Photon Dynamics Announces Compliance with NASDAQ Listing Requirements and Updates Business
SAN JOSE, Calif., Jan. 25 /PRNewswire-FirstCall/ -- Photon Dynamics, Inc. , a global supplier utilizing advanced digital imaging technology of Liquid Crystal Display (LCD) yield enhancement systems and high performance digital imaging systems for defense, surveillance, industrial inspection and medical imaging applications, today announced that the Nasdaq Listing Qualifications Panel notified Photon Dynamics ("the Company") that the Company demonstrated compliance with all Nasdaq Marketplace Rules and the Panel determined to continue the listing of the Company's securities on The Nasdaq Stock Market.
Photon Dynamics reported financial results for its fourth quarter and fiscal year ended September 30, 2007. Revenue for the fourth quarter of fiscal 2007 was $24.5 million, compared to third quarter 2007 revenue of $14.4 million and $29.3 million reported for the same quarter a year ago. The net loss for the quarter was $3.4 million or $0.20 loss per share, compared to a net loss for the prior quarter of $8.7 million or $0.52 loss per share, and a restated net loss of $6.6 million or $0.39 loss per share for the same quarter a year ago.
Net loss for the fourth quarter of fiscal 2007 includes $3.7 million in charges, as follows:
-- Equity based compensation expense of $0.5 million
-- Loss on sales of fixed assets of $0.1 million
-- Acquired in-process research and development of $1.1 million
-- Amortization of intangible assets of $0.6 million
-- Restatement related expenses of $1.4 million
Non-GAAP net income for the fourth quarter was $0.3 million or $0.02 earnings per diluted share, compared to non-GAAP net loss for the prior quarter of $5.6 million or $0.34 loss per share, and a non-GAAP net loss of $4.9 million or $0.29 loss per share for the same quarter a year ago. Non-GAAP adjustments are further detailed in the accompanying Reconciliation of GAAP to Non-GAAP Results.
Bookings for the fourth quarter of fiscal 2007 were $29 million, and the Company posted a backlog of $45 million at the end of September 2007. The Company noted that bookings and backlog are not necessarily indicative of future revenue and that historically bookings have fluctuated on a quarter-to-quarter basis. These fluctuations in bookings may continue in the future.
For fiscal year ended September 30, 2007, revenue was $74.3 million, compared to revenue of $172.9 million for the year ended September 30, 2006. Net loss for the year ended September 30, 2007 was $35.1 million and loss per share was $2.09, compared to restated net income of $2.0 million and $0.12 earnings per diluted share for the year ended September 30, 2006.
Net loss for the fiscal 2007 includes $12.7 million in charges, as follows:
-- Write-down of excess inventory of $2.1 million due to order
cancellation
-- Equity based compensation expense of $2.0 million
-- Restructuring charge of $1.4 million
-- Impairment of fixed assets charge of $2.8 million
-- Loss on sales of fixed assets of $0.1 million
-- Acquired in-process research and development of $1.1 million
-- Amortization of intangible assets of 1.7 million
-- Restatement related expenses of $1.5 million
Non-GAAP net loss for fiscal 2007 was $22.4 million or $1.34 loss per share, compared to non-GAAP net income for the prior year of $7.6 million or $0.44 earnings per diluted share.
The Company's cash, cash equivalents, short-term and long-term investments were $85 million as of September 30, 2007.
Company Projections for First Quarter Fiscal Year 2008
The Company estimates revenue for the first quarter of fiscal 2008 to be between $15.5 and $16.5 million with net loss per share of $0.51 to $0.47.
Amtower Litigation
On January 16, 2008, the Sixth District Court of Appeal for the State of California upheld the trial court's judgment and award in favor of our Company and our former officers and affirmed the trial court award of approximately $445,000 in fees and costs and awarded additional costs and fees associated with the appeal.
