EXHIBIT 99.1
FOR IMMEDIATE RELEASE
FOR ULTICOM:
Joe Hassett, Senior Vice President
Gregory FCA
877-217-3597
JoeH@GregoryFCA.com
Ulticom Announces Fiscal Fourth Quarter and Full Year 2009 Results
MT. LAUREL, N.J., April 20, 2010 -- Ulticom, Inc. (the "Company") (NASDAQ: ULCM News) today announced its financial results for its fiscal fourth quarter and full year 2009.
Revenues for the fourth quarter of fiscal 2009 (three months ended January 31, 2010) were $11.6 million, up 8% sequentially as compared to $10.8 million for the third quarter of fiscal 2009 and up 5% year-over-year as compared to $11.1 million for the fourth quarter of fiscal 2008. The Company reported a net loss of $0.9 million, or ($0.08) per diluted share, for the fourth quarter of fiscal 2009, as compared to a net loss of $1.6 million, or ($0.15) per diluted share, for the fourth quarter of fiscal 2008. Results for the fourth quarter of fiscal 2009 and 2008 included $1.1 million and $2.1 million, respectively, of pre-tax costs associated with investigation and restatement activities, corporate development initiatives, workforce reduction, employee retention and non-cash share-based payment expense. Details of these expenses are listed in the table below.
1
Three months ended (Unaudited, in thousands) | ||||||
January 31, | January 31, | |||||
2009 | 2010 | |||||
Investigation and restatement related expenses | $ | 640 | $ | 573 | ||
Corporate development related expenses | 225 | 49 | ||||
Retention and reduction in force expenses | 995 | 412 | ||||
Non-cash share-based payment expense | 276 | 104 | ||||
Total expenses | $ | 2,136 | $ | 1,138 |
Revenues for fiscal year 2009 (ended January 31, 2010) were $45.8 million, down 14% from fiscal year 2008 (ended January 31, 2009) revenues of $53.0 million. The Company reported a net loss of $4.5 million, or ($0.41) per diluted share, for fiscal year 2009, as compared to a net loss of $3.1 million, or ($0.29) per diluted share, for fiscal year 2008. Results for fiscal years 2009 and 2008 included $8.2 million and $12.0 million, respectively, of pre-tax costs associated with investigation and restatement activities, corporate development initiatives, workforce reduction, employee retention and non-cash share-based payment expense. Details of these expenses are listed in the table below.
Twelve months ended (Unaudited, in thousands) | ||||||
January 31, | January 31, | |||||
2009 | 2010 | |||||
Investigation and restatement related expenses | $ | 4,088 | $ | 4,645 | ||
Corporate development related expenses | 1,722 | 464 | ||||
Retention and reduction in force expenses | 2,333 | 2,398 | ||||
Expired option payments | 2,308 | 0 | ||||
Non-cash share-based payment expense | 1,580 | 726 | ||||
Total expenses | $ | 12,031 | $ | 8,233 |
At January 31, 2010, the Company had $78.3 million in cash, cash equivalents and short-term investments, $87.9 million of working capital, and $92.2 million of shareholders’ equity.
2
Shawn Osborne, President and Chief Executive Officer, said, “Despite a challenging communications equipment market, Ulticom continues to make progress in achieving its major objectives of growing our customer base, enhancing our products and developing new systems solutions.”
Osborne continued, “Ulticom is focused on the growing demand for more advanced signaling solutions that is being driven by the explosion of voice, data and video traffic in next generation wireless networks. In particular, we are aggressively targeting emerging high-value wireless opportunities in broadband access, multimedia transport, subscriber management, and enhanced communication services. By leveraging Ulticom’s global signaling deployments, exceptional customer service, and proven operational efficiencies, we believe we are well positioned to take advantage of these growth opportunities and to create long term value for our shareholders.”
Conference Call
The Company will host a conference today at 4:30 PM local time to discuss these results and its outlook for 2010 and to hold a question and answer session. Please use the following dial in number to register your name and company affiliation for the conference call: 888-727-7656. The conference ID# is 2334700. The call will also be carried live on the Investor Relations page of the Company web site at www.ulticom.com and will be available for 90 days.
3
About Ulticom, Inc.
Ulticom provides service essential signaling component and system solutions for wireless, wireline, and Internet communications. Ulticom's products are used by leading telecommunication equipment and service providers worldwide to deploy broadband mobile access, multimedia transport control, subscriber data management and enhanced communication services. Ulticom is headquartered in Mount Laurel, NJ with additional offices in the United States, Europe, and Asia.
Note: This Press Release contains “forward-looking statements” for purposes of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties, including statements relating to the Company’s future business performance. Important factors that could cause actual results to differ materially include those risks described in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on April 20, 2010. The Company makes no commitment to revise or update any forward-looking statements in order to reflect events or circumstances after the date any such statement is made, except as otherwise required by the federal securities laws.
