 OPERATING EXPENSES: GAAP operating expenses $45,554 $16,657 $145,312 $66,775 Stock-based compensation (C) (3,314) -- (9,633) -- Amortization of acquired intangible assets (D) (3,636) (101) (10,626) (496) One-time expenses and write-offs (E) -- -- (2,575) -- Litigation settlement (F) -- -- (2,500) -- Non-GAAP operating expenses $38,604 $16,556 $119,978 $66,279 OPERATING (LOSS)/INCOME: GAAP operating (loss)/income $(9,485) $6,080 $(17,773) $20,351 Fair value adjustment to CipherTrust deferred revenue (A) 2,659 -- 3,700 -- VSOE adjustment to CipherTrust product revenue (B) 5,455 -- 8,110 -- Stock-based compensation (C) 3,537 -- 10,556 -- Amortization of acquired intangible assets (D) 6,473 101 16,488 496 One-time expenses and write-offs (E) -- -- 2,575 -- Litigation settlement (F) -- -- 2,500 -- Non-GAAP operating income $8,639 $6,181 $26,156 $20,847 NET (LOSS)/INCOME: GAAP net (loss)/income $(27,423) $6,574 $(27,398) $21,374 Fair value adjustment to CipherTrust deferred revenue (A) 2,659 -- 3,700 -- VSOE adjustment to CipherTrust product revenue (B) 5,455 -- 8,110 -- Stock-based compensation (C) 3,537 -- 10,556 -- Amortization of acquired intangible assets (D) 6,473 101 16,488 496 One-time expenses and write-offs (E) -- -- 2,575 -- Litigation settlement (F) -- -- 2,500 -- Non-cash tax expense (G) 14,579 -- 8,184 -- Non-GAAP net income $5,280 $6,675 $24,715 $21,870 WEIGHTED AVERAGE SHARES OUTSTANDING: Weighted average shares outstanding - basic 64,594 36,876 57,010 36,338 Common stock equivalents (H) 1,145 1,852 1,119 1,371 Preferred stock as-if converted to common stock (I) 5,764 -- 5,551 -- Shares used to compute net income per share - diluted 71,503 38,728 63,680 37,709 Non-GAAP net income per share - diluted (J) $0.07 $0.17 $0.39 $0.58 Reconciliation of Projected GAAP Financial Measure to Non-GAAP Financial Measures (Unaudited, in thousands, except per share amounts) Three Months Ended March 31, 2007 REVENUES: GAAP revenue range $49,000 - $51,000 Fair value adjustment to CipherTrust deferred revenue - projected (A) 2,800 VSOE adjustments to CipherTrust product revenue - projected (B) 7,200 Non-GAAP revenue range $59,000 - $61,000 (LOSS)/INCOME BEFORE TAX IMPACT OF NOL UTILIZATION GAAP (loss) before taxes $(14,000) $(13,000) Fair value adjustment to CipherTrust deferred revenue - projected (A) 1,960 VSOE adjustments to CipherTrust product revenue - projected (B) 5,040 Stock-based compensation - projected (C) 4,000 Amortization of acquired intangibles - projected (D) 5,000 Non-GAAP income before tax impact of NOL utilization $2,000 - $ 3,000 Shares used to compute income per share 72,500 72,500 Non-GAAP income per share $0.03 $0.04
Our management regularly uses these non-GAAP financial measures internally to understand, manage and evaluate our historical and prospective financial performance and make operating decisions. We believe that presentation of the non-GAAP financial measures presented above is useful to an investors' ability to evaluate the company's operating results from management's perspective and to compare current operating results to historical operating results. Disclosure of these non-GAAP financial measures also facilitates comparisons of our operating performance with the performance of other companies in our industry that supplement their GAAP results with non-GAAP financial measures that are calculated in a similar manner. Our management adjusts for each of the items noted above, for the reasons described below.
(A) Fair value adjustment to CipherTrust deferred revenue. Non-GAAP revenues and gross profit include revenues and costs associated with CipherTrust deferred revenue and deferred costs that were excluded from GAAP revenue and gross profit as a result of purchase accounting adjustments to fair value. In our non-GAAP measures we have included these revenues and costs because we believe they are most reflective of our ongoing operating results and are useful for comparisons to historical operating performance. We further believe the impact of these purchase accounting adjustments will become immaterial in the near-term.
(B) VSOE adjustment to CipherTrust product revenue. GAAP revenue and gross profit is negatively impacted by CipherTrust product billings that were deferred because we were unable to establish VSOE of fair value of the undelivered elements that were sold with the product. Non-GAAP revenues and gross profit presented above have been adjusted to include revenues and gross profits that would have been reported, had we been able to establish VSOE of fair value of the undelivered elements that were sold with CipherTrust product billings. We believe these adjustments are most reflective of our ongoing operations in the current period and are useful for comparisons to historical operating performance. We further believe the impact of this item on our GAAP revenues and gross profit will become immaterial in the near-term.
(C) Stock-based compensation. Consists of expenses for employee stock options, restricted stock units, and employee stock purchase plan determined in accordance with SFAS 123R, which was effective for Secure as of January 1, 2006. We exclude these stock-based compensation expenses when we review our operating performance because they represent compensation expense in the form of equity, rather than cash, and are not indicative of how we view our historical and prospective operational performance. Further, we believe it is useful to investors to understand the impact of the application of SFAS 123R to our results of operations. For the three and twelve months ended December 31, 2006 and 2005, stock-based compensation was allocated as follows:
Three Months Ended Twelve Months Ended December 31, December 31, 2006 2005 2006 2005 Cost of revenues $223 $-- $923 $-- Selling and marketing 1,927 -- 5,255 -- Research and development 917 -- 2,542 -- General and administrative 470 -- 1,836 -- Total stock-based compensation expense $3,537 $-- $10,556 $--
(D) Amortization of acquired intangible assets. The amounts recorded as amortization of acquired intangible assets arise from prior acquisitions and are non-cash in nature. We exclude these expenses when we review our operating performance because we believe, that although these assets contribute to our revenue generating activities, they are inconsistent in amount and frequency and are impacted by the timing and magnitude of our acquisitions. Further, they are not indicative of how we view our operating performance in the period incurred and in comparison to historical and prospective periods. For the three and twelve months ended December 31, 2006 and 2005, amortization of intangibles was allocated as follows:
Three Months Ended Twelve Months Ended December 31, December 31, 2006 2005 2006 2005 Cost of revenues $2,837 $-- $5,862 $-- Operating expenses 3,636 101 10,626 496 Total amortization of acquired intangible assets $6,473 $101 $16,488 $496
(E) One-time expenses and write-offs. These amounts arise from severance due to acquisition related restructurings, duplicate and one-time integration costs, facility move costs, and the write-off of an asset that was deemed to be fully impaired as a result of our recent acquisition of CipherTrust. We exclude these expenses because we believe they are not reflective of how we view our operating performance in the period incurred, are not recurring in nature and are not meaningful in evaluating our operating performance in comparison to historical operating performance. For the three and twelve months ended December 31, 2006 and 2005, one-time expenses and write-offs were allocated as follows:
Three Months Ended Twelve Months Ended December 31, December 31, 2006 2005 2006 2005 Selling and marketing -- -- $1,742 -- Research and development -- -- 180 -- General and administrative -- -- 653 -- Total one-time expenses and write-offs $-- $-- $2,575 $--
(F) Litigation settlement. This amount represents the settlement of litigation brought by the landlord of our former Concord, CA office. We exclude this expense in our non-GAAP operating results because we believe it is not reflective of how we view our operating performance in the period incurred and is not recurring in nature.
(G) Non-cash tax expense. These amounts represent the impact from the utilization of purchased net operating loss carry forwards and an increase in the valuation allowance that has been established against our net deferred tax asset. We exclude these expenses because they are non-cash expenses that we believe are not reflective of how we view our operating performance.
(H) Common stock equivalents. Represents the common stock equivalents of stock options and restricted stock outstanding at the end of the reported period.
(I) Preferred stock as-if converted to common stock. Represents the as-if conversion of outstanding preferred shares to common shares at the end of the reported period.
(J) Non-GAAP net income per share. Excludes the impact of preferred stock accretion and a charge for the beneficial conversion of preferred stock.
