Falls Church, VA — November 09, 2004: Terabeam Wireless, the business name of YDI Wireless, Inc. (NASDAQ:YDIW), a leading developer and supplier of broadband wireless solutions, today announced reported its financial results for the third quarter ended September 30, 2004.
Revenue for the quarter ended September 30, 2004 was $6.4 million, an increase of approximately 36% from the revenue of $4.7 million for the quarter ended June 30, 2004 and a decrease of approximately 21% from the revenue of $8.0 million for the quarter ended September 30, 2003. The increase from the prior quarter resulted primarily from two factors: first, a full quarter of combined operations with the three companies Terabeam Wireless acquired in the second quarter of 2004 and second positive results of focusing our sales and marketing personnel on solution-based selling as opposed just selling equipment and adding solution-based sales personnel. The decrease from the preceding year resulted from a number of factors, including significant orders from a single customer in 2003 that were not repeated in 2004, increased competition, a general softness in the United States wireless market where Terabeam Wireless currently sells most of its products, and the uncertainty that resulted from Terabeam Wireless engaging in significant strategic transactions.
Revenue for the nine months ended September 30, 2004 was $17.1 million, a decrease of 21% from the revenue of $21.7 million for the nine months ended September 30, 2003. The decreases resulted from a number of factors, including significant orders from a single customer in 2003 that were not repeated in 2004, increased competition, a general softness in the United States wireless market where Terabeam Wireless currently sells most of its products, the uncertainty that resulted from Terabeam Wireless engaging in significant strategic transactions, and senior management's focus on the three strategic transactions that were completed in the second quarter of 2004.
The net loss for the quarter ended September 30, 2004 was $2.4 million ($0.09 per share-diluted) compared to net loss of $1.6 million ($0.10 per share-diluted) for the quarter ended June 30, 2004 and net income of $1.1 million ($0.07 per share-diluted) for the quarter ended September 30, 2003. The third quarter 2004 loss per share was due, in large part, to the operating costs associated with the three companies Terabeam Wireless acquired in the latter part of the second quarter of 2004.
The net loss for the nine months ended September 30, 2004 was $3.7 million ($0.13 per share-diluted) compared to net income of $4.7 million ($0.38 per share) for the nine months ended September 30, 2003. The three main reasons that caused this decrease in income were reduced gross profit as a result of lower revenues, the significant increase in operating expenses due to the three companies acquired during the second quarter, and a one-time gain of $4.3 million during the same period of 2003 resulting from the immediate recognition of the negative goodwill from the Young Design-Telaxis transaction. The decrease was offset to some extent as a result of the sale in 2004 of excess test equipment and other assets held for sale.
Robert Fitzgerald, Terabeam Wireless' Chief Executive Officer, stated, "We are pleased that our revenue increased over the preceding quarter. We will continue our efforts to grow our top line in this very competitive market. We historically have been a profitable company, and it is our driving goal to return to profitability."
Terabeam Wireless will host a conference call to discuss this release, financial results, developments at the company, and other matters of interest to investors and others on November 10, 2004 starting at 8:30 a.m. Eastern Time. The discussion may include forward-looking information.
To participate in this conference call, please dial 800-967-7143 (or 719-457-2631 for international callers), confirmation code 966685 for all callers, at least five minutes before start time. The conference call will also be broadcast live over the Internet, but only telephonic participants will be able to ask questions. Investors and others are invited to visit Terabeam Wireless' website at http://www.terabeam.com/corporate to access this Internet broadcast. Replays will be available telephonically for approximately one week by dialing 888-203-1112 for domestic callers and 719-457-0820 for international callers, confirmation code 966685 for all callers, and over the Internet for approximately 90 days at Terabeam Wireless' website at http://www.terabeam.com/corporate.
Terabeam Wireless is the business name of YDI Wireless, Inc. Terabeam Wireless 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 9600 bps to 1.44 Gbps for applications such as wireless Internet, wireless video, wireless LANs, wireless WANs, wireless MANs, and wireless virtual private networks. Additional information about Terabeam Wireless as well as its complete product line can be found at the company's website located at http://www.terabeam.com or by contacting the company by telephone at 413-665-8551 or by email at IR@terabeam.com.
Statements in this press release that are not statements of historical facts, including statements regarding Terabeam Wireless’ business outlook or expected products, capabilities, performance, opportunities, or developments, are forward-looking statements that involve risks, uncertainties, and assumptions. Terabeam Wireless’ actual results may differ materially from the results anticipated in these forward-looking statements. The forward-looking statements involve risks and uncertainties that could contribute to such differences including those relating to the downturn and ongoing uncertainty in the telecommunications industry and larger economy; the intense competition in Terabeam Wireless’ industries and resulting impacts on its pricing, gross margins, and general financial performance; difficulties in predicting Terabeam Wireless’ future financial performance; and risks arising from and relating to Terabeam Wireless’ recent acquisitions of Ricochet Networks, Inc., Terabeam Corporation, and KarlNet, Inc. and contemplated acquisition of Phazar Corp. Further information on these and other factors that could affect Terabeam Wireless’ actual results is and will be included in filings made by Terabeam Wireless from time to time with the Securities and Exchange Commission and in its other public statements.
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David L. Renauld
Vice President, Corporate Affairs
(413) 665-8551