TERABEAM WIRELESS ANNOUNCES FINANCIAL RESULTS FOR ITS SECOND QUARTER 2005
FALLS CHURCH, VA, August 2, 2005 – Terabeam Wireless, the business name of YDI Wireless, Inc. (NASDAQ:YDIW), a leading developer and supplier of broadband wireless solutions, today announced its financial results for its second quarter ended June 30, 2005. These financial results do not include any impact of Terabeam’s acquisition of substantially all the assets of Proxim Corporation, which was completed on July 27, 2005.
Revenue for the quarter ended June 30, 2005 was $7.2 million, an increase of approximately 9% from the revenue of $6.6 million for the quarter ended March 31, 2005 and an increase of approximately 51% from the revenue of $4.7 million for the quarter ended June 30, 2004. The significant increase in revenue over the prior year’s comparable quarter resulted primarily from three factors: a full quarter of combined operations with the three companies Terabeam Wireless acquired in the later part of the second quarter of 2004; increased demand especially for our point-to-multipoint products, our high frequency radio products, and our component parts business; and increased demand for our software-enhanced product offerings.
The net loss for the quarter ended June 30, 2005 was $987,000 ($0.04 per share-diluted) compared to net loss of $970,000 million ($0.04 per share-diluted) for the quarter ended March 31, 2005 and net loss of $1.6 million ($0.10 per share-diluted) for the quarter ended June 30, 2004.
As of June 30, 2005, Terabeam Wireless had current assets of approximately $46.0 million, total liabilities of less than $9.0 million, and stockholders’ equity of over $62.0 million.
Robert Fitzgerald, Terabeam’s
Chief Executive Officer, stated, “We are pleased to announce our third
consecutive quarter of sequential growth as well as growth of over 50% from
a year ago. We believe that our second quarter performance provides a solid
foundation for the combination of our efforts with those of the recently acquired
Proxim assets. Over the last year, we have bought back over 5.7 million shares
of our stock. We believe that we are well positioned to execute on the leverage
provided by the Proxim acquisition and look forward to the challenge.”
Terabeam Wireless will host
a conference call to discuss this release, financial results, developments at
the company (including the recent acquisition of substantially all of the assets
of Proxim Corporation), and other matters of interest to investors and others
on August 3, 2005 starting at 8:00 a.m. Eastern Time. The discussion may include
forward-looking information.
To participate in this conference call, please dial 800-967-7184 (or 719-457-2633 for international callers), confirmation code 6153410 for all callers, at least ten minutes before start time. The conference call will also be broadcast live over the Internet. Investors and others are invited to visit Terabeam Wireless’ website at http://www.terabeam.com/corporate/ to access this 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 6153410 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 1.42 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 413-584-1425 or by email at IR@terabeam.com.
Statements in this press release that are not statements of historical facts 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 acquisition of Proxim Corporation’s operations, assets, and relationships. 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.
– Financial Tables follow –
YDI
WIRELESS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
|
|
June 30, |
|
December 31, |
|
|
2005 |
|
2004 |
|
|
(unaudited) |
|
|
Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents .......................................................................................................... |
|
$ 34,038 |
|
$ 35,368 |
Investment securities – available-for-sale .................................................................................. |
|
340 |
|
5,369 |
Accounts receivable, net ......................................................................................................... |
|
3,751 |
|
2,972 |
Refundable income taxes ........................................................................................................ |
|
- |
|
151 |
Inventory .................................................................................................................................. |
|
7,471 |
|
7,442 |
Prepaid expenses ....................................................................................................................... |
|
393 |
|
253 |
Total current assets ............................................................................................................ |
|
45,993 |
|
51,555 |
|
|
|
|
|
Property and equipment, net ........................................................................................ |
|
2,367 |
|
2,511 |
Other Assets: |
|
|
|
|
Restricted cash ........................................................................................................................... |
|
5,076 |
|
5,136 |
Goodwill ..................................................................................................................................... |
|
6,013 |
|
6,072 |
Intangible assets, net .................................................................................................................. |