Material Limitations Associated with Use of Non-GAAP Financial Measures
The non-GAAP financial measures provided in this press release may have limitations as analytical tools, and these measures should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Some of the limitations in relying on these non-GAAP measures are:
* Items such as fair value adjustments to CipherTrust deferred revenue and VSOE adjustments to CipherTrust product revenue, do not generate additional cash and therefore should not be considered in analyzing cash flows. * Items such as one-time expenses and write-offs that are excluded from non-GAAP operating results can have a material impact on cash flows and earnings per share. * The adjustments for items such as stock-based compensation, amortization of acquired intangible assets, and tax impact of NOL utilization, though not directly affecting our cash position, do affect earnings per share. * Other companies may calculate these non-GAAP measures differently than we do, limiting the usefulness of those measures for comparative purposes.
Compensation for Limitations Associated with Use of Non-GAAP Financial Measures
We compensate for the limitations on our use of non-GAAP financial measures by primarily relying on our GAAP results and using non-GAAP financial measures only supplementally. We also provide detailed reconciliations of each non-GAAP financial measure to its most directly comparable GAAP measure within this press release and we encourage investors to carefully review those reconciliations.
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CONTACT: Editorial, Mary Catherine Bassett, +1-678-904-3681,
firstname.lastname@example.org, or Investors, Jane Underwood,
+1-408-979-6186, email@example.com, both of Secure Computing
Web site: http://www.securecomputing.com/
LAKE SUCCESS, N.Y., Feb. 1 /PRNewswire-FirstCall/ -- DealerTrack Holdings, Inc. , today announced that it has completed its acquisition of Curomax Corporation. Curomax, based in Toronto, Ontario, is a leading online financing portal in Canada.
"We are excited about this opportunity to combine the strengths of DealerAccess and Curomax to provide best-in-class technology and service for our Canadian customers," said Mark O'Neil, chairman and chief executive officer of DealerTrack Holdings, Inc. "Dealers will benefit from a single point of entry with access to approximately 35 lenders, and we expect our lender customers will achieve greater operational efficiencies and lower operating costs."
About DealerAccess Canada Inc.
DealerAccess Canada Inc., an affiliate of DealerTrack Holdings, Inc., is a leading technology solution provider to the automotive finance sector in Canada. Its innovative portal enables dealers to connect through the internet to multiple lending institutions that provide loans and leases to buyers at the point-of-sale. DealerAccess currently offers financing from 24 national and regional lenders. DealerAccess recently released an integrated subscription-based software product that enables dealerships to capture consumer leads from their websites directly into the portal. More information on DealerAccess Canada Inc. can be found at http://www.dealeraccess.com/.
About Curomax Corporation
Curomax, a leading online finance platform in Canada, connects automobile, marine, recreational vehicle, motorcycle, power sport and home improvement dealers across North America to financial institutions and credit bureau providers through a single application over the Internet. Dealers can conveniently submit transactions to the lender of choice, obtain on-line, real-time credit decisioning, update deal status and produce all necessary loan or lease documentation through the Curomax portal. For more information, visit http://www.curomax.com/.
DealerTrack Holdings, Inc. is a leading provider of on- demand software and data solutions for the U.S. automotive retail industry. The company's online credit application processing product automates and accelerates the automotive financing process, while its integrated subscription-based software enables dealers to receive consumer leads, compare financing and leasing options, sell insurance and other aftermarket products, document compliance, and execute financing contracts electronically. Over 22,000 dealers, with more than 85% of all U.S. franchised dealers; over 300 financing sources, including the 20 largest U.S. independents; and other service and information providers are active in the DealerTrack network.
Safe Harbor for Forward-Looking and Cautionary Statements
Statements in this press release regarding DealerTrack, the benefits of this acquisition and the combination of the Curomax and DealerAccess businesses, its growth prospects, and all other statements in this release other than the recitation of historical facts are forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995). These statements involve a number of risks, uncertainties and other factors that could cause actual results, performance or achievements of DealerTrack to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements.
Factors that might cause such a difference include: the ability to retain Curomax's customer base, the ability to integrate Curomax's business, additional risks associated with international operations, and other risks listed in the Company's reports filed with the SEC, including the 2005 Form 10-K. These filings can be found on DealerTrack's website at http://www.dealertrack.com/ and the SEC's website at http://www.sec.gov/. Forward-looking statements included herein speak only as of the date hereof and the Company disclaims any obligation to revise or update such statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events or circumstances.
CONTACT: Liz Zale DealerTrack Holdings, Inc. (516) 734-3758 Liz.Zale@dealertrack.comDealerTrack Holdings, Inc.
CONTACT: Liz Zale of DealerTrack Holdings, +1-516-734-3758, or
Web site: http://www.dealeraccess.com/
BEDMINSTER, N.J., Feb. 1 /PRNewswire-FirstCall/ -- AT&T Inc. recently announced the recipients of AT&T's new Solution Provider Champion awards at the 2007 AT&T National Alliance Channel Kickoff meeting in Dallas. The AT&T National Alliance Channel program focuses on solution providers who work with AT&T to serve the needs of midsized to large enterprise customers that operate on a national scale.
AT&T recognizes solution providers who have achieved the highest level of performance. National Solution Provider Champions combine their own program management and services capabilities with the power of AT&T's network management, customer care and billing and have, over the past year, demonstrated expertise in providing a wide range of solutions that fuel their customers' growth.
"The National AT&T Solution Provider Champions designation represents quality, reliability and excellence," said Celine Azizkhan, National Alliance Channel chief. "As a result of their dedication, our National Solution Provider Champions are able to deliver on their promise to meet their customers' business technology needs, and AT&T is proud to recognize the achievements of this select group."
AT&T solution providers offer the full range of award-winning AT&T services, including virtual private networks (VPNs), hosting and security services, to midsized to large companies. AT&T also plans to announce its regional awards later this year to recognize those solution providers who work with AT&T on a local and regional basis.
The 2007 AT&T National Solution Provider Champions are: Alliance Datacom, L.P. Alliant Technologies Atlanta Datacom, Inc. BEK Networks, Inc. Benchmark Solutions, Inc. BriCon Communications Inc. CDW Logistics, Inc. Configure Inc. Data Processing Sciences Corp Epifany G3 Networks, LLC Global Linking Solutions GlobeTrend Technologies LLC Go2 Communications, Inc. International Data Solutions, Inc. International Integrated Solutions, Ltd. iVergent Inc. KM&M International, Inc. Lightstream Communications, Inc. Links Communication Inc. Media Systems, LLC MSI Systems Integrators, Inc. Netcomp Communications Group Inc. Network Access Products, Inc. Networking Negotiators, Inc. NextGen Networks, Inc. Pavlov Media, Inc. Prescient Outsourcing Resource Communications Group, LLC RKON, Inc. Solarcom LLC Spohn & Associates, Inc. SWA Consulting TCI Communications,Inc. Technology Brokerage Group, LLC Telecom Brokerage, Inc. Telecom Logistics, Inc. VanRan Communications, Inc. Xtelesis Corporation Zulli & Associates
Note: This AT&T release and other news announcements are available as part of an RSS feed at http://www.att.com/rss .
AT&T Inc. is a premier communications holding company in the United States and around the world, with operating subsidiaries providing services under the AT&T brand. AT&T is the recognized world leader in providing IP-based communications services to businesses and the U.S. leader in providing wireless, high speed Internet access, local and long distance voice, and directory publishing and advertising through its Yellow Pages and YELLOWPAGES.COM organizations. As part of its three-screen integration strategy, AT&T is expanding video entertainment offerings to include such next-generation television services as AT&T U-verse(SM) TV. Additional information about AT&T Inc. and the products and services provided by AT&T subsidiaries and affiliates is available at http://www.att.com/ .
AT&T is a registered trademark of AT&T Knowledge Ventures. Subsidiaries and affiliates of AT&T Inc. provide products and services under the AT&T brand. For more information, please review this announcement in the AT&T newsroom at http://www.att.com/newsroom .AT&T Inc.
CONTACT: McCall Butler of AT&T, +1-703-731-3735, firstname.lastname@example.org
Web site: http://www.att.com/
LAKE FOREST, Calif., Feb. 1 /PRNewswire-FirstCall/ -- Western Digital Corp. today announced that it will participate in the following investor conference:
Event: Thomas Weisel Partners Technology Conference 2007 Date: Wednesday, February 7, 2007 Time: 11:30 a.m. PST/2:30 p.m. EST
The live and archived webcast will be available on the Presentations page in the Investor Relations section of WD's Web site at http://www.westerndigital.com/investor/ .