Information Regarding Non-GAAP Financial Measures
Photon Dynamics provides non-GAAP net income and non-GAAP earnings per share data as additional information for its operating results. These measures are not in accordance with or an alternative for GAAP, and may be different from non-GAAP measures used by other companies. Photon Dynamics' non-GAAP net income or loss and non-GAAP earnings per diluted share exclude the effect of SFAS 123 (R), restructuring charge, Impairment of fixed assets, gain or loss on sale of fixed assets, write-down of excess inventory due to cancelled order, acquired in-process research and development, amortization of intangible assets, income (loss) from discontinued operations and restatement expenses. Because SFAS 123 (R) is a material, non-cash item Photon Dynamics has also provided non-GAAP information excluding the impact of SFAS 123 (R). Management excludes the effect of SFAS 123 (R) and other charges as indicated, because management does not believe that these charges are directly applicable to the core operating performance of Photon Dynamics. Management believes that although GAAP measures are important for investors to understand, providing investors with this non-GAAP measure provides investors additional important information to enable them to assess, in the way that management assesses, both the current and future operations of Photon Dynamics.
About Photon Dynamics, Inc.
Photon Dynamics, Inc. is a global supplier utilizing advanced machine vision technology for market leading Liquid Crystal Display (LCD) flat panel display test and repair systems and for high performance digital imaging systems for defense, surveillance, industrial inspection and medical imaging applications. For more information about Photon Dynamics , visit its website at http://www.photondynamics.com/.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995
The statements in this press release relating to Photon Dynamics' estimated financial results for the first quarter of fiscal 2008 are forward-looking statements. Certain statements in this press release are forward-looking statements. These forward-looking statements are based on current expectations on the date of this press release and involve a number of uncertainties and risks including but not limited and those risks and uncertainties described in the section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations" under the caption "Factors Affecting Operating Results" in Photon Dynamics' Annual Report on Form 10-K for the year ended September 30, 2007 as filed with the Securities and Exchange Commission. As a result, actual results may differ substantially from expectations. Photon Dynamics undertakes no obligation to update or revise any forward-looking statements, whether as a result of new developments or otherwise.
PHOTON DYNAMICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except June 30, September 30,
share data) 2007 2006 2007
As Restated(1)
ASSETS
Current assets:
Cash and cash equivalents $28,253 $47,935 $41,170
Short-term investments 55,909 54,834 42,640
Accounts receivable, net 18,927 29,341 11,934
Inventories 18,097 18,442 13,292
Refundable customs obligations 4,082 3,157 560
Other current assets 3,518 3,972 3,661
Total current assets 128,786 157,681 113,257
Long-term investments 4,147 787 1,176
Land, property and
equipment, net 10,210 15,891 10,583
Other assets 4,826 4,542 5,365
Intangible assets, net 717 1,716 11,023
Goodwill 153 153 6,857
Total assets $148,839 $180,770 $148,261
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $7,033 $ 7,257 $4,217
Warranty 4,691 8,058 3,217
Employee notes payable -- 977 --
Customs obligations 11,144 8,673 4,114
Other current liabilities 9,679 8,967 9,874
Deferred gross margin 6,603 7,454 3,236
Total current liabilities 39,150 41,386 24,658
Long-term employee note payable -- -- 5,381
Other non-current liabilities 95 119 38
Total non-current liabilities 95 119 5419
Shareholders' equity:
Common stock 288,376 285,416 300,290
Accumulated deficit (178,088) (146,431) (181,503)
Accumulated other
comprehensive income (loss) (693) 280 (603)
Total shareholders' equity 109,595 139,265 118,184
Total liabilities and
shareholders' equity $148,839 $180,770 $148,261
(1) See Note 2, "Restatements of Consolidated Financial Statements and
Company Findings" to in Notes Consolidated Financial Statements.