|
11,502 |
|
11,919 |
Deposits ..................................................................................................................................... |
|
99 |
|
91 |
Total other assets .............................................................................................................. |
|
22,690 |
|
23,218 |
Total assets ........................................................................................................................ |
|
$ 71,050 |
|
$ 77,284 |
Liabilities and Stockholders’ Equity |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable and accrued expenses ..................................................................................... |
|
$ 4,763 |
|
$ 6,965 |
Deferred revenue ....................................................................................................................... |
|
148 |
|
159 |
Current maturities of notes payable ........................................................................................... |
|
2,767 |
|
2,899 |
Total current liabilities ....................................................................................................... |
|
7,678 |
|
10,023 |
Notes payable, net of current maturities ................................................................................... |
|
1,255 |
|
1,270 |
Total liabilities ................................................................................................................... |
|
8,933 |
|
11,293 |
Commitments and contingencies |
|
|
|
|
Stockholders’ Equity |
|
|
|
|
Preferred stock, $0.01 par value; authorized 4,500,000, none issued at June 30, 2005 and December 31, 2004 .............................................................................................................. |
|
- |
|
- |
Common stock, $0.01 par value, 100,000,000 shares authorized, 21,389,287 issued and outstanding at June 30, 2005 and 22,845,847 issued with 22,345,847 outstanding at December 31, 2004 ............................................................................................................... |
|
214 |
|
228 |
Additional paid-in capital .......................................................................................................... |
|
56,518 |
|
59,637 |
Retained earnings ...................................................................................................................... |
|
5,319 |
|
7,277 |
Treasury stock .......................................................................................................................... |
|
- |
|
(1,155) |
Accumulated other comprehensive income: |
|
|
|
|
Net unrealized gain (loss) on available-for-sale securities ........................................................ |
|
66 |
|
4 |
Total stockholders’ equity ................................................................................................. |
|
62,117 |
|
65,991 |
Total liabilities and stockholders’ equity ............................................................................ |
|
$ 71,050 |
|
$ 77,284 |
YDI
WIRELESS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(unaudited)
|
|
For the Three Months Ended June 30, |
|
For the Six Months Ended June 30, |
||||
|
|
2005 |
|
2004 |
|
2005 |
|
2004 |
Revenues ................................................................. |
|
$ 7,165 |
|
$ 4,733 |
|
$ 13,762 |
|
$ 10,750 |
Cost of goods sold .................................................... |
|
3,687 |
|
3,193 |
|
7,006 |
|
6,744 |
Gross profit ............................................................ |
|
3,478 |
|
1,540 |
|
6,756 |
|
4,006 |
Operating expenses: |
|
|
|
|
|
|
|
|
Selling costs ............................................................ |
|
1,034 |
|
480 |
|
2,031 |
|
920 |
General and administrative ...................................... |
|
2,777 |
|
2,180 |
|
5,285 |
|
3,907 |
Research and development ...................................... |
|
879 |
|
477 |
|
1,650 |
|
969 |
Total operating expenses .................................. |
|
4,690 |
|
3,137 |
|
8,966 |
|
5,796 |
Operating income (loss) .............................................. |
|
(1,212) |
|
(1,597) |
|
(2,210) |
|
(1,790) |
Other income (expenses): |
|
|
|
|
|
|
|
|
Interest income ...................................................... |
|
269 |
|
26 |
|
490 |
|
50 |
Interest expense ..................................................... |
|
(70) |
|
(34) |
|
(136) |
|
(63) |
Other income (loss) ............................................... |
|
3 |
|
- |
|
(115) |
|
503 |
Total other income (expenses) ......................... |
|
202 |
|
(8) |
|
239 |
|
490 |
Income (loss) before income taxes ............................... |
|
(1,010) |
|
(1,605) |
|
(1,971) |
|
(1,300) |
Benefit (provision) for income taxes ...................... |
|
23 |
|
- |
|
14 |
|
(2) |
Net income (loss) ......................................................... |
|
$ (987) |
|
$ (1,605) |
|
$ (1,957) |
|
$ (1,302) |
Weighted average shares - basic and diluted .................. |
|
22,009,434 |
|
15,799,225 |
|
22,204,249 |
|
15,016,816 |
EPS, basic and diluted .............................................. |
|
$ (0.04) |
|
$ (0.10) |
|
$ (0.09) |
|
$ (0.09) |
David Renauld
Vice President, Corporate Affairs
Tel: (413) 584-1425