WD, one of the storage industry's pioneers and long-time leaders, provides products and services for people and organizations that collect, manage and use digital information. The company produces reliable, high-performance hard drives that keep users' data close-at-hand and secure from loss. WD applies its storage expertise to consumer products for external, portable and shared storage products.
WD was founded in 1970. The company's storage products are marketed to leading systems manufacturers, selected resellers and retailers under the Western Digital and WD brand names. Visit the Investor section of the company's Web site (http://www.westerndigital.com/) to access a variety of financial and investor information.
Western Digital, WD and the WD logo are registered trademarks of Western Digital Technologies, Inc. All other trademarks herein are property of their respective owner.
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CONTACT: Bob Blair, Investor Relations, +1-949-672-7834,
email@example.com, or Steve Shattuck, Public Relations, +1-949-672-7817,
firstname.lastname@example.org, both of Western Digital Corp.
Web site: http://www.westerndigital.com/investor
Web site: http://www.westerndigital.com/
PHOENIX, Feb. 1 /PRNewswire-FirstCall/ -- iLinc Communications, Inc. , developers of Web conferencing software and audio conferencing solutions, today announced the launch of its iReduce(TM) program that is designed to foster the use of Web conferencing to directly and materially impact global warming. Through iLinc's iReduce campaign and use of new online tools, customers may now proactively raise awareness of the Carbon Dioxide emission reductions that can be achieved by utilization of iLinc's Web collaboration software and services.
The iReduce program has three core components. The first component is designed to provide online tools that provide immediate and detailed information concerning the positive impact that usage of Web conferencing may have on the reduction of harmful green house gases. iLinc's award-winning software will now automatically calculate the distances between online participants during each session, and then using certified carbon reduction calculators provide a calculation of the tons of carbon dioxide emissions that were saved during the online meeting. The second component of the iReduce program will extend to qualifying carbon-neutral companies and non-profit organizations discounts on the purchase and utilization of iLinc's software and services, which is designed to reward companies that have committed to positively impacting this important global issue. The third component is an inward facing one that is designed to make iLinc a better corporate citizen by becoming carbon-neutral itself by the end of this year.
iLinc will launch a new version of its Website tomorrow that will provide further details on participation in the iReduce program. iLinc also will launch its fully-integrated iReduce carbon reduction calculator in version 8.5 of the iLinc Suite(TM) that is due for release in mid February. Customers will be able to calculate the immediate positive impact that use of Web conferencing has had on the environment and share that information with co- workers and online guests. More information about the iReduce program will be found on the Company's new Web site located at http://www.ilinc.com/.
"We know that our technology is used by thousands of people on a global basis every day to reduce local automobile trips and airplane travel, while also increasing business efficiency. It seemed natural and worthwhile to provide customers with an accurate and tangible measure of the positive impact that their actions were having on our environment. We hope that our new iReduce program will help customers get involved in what we view as an important corporate program and global initiative. While iLinc's direct impact is small in global terms, we believe that extension of our conferencing software and our iReduce program to our customers, partners, vendors and other organizations will make a material difference," said James M. Powers, Jr., President and Chief Executive Officer of iLinc Communications.
About iLinc Communications, Inc.
iLinc Communications, Inc. is a leading developer of Web conferencing software and audio (phone) conferencing services for highly secure and cost- effective collaborative meetings, presentations, and training sessions. The Company enables customers to purchase and own iLinc Web conferencing software, which can be installed inside of a customer's network or hosted by iLinc. iLinc's products and services are used by organizations worldwide in sales, HR and training, marketing, and customer support. More information about the Phoenix-based Company may be found on the Company's Web site located at http://www.ilinc.com/.
iLinc, iLinc Communications, iLinc Suite, iReduce, MeetingLinc, LearnLinc, ConferenceLinc, SupportLinc, EventPlus, On-Demand, and its logos are trademarks or registered trademarks of iLinc Communications, Inc. All other company names and products may be trademarks of their respective companies.iLinc Communications, Inc.
CONTACT: Mark R. Yeager, Vice President of Marketing of iLinc
Communications, +1-602-952-1200, email@example.com
Web site: http://www.ilinc.com/
DURHAM, N.C., Feb. 1 /PRNewswire-FirstCall/ -- Cree, Inc. , a leader in power and LED solid-state lighting components, today announced the addition of four experienced sales executives to its regional US and European sales leadership. These new sales professionals, combined with the recent announcements of multinational distribution agreements with Arrow Electronics, DigiKey and WPI, demonstrate continued progress in the expansion of Cree's sale channels for component-level products.
"One of Cree's most important initiatives is focused on creating a world- class field sales and marketing organization," notes Bob Pollock, Cree senior vice president of worldwide sales. "We recently signed agreements with three top-tier distributors and are now engaging expert direct sales professionals to help drive Cree's growth into the developing markets for energy-efficient lighting and silicon carbide-based power devices." Pollock joined Cree from Philips Lumileds in October to spearhead Cree's sales expansion efforts.
Sales professionals now working with Cree include: Giuliano Cassataro, most recently with Tecnika Due srl, who will support southern Europe; Derek Tibbitts, who has worked as European channel manager for Agilent Technologies and Hewlett-Packard Semiconductor Products Group, will support northern Europe; Vince Feorenzo, most recently director of distribution and channels at Avago Technologies, will support the eastern United States; and Jerry Kolansky, who was most recently president of sales for flash memory maker M- Systems and had also been vice president of sales at HP and Agilent Technologies Semiconductor Products Group, will support the western United States and Canada.
For additional information on Cree LED, power and wireless products, please call 919-313-5300 or visit http://www.cree.com/.
About Cree, Inc.
Cree is a market-leading innovator and manufacturer of semiconductors and devices that enhance the value of solid-state lighting, power and communications products by significantly increasing their energy performance and efficiency. Key to Cree's market advantage is its world-class materials expertise in silicon carbide (SiC) and gallium nitride (GaN) for chips and packaged devices that can handle more power in a smaller space while producing less heat than other available technologies, materials and products.
Cree drives its increased performance technology into multiple applications, including exciting alternatives in brighter and more-tunable light for general illumination, backlighting for more-vivid displays, optimized power management for high-current, switch-mode power supplies and variable-speed motors, and more-effective wireless infrastructure for data and voice communications. Cree customers range from innovative lighting-fixture makers to defense-related federal agencies.
Cree's product families include blue and green LED chips, lighting LEDs, LED backlighting solutions, power-switching devices and radio- frequency/wireless devices. For additional product specifications please refer to http://www.cree.com/.
This press release contains forward-looking statements involving risks and uncertainties, both known and unknown, that may cause actual results to differ materially from those indicated. Actual results may differ materially due to a number of factors, including variations in demand for Cree's products and its customers' products; increasing price competition in key markets; rapid development of new technology and competing products that may impair demand or render Cree's products obsolete; and other factors discussed in Cree's filings with the Securities and Exchange Commission, including its report on Form 10-K for the year ended June 25, 2006, and subsequent filings.
Cree is a registered trademark of Cree, Inc.Cree, Inc.
CONTACT: Deb Lovig, Marketing Communications, of Cree, Inc.,
+1-919-287-7505, or Deb_Lovig@cree.com
Web site: http://www.cree.com/
SAN DIEGO and MELBOURNE, Fla., Feb. 1 /PRNewswire-FirstCall/ -- Harris Corporation , an international communications and information technology company, has successfully completed another major milestone in a $1 billion U.S. Navy communications program competition: logging onto a Milstar satellite using an Advanced Extremely High Frequency (AEHF) Navy Multiband Terminal prototype system onboard a platform that simulates submarine conditions. The announcement was made during West 2007 (Harris Booth #1120) being held January 31 - February 2 at the San Diego Convention Center. West 2007 is co-sponsored by the Armed Forces Communications and Electronics Association (AFCEA) International and the U.S. Naval Institute.
With this milestone, Harris has successfully demonstrated low data rate (LDR), medium data rate (MDR) and extended data rate (XDR) logon for the various ship and shore terminals -- including submarine mast and periscope versions -- under simulated platform motion consistent with high-sea states. The successful demonstrations are the culmination of three years of waveform design and hardware/software development as part of the AEHF Navy Multiband Terminal program.
