For investor information contact:
Leigh Salvo, Investor Relations
(650) 314-1000
ir@catapult.com
For company information contact:
Robin Rickert, Marketing Communications
(650) 960-1025
robin@catapult.com
CATAPULT COMMUNICATIONS REPORTS
RECORD REVENUES AND NET INCOME FOR FISCAL YEAR 2005
Mountain View, CA—November 3, 2005—Catapult Communications Corporation (Nasdaq: CATT) today reported record revenues of $64.9 million for the fiscal year ended September 30, 2005, an increase of 12% over fiscal year 2004. Net income for fiscal year 2005 was also a record at $14.1 million compared to $13.9 million for fiscal year 2004.
For the fourth quarter ended September 30, 2005, revenues were $15.8 million compared to $15.4 million in the same quarter a year ago. Net income in the fourth quarter of fiscal year 2005 was $2.5 million or $0.17 per diluted share compared to $5.5 million or $0.38 per diluted share in the prior period. The reduction in fourth quarter net income and earnings per share in fiscal year 2005 resulted primarily from the absence in that year of a one-time tax benefit recorded in the fourth quarter of fiscal year 2004 and from an increase in expenses due to Sarbanes-Oxley compliance costs.
Catapult Communications will be discussing its fourth quarter results on a conference call today, beginning at 5:15 p.m. Eastern/2:15 p.m. Pacific. Please dial (800) 295-3991 to access the conference call. International and local participants can dial (617) 614-3924. Please reference Catapult Communications or reservation number 88687865. 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 November 10, 2005. To access the replay, please dial (888) 286-8010 or (617) 801-6888 and enter reservation number 64628876.
About Catapult Communications
Catapult Communications is a leading supplier of advanced digital telecom test systems to global equipment manufacturers and service providers, including Ericsson, Lucent, Motorola, NEC, NTT DoCoMo, Nortel and Siemens. 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. 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 the U.K., Germany, France, Finland, Sweden, Canada, Japan, China and Australia. Information about Catapult Communications can be found on the Web at www.catapult.com.
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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 twelve months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2005 | 2004 | 2005 | 2004 | |||||||||||||
Revenues: | ||||||||||||||||
Products | $ | 12,100 | $ | 12,084 | $ | 50,441 | $ | 45,703 | ||||||||
Services | 3,651 | 3,323 | 14,507 | 12,315 | ||||||||||||
Total revenues | 15,751 | 15,407 | 64,948 | 58,018 | ||||||||||||
Cost of revenues: | ||||||||||||||||
Products | 1,859 | 1,430 | 5,766 | 5,192 | ||||||||||||
Services | 838 | 1,152 | 3,434 | 3,570 | ||||||||||||
Amortization of purchased technology | 171 | 172 | 686 | 686 | ||||||||||||
Total cost of revenues | 2,868 | 2,754 | 9,886 | 9,448 | ||||||||||||
Gross profit | 12,883 | 12,653 | 55,062 | 48,570 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 3,039 | 3,047 | 12,445 | 11,740 | ||||||||||||
Sales and marketing | 4,465 | 4,230 | 18,401 | 17,075 | ||||||||||||
General and administrative | 3,130 | 1,754 | 9,008 | 6,885 | ||||||||||||
Total operating expenses | 10,634 | 9,031 | 39,854 | 35,700 | ||||||||||||
Operating income | 2,249 | 3,622 | 15,208 | 12,870 | ||||||||||||
Interest income | 442 | 159 | 1,364 | 480 | ||||||||||||
Other income (expense), net | (28 | ) | (13 | ) | (148 | ) | 148 | |||||||||
Income before income taxes | 2,663 | 3,768 | 16,424 | 13,498 | ||||||||||||
Provision (benefit) for income taxes | 141 | (1,775 | ) | 2,276 | (413 | ) | ||||||||||
Net income | $ | 2,522 | $ | 5,543 | $ | 14,148 | $ | 13,911 | ||||||||
Net income per share: | ||||||||||||||||
Basic | $ | 0.17 | $ | 0.42 | $ | 0.96 | $ | 1.06 | ||||||||
Diluted | $ | 0.17 | $ | 0.38 | $ | 0.94 | $ | 0.95 | ||||||||
Shares used in per share calculation: | ||||||||||||||||
Basic | 14,772 | 13,357 | 14,677 | 13,100 | ||||||||||||
Diluted | 14,977 | 14,744 | 15,019 | 14,556 | ||||||||||||
Catapult Communications Corporation
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
September 30, | September 30, | |||||||
2005 | 2004 | |||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash, cash equivalents and short-term investments | $ | 68,807 | $ | 52,670 | ||||
Accounts receivable, net | 14,724 | 10,110 | ||||||
Inventories | 3,104 | 2,380 | ||||||
Other current assets | 2,004 | 2,623 | ||||||
Total current assets | 88,639 | 67,783 | ||||||
Property and equipment, net | 1,693 | 2,640 | ||||||
Goodwill and other intangibles | 53,445 | 54,466 | ||||||
Other assets | 3,983 | 3,382 | ||||||
Total assets | $ | 147,760 | $ | 128,271 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | 7,055 | $ | 7,048 | ||||
Deferred revenue | 7,697 | 5,388 | ||||||
Total current liabilities | 14,752 | 12,436 | ||||||
Deferred revenue long-term portion | 485 | 70 | ||||||
Total liabilities | 15,237 | 12,506 | ||||||
Total stockholders’ equity | 132,523 | 115,765 | ||||||
Total liabilities and | ||||||||
stockholders’ equity | $ | 147,760 | $ | 128,271 | ||||