For investor information contact:
Leigh Salvo, Investor Relations
(650) 314-1000
ir@catapult.com
CATAPULT COMMUNICATIONS REPORTS
FOURTH QUARTER FISCAL YEAR 2008 RESULTS
Mountain View, CA—November 6, 2008—Catapult Communications Corporation (Nasdaq: CATT) today reported that revenues for its fourth fiscal quarter ended September 30, 2008 were $9.2 million. After non-cash, pre-tax stock option expenses of $735,000, the Company reported a net loss for the quarter of $509,000 or $0.04 per share compared to a net loss of $1.7 million or $0.13 cents per share for the fourth quarter of fiscal 2007.
During the fourth fiscal quarter, Catapult generated approximately $400,000 in cash flow from operations, invested $1.9 million in capitalized software development expenses and repurchased approximately 916,000 shares at a cost of $6.7 million. As a result, the Company’s total cash, cash equivalent and investment position decreased by $8.3 million to $46.3 million. This total includes $5.0 million in currently illiquid auction rate securities classified as long-term investments, a decline of $1.2 million from the prior quarter as a result of sales and redemptions at par without a loss.
“Catapult’s operating results improved dramatically, largely as a result of the significant cost reductions we put in place earlier in fiscal 2008,” noted Dr. Richard A. Karp, the Company’s Chairman and CEO. “LTE, the next generation of mobile technology, is finally entering its active development phase. We believe that this significantly increases the need for our test products, and we are beginning to see the positive impact of this trend in our pipeline.”
Catapult Communications will be discussing its fourth quarter results on a conference call today at 5:15 p.m. Eastern/2:15 p.m. Pacific. Please dial (866) 543-6408or (617) 213-8899and provide conference ID# 30433739 to access the call. The conference call will also be broadcast from Investor Relations section of 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 November 13, 2008. To access the replay, please dial (888) 286-8010 or (617) 801-6888 and enter conference ID# 33101722.
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 LTE, IMS, WiMAX, mobile telephony, VoIP, GPRS, SS7, Intelligent Network, ATM and ISDN. 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 United Kingdom, Ireland, Germany, France, Finland, Sweden, Canada, Japan, China, India and the Philippines. 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)
For the twelve months | ||||||||||||||||
For the three months ended | ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
Revenues: | ||||||||||||||||
Products | $ | 6,033 | $ | 7,626 | $ | 25,196 | $ | 25,090 | ||||||||
Services | 3,128 | 3,080 | 12,715 | 14,251 | ||||||||||||
Total revenues | 9,161 | 10,706 | 37,911 | 39,341 | ||||||||||||
Cost of revenues: | ||||||||||||||||
Products | 1,028 | 1,493 | 4,500 | 5,311 | ||||||||||||
Services | 474 | 734 | 2,508 | 3,101 | ||||||||||||
Amortization of purchased technology | 13 | 12 | 49 | 49 | ||||||||||||
Total cost of revenues | 1,515 | 2,239 | 7,057 | 8,461 | ||||||||||||
Gross profit | 7,646 | 8,467 | 30,854 | 30,880 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 2,013 | 3,601 | 11,092 | 13,349 | ||||||||||||
Sales and marketing | 3,755 | 4,292 | 16,353 | 16,701 | ||||||||||||
General and administrative | 2,564 | 2,343 | 8,654 | 9,102 | ||||||||||||
Restructuring costs | — | — | 2,197 | — | ||||||||||||
Total operating expenses | 8,332 | 10,236 | 38,296 | 39,152 | ||||||||||||
Operating loss | (686 | ) | (1,769 | ) | (7,442 | ) | (8,272 | ) | ||||||||
Interest income | 297 | 796 | 1,991 | 3,268 | ||||||||||||
Other income, net | 191 | 48 | 393 | 1,795 | ||||||||||||
Loss before income taxes | (198 | ) | (925 | ) | (5,058 | ) | (3,209 | ) | ||||||||
Provision for income taxes | 311 | 777 | 987 | 1,212 | ||||||||||||
Net loss | $ | (509 | ) | $ | (1,702 | ) | $ | (6,045 | ) | $ | (4,421 | ) | ||||
Net loss per share: | ||||||||||||||||
Basic | $ | (0.04 | ) | $ | (0.13 | ) | $ | (0.47 | ) | $ | (0.32 | ) | ||||
Diluted | $ | (0.04 | ) | $ | (0.13 | ) | $ | (0.47 | ) | $ | (0.32 | ) | ||||
Shares used in per share calculation: | ||||||||||||||||
Basic | 11,994 | 13,587 | 12,837 | 13,849 | ||||||||||||
Diluted | 11,994 | 13,587 | 12,837 | 13,849 | ||||||||||||
Catapult Communications Corporation
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
September 30, | September 30, | |||||||
2008 | 2007 | |||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash, cash equivalents and short-term investments | $ | 41,380 | $ | 62,242 | ||||
Accounts receivable, net | 6,487 | 7,015 | ||||||
Inventories | 2,313 | 2,485 | ||||||
Other current assets | 2,387 | 1,863 | ||||||
Total current assets | 52,567 | 73,605 | ||||||
Long-term investments | 4,950 | — | ||||||
Property and equipment, net | 1,011 | 1,585 | ||||||
Goodwill and other intangibles | 49,464 | 49,537 | ||||||
Other assets | 5,992 | 2,243 | ||||||
Total assets | $ | 113,984 | $ | 126,970 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | 5,980 | $ | 5,573 | ||||
Deferred revenue | 6,446 | 6,206 | ||||||
Total current liabilities | 12,426 | 11,779 | ||||||
Deferred revenue, long-term | 173 | 406 | ||||||
Deferred taxes and other liabilities, long-term | 5,057 | 3,009 | ||||||
Total liabilities | 17,656 | 15,194 | ||||||
Total stockholders’ equity | 96,328 | 111,776 | ||||||
Total liabilities and stockholders’ equity | $ | 113,984 | $ | 126,970 | ||||