[July 26, 2007] Catapult Communications Reports Third Quarter Fiscal Year 2007 Results Tweet MOUNTAIN VIEW, Calif., July 26 /PRNewswire-FirstCall/ -- Catapult Communications Corporation today reported that revenues for its third fiscal quarter ended June 30, 2007 were $8.5 million, compared to $10.8 million in the comparable quarter in fiscal 2006. After non-cash, pre-tax stock option costs of approximately $873,000, the Company reported a net loss of $2.3 million or $0.17 cents per diluted share. In the same period a year ago, the Company reported net income of approximately $1.1 million, or 7 cents per diluted share, after approximately $748,000 in non-cash, pre-tax stock option expenses. "I believe our results are indicative of an overall weakness in the market resulting from customer consolidation and a slow down in the rate of technology change in the telecom industry," said Dr. Richard A. Karp, Catapult's Chairman and CEO. "There do appear to be opportunities ahead, and we are positioning our products, sales and engineering support teams to capture that new business as it emerges." Catapult Communications will be discussing its third quarter results on a conference call today, beginning at 5:15 p.m. Eastern/2:15 p.m. Pacific. Please dial (800) 706-7749 or (617) 614-3474 and provide conference ID# 35111497 to access the call. The conference call will also be broadcast from http://www.catapult.com/. A replay of this teleconference will be available on the Company's website for one year following the conference call. A digital recording will be provided by telephone two hours after the completion of the conference call through midnight on August 3, 2007. To access the replay, please dial (888) 286-8010 or (617) 801-6888 and enter conference ID# 31072358. About Catapult Communications Catapult Communications is a leading supplier of advanced digital telecom test systems to global equipment manufacturers and service providers, including Alcatel-Lucent, Ericsson, Motorola, NEC, NTT DoCoMo, Nortel and Nokia Siemens Networks. The Catapult DCT2000(R) and MGTS(R) systems deliver superior high-end test solutions for hundreds of protocols and variants - spanning IMS, WiMAX, 4G/3G/2.5G/2G UMTS, VoIP, GPRS, SS7, Intelligent Network, ATM, ISDN and other network environments. The Company is committed to providing testing tools that are at the forefront of the telecom technology curve. Catapult is headquartered at 160 South Whisman Road, Mountain View, CA 94041. Tel: 650-960-1025. International offices are located in Ireland, the U.K., Germany, France, Finland, Sweden, Canada, Japan, China, Australia, the Philippines and India. Information about Catapult Communications can be found on the Web at http://www.catapult.com/. For investor information contact: Leigh Salvo, Investor Relations (650) 314-1000 [email protected] Catapult Communications Corporation CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited) For the nine For the three months ended months ended June 30, June 30, 2007 2006 2007 2006 Revenues: Products $4,839 $6,996 $17,464 $22,444 Services 3,636 3,793 11,171 11,110 Total revenues 8,475 10,789 28,635 33,554 Cost of revenues: Products 1,400 1,142 3,818 3,575 Services 765 908 2,367 2,926 Amortization of purchased technology 13 171 37 514 Total cost of revenues 2,178 2,221 6,222 7,015 Gross profit 6,297 8,568 22,413 26,539 Operating expenses: Research and development 3,463 3,543 9,748 10,058 Sales and marketing 4,177 4,423 12,409 13,205 General and administrative 2,281 2,391 6,759 7,139 Total operating expenses 9,921 10,357 28,916 30,402 Operating loss (3,624) (1,789) (6,503) (3,863) Interest income 825 751 2,472 1,991 Other income, net (81) 3 1,747 56 Loss before income taxes (2,880) (1,035) (2,284) (1,816) Provision for (benefit from) income taxes (541) (2,091) 435 (2,226) Net income (loss) $(2,339) $1,056 $(2,719) $410 Net income (loss) per share: Basic $(0.17) $0.07 $(0.19) $0.03 Diluted $(0.17) $0.07 $(0.19) $0.03 Shares used in per share calculation: Basic 13,739 14,801 13,938 14,776 Diluted 13,739 14,887 13,938 14,935 Catapult Communications Corporation CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) June 30, September 30, 2007 2006 ASSETS Current Assets: Cash, cash equivalents and short-term investments $63,023 $70,134 Accounts receivable, net 6,963 9,696 Inventories 3,156 3,484 Other current assets 1,980 1,677 Total current assets 75,122 84,991 Property and equipment, net 1,670 1,912 Goodwill and other intangibles 49,555 49,610 Other assets 3,068 294 Total assets $129,415 $136,807 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable and accrued liabilities $4,140 $4,592 Deferred revenue 6,933 7,703 Total current liabilities 11,073 12,295 Deferred revenue, long-term portion 490 256 Deferred taxes and other liabilities, long-term 3,908 2,524 Total liabilities 15,471 15,075 Total stockholders' equity 113,944 121,732 Total liabilities and stockholders' equity $129,415 $136,807 Catapult Communications Corporation CONTACT: investors, Leigh Salvo, Investor Relations of CatapultCommunications Corporation, +1-650-314-1000, [email protected] Web site: http://www.catapult.com/ [ Back To TMCnet.com's Homepage ]