"We are very pleased with this successful test as we continue to demonstrate our AEHF Navy Multiband Terminal's LDR, MDR and XDR communications capabilities," said Sheldon Fox, vice president and general manager of Department of Defense Programs, Harris Government Communications Systems Division. "Harris has successfully demonstrated logon, uplink and downlink capabilities with the Milstar 6 satellite ahead of schedule, and the Harris AEHF Navy Multiband Terminal team is poised for successful completion prior to the upcoming PT1 milestone in March."
An SCA 2.2.1-compliant software programmable modem developed by Harris was instrumental in all successful demonstrations. Logons to the Milstar satellite were performed at the Harris Naval SATCOM Integration and Test Facility in Palm Bay, Florida, utilizing a KGV-136, the newest generation cryptographic unit. The SATCOM Integration and Test Facility is part of the company's advanced Net-centric Test Bed.
Harris won a contract in 2003 to develop four prototypes for the next- generation AEHF Navy Multiband Terminal. The U.S. Space and Naval Warfare Systems Command is scheduled to perform a competitive downselect and issue a contract in June 2007 for the engineering development model phase of the program.
The NMT Phase 1 Program is a 43-month effort to design and develop prototype Q-band SATCOM submarine, shipboard and shore terminals in support of the U.S. Navy's FORCEnet concept. Additional phases will add high-performance Ka- and X-band capabilities to the common terminal. The resulting system will replace current single- and dual-band terminals, yielding significant lifecycle cost reductions and improved reliability. This approach offers the Navy better access to SATCOM assets and increased bandwidth, as well as protection from jamming and interception of transmissions. Once fielded, the AEHF NMT will serve as the common element for naval information networks, providing interconnection of individual naval assets with other services and the Global Information Grid.
About Harris Corporation
Harris is an international communications and information technology company serving government and commercial markets in more than 150 countries. Headquartered in Melbourne, Florida, the company has annual sales of about $4 billion and more than 14,000 employees - including more than 6,000 engineers and scientists. Harris is dedicated to developing best-in-class assured communications(TM) products, systems, and services for global markets, including government communications, RF communications, broadcast communications, and wireless transmission network solutions. Additional information about Harris Corporation is available at http://www.harris.com/
Sound interesting? Find great jobs at Harris: http://www.careers.harris.com/ Forward-Looking Statements
This press release contains forward-looking statements that reflect management's current expectations, assumptions and estimates of future performance and economic conditions. Such statements are made in reliance upon the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The company cautions investors that any forward-looking statements are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements. Statements about the expected value of the program to Harris are forward-looking and involve risks and uncertainties. Other factors that may impact the company's results and forward-looking statement may be disclosed in the company's filings with the SEC. Harris disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.Harris Corporation
CONTACT: Sleighton Meyer, Government Communications Systems Division,
+1-321-727-6514, or firstname.lastname@example.org, Brent Dietz, Corporate
Headquarters, +1-321-724-3554, or email@example.com
SAN DIEGO, Feb. 1 /PRNewswire-FirstCall/ -- Anacomp Inc. , an industry leader in outsourced document management solutions today announced the appointment of Howard Dratler as its Chief Executive Officer.
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Mr. Dratler is a seasoned executive with more than 25 years of experience in successfully leading sales, marketing and service functions at innovative technology companies. His appointment at Anacomp brings an abundance of executive management, sales and operations expertise in addition to strong leadership and business relationships from across the IT industry.
Prior to joining Anacomp, Mr. Dratler served as the Executive Vice President of Field Operations for EMC / Captiva Software, a leading global provider of enterprise data capture software that was acquired by EMC in December 2005. Before joining Captiva, he served as the Executive Vice President of Field Operations for Allocity, a venture capital funded start-up targeting the email application storage market. Prior to that, Dratler served in a variety of executive positions at VERITAS Software, most recently as Vice President/GM of strategic platform alliances, where he developed and executed business expansion strategies.
"Howard brings a wealth of sales and operations experience to Anacomp, and he has a tremendous track record of success in growing profitable revenues and helping companies achieve their business potential," said Michael Tennenbaum, Anacomp's Chairman. "We are very pleased to welcome Howard to Anacomp, and are confident he will be able to lead us through a period of vigorous growth during which we expect to add to our existing range of products and services, expand into new markets and take on new challenges."
"I'm excited to join Anacomp at a time when the company is transforming its service offerings to take advantage of the market opportunities in the document management business," said Dratler. "I look forward to helping Anacomp leverage its strong customer base, its technology and professional service teams to better serve the needs of its current customer base and the larger market."
About Anacomp Inc.
Anacomp provides document management as a service and provides authorized vendor neutral support of storage and network devices. Our docHarbor solutions address your evolving document needs to deliver services that complement your systems and business practices. docHarbor provides paper, digital and film-based document preparation, scanning, indexing, and conversion services; scan-to-web access to information; robust web presentment and storage; and long-term micrographic solutions. Our Multi-Vendor Services address support of storage equipment, network devices, and specialty systems including call center support, on-site maintenance, depot services, logistics, training, and micro-imaging. Founded in 1968, Anacomp, Inc. is headquartered in San Diego, USA with international headquarters in Wokingham, UK.
(C) 2007 Anacomp, Inc. All rights reserved. Anacomp and docHarbor are registered trademarks of Anacomp, Inc.Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20030321/ANALOGO
CONTACT: Paul Najar, EVP, General Counsel and Secretary,
+1-858-716-3611, firstname.lastname@example.org, or Analysts, Jeff Cartwright, CFO,
+1-858-716-3610, email@example.com, both of Anacomp Inc.
CORNING, N.Y., Feb 1 /PRNewswire/ -- In a continuing effort to provide the best wireless service for local residents in Steuben County, Verizon Wireless has expanded its network with a new cell site in the town of Addison. The new site increases coverage and capacity in the town of Addison, east and west along Route 417, south on Route 15 and west on Route 432.
This network expansion is part of the company's aggressive multi-billion dollar network investment each year (more than $1 billion every 90 days) to stay ahead of the growing demand for Verizon Wireless voice and data services. Verizon Wireless has invested more than $30 billion -- on average, $5 billion every year since the company was formed six years ago -- to increase coverage and capacity, and to offer customers the most reliable service available in the nation, including wireless data services such as picture messaging, text messaging, and wireless Internet access. NationalAccess, the company's national high-speed wireless data network, provides wireless Internet access at speeds between 60 and 80 kbps, with bursts up to 144 kbps.
Strong demand for Verizon Wireless services continued during the third quarter of 2006 as the company added 1.9 million net new customers. Verizon Wireless is the leader in wireless customer loyalty, posting a record-breaking low customer turnover rate of 1.2% in the third quarter, well below the rate reported by the other major wireless carriers.
The company's 'nation's most reliable wireless network' reputation is based on network studies performed by real-life test men and test women throughout the country who inspired the "Can you hear me now" national advertising campaign. These engineers drive nearly 100 specially equipped vehicles over 240,000 miles on average each quarter on Interstate, US and state highways, as well as major roads and surface streets. Test vehicles are equipped with computers that automatically make more than 750,000 voice call attempts and more than four million data tests quarterly on the Verizon Wireless' network and the networks of other carriers.
About Verizon Wireless
Verizon Wireless operates the nation's most reliable wireless voice and data network, serving more than 59 million customers. The largest US wireless company and largest wireless data provider, based on revenues, Verizon Wireless is headquartered in Basking Ridge, NJ, with 65,000 employees nationwide. The company is a joint venture of Verizon Communications and Vodafone (NYSE and LSE: VOD). Find more information on the Web at http://www.verizonwireless.com/. To preview and request broadcast-quality video footage and high-resolution stills of Verizon Wireless operations, log on to the Verizon Wireless Multimedia Library at http://www.verizonwireless.com/multimedia.Verizon Wireless
CONTACT: John O'Malley, +1-585-321-7264, +1-585-261-5899,
firstname.lastname@example.org; or Meredith Dropkin, +1-315-233-3000,
Web site: http://www.verizonwireless.com/
TAMPA, Fla., Feb. 1 /PRNewswire/ -- Verizon Wireless customers throughout Florida can now access e-mail, everyday corporate data, the Internet and more at faster speeds, and upload files five to six times faster than before as Verizon Wireless rolls out the next-generation of its high-speed broadband network throughout the state of Florida. Based on CDMA 1x Evolution-Data Optimized (EV-DO) Revision A (Rev. A) technology, the enhanced wireless broadband network provides Verizon Wireless customers in areas throughout the state with data uplink speeds significantly faster than the company's award-winning national EV-DO network, which the company rolled out in Florida in 2003.
