For investor information contact:
Leigh Salvo, Investor Relations
(650) 314-1000
ir@catapult.com
CATAPULT COMMUNICATIONS REPORTS
THIRD QUARTER FISCAL YEAR 2007 RESULTS
Mountain View, CA—July 26, 2007—Catapult Communications Corporation (Nasdaq: CATT) today reported that revenues for its third fiscal quarter ended June 30, 2007 were $8.5 million, compared to $10.8 million in the comparable quarter in fiscal 2006.
After non-cash, pre-tax stock option costs of approximately $873,000, the Company reported a net loss of $2.3 million or $0.17 cents per diluted share. In the same period a year ago, the Company reported net income of approximately $1.1 million, or 7 cents per diluted share, after approximately $748,000 in non-cash, pre-tax stock option expenses.
“I believe our results are indicative of an overall weakness in the market resulting from customer consolidation and a slow down in the rate of technology change in the telecom industry,” said Dr. Richard A. Karp, Catapult’s Chairman and CEO. “There do appear to be opportunities ahead, and we are positioning our products, sales and engineering support teams to capture that new business as it emerges.”
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) 706-7749 or (617) 614-3474 and provide conference ID# 35111497 to access the call. The conference call will also be broadcast from www.catapult.com.
A replay of this teleconference will be available on the Company’s website for one year following the conference call. A digital recording will be provided by telephone two hours after the completion of the conference call through midnight on August 3, 2007. To access the replay, please dial (888) 286-8010 or (617) 801-6888 and enter conference ID# 31072358.
About Catapult Communications
Catapult Communications is a leading supplier of advanced digital telecom test systems to global equipment manufacturers and service providers, including Alcatel-Lucent, Ericsson, 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 Ireland, the U.K., Germany, France, Finland, Sweden, Canada, Japan, China, Australia, the Philippines and India. 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 OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three months ended | Nine months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
Revenues: | ||||||||||||||||
Products | $ | 4,839 | $ | 6,996 | $ | 17,464 | $ | 22,444 | ||||||||
Services | 3,636 | 3,793 | 11,171 | 11,110 | ||||||||||||
Total revenues | 8,475 | 10,789 | 28,635 | 33,554 | ||||||||||||
Cost of revenues: | ||||||||||||||||
Products | 1,400 | 1,142 | 3,818 | 3,575 | ||||||||||||
Services | 765 | 908 | 2,367 | 2,926 | ||||||||||||
Amortization of purchased technology | 13 | 171 | 37 | 514 | ||||||||||||
Total cost of revenues | 2,178 | 2,221 | 6,222 | 7,015 | ||||||||||||
Gross profit | 6,297 | 8,568 | 22,413 | 26,539 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 3,463 | 3,543 | 9,748 | 10,058 | ||||||||||||
Sales and marketing | 4,177 | 4,423 | 12,409 | 13,205 | ||||||||||||
General and administrative | 2,281 | 2,391 | 6,759 | 7,139 | ||||||||||||
Total operating expenses | 9,921 | 10,357 | 28,916 | 30,402 | ||||||||||||
Operating loss | (3,624 | ) | (1,789 | ) | (6,503 | ) | (3,863 | ) | ||||||||
Interest income | 825 | 751 | 2,472 | 1,991 | ||||||||||||
Other income (expense), net | (81 | ) | 3 | 1,747 | 56 | |||||||||||
Loss before income taxes | (2,880 | ) | (1,035 | ) | (2,284 | ) | (1,816 | ) | ||||||||
Provision for (benefit from) income taxes | (541 | ) | (2,091 | ) | 435 | (2,226 | ) | |||||||||
Net income (loss) | $ | (2,339 | ) | $ | 1,056 | $ | (2,719 | ) | $ | 410 | ||||||
Net income (loss) per share: | ||||||||||||||||
Basic | $ | (0.17 | ) | $ | 0.07 | $ | (0.19 | ) | $ | 0.03 | ||||||
Diluted | $ | (0.17 | ) | $ | 0.07 | $ | (0.19 | ) | $ | 0.03 | ||||||
Shares used in per share calculation: | ||||||||||||||||
Basic | 13,739 | 14,801 | �� | 13,938 | 14,776 | |||||||||||
Diluted | 13,739 | 14,887 | 13,938 | 14,935 | ||||||||||||
Catapult Communications Corporation
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
June 30, | September 30, | |||||||
2007 | 2006 | |||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash, cash equivalents and short-term investments | $ | 63,023 | $ | 70,134 | ||||
Accounts receivable, net | 6,963 | 9,696 | ||||||
Inventories | 3,156 | 3,484 | ||||||
Other current assets | 1,980 | 1,677 | ||||||
Total current assets | 75,122 | 84,991 | ||||||
Property and equipment, net | 1,670 | 1,912 | ||||||
Goodwill and other intangibles | 49,555 | 49,610 | ||||||
Other assets | 3,068 | 294 | ||||||
Total assets | $ | 129,415 | $ | 136,807 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | 4,140 | $ | 4,592 | ||||
Deferred revenue | 6,933 | 7,703 | ||||||
Total current liabilities | 11,073 | 12,295 | ||||||
Deferred revenue, long-term portion | 490 | 256 | ||||||
Deferred taxes and other liabilities, long-term | 3,908 | 2,524 | ||||||
Total liabilities | 15,471 | 15,075 | ||||||
Total stockholders’ equity | 113,944 | 121,732 | ||||||
Total liabilities and stockholders’ equity | $ | 129,415 | $ | 136,807 | ||||