For investor information contact: Leigh Salvo, Investor Relations (650) 314-1000 ir@catapult.com
CATAPULT COMMUNICATIONS REPORTS FIRST QUARTER FISCAL YEAR 2009 RESULTS
Mountain View, CA—February 5, 2009—Catapult Communications Corporation (Nasdaq: CATT) today reported that revenues for its first fiscal quarter ended December 31, 2008 were $9.8 million. After non-cash, pre-tax stock option expenses of $553,000, the Company reported net income for the quarter of $57,000 or 0.49 cents per share compared to a net loss of $1.2 million or 9 cents per share for the first quarter of fiscal 2008.
During the first quarter of fiscal 2009, Catapult invested $2.0 million in capitalized software development expenses and repurchased approximately 393,000 shares at a cost of $2.0 million. The Company’s total cash, cash equivalent and investment position decreased by $5.3 million to $41.1 million. This total includes $4.6 million in currently illiquid auction rate securities classified as long-term investments. This value is net of a non-cash temporary unrealized holding loss of $309,000 that was recorded against these securities on the Company’s December 31, 2008 balance sheet in light of the deterioration in financial markets.
“There is no doubt that LTE is gaining momentum as the next worldwide telecom standard, and Catapult is well positioned to capitalize on it,” said Dr. Richard A. Karp, Chairman and CEO. “While the majority of our revenue continues to be derived from the delivery of test systems for current telecom technologies, the upside in the first quarter came from new business driven by LTE design wins. We have received LTE test system orders in each of our major geographic regions, with the majority coming from our Japan and Asia Pacific regions, where early adoption of new technology is the norm. Thanks to a strong cash position, we have been able to invest in product development to be prepared for the LTE cycle. Our results are now beginning to reflect the benefit of that investment.”
Catapult Communications will be discussing its first quarter results on a conference call today at 5:15 p.m. Eastern/2:15 p.m. Pacific. Please dial (866) 761-0748 or (617) 614-2706 and provide conference ID# 18906063 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 February 12, 2009. To access the replay, please dial (888) 286-8010 or (617) 801-6888 and enter conference ID# 16776041.
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, 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 three months ended
December 31,
2008
2007
Revenues:
Products
$
6,457
$
6,770
Services
3,355
3,531
Total revenues
9,812
10,301
Cost of revenues:
Products
1,452
1,248
Services
473
798
Amortization of purchased technology
12
12
Total cost of revenues
1,937
2,058
Gross profit
7,875
8,243
Operating expenses:
Research and development
1,638
3,553
Sales and marketing
3,971
4,345
General and administrative
2,259
2,172
Total operating expenses
7,868
10,070
Operating income (loss)
7
(1,827
)
Interest income
232
744
Other income, net
175
130
Income (loss) before income taxes
414
(953
)
Provision for income taxes
357
218
Net income (loss)
$
57
$
(1,171
)
Net income (loss) per share:
Basic
$
0.00
$
(0.09
)
Diluted
$
0.00
$
(0.09
)
Shares used in per share calculation:
Basic
11,568
13,373
Diluted
11,568
13,373
Catapult Communications Corporation CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited)
December 31,
September 30,
2008
2008
ASSETS
Current Assets:
Cash, cash equivalents and short-term investments
$
36,410
$
41,380
Accounts receivable, net
7,866
6,487
Inventories
2,775
2,313
Other current assets
2,217
2,431
Total current assets
49,268
52,611
Long-term investments
4,641
4,950
Property and equipment, net
1,027
1,011
Goodwill and other intangibles
49,446
49,464
Other assets
8,017
5,992
Total assets
$
112,399
$
114,028
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable and accrued liabilities
$
5,123
$
6,024
Deferred revenue
7,196
6,446
Total current liabilities
12,319
12,470
Deferred revenue, long-term
111
173
Deferred taxes and other liabilities, long-term
5,218
5,057
Total liabilities
17,648
17,700
Total stockholders’ equity
94,751
96,328
Total liabilities and stockholders’ equity
$
112,399
$
114,028
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