The faster network coverage area in Florida includes the company's entire network footprint, providing Verizon Wireless customers across the state with faster access for sending and uploading data. Significant population centers in Florida now covered by the enhanced wireless broadband network include Miami, Tampa, West Palm Beach, Orlando, St. Petersburg, Ft. Lauderdale, Jacksonville, Naples, Tallahassee, Sarasota, Daytona Beach, Cape Canaveral/Cocoa Beach, Bradenton, Saint Augustine, Panama City, Lakeland, Ft. Myers, Sebring, Vero Beach, Melbourne and The Florida Keys.
The company's existing EV-DO network enables customers to access BroadbandAccess on their laptops, e-mail on their PDAs, and V CAST Video and Music on their wireless phones. The company's national wireless broadband network, the first in the nation, is already available to more than 200 million Americans in 242 major metropolitan areas and 180 major airports from coast to coast.
"Our original BroadbandAccess service has enabled Florida customers to work remotely and stay entertained in unprecedented ways," said Pam Tope, Florida region president. "Now we're taking wireless to the next level by introducing technology that makes users even more productive and capable, thanks to faster data uplink speeds."
The company's flagship business data service, BroadbandAccess, will run faster and more efficiently with the new network enhancements. Customers in enhanced coverage areas will be able to take advantage of upload speeds that are five to six times faster than with the company's existing wireless broadband network, plus interact with Web-based applications with improved latency for a better customer experience. For example, BroadbandAccess customers in enhanced wireless broadband coverage areas can expect average download speeds of 450-800 kilobits per second (kbps) and average upload speeds of 300-400 kbps, translating to being able to download a 1 Megabyte e-mail attachment -- the equivalent of a small PowerPoint(R) presentation or a large PDF file -- in less than 15 seconds and upload the same size file in less than 25 seconds. The enhanced network coverage areas allow Verizon Wireless customers to download files approximately six times faster than customers of wireless service providers who use non-EV-DO technology.
The first two devices from Verizon Wireless that take advantage of faster speeds provided by these new network enhancements are the new compact USB720 wireless modem and the AirCard 595 PC Card from Verizon Wireless, which are fully compatible and backward compatible with the company's enhanced and existing wireless broadband networks and the company's NationalAccess network (based on CDMA 1xRTT technology). Florida customers purchasing either device will be able to get significantly faster upload speeds and improved download speeds when in an enhanced network coverage area. Florida customers interested in purchasing either device can contact their local business sales representative at 813-615-4800; the devices will also be available online at http://www.verizonwireless.com/ on Feb. 2.
For more information about Verizon Wireless products and services, visit a Verizon Wireless Communications Store, call 1-800-2 JOIN IN or go to http://www.verizonwireless.com/.
About Verizon Wireless
Verizon Wireless operates the nation's most reliable wireless voice and data network, serving more than 59 million customers. The largest US wireless company and largest wireless data provider, based on revenues, Verizon Wireless is headquartered in Basking Ridge, N.J., with 65,000 employees nationwide. The company is a joint venture of Verizon Communications and Vodafone (NYSE and LSE: VOD). Find more information on the Web at http://www.verizonwireless.com/. To preview and request broadcast-quality video footage and high-resolution stills of Verizon Wireless operations, log on to the Verizon Wireless Multimedia Library at http://www.verizonwireless.com/multimedia.Verizon Wireless
CONTACT: Chuck Hamby, Verizon Wireless, +1-813-615-4803,
Web site: http://www.verizonwireless.com/
BURLINGTON, Mass., Feb. 1 /PRNewswire-FirstCall/ -- Palomar Medical Technologies, Inc. , a leading developer of laser/light based devices for hair removal and other cosmetic treatments will hold its quarterly conference call of its 2006 fourth quarter and year end financial results. The call will take place on Thursday, February 8, 2007, at 11:30AM Eastern Time. If you would like to participate, please call (866) 383-8108 at 11:20 AM Eastern Time on that day. The telephone replay will be available one hour after the call at (888) 286-8010 passcode 97600501 and continue through Thursday, February 22, 2007.
A live webcast of Palomar's conference call will be available in the Investor Relations' section of the Company's web site http://www.palomarmedical.com/. Institutional investors can access the call via Thomson Financial's password- protected event management site, StreetEvents (http://www.streetevents.com/). The online archive will be available immediately after the call and continue through Thursday, February 22, 2007.
For more information on Palomar and its products, visit Palomar's website at http://www.palomarmedical.com/. To continue receiving the most up-to-date information and latest news on Palomar as it happens, sign up to receive automatic e-mail alerts by going to the Investor Relations' section of the website.
About Palomar Medical Technologies, Inc:
Palomar is a leading researcher and developer of light-based systems for cosmetic treatments. Palomar pioneered the optical hair removal field, when, in 1997, it introduced the first high-powered laser hair removal system. Since then, many of the major advances in light-based hair removal have been based on Palomar technology. There are now millions of light-based cosmetic procedures performed around the world every year in physician offices, clinics, spas and salons. Palomar is testing many new and exciting indications to further advance the hair removal market and other cosmetic applications. Palomar is uniquely focused on developing proprietary light-based technology for introduction to the mass markets. Palomar has an agreement with The Gillette Company (recently acquired by Procter & Gamble) to develop and potentially commercialize a patented home-use, light-based hair removal device for women, and an agreement with Johnson & Johnson Consumer Companies to develop and potentially commercialize home-use, light-based devices for reducing or reshaping body fat including cellulite, reducing the appearance of skin aging, and reducing or preventing acne.
Contacts: Kayla Castle Investor Relations Manager Palomar Medical Technologies, Inc. 781-993-2411 email@example.comPalomar Medical Technologies, Inc.
CONTACT: Kayla Castle, Investor Relations Manager of Palomar Medical
Technologies, Inc., +1-781-993-2411, firstname.lastname@example.org
Web site: http://www.palomarmedical.com/
CHICAGO, Feb. 1 /PRNewswire-FirstCall/ -- CME, the world's largest and most diverse derivatives exchange, today announced January volume averaged 5.5 million contracts per day, up 16 percent from January 2006. Total monthly volume was 116 million contracts. Volume on the CME Globex electronic trading platform increased 19 percent from January 2006 to average 4.0 million contracts per day, representing 72 percent of total exchange volume. Total options volume was 1.3 million contracts per day, up 24 percent from January 2006. Electronic options volume averaged 158,000 contracts per day for the month, up 110 percent from the same period a year ago, and represented 12 percent of total CME options volume.
CME total interest rate volume averaged 3.2 million contracts, up 18 percent from the same period a year ago. CME Eurodollar futures volume averaged 2.1 million contracts per day, up 16 percent from January 2006, and CME Eurodollar options volume was up 22 percent to an average of 1.1 million contracts per day. Electronic volume of CME Eurodollar options averaged 98,000 contracts per day, up 107 percent from January 2006, and represented 9 percent of total Eurodollar options volume.
CME E-mini index volume averaged 1.6 million contracts per day in January, up 12 percent compared with January 2006. Total equity options volume grew to 120,000 contracts per day, up 54 percent from the same period a year ago. During the month CME set records in both the E-mini Russell 2000 Options ADV with 6,900 per day and the E-mini NASDAQ 100 Options ADV with 3,300 per day. CME equity standard volume grew 5 percent to average 122,000 per day.
CME foreign exchange volume in January averaged 494,000 per day, up 29 percent compared with the year-ago period. Electronic foreign exchange volume averaged 450,000 contracts per day, up 35 percent compared with January 2006.
CME commodities and alternative investment products volume averaged a record 95,000 contracts per day in January, up 7 percent compared with the same period a year ago. Records were set in live cattle with 47,000 contracts per day. In addition, the commodities volume on the CME Globex platform was a record 3,600 contracts per day, representing 4 percent of the total commodities and alternative investments volume.
All statistics in this news release exclude data on CME's non-traditional TRAKRS(R) products, and CME Auction Markets(TM) products, unless otherwise noted. All references to options refer to options on futures contracts.
