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.
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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 | ||||