PHOTON DYNAMICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except Quarter Ended Year Ended
per share data) 9/30/2006 6/30/2007 9/30/2007 2006 2007
As As As
restated(1) restated(1) restated(1)
Revenue $29,259 $14,430 $24,474 $172,872 $74,267
Cost of revenue 25,580 11,215 15,605 114,205 56,374
Gross margin 3,679 3,215 8,869 58,667 17,893
Operating expenses:
Research and
development 7,280 6,213 5,404 32,577 26,747
Selling, general and
administrative 3,784 5,831 5,879 24,506 23,076
Restructuring charge -- (95) -- 30 1,368
Impairment of property
and equipment 31 -- -- 81 2,834
Loss (gain) on sale
of property and equipment 58 -- 87 58 87
Acquired in-process
research and development -- -- 1,110 -- 1,110
Amortization of
intangible assets 372 254 654 1,489 1,653
Total operating
expenses 11,525 12,203 13,134 58,741 56,875
Loss from operations (7,846) (8,988) (4,265) (74) (38,982)
Interest income and
other, net 717 327 853 2,803 4,190
Income (loss) from
continuing operations
before income taxes
and discontinued
operations (7,129) (8,661) (3,412) 2,729 (34,792)
Provision for income
taxes (195) 72 3 561 280
Income (loss) from
continuing operations
before discontinued
operations 2,168 (35,072) (6,934) (8,733) (3,415)
Income (loss) from
discontinued operations 346 -- -- (127) --
Net income (loss) $(6,588) $(8,733) $(3,415) $2,041 $(35,072)
Income (loss) per share
from continuing
operations:
Basic $(0.41) $(0.52) $(0.20) $0.13 $(2.09)
Diluted $(0.41) $(0.52) $(0.20) $0.13 $(2.09)
Income (loss) per share
from discontinued
operations:
Basic $0.02 $ -- $ -- $(0.01) $ --
Diluted $0.02 $ -- $ -- $(0.01) $ --
Net income (loss)
per share:
Basic $(0.39) $(0.52) $(0.20) $0.12 $(2.09)
Diluted $(0.39) $(0.52) $(0.20) $0.12 $(2.09)
Weighted average number
of shares:
Basic 16,849 16,635 17,434 16,978 16,814
Diluted 16,849 16,635 17,434 17,011 16,814
(1) See Note 2, "Restatements of Consolidated Financial Statements and
Company Findings" to in Notes Consolidated Financial Statements.
Non-GAAP Net Income (Loss) Reconciliation For All Non-GAAP Items
Year Ended
Quarter Ended September
(In thousands, except 9/30/2006 6/30/2007 9/30/2007 2006 2007
per share data) As As As
restated(1) restated(1) restated(1)
GAAP net income
(loss) $(6,588) $(8,733) $(3,415) $2,041 $(35,072)
Write-down of excess
inventory due to order
cancellation 2,144 2,144
Stock-based employee
compensation expense 929 507 460 3,985 1,973
Restructuring charge -- 95 -- 30 1,368
Impairment of property
and equipment 31 -- 81 2,834
Loss (gain) on sale
of property and equipment 58 87 58 87
Acquired in-process
research and development -- 1,110 -- 1,110
Amortization of intangible
assets 372 254 654 1,489 1,653
Loss (income) from
discountinued operations 346 -- (127) --
Restatement related expense -- 88 1,416 -- 1,504
Non-GAAP net income (4,852) (5,645) 312 7,557 (22,399)
Non-GAAP Net Income (Loss) Per Diluted Share Reconciliation
For All Non-GAAP Items
GAAP net income (loss)
per share - diluted $(0.39) $(0.52) $(0.20) $0.12 $(2.09)
Write-down of excess
inventory due to
order cancellation -- 0.13 -- -- 0.13
Stock-based employee
compensation expense 0.06 0.03 0.03 0.23 0.12
Restructuring charge -- 0.01 -- 0.00 0.08
Impairment of property
and equipment 0.00 -- -- 0.00 0.17
Loss (gain) on sale of
property and equipment 0.00 -- 0.00 0.00 0.01
Acquired in-process
research and development -- -- 0.06 -- 0.07
Amortization of intangible
assets 0.02 0.02 0.04 0.09 0.10
Loss (income) from
discountinued operations 0.02 -- -- (0.01) --
Restatement related expense -- 0.0 0.08 -- 0.1
Non-GAAP net income (loss)
per share - diluted $(0.29) $(0.34) $0.02 $0.44 $(1.34)
Shares used in basic
shares calculation 16,849 16,635 17,434 16,978 16,814
Shares used
in diluted shares
calculation 16,849 16,635 17,434 17,011 16,814
Photon Dynamics, Inc.