NYMEX volume on CME Globex averaged a record 671,000 contracts per day in January, up from 399,000 contracts per day in December. Additionally, NYMEX volume on CME Globex reached a daily record of 919,900 contracts on January 11.
CME MONTHLY AVERAGE DAILY VOLUME (In Thousands) January 2007 January 2006 Percent Change CME PRODUCT LINE Interest Rates 3,199 2,713 18% E-Minis 1,611 1,439 12% Equity Standard 122 116 5% Foreign Exchange 494 384 29% Commodities and Alt. Inv. 95 89 7% Sub Total 5,522 4,741 16% TRAKRS 136 268 -49% Total 5,657 5,009 13% VENUE Open Outcry 1,482 1,348 10% CME Globex (EX TRAKRS) 3,987 3,342 19% Privately Negotiated 52 51 2% Note: CME Weather and GSCI products moved from Equity Standard to Commodities in April, and prior months were adjusted. CME ROLLING THREE-MONTH AVERAGES (excluding TRAKRS) Average Rate Per Contract (In Dollars) 3-Month By Product Line By Venue Period Commod- Ending ities Pri- and vately Interest E-Minis Equity Foreign Alt. Open CME Nego- Rates Standard Exchange Inv. Total Outcry Globex tiated Dec-06 0.508 0.707 1.430 1.085 0.942 0.655 0.512 0.660 3.713 Nov-06 0.502 0.703 1.357 1.112 0.918 0.645 0.494 0.657 3.719 Oct-06 0.495 0.714 1.335 1.133 0.946 0.638 0.469 0.664 3.567 Sep-06 0.496 0.712 1.338 1.146 0.939 0.641 0.475 0.668 3.545 Average Daily Volume (In Thousands) 3-Month By Product Line By Venue Period Commod- Ending ities Pri- and vately Interest E-Minis Equity Foreign Alt. Open CME Nego- Rates Standard Exchange Inv. Total Outcry Globex tiated Jan-07 3,016 1,610 147 540 80 5,392 1,337 4,000 55 Dec-06 2,990 1,596 147 508 72 5,313 1,293 3,967 53 Nov-06 3,120 1,661 151 476 80 5,489 1,376 4,061 52 Oct-06 3,204 1,535 150 433 74 5,397 1,490 3,855 52
CME ( http://www.cme.com/ ) is the world's largest and most diverse financial exchange. As an international marketplace, CME brings together buyers and sellers on the CME Globex(R) electronic trading platform and on its trading floors. CME offers futures and options on futures in these product areas: interest rates, stock indexes, foreign exchange, agricultural commodities, energy, and alternative investment products such as weather, real estate and economic derivatives. CME is a wholly-owned subsidiary of Chicago Mercantile Exchange Holdings Inc. , which is part of the Russell 1000(R) Index and the S&P 500(R) Index.
Statements in this news release that are not historical facts are forward- looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or implied in any forward-looking statements. More detailed information about factors that may affect our performance may be found in our filings with the Securities and Exchange Commission, including our most recent Quarterly Report on Form 10-Q, which can be obtained at its Web site at http://www.sec.gov/ . We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
Chicago Mercantile Exchange, CME, the globe logo, CME Globex and E-mini are trademarks of Chicago Mercantile Exchange Inc. CLEARING 21 is a registered trademark of CME and New York Mercantile Exchange, Inc. S&P, S&P 500, NASDAQ-100, Nikkei 225, Russell 1000, Russell 2000, TRAKRS, Total Return Asset Contracts and other trade names, service marks, trademarks and registered trademarks that are not proprietary to Chicago Mercantile Exchange Inc. are the property of their respective owners, and are used herein under license. Further information about CME and its products is available on the CME Web site at http://www.cme.com/ .
CONTACT: Media Contacts, Anita Liskey, +1-312-466-4613, or William
Parke, +1-312-930-3467, email@example.com , or Investor Contact, John Peschier,
+1-312-930-8491, all of CME
Web site: http://www.cme.com/
SAN DIEGO, Feb 1 /PRNewswire-FirstCall/ -- (AFCEA West booth # 1120) - Harris Corporation , an international communications and information technology company, has been awarded a contract for nearly $16 million by the U.S. Navy for radios from the Falcon(R) II and Falcon(R) III family of advanced radio products in support of Navy Expeditionary Combat Command forces operating in Southwest Asia.
The Harris radio communications suite will be installed in the Joint Explosive Ordnance Disposal Rapid Response Vehicles (JERRV) that provide Navy EOD and Construction Battalion units with improved protection against improvised explosive devices. As a component of the U.S. Department of Defense's Mine Resistant Ambush Protected vehicle program, the JERRV will provide additional protection to U.S. Navy Seabee and other naval expeditionary forces deployed around the world.
"We are honored to have been selected to provide the radio communications suite for this new class of military vehicle," said Dana Mehnert, president, Harris Corporation, RF Communications Division. "Designing the JERRV's communications system architecture around Falcon III, SCA-compliant radios will enable U.S. Navy, Army, and Marine Corps forces to have a full range of secure communications capabilities with unparalleled interoperability and connectivity in their joint tactical communications environment."
Harris will provide fully integrated, standard communications systems featuring the Falcon III AN/VRC-110, the 50-watt vehicular adapter for the Falcon III multiband handheld radio. Additionally, each system will include the AN/VRC-103 50-watt, multiband vehicular system and the AN/VRC-104 150-watt high frequency vehicular system, providing secure, robust line-of-sight and beyond-line-of-sight communications capabilities. This order follows multiple orders by the U.S. Navy for Falcon III multiband handheld radios that are being used to address a wide range of critical mission requirements.
About Harris Corporation
Harris is an international communications and information technology company serving government and commercial markets in more than 150 countries. Headquartered in Melbourne, Florida, the company has annual sales of about $4 billion and more than 14,000 employees - including more than 6,000 engineers and scientists. Harris is dedicated to developing best-in-class assured communications(TM) products, systems, and services for global markets, including government communications, RF communications, broadcast communications, and wireless transmission network solutions. Additional information about Harris Corporation is available at http://www.harris.com/
This press release contains forward-looking statements that reflect management's current expectations, assumptions and estimates of future performance and economic conditions. Such statements are made in reliance upon the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The company cautions investors that any forward-looking statements are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements. Statements about the expected value of the program to Harris are forward-looking and involve risks and uncertainties. Other factors that may impact the company's results and forward-looking statement may be disclosed in the company's filings with the SEC. Harris disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.Harris Corporation
CONTACT: Kevin Aman, RF Communications Division, +1-585-241-8186, or
Kevin.firstname.lastname@example.org, or Brent Dietz, Corporate Headquarters,
+1-321-724-3554 or Brent.email@example.com
Web site: http://www.harris.com/
EXTON, Pa., Feb. 1 /PRNewswire-FirstCall/ -- WPCS International Incorporated , a leader in design-build engineering services for specialty communication systems and wireless infrastructure, has announced that it has signed a letter of intent to acquire 60% ownership of Taian AGS Pipeline Construction Company Ltd. (TAGS) for $1.6 million in cash and stock. Founded in 1997, TAGS is a communications infrastructure engineering company serving the China market. TAGS is certified by the People's Republic of China as both a Construction Enterprise of Reform Development company and a Technically Advanced Construction Enterprise company for the Province of Shandong, which are two of the highest certifications achievable for engineering and construction based businesses in China. TAGS is also licensed in 17 other provinces and has completed projects for a diverse customer base of businesses and government institutions in over 30 cities in China. The company has 80 employees.
Historically profitable, TAGS is projected to achieve approximately $2 million in revenue and $500,000 in earnings before interest and taxes for the fiscal year ended December 31, 2006. Through eleven months ended November 30, 2006, TAGS reported unaudited revenue of approximately $1.8 million and earnings before interest and taxes of $440,000 with a gross margin of 41% and a net tangible asset value of $3.3 million. The transaction is expected to conclude within the next sixty days and is subject to the completion of due diligence and the execution of definitive agreements. In addition to announcing the letter of intent, WPCS has announced that it has raised approximately $10.1 million in equity from the sale of approximately 1.1 million shares of common stock priced at $9.10 per share with no warrants. Net proceeds to the company were approximately $9.3 million. This capital will be used to extinguish debt and to conclude additional acquisitions over the next few months. Punk, Ziegel & Company acted as lead placement agent.
