Investor Relations Contact:
Leigh Salvo
(650) 314-1000
investor-relations@catapult.com
CATAPULT COMMUNICATIONS REPORTS
THIRD QUARTER FISCAL 2005 RESULTS
Mountain View, CA—July 28, 2005—Catapult Communications Corporation (Nasdaq: CATT) today reported that revenues for its third fiscal quarter ended June 30, 2005 were $14.3 million and net income was $2.4 million or $0.16 per diluted share.
Positive cash flow from operations continued during the quarter, increasing the Company’s cash, cash equivalents and short-term investment position by $2.5 million to $67 million at quarter end.
“Demand for our testing solutions remained strong,” said Dr. Richard A. Karp, Catapult’s Chairman and CEO. “Our Rest of World region has continued to grow faster than expected; once again it exceeded its quarterly orders target, driven by sales to customers in China and India. Europe also exceeded its orders target in the June quarter, marking the seventh consecutive quarter that this region has met or exceeded its goals.”
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) 901-5259 to access the conference call. International and local participants can dial (617) 786-4514. Please reference Catapult Communications or reservation number 15955463. The conference call will also be available on the Internet from the Investor section of the Company’s website.
A replay of this teleconference will be available on the Company’s website for one year following the conference call. A digital recording will also be available by telephone one hour after the completion of the conference call through midnight on August 4, 2005. To access the replay, please dial (888) 286-8010 or (617) 801-6888 and enter reservation number 10473260.
ABOUT CATAPULT
Catapult Communications is a leading supplier of advanced digital telecom test systems to global equipment manufacturers and service providers. The Catapult DCT2000® and MGTS® systems deliver superior high-end test solutions for hundreds of protocols and variants, spanning 3G, VoIP, GPRS, SS7, Intelligent Network, ATM, ISDN and other network environments. Catapult is headquartered at 160 South Whisman Road, Mountain View, CA. 94041, tel. 650-960-1025. International offices are located in the U.K., Germany, France, Finland, Canada, Japan, China and Australia.
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Catapult Communications Corporation
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
For the three months ended | For the nine months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2005 | 2004 | 2005 | 2004 | |||||||||||||
Revenues: | ||||||||||||||||
Products | $ | 10,873 | $ | 11,267 | $ | 38,341 | $ | 33,619 | ||||||||
Services | 3,403 | 3,053 | 10,856 | 8,992 | ||||||||||||
Total revenues | 14,276 | 14,320 | 49,197 | 42,611 | ||||||||||||
Cost of revenues: | ||||||||||||||||
Products | 1,236 | 1,196 | 3,907 | 3,762 | ||||||||||||
Services | 923 | 787 | 2,596 | 2,418 | ||||||||||||
Amortization of purchased technology | 171 | 171 | 514 | 514 | ||||||||||||
Total cost of revenues | 2,330 | 2,154 | 7,017 | 6,694 | ||||||||||||
Gross profit | 11,946 | 12,166 | 42,180 | 35,917 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 3,224 | 2,973 | 9,406 | 8,693 | ||||||||||||
Sales and marketing | 4,431 | 4,234 | 13,936 | 12,845 | ||||||||||||
General and administrative | 1,946 | 1,676 | 5,878 | 5,131 | ||||||||||||
Total operating expenses | 9,601 | 8,883 | 29,220 | 26,669 | ||||||||||||
Operating income | 2,345 | 3,283 | 12,960 | 9,248 | ||||||||||||
Interest income | 409 | 204 | 922 | 583 | ||||||||||||
Interest expense | — | (87 | ) | — | (262 | ) | ||||||||||
Other income (expense), net | 16 | (1 | ) | (121 | ) | 161 | ||||||||||
Income before income taxes | 2,770 | 3,399 | 13,761 | 9,730 | ||||||||||||
Provision for income taxes | 387 | 476 | 2,135 | 1,362 | ||||||||||||
Net income | $ | 2,383 | $ | 2,923 | $ | 11,626 | $ | 8,368 | ||||||||
Net income per share: | ||||||||||||||||
Basic | $ | 0.16 | $ | 0.22 | $ | 0.79 | $ | 0.64 | ||||||||
Diluted | 0.16 | 0.20 | 0.77 | 0.58 | ||||||||||||
Shares used in per share calculation: | ||||||||||||||||
Basic | 14,712 | 13,139 | 14,662 | 13,014 | ||||||||||||
Diluted | 14,971 | 14,582 | 15,087 | 14,463 | ||||||||||||
Catapult Communications Corporation
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
June 30, | September 30, | |||||||
2005 | 2004 | |||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash, cash equivalents and short-term investments | $ | 67,211 | $ | 52,670 | ||||
Accounts receivable, net | 13,905 | 10,110 | ||||||
Inventories | 2,578 | 2,380 | ||||||
Other current assets | 2,498 | 2,623 | ||||||
Total current assets | 86,192 | 67,783 | ||||||
Property and equipment, net | 1,967 | 2,640 | ||||||
Goodwill and other intangibles | 53,700 | 54,466 | ||||||
Other assets | 3,301 | 3,382 | ||||||
Total assets | $ | 145,160 | $ | 128,271 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | 7,252 | $ | 7,048 | ||||
Deferred revenue | 7,979 | 5,388 | ||||||
Total current liabilities | 15,231 | 12,436 | ||||||
Deferred revenue long term portion | 389 | 70 | ||||||
Total liabilities | 15,620 | 12,506 | ||||||
Total stockholders’ equity | 129,540 | 115,765 | ||||||
Total liabilities and | ||||||||
stockholders’ equity | $ | 145,160 | $ | 128,271 | ||||
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