CONTACT: So-Yeon Jeong, Vice President, Investor Relations and Marketing
Communications of Photon Dynamics, Inc., +1-408-360-3084,
soyeon.jeong@photondynamics.com
Web site: http://www.photondynamics.com/
Digital Realty Trust, Inc. Announces Tax Treatment of 2007 Dividends
SAN FRANCISCO, Jan. 25 /PRNewswire-FirstCall/ -- Digital Realty Trust today announced the tax treatment of its 2007 common and preferred stock dividends. Shareholders are urged to consult with their personal tax advisors as to their specific tax treatment of Digital Realty Trust's distributions.
Digital Realty Trust, Inc. Common Stock Dividends
CUSIP # 253868103
Ticker Symbol: DLR
During 2007 the reportable dividend totaling $1.14500 per share is classified for income tax purposes as follows: $0.891840 per share (77.89%) as ordinary taxable income; $0.253160 per share (22.11%) as return of capital on 2007 Form 1099-DIV. The following table contains this information on a quarterly basis.
2007 Ordinary 2007 Return
Cash Taxable of
Declaration Record Payment Dividend Dividend Capital
Date* Date Date ($ per share) ($ per share) ($ per share)
10/31/2006 12/29/2006 01/15/2007 $0.286250 $0.222960 $0.063290
02/15/2007 03/15/2007 04/02/2007 $0.286250 $0.222960 $0.063290
05/02/2007 06/15/2007 07/02/2007 $0.286250 $0.222960 $0.063290
08/01/2007 09/17/2007 10/01/2007 $0.286250 $0.222960 $0.063290
2007 Totals $1.145000 $0.891840 $0.253160
* For the common dividend declared on November 1, 2007 and paid on
January 14, 2008, $0.31000 is considered a reportable dividend for 2008
income tax purposes.
Digital Realty Trust, Inc. Preferred Stock Dividends
Series A Cumulative Redeemable Preferred Stock Dividends
CUSIP # 253868202
Ticker Symbol: DLR-PA
During 2007 reportable dividends for Digital Realty's Series A Cumulative Redeemable Preferred stock were $2.125000 per share. For tax reporting purposes, $2.125000 (100%) of the 2007 reportable dividend will be classified as ordinary taxable income. The following table contains this information on a quarterly basis.
2007 Ordinary Percentage
Declaration Record Payment Cash Taxable 2007 Ordinary
Date Date Date Dividend Dividend Taxable
($ per share)($ per share) Dividend
02/15/2007 03/15/2007 04/02/2007 $0.531250 $0.531250 100.00 %
05/02/2007 06/15/2007 07/02/2007 $0.531250 $0.531250 100.00 %
08/01/2007 09/17/2007 10/01/2007 $0.531250 $0.531250 100.00 %
11/01/2007 12/17/2007 12/31/2007 $0.531250 $0.531250 100.00 %
2007 Totals $2.125000 $2.125000 100.00 %
Series B Cumulative Redeemable Preferred Stock Dividends
CUSIP # 253868301
Ticker Symbol: DLR-PB
During 2007 reportable dividends for Digital Realty's Series B Cumulative Redeemable Preferred stock were $1.968752 per share. For tax reporting purposes, $1.968752 (100%) of the 2007 reportable dividend will be classified as ordinary taxable income. The following table contains this information on a quarterly basis.