Andrew Hidalgo, Chairman & CEO for WPCS, commented, "The acquisition of the majority interest in TAGS will be a milestone for WPCS and fulfills a strategic initiative to expand to the China market. The WPCS management team has been focused on determining how our company can participate in the opportunity abundant China market place. With the TAGS acquisition, WPCS is now poised to pursue engineering opportunities throughout China without the risk of a start-up or the protracted time it would take to establish a reputation through certifications granted by the People's Republic of China. With the intense growth anticipated in China and through the outstanding management team and engineering staff at TAGS, we look forward to building an even larger presence in the country. In regards to the equity raise, we have enhanced our financial strength to conclude additional accretive acquisitions, which will prepare us for a strong FY2008 from a revenue, profitability and EPS perspective. Currently, we are evaluating a number of acquisition candidates. WPCS is positioning itself as a true global leader in design-build engineering services for specialty communication systems and wireless infrastructure. We are focused on achieving our current fiscal year objectives and planning for continued success in the coming fiscal year."
About WPCS International Incorporated:
WPCS provides design-build engineering services for specialty communication systems and wireless infrastructure including site design, product integration and project management. The company has an extensive customer base that includes corporations, government entities and educational institutions. For more information, please visit http://www.wpcs.com/
Statements about the company's expectations, including revenue and earnings and all other statements in this press release, other than historical facts, are "forward looking" statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward looking statements involve risks and uncertainties and are subject to change at any time. The company's actual results could differ materially from expected results. In reflecting subsequent events or circumstances, the company undertakes no obligation to update forward-looking statements.
Contact: Carol Lindley / WPCS International Incorporated 610-903-0400 x100 firstname.lastname@example.orgWPCS International Incorporated
CONTACT: Carol Lindley of WPCS International Incorporated,
+1-610-903-0400 x100, email@example.com
Web site: http://www.wpcs.com/
SAN FRANCISCO, Feb. 1 /PRNewswire-FirstCall/ -- Salesforce.com , the market and technology leader in on-demand business services, today announced that effective immediately, Frank van Veenendaal, 47, has been promoted to the position of President, Worldwide Corporate Sales and Services.
(Logo: http://www.newscom.com/cgi-bin/prnh/20050216/SFW105LOGO )
"A major pillar of salesforce.com's success has been our rapid and continuing growth in small and medium-sized accounts. Frank van Veenendaal's leadership has been the driving force behind that amazing record," said Marc Benioff, Chairman and CEO, salesforce.com. "Frank epitomizes the vision, strength, and tenacity that will enable salesforce.com to set its sights on one billion dollars and beyond in annual revenue.
Joining van Veenendaal in reporting directly to Benioff are, in alphabetical order: Steve Cakebread, Chief Financial Officer; John Freeland, President, Worldwide Operations; Parker Harris, EVP, Technology; George Hu, Chief Marketing Officer; Ken Juster, EVP, Law, Policy, and Corporate Strategy; and Jim Steele, President, Worldwide Sales & Distribution.
Van Veenendaal signed on with salesforce.com in 2001 as Senior Vice President, North America Sales. Prior to joining salesforce.com, van Veenendaal was the Senior Vice President of sales for Actuate, and held various positions at Interleaf, Integrated Solutions, and Pyramid.
Van Veenendaal is married and lives in Woodside, California with his wife Leslie and their two children. A native of the Netherlands, van Veenendaal was raised in Brazil and has a black belt in karate.
Salesforce.com is the market and technology leader in on-demand business services. The company's Salesforce suite of on-demand CRM applications allows customers to manage and share all of their sales, support, marketing and partner information on-demand. Apex, the world's first on-demand platform, enables customers, developers and partners to build powerful new on-demand applications that extend beyond CRM to deliver the benefits of multi-tenancy and The Business Web across the enterprise. All Apex components and applications can be easily shared, exchanged and installed via salesforce.com's AppExchange directory, available at http://www.salesforce.com/appexchange . Customers can also take advantage of Successforce, salesforce.com's world-class training, support, consulting and best practices offerings.
As of October 31, 2006, salesforce.com manages customer information for approximately 27,100 customers and approximately 556,000 paying subscribers including Advanced Micro Devices (AMD), America Online (AOL), Avis Budget Group, Inc, Dow Jones Newswires, Nokia, Polycom and SunTrust Banks. Any unreleased services or features referenced in this or other press releases or public statements are not currently available and may not be delivered on time or at all. Customers who purchase salesforce.com applications should make their purchase decisions based upon features that are currently available. Salesforce.com has headquarters in San Francisco, with offices in Europe and Asia, and trades on the New York Stock Exchange under the ticker symbol "CRM". For more information please visit http://www.salesforce.com/, or call 1-800-NO-SOFTWARE.
NOTE: Salesforce.com is a registered trademark of salesforce.com, and Apex, AppExchange, The Business Web and Successforce are trademarks of salesforce.com, Inc., San Francisco, California. Other names used may be trademarks of their respective owners.Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20050216/SFW105LOGO
CONTACT: media, Jane Hynes of salesforce.com, +1-415-901-5079, or
firstname.lastname@example.org, or investors, David Havlek of salesforce.com,
+1-415-536-2171, or email@example.com
Web site: http://www.salesforce.com/
BASKING RIDGE, N.J. and SAN DIEGO, Feb. 1 /PRNewswire/ -- Verizon Wireless, operator of the nation's most reliable national wireless broadband network, and Novatel Wireless, Inc. , a leading provider of wireless broadband access solutions, today announced the Feb. 2 availability of the USB720, the first CDMA 1x Evolution-Data Optimized (EV-DO) Revision A (Rev. A) USB wireless modem from Verizon Wireless. The compact USB720 wireless modem is compatible with all the latest notebooks, desktops and handhelds via an industry standard USB interface.
"With the USB standard available in virtually all computing devices in the marketplace, the USB720 offers Verizon Wireless customers the tremendous flexibility of using a USB port for wireless connectivity," said Rob Hadley, senior vice president of worldwide sales and marketing for Novatel Wireless. "Providing Verizon Wireless' first EV-DO Rev. A USB modem shows Novatel Wireless' commitment to developing the most advanced and valuable wireless broadband access solutions. We are pleased that Verizon Wireless has selected us as a supplier for EV-DO Rev. A products."
In conjunction with this announcement of the USB720, Verizon Wireless today announced enhancements to its network to provide BroadbandAccess customers with the increased speeds of Rev. A technology in portions of Illinois, Florida, Massachusetts, Utah and Virginia. Customers in Verizon Wireless' enhanced wireless broadband coverage areas will typically experience average download speeds of 450-800 kilobits per second (kbps) and average upload speeds of 300-400 kbps. To the busy professional, the enhanced speeds will translate into the ability to download a 1 Megabyte e-mail attachment -- the equivalent of a small PowerPoint(R) presentation or a large PDF file -- in less than 15 seconds and upload the same size file in less than 25 seconds.
The USB720 is highly compact, measuring 3.52 x 1.49 x .69 inches (89.5 x 38 x 17.6 mm) and weighing a mere 1.6 ounces (45 g). The modem is also fully compatible with the Verizon Wireless' enhanced and existing wireless broadband networks and the company's NationalAccess network (based on CDMA 1xRTT technology). The modem has an advanced dual band diversity antenna system design with an integrated flip antenna, which maximizes performance and strengthens network signal reception. The USB720 works seamlessly with the Enterprise edition of VZAccess Manager software and supports Windows(R) (2000, XP, and Vista), and Mac OS X.
Customers in Rev. A enhanced coverage areas who purchase the new USB720 and who are current subscribers to BroadbandAccess will enjoy the new improved speeds immediately -- there are no additional charges. Customers with a Verizon Wireless voice plan of $39.99 or higher may sign up for unlimited BroadbandAccess with the new Rev. A speeds for an additional $59.99 monthly access. For customers without a voice plan, BroadbandAccess is available for $79.99 monthly access.
The USB720 is $149.99 with a new two-year customer agreement or $199.99 with a new one-year customer agreement. The USB720 is available immediately through Verizon Wireless' business sales channels and online at http://www.verizonwireless.com/. The device will be available in Verizon Wireless Communications Stores, inclusive of those in Circuit City, on Feb. 20.
For more information on Verizon Wireless data services, including BroadbandAccess and the USB720 wireless modem, customers can contact a Verizon Wireless business sales representative directly at 1-800-VZW-4-BIZ.
