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
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