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Tut Systems, Inc. Announces Third Quarter 2005 ResultsLAKE OSWEGO, Ore., Oct. 27 /PRNewswire-FirstCall/ -- Tut Systems, Inc. , today announced its third quarter results for 2005. Revenue for the quarter ended September 30, 2005, was $10.0 million compared with revenue of $6.7 million for the quarter ended September 30, 2004. This represents an increase in revenue of 50.5% when compared with the third quarter of 2004, and a 3.8% increase when compared with second quarter 2005 revenue of $9.7 million. Revenue for the nine months ended September 30, 2005, was $26.8 million compared with revenues of $18.0 million for the nine months ended September 30, 2004, which represents a 48.9% increase in revenue. Gross profit for the quarter ended September 30, 2005, was $2.2 million compared with gross profit of $2.2 million for the quarter ended September 30, 2004. Included in gross profit was a charge for amortization of intangibles of $0.4 million and $0.4 million for the quarters ended September 30, 2005 and 2004, respectively. These charges relate to the company's acquisitions of Copper Mountain Networks in June 2005 and VideoTele.com in November 2002. This charge is a reclassification of amortization of intangibles from operating expense to cost of goods sold. Also, included in gross profit for the quarter ended September 30, 2005, is a charge of $0.8 million for excess and obsolete inventory and an impairment charge associated with certain of the technology acquired as part of the VideoTele.com acquisition of $0.2 million. Net loss for the three months ended September 30, 2005, was $(5.6) million or $(0.17) per basic and diluted share. This compares with the net loss for the three months ended September 30, 2004, of $(2.7) million or $(0.13) per basic and diluted share. Net loss for the nine months ended September 30, 2005 was $(13.4) million or $(0.48) per basic and diluted share compared with a net loss of $(10.8) million or $(0.53) per basic and diluted share for the nine months ended September 30, 2004. "We are pleased by the growth in the global IPTV phenomenon," said Sal D'Auria, Chairman, President and CEO of Tut Systems, Inc. "In the third quarter we had digital headend sales in the U.S., the Middle East, Europe and Asia. We now have more than 150 service providers across North America, Europe and Asia delivering IPTV powered by Tut Systems digital headends. Our year-to-date third quarter revenue of $26.8 million already exceeds our 2004 full year revenue of $25.0 million. We are proud to have been recently named 'the leading IPTV video headend system company in terms of channels installed today,' by Multimedia Research Group, Inc. We believe these factors clearly indicate that Tut Systems is uniquely positioned to benefit from the worldwide growth in the IPTV market." Third Quarter Conference Call Information Tut Systems will host a conference call to discuss third quarter results on October 28, 2005 beginning at 5:30 am Pacific time. Participants of the conference call should dial in at least five minutes before the start time. Conference ID # 1604503 U.S. and Canada dial 877-356-8058 International participants dial 706-634-2465 Online at http://www.tutsys.com/ A replay will be available two hours after the call ends for one week dial 800-642-1687 or 706-645-9291 and enter the conference ID number. A replay is also available at http://www.tutsys.com/. Recent Announcements: Significant announcements from Tut Systems since the second quarter earnings release include: 8/3/05 Tut Systems Selected by ICOA for 3000 Room Trump Atlantic City Broadband Deployment 8/9/05 Tut Systems to Present at Light Reading Conference August 11, 2005 8/10/05 Tut Systems Secures 10th MPEG-4 AVC Customer 8/16/05 Tut Systems Lands Mid-Atlantic MPEG-4 IPTV Deployment 8/31/05 Tut Systems Expands European Operations and Demonstrates IPTV Solutions at IBC2005 9/14/05 Tut Systems CEO to Present at Merriman Curhan Ford & Co. Second Annual Investor Summit 2005 9/20/05 Tut Systems Partners with New York Schools to Create Large Broadband IP Distance Learning Networks 