2007 Ordinary Percentage
Declaration Record Payment Cash Taxable 2007 Ordinary
Date Date Date Dividend Dividend Taxable
($ per share)($ per share) Dividend
02/15/2007 03/15/2007 04/02/2007 $0.492188 $0.492188 100.00 %
05/02/2007 06/15/2007 07/02/2007 $0.492188 $0.492188 100.00 %
08/01/2007 09/17/2007 10/01/2007 $0.492188 $0.492188 100.00 %
11/01/2007 12/17/2007 12/31/2007 $0.492188 $0.492188 100.00 %
2007 Totals $1.968752 $1.968752 100.00 %
Series C Cumulative Convertible Preferred Stock Dividends
CUSIP # 253868509
Ticker Symbol: DLR-PC
During 2007 reportable dividends for Digital Realty's Series C Cumulative Convertible Preferred stock were $0.792970 per share. For tax reporting purposes, $0.792970 (100%) of the 2007 reportable dividend will be classified as ordinary taxable income. The following table contains this information on a quarterly basis.
2007 Ordinary Percentage
Declaration Record Payment Cash Taxable 2007 Ordinary
Date* Date Date Dividend Dividend Taxable
($ per share)($ per share) Dividend
05/02/2007 06/15/2007 07/02/207 $0.246094 $0.246094 100.00 %
08/01/2007 09/17/207 10/01/2007 $0.273438 $0.273438 100.00 %
11/01/2007 12/17/2007 12/31/2007 $0.273438 $0.273438 100.00 %
2007 Totals $0.792970 $0.792970 100.00 %
* The Series C Cumulative Convertible Preferred Stock Dividend declared on
May 2, 2007 represents a pro rata distribution covering the April 10,
2007 to June 30, 2007 period.
About Digital Realty Trust, Inc.
Digital Realty Trust, Inc. owns, acquires, redevelops, develops and manages technology-related real estate. The Company is focused on providing Turn-Key Datacenter(TM) and Powered Base Building(TM) datacenter solutions for domestic and international tenants across a variety of industry verticals ranging from information technology and internet enterprises, to manufacturing and financial services. Digital Realty Trust's 70 properties, excluding one property held as an investment in an unconsolidated joint venture, contain applications and operations critical to the day-to-day operations of technology industry tenants and corporate enterprise datacenter tenants. Comprising approximately 12.3 million rentable square feet, including 1.9 million square feet of space held for redevelopment, Digital Realty Trust's portfolio is located in 26 markets throughout North America and Europe. For additional information, please visit Digital Realty Trust's website at http://www.digitalrealtytrust.com/.
Safe Harbor Statement
This press release contains forward-looking statements, including related to the payment of dividends, which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include adverse economic or real estate developments in the Company's markets or the technology industry; general economic conditions; defaults on or non-renewal of leases by tenants; increased interest rates and operating costs; inability to manage growth effectively; failure to obtain necessary outside financing; decreased rental rates or increased vacancy rates; difficulties in identifying properties to acquire and completing acquisitions; failure to successfully operate acquired properties and operations, failure of acquired properties to perform as expected; failure to maintain the company's status as a REIT; environmental uncertainties and risks related to natural disasters; financial market fluctuations; changes in foreign currency exchange rates; and changes in real estate and zoning laws and increases in real property tax rates. For a further list and description of such risks and uncertainties, see the reports and other filings by the Company with the Securities and Exchange Commission, including the Company's annual report on Form 10-K for the year ended December 31, 2006. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For Additional Information:
A. William Stein Pamela A. Matthews
Chief Financial Officer and Investor/Analyst Information
Chief Investment Officer Digital Realty Trust, Inc.
Digital Realty Trust, Inc. (415) 738-6500
(415) 738-6500
Digital Realty Trust
CONTACT: A. William Stein, Chief Financial Officer and Chief Investment
Officer, or Investors-Analysts, Pamela A. Matthews, both of Digital Realty
Trust, Inc., +1-415-738-6500
Web site: http://www.digitalrealtytrust.com/