4
Financial Highlights
Financial highlights at and for the three and twelve-month periods ended January 31, 2009 and 2010 appear below. Readers are encouraged to review the Annual Report on Form 10-K filed today for fiscal year 2009, in particular the Consolidated Financial Statements and notes thereto included in Item 15 and Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 7.
ULTICOM, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
January 31, | January 31, | |||||||
2009 | 2010 | |||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 206,771 | $ | 13,190 | ||||
Short-term investments | 75,224 | 65,087 | ||||||
Accounts receivable, net | 11,532 | 10,657 | ||||||
Inventories | 1,101 | 1,019 | ||||||
Prepaid expenses and other current assets | 8,059 | 7,444 | ||||||
Total current assets | 302,687 | 97,397 | ||||||
Property and equipment, net | 2,841 | 1,872 | ||||||
Other assets | 1,866 | 1,411 | ||||||
Deferred income taxes | 7,557 | 6,377 | ||||||
Total assets | $ | 314,951 | $ | 107,057 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts payable and accrued expenses | $ | 8,570 | $ | 6,598 | ||||
Deferred revenue | 2,619 | 2,945 | ||||||
Total current liabilities | 11,189 | 9,543 | ||||||
Long-term Liabilities: | ||||||||
Deferred revenue | 4,654 | 3,682 | ||||||
Unrecognized income tax benefits | 2,273 | 1,640 | ||||||
Other long-term liabilities | 369 | 35 | ||||||
Total long-term liabilities | 7,296 | 5,357 | ||||||
Total shareholders’ equity | 296,466 | 92,157 | ||||||
Total liabilities and shareholders’ equity | $ | 314,951 | $ | 107,057 |
5
Financial Highlights, continued
ULTICOM, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
Three months ended | |||||||
January 31, | January 31, | ||||||
2009 | 2010 | ||||||
Revenues | $ | 11,056 | $ | 11,648 | |||
Cost of revenues | 3,303 | 2,853 | |||||
Gross profit | 7,753 | 8,795 | |||||
Operating expenses: | |||||||
Research and development | 3,641 | 2,957 | |||||
Selling, general and administrative | 7,679 | 6,220 | |||||
Loss from operations | (3,567 | ) | (382 | ) | |||
Interest and other income, net | 1,226 | 434 | |||||
Loss before income taxes | (2,341 | ) | 52 | ||||
Income tax expense (benefit) | (763 | ) | 979 | ||||
Net loss | $ | (1,578 | ) | $ | (927 | ) | |
Loss per share: | |||||||
Basic | $ | (0.15 | ) | $ | (0.08 | ) | |
Diluted | $ | (0.15 | ) | $ | (0.08 | ) |
6
ULTICOM, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) | ||||||||||||
Years ended January 31, | ||||||||||||
2008 | 2009 | 2010 | ||||||||||
Product revenues from: | ||||||||||||
Third parties | $ | 43,081 | $ | 37,904 | $ | 30,060 | ||||||
Related parties | 5,267 | 4,035 | 2,790 | |||||||||
Total product revenues | 48,348 | 41,939 | 32,850 | |||||||||
Service revenues from: | ||||||||||||
Third parties | 10,495 | 10,908 | 12,817 | |||||||||
Related parties | 167 | 200 | 171 | |||||||||
Total service revenues | 10,662 | 11,108 | 12,988 | |||||||||
Total revenues | 59,010 | 53,047 | 45,838 | |||||||||
Cost of revenues: | ||||||||||||
Product costs | 10,458 | 8,780 | 7,032 | |||||||||
Service costs | 5,858 | 5,720 | 4,959 | |||||||||
Total cost of revenues | 16,316 | 14,500 | 11,991 | |||||||||
Gross profit | 42,694 | 38,547 | 33,847 | |||||||||
Operating expenses: | ||||||||||||
Research and development | 16,363 | 16,288 | 13,289 | |||||||||
Selling, general and administrative | 35,523 | 34,145 | 27,633 | |||||||||
Loss from operations | (9,192 | ) | (11,886 | ) | (7,075 | ) | ||||||
Interest and other income, net | 12,364 | 7,098 | 1,953 | |||||||||
Income (loss) before income tax benefit | 3,172 | (4,788 | ) | (5,122 | ) | |||||||
Income tax benefit | (715 | ) | (1,652 | ) | (627 | ) | ||||||
Net income (loss) | $ | 3,887 | $ | (3,136 | ) | $ | (4,495 | ) | ||||
Earnings (loss) per share: | ||||||||||||
Basic | $ | 0.36 | $ | (0.29 | ) | $ | (0.41 | ) | ||||
Diluted | $ | 0.35 | $ | (0.29 | ) | $ | (0.41 | ) | ||||
Weighted average common shares outstanding: | ||||||||||||
Basic | 10,871 | 10,875 | 10,896 | |||||||||
Diluted | 11,051 | 10,875 | 10,896 | |||||||||
###
7