About Verizon Wireless
Verizon Wireless operates the nation's most reliable wireless voice and data network, serving more than 59 million customers. The largest US wireless company and largest wireless data provider, based on revenues, Verizon Wireless is headquartered in Basking Ridge, N.J., with 65,000 employees nationwide. The company is a joint venture of Verizon Communications and Vodafone (NYSE and LSE: VOD). Find more information on the Web at http://www.verizonwireless.com/. To preview and request broadcast-quality video footage and high-resolution stills of Verizon Wireless operations, log on to the Verizon Wireless Multimedia Library at http://www.verizonwireless.com/multimedia.
About Novatel Wireless
Novatel Wireless, Inc. is revolutionizing wireless communications. The company is a leader in the design and development of innovative wireless broadband access solutions based on 3G WCDMA (HSDPA & UMTS), CDMA and GSM technologies. Novatel Wireless' Merlin(TM) PC Cards and ExpressCards, Expedite(R) Embedded Modules, MobiLink(TM) Communications Software Suite, Ovation(TM) Fixed Mobile Convergence Products and Conversa(TM) Software Suite enable high-speed wireless access. The company delivers innovative 3G solutions to operators, distributors and vertical markets worldwide. Headquartered in San Diego, California, Novatel Wireless is listed on NASDAQ: NVTL. For more information, visit http://www.novatelwireless.com/. (NVTLG)
Novatel Wireless and the Novatel Wireless logo are trademarks of Novatel Wireless, Inc. Other product or service names mentioned herein are the trademarks of their respective owners.
This release may contain forward-looking statements, which are made pursuant to the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995, as amended to date. These forward-looking statements involve risks and uncertainties. A number of important factors could cause actual results to differ materially from those in the forward- looking statements contained herein. These factors include risks relating to technological changes, new product introductions, continued acceptance of Novatel Wireless' products and dependence on intellectual property rights. These factors, as well as other factors that could cause actual results to differ materially, are discussed in more detail in Novatel Wireless' filings with the United States Securities and Exchange Commission (available at http://www.sec.gov/) and other regulatory agencies.Verizon Wireless
CONTACT: Brenda Boyd Raney of Verizon Wireless, +1-908-559-7518,
Brenda.Raney@verizonwireless.com; or Liya Shariff or Natasha Grach, both of
Townsend Inc., +1-858-457-4888, Novatel_Team@townsendinc.com, for Novatel
Web site: http://www.verizonwireless.com/
MORRISTOWN, N.J., Feb. 1 /PRNewswire-FirstCall/ -- Access Integrated Technologies, Inc. ("AccessIT") will hold a conference call and simultaneous Web cast on Friday, February 9th, to announce its financial results for the third quarter ended December 31, 2006. The call will begin at 10:30 a.m. EST.
To participate in the conference call, please dial 913.981.5559 at least five minutes before the start of the call. No passcode is required. An audio Web cast of the call will be accessible at http://www.accessitx.com/. Those who wish to listen to the conference call on the web should visit the Investor Relations section of the company's Website at least 15 minutes prior to the event's broadcast. Then, follow the instructions provided to assure that the necessary audio applications are downloaded and installed. These programs can be obtained at no charge.
A replay of the call will be available after 1:00 p.m. eastern at 719.457.0820, passcode 6964770. The replay will be accessible through Thursday, February 15th.
AccessIT will issue its earnings press release on February 9, 2007. The release can be accessed via PRNewswire or by visiting http://www.accessitx.com/.
Access Integrated Technologies, Inc. (AccessIT) is the industry leader in providing fully integrated software and services to enable the motion picture entertainment industry and all of its constituents to transition from film to digital cinema. Its studio-backed 4,000 screen ongoing deployment of digital systems is the first and the largest of its kind in the world. The company's Theatrical Distribution System software and electronic satellite delivery services provide studios and content owners with a seamless entry into the digital era while its vendor neutral Theatre Command Center and Exhibitor Management System provide exhibitors with all the tools needed to transition to digital cinema. Access Integrated Technologies(R) and AccessIT(TM) are trademarks of Access Integrated Technologies, Inc. For more information on AccessIT, visit http://www.accessitx.com/. AIXD-E
Safe Harbor Statement
Investors and readers are cautioned that certain statements contained in this document, as well as some statements in periodic press releases and some oral statements of AccessIT officials during presentations about AccessIT, along with AccessIT's filings with the Securities and Exchange Commission, including AccessIT 's registration statements, quarterly reports on Form 10- QSB and annual report on Form 10-KSB, are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Forward-looking statements include statements that are predictive in nature, which depend upon or refer to future events or conditions, which include words such as "expects", "anticipates", "intends", "plans", "could", "might", "believes", "seeks", "estimates" or similar expressions. In addition, any statements concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future actions, which may be provided by AccessIT's management, are also forward-looking statements as defined by the Act. Forward-looking statements are based on current expectations and projections about future events and are subject to various risks, uncertainties and assumptions about AccessIT, its technology, economic and market factors and the industries in which AccessIT does business, among other things. These statements are not guarantees of future performance and AccessIT undertakes no specific obligation or intention to update these statements after the date of this release.
Contact: Suzanne Tregenza Moore Andrew Komendantov AccessIT The Dilenschneider Group 55 Madison Avenue 212.922.0900 Suite 300 Morristown, NJ 07960 973.290.0080 firstname.lastname@example.orgAccess Integrated Technologies, Inc.
CONTACT: Suzanne Tregenza Moore of AccessIT, +1-973-290-0080,
email@example.com; or Andrew Komendantov of The Dilenschneider Group,
+1-212-922-0900, for Access Integrated Technologies, Inc.
Web site: http://www.accessitx.com/
NAMPA, Idaho, Feb. 1 /PRNewswire-FirstCall/ -- MPC Corporation announced today that it has received a letter from the American Stock Exchange (Amex) extending the period for MPC to regain compliance with the Amex's listing standards to May 31, 2007. While MPC remains out of compliance with the continued listing standards, the letter also stated that MPC has demonstrated an ability to regain compliance with the listing standards by this date.
Previously, the Amex had notified MPC that it was out of compliance with Rule 1003(a)(iv) of the Amex Company Guide relating to financial conditions and operating results, and therefore did not meet the Exchange's continued listing standards. The notice was based on a review by Amex of MPC's Form 10-KSB for the year ended December 31, 2005, which includes an audit opinion containing a going concern qualification. MPC was afforded the opportunity to submit a plan of compliance to Amex. On June 15, 2006, MPC announced that Amex accepted MPC's plan of compliance and granted MPC an extension until June 30, 2006 to regain compliance with continued listing standards. MPC did not achieve compliance with the continued listing standards by the target date, and requested an extension. Subsequently, MPC met with the Amex on December 12, 2006 and discussed the company's progress and financial projections. As a result, the Amex has agreed to extend the period by which MPC must regain compliance with its listing standards until May 31, 2007.
MPC will be subject to periodic review by the Amex staff during the extension period. Failure to make progress consistent with the plan could result in commencement of immediate delisting proceedings by the Amex.
More information concerning the Amex notice will be available on the Form 8-K to be filed by MPC on February 1, 2007.
About MPC Corporation:
MPC Corporation , through its subsidiary MPC Computers, provides enterprise IT hardware solutions to mid-sized businesses, government agencies and education organizations. MPC offers standards-based server and storage products, along with PC products and computer peripherals, all of which are backed by an industry-leading level of service and support. For more information, visit MPC online at http://www.mpccorp.com/.
Certain statements in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements involve a number of risks, uncertainties and other factors that could cause actual results, performance or achievements of MPC Corporation to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. MPC Corporation continues to face significant liquidity challenges and there is no assurance that it will make sufficient progress in addressing these challenges, or that MPC Corporation will be able to continue its listing on the Amex. MPC Corporation's ability to regain compliance with the continued listing standards is substantially dependent on its ability to achieve improved operating results, of which there is no assurance. Other factors, which could materially affect such forward-looking statements, can be found in MPC Corporation's' filings with the Securities and Exchange Commission at http://www.sec.gov/, including risk factors relating to significant liquidity challenges, possible bankruptcy and other matters. Investors, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are only made as of the date of this press release and MPC Corporation undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.MPC Corporation
CONTACT: Ross Ely of MPC Corporation, +1-208-893-1560,
Web site: http://www.mpccorp.com/