YDI Wireless Announces First Quarter 2004 Financial Results
Falls Church, VA — April 23, 2004: YDI Wireless, Inc. (OTCBB:YDIW), a leading developer and supplier of broadband wireless solutions, today reported its financial results for the first quarter ended March 31, 2004.
Revenue for the quarter ended March 31, 2004 was $6.0 million, an increase of approximately 8.5% over the revenue of $5.5 million for the quarter ended December 31, 2003 and a decrease of approximately 6.5% from the revenue of $6.4 million for the quarter ended March 31, 2003.
Gross profit for the first quarter of 2004 was $2.5 million (41% gross profit margin) as compared to $3.0 million (54% gross profit margin) for the fourth quarter of 2003 and $2.0 million (31.0% gross profit margin) for the first quarter of 2003.
The net income for the recent quarter was $303 thousand ($0.02 per share, diluted) compared to net loss of $45 thousand ($0.00 per share, diluted) for the fourth quarter of 2003 and $106 thousand ($0.01 per share, diluted) for the first quarter of 2003. Much of the net income for recent quarter resulted from the sale of intellectual property in the amount of $500,000.
Robert E. Fitzgerald, Chief Executive Officer, stated, “Margins continue to remain surprisingly strong, although we were disappointed with our first quarter revenues. We continue to believe that margins will not continue to run as high as we have seen over the last several quarters. Our focus will continue to be on revenue growth and profitability. We believe that our strategy of expanding our channels of distribution, combined with the continued introduction of products that focus on meeting real customer needs with proven technology at reasonable prices, will sustain our organic growth. Also, we continue to move forward on strategic transactions, such as our recently announced contemplated merger with Terabeam, to increase stockholder value.”
YDI Wireless, Inc. is a world leader in providing extended range, license free wireless data equipment and is a leading designer of turnkey long distance wireless systems ranging from 19.9 Kbps to 1 Gbps for applications such as wireless Internet, wireless video, wireless LANs, wireless WANs, wireless MANs and wireless virtual private networks. Additional information about YDI Wireless as well as its complete product line can be found at the company's web site located at http://www.ydi.com or by contacting the company by telephone at 413-665-8551 or by email at IR@ydi.com.
Statements in this press release that are not statements of historical facts, including statements about our business outlook or expected performance or developments, are forward-looking statements that involve risks, uncertainties, and assumptions. Our actual results may differ materially from the results anticipated in these forward-looking statements due to risks arising from and relating to the contemplated merger of YDI and Terabeam Corporation, the two companies’ ability and desire to consummate that transaction, and our ability to achieve the contemplated benefits of that transaction; our contemplated acquisition of Phazar, the two companies’ ability and desire to consummate that transaction, and our ability to achieve the contemplated benefits of that transaction; the possibility that the contemplated transaction with Terabeam could negatively impact the contemplated acquisition of Phazar; the uncertainty relating to YDI’s ability to have its common stock listed on the NASDAQ National Market or NASDAQ SmallCap Market and timing of any such listing; the downturn and ongoing uncertainty in the telecommunications industry and larger economy; the intense competition in our industry and resulting impacts on our pricing, gross margins, and general financial performance; and the other factors discussed in our filings made from time to time with the Securities and Exchange Commission and in our other public statements.
David L.
Renauld
Vice President, Corporate Affairs
(413) 665-8551
| (unaudited) | ||
| March 31, 2004 | December 31, 2003 | |
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $9,817 | $8,990 |
| Accounts receivable, net | 2,855 | 2,511 |
| Refundable income taxes | 151 | 226 |
| Inventory | 3,577 | 3,134 |
| Assets held for sale | 768 | 790 |
| Prepaid expenses | 240 | 162 |
| Total current assets | 17,408 | 15,813 |
| Property and equipment, net | 1,728 | 1,747 |
| Other Assets: | ||
| Investment securities - available-for-sale | 1,738 | 2,627 |
| Intangible assets, net | 433 | 483 |
| Deposits | 35 | 49 |
| Total other assets | 2,206 | 3,159 |
| Total assets | $21,342 | $20,719 |
| Liabilities and Stockholders' Equity | ||
| Current liabilities: | ||
| Accounts payable and accrued expenses | $3,512 | $3,023 |
| Current maturities of notes payable | 194 | 213 |
| Total current liabilities | 3,706 | 3,236 |
| Notes payable, net of current maturities | 1,255 | 1,298 |
| Total liabilities | 4,961 | 4,534 |
| Commitments and contingencies | - | - |
| Stockholders' Equity | ||
| Preferred stock, $0.01 par value; authorized 4,500,000, none issued at March 31, 2004 and December 31, 2003 | - | - |
| Common stock, $0.01 par value, 100,000,000 shares authorized, 14,263,488 and 14,179,882 issued and outstanding at March 31, 2004 and December 31, 2003, respectively | 143 | 142 |
| Additional paid-in capital | 6,369 | 6,173 |
| Retained earnings | 8,926 | 8,673 |
| Accumulated other comprehensive income: | ||
| Net unrealized gain/(loss) on available-for-sale securities | 943 | 1,197 |
| Total stockholders' equity | 16,381 | 16,185 |
| Total liabilities and stockholders' equity | $21,342 | $20,719 |
YDI
WIRELESS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(unaudited)
| YDI Wireless, Inc. | Young Design, Inc. | |
| For the Three Months | ||
| Ended March 31, | ||
| 2004 | 2003 | |
| Revenues | $6,017 | $6,436 |
| Cost of goods sold | 3,551 | 4,438 |
| Gross profit | 2,466 | 1,998 |
| Operating expenses: | ||
| Selling costs | 440 | 467 |
| General and administrative | 1,727 | 1,158 |
| Research and development | 492 | 121 |
| Total operating expenses | 2,659 | 1,746 |
| Operating income (loss) | -193 | 252 |
| Other income (expenses): | ||
| Interest income | 24 | - |
| Interest expense | -29 | -64 |
| Other income (expenses) | 503 | - |
| Total other income (expenses) | 498 | -64 |
| Income (loss) before income taxes | 305 | 188 |
| Provision for income taxes | 2 | 82 |
| Net income (loss) | $303 | $106 |
| Weighted average shares - basic | 14,234,405 | 9,375,000 |
| EPS, basic | $0.02 | $0.01 |
| Weighted average shares - diluted | 14,793,965 | 9,375,000 |
| EPS, diluted | $0.02 | $0.01 |