For investor information contact: Leigh Salvo, Investor Relations (650) 314-1000 ir@catapult.com
CATAPULT COMMUNICATIONS REPORTS SECOND QUARTER FISCAL YEAR 2007 RESULTS
Mountain View, CA—April 26, 2007—Catapult Communications Corporation (Nasdaq: CATT) today reported that in its second fiscal quarter ended March 31, 2007, it recorded $1.8 million in pre-tax income from the settlement of a lawsuit.
Revenues for the quarter, which in accordance with GAAP do not include the settlement, were $9.6 million, compared to $10.7 million in the second quarter of fiscal 2006. After non-cash, pre-tax stock option costs of approximately $0.6 million, the Company reported net income of $64,000, or zero cents per diluted share. In the same period a year ago, the Company reported a net loss of $789,000, or 5 cents per diluted share, after approximately $0.5 million in non-cash, pre-tax stock option expenses.
“Engineering issues are no longer limiting Catapult’s growth as had been the case in our last fiscal year. However, the effects of customer consolidation remain a concern,” said Dr. Richard A. Karp, Catapult’s Chairman and CEO.
Catapult Communications will be discussing its second quarter results on a conference call today, beginning at 5:15 p.m. Eastern/2:15 p.m. Pacific. Please dial (866) 711-8198 to access the conference call. International and local participants can dial (617) 597-5327. Please reference Catapult Communications or reservation number 88897351. 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 May 3, 2007. To access the replay, please dial (888) 286-8010 or (617) 801-6888 and enter reservation number 60788036.
About Catapult Communications Catapult Communications is a leading supplier of advanced digital telecom test systems to global equipment manufacturers and service providers, including Ericsson, Alcatel-Lucent, Motorola, NEC, NTT DoCoMo, Nortel and Nokia Siemens Networks. The Catapult DCT2000® and MGTS® 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 the U.K., Germany, France, Finland, Sweden, Canada, Japan, China, Australia and India. Information about Catapult Communications can be found on the Web atwww.catapult.com.
Forward Looking Statements The statements in this press release regarding the Company’s engineering issues and the effects of customer consolidation are forward-looking statements. These statements are subject to various risks and uncertainties that could cause actual results to differ from those forecasted. Such risks include the Company’s dependence on a limited number of customers and the resulting effect of delays or cancellations by such customers of their orders, and inability by the Company to meet its production and/or product development schedules. For other factors that may cause actual results to differ from those projected, please refer to the Company’s Form 10-K, Forms 10-Q and other filings with the Securities and Exchange Commission.
###
Catapult Communications Corporation CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited)
For the three months ended
For the six months ended
March 31,
March 31,
2007
2006
2007
2006
Revenues:
Products
$
6,069
$
6,914
$
12,625
$
15,448
Services
3,524
3,749
7,535
7,317
Total revenues
9,593
10,663
20,160
22,765
Cost of revenues:
Products
1,290
1,245
2,418
2,433
Services
748
956
1,602
2,018
Amortization of purchased technology
12
172
24
343
Total cost of revenues
2,050
2,373
4,044
4,794
Gross profit
7,543
8,290
16,116
17,971
Operating expenses:
Research and development
3,270
3,433
6,285
6,515
Sales and marketing
3,941
4,154
8,232
8,782
General and administrative
2,194
2,321
4,478
4,748
Total operating expenses
9,405
9,908
18,995
20,045
Operating loss
(1,862
)
(1,618
)
(2,879
)
(2,074
)
Interest income
840
620
1,647
1,240
Other income, net
1,835
40
1,828
53
Income (loss) before income taxes
813
(958
)
596
(781
)
Provision (benefit) for income taxes
749
(169
)
976
(135
)
Net income (loss)
$
64
$
(789
)
$
(380
)
$
(646
)
Net income (loss) per share:
Basic
$
(0.00
)
$
(0.05
)
$
(0.03
)
$
(0.04
)
Diluted
$
(0.00
)
$
(0.05
)
$
(0.03
)
$
(0.04
)
Shares used in per share calculation:
Basic
13,970
14,784
14,037
14,763
Diluted
14,025
14,784
14,037
14,763
Catapult Communications Corporation CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited)
March 31,
September 30,
2007
2006
ASSETS
Current Assets:
Cash, cash equivalents and short-term investments
$
67,251
$
70,134
Accounts receivable, net
8,598
9,696
Inventories
3,522
3,484
Other current assets
1,798
1,677
Total current assets
81,169
84,991
Property and equipment, net
1,828
1,912
Goodwill and other intangibles
49,574
49,610
Other assets
3,072
294
Total assets
$
135,643
$
136,807
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable and accrued liabilities
$
5,042
$
4,592
Deferred revenue
7,959
7,703
Total current liabilities
13,001
12,295
Deferred revenue, long-term portion
294
256
Deferred taxes and other liabilities, long-term
3,922
2,524
Total liabilities
17,217
15,075
Total stockholders’ equity
118,426
121,732
Total liabilities and stockholders’ equity
$
135,643
$
136,807
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