9/22/05 Tut Systems To Hold Third Annual Digital TV User Group Conference 10/12/05 Tut Systems Drives Independent Telco's IPTV Service 10/13/05 Tut Systems Delivers Broadband Services To Camino Real Hotels 10/18/05 Tut Systems Delivers Digital TV to Monroe Telephone's Cable and DSL Customers 10/19/05 Tut Systems to Release Q3 2005 Earnings on October 27, Followed by a Conference Call on October 28, 2005 10/19/05 Tut Systems Named a Global IPTV Video Headend Leader by MRG 10/20/05 Tut Systems Extends IPTV Leadership with High Performance Solutions at Telecom '05 Forward-Looking Statements Safe Harbor Statement under the U.S. Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Specifically, without limitation, forward-looking statements include statements relating to our anticipation of future growth in the IPTV market. Forward-looking statements are based on management's current expectations and beliefs, and are subject to risks and uncertainties. As a result, actual results may differ materially from the forward-looking statements contained herein. Risks that relate to these forward-looking statements include the risks inherent in new and developing technologies and markets, the risk that competitors will introduce rival technologies and products, and the risk that the expected financial benefits of the IPTV deployment will not be achieved as a result of unforeseen costs or events. Further detailed information about risk factors that may impact our business is set forth in our periodic filings with the Securities and Exchange Commission. We expressly disclaim any obligation to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise. About Tut Systems, Inc. Tut Systems, Inc. delivers content processing and distribution products for deploying next-generation data and video services over broadband networks. Service providers, content providers and government agencies in the United States and internationally use Tut Systems solutions to deliver broadcast- quality video over broadband networks. Tut Systems is headquartered in Lake Oswego, Oregon with regional offices across North America, Europe and Asia. For more information visit http://www.tutsys.com/ or call 971-217-0400. - FINANCIAL TABLES FOLLOW - TUT SYSTEMS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (unaudited) Three months ended Nine months ended September 30, September 30, 2004 2005 2004 2005 Revenue $6,672 $10,039 $17,972 $26,766 Cost of goods sold 4,462 7,863 13,980 18,572 Gross profit 2,210 2,176 3,992 8,194 Operating expenses: Sales and marketing 2,001 2,663 5,838 7,895 Research and development 1,844 3,892 5,526 9,229 General and administrative 1,044 1,063 3,260 4,187 Restructuring costs -- 130 -- 130 Amortization of intangible assets 16 18 48 51 Total operating expenses 4,905 7,766 14,672 21,492 Loss from operations (2,695) (5,590) (10,680) (13,298) Interest and other (expense), net (48) (10) (148) (139) Net loss $(2,743) $(5,600) $(10,828) $(13,437) Net loss per share, basic and diluted $(0.13) $(0.17) $(0.53) $(0.48) Shares used in computing net loss, basic and diluted 20,453 32,042 20,361 27,773 TUT SYSTEMS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) December 31, September 30, 2004 2005 ASSETS Current assets: Cash and cash equivalents $12,440 $17,613 Accounts receivable, net 6,585 14,483 Inventories, net 3,994 6,399 Prepaid expenses and other 1,137 1,371 Total current assets 24,156 39,866 Property and equipment, net 1,874 3,377 Intangibles and other assets 1,935 8,387 Total assets $27,965 $51,630 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Line of credit $-- $7,000 Accounts payable and accrued liabilities 4,545 9,667 Deferred revenue 226 480 Total current liabilities 4,771 17,147 Note payable and other long term liabilities 3,816 4,156 Total liabilities 8,587 21,303 Stockholders' equity 19,378 30,327 Total liabilities and stockholders' equity $27,965 $51,630 Tut Systems, Inc. CONTACT: Randall Gausman, Chief Financial Officer, +1-971-217-0400, [email protected], or Hilary Goetz, Corporate Communications,+1-971-217-0441, or [email protected], both of Tut Systems, Inc. Web site: http://www.tutsys.com/ |