Exhibit 99.1
August 23, 2007 | ||
Sally O. Thiel, Director | Jo Ann Lehtihet | |
Investor Relations | Corporate Public Relations | |
C-COR | C-COR | |
(814) 231-4402, email: sthiel@c-cor.com | (814) 231-4438, email: jlehtihet@c-cor.com |
C-COR REPORTS FINANCIAL RESULTS FOR FOURTH QUARTER
AND FISCAL YEAR 2007
State College, PA (August 23, 2007)—C-COR Incorporated (NASDAQ: CCBL) today reported its financial results for the fourth quarter and fiscal year 2007, ended June 29, 2007.
As previously reported, C-COR completed the sale of its Outside Plant and Installation Services business during the fourth quarter of fiscal year 2007, and will begin reporting the results of operations and the sale of this business as a discontinued operation. This change affects C-COR’s previously reported financial results as well as the current quarter results, all of which will now be reported in two components, continuing operations and discontinued operations. C-COR is providing an unaudited breakout of its fiscal year 2006 and 2007 quarterly results from continuing operations on its website for analysis purposes:
(http://www.c-cor.com/about/ir/financial/reclassified_financial_data/)
Please note that not all of the analysts’ reports comprising the First Call historical results for fiscal years 2006 and 2007 have been updated to reflect results from continuing operations. As a result, C-COR’s reported financial results – particularly with respect to net sales – are not comparable to the First Call consensus numbers for the full fiscal year 2007.
Net sales from continuing operations for the fourth quarter were $74.4 million compared to $59.6 million in the same period last year and $73 million last quarter. Bookings in the fourth quarter of fiscal year 2007 were $68.6 million for a book-to-bill ratio of ..92. Net sales from continuing operations for the entire fiscal year 2007 were $277.3 million compared to $213.9
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C-COR REPORTS FINANCIAL RESULTS FOR FOURTH QUARTER
AND FISCAL YEAR 2007 - ADD 1
million in fiscal year 2006. Bookings for the entire fiscal year 2007 were $292.2 million for a book-to-bill ratio of 1.05. The financial results for the fourth quarter and fiscal year 2006 included one additional week of operations compared to the fiscal year 2007 periods.
Income from continuing operations for the fourth quarter of fiscal year 2007 was $8.2 million, compared to $9.9 million for the same period last year. Included in income from continuing operations for the fourth quarter of fiscal year 2006 were a $9.7 million gain on the sale of trade claims in the bankruptcy cases of Adelphia and its affiliates and a $1.2 million gain on a litigation judgment. Income per share from continuing operations on a diluted basis for the fourth quarter of fiscal year 2007 was $.16 compared to $.20 for the same period last year. C-COR’s results from continuing operations for the fourth quarter of fiscal year 2007 included $1.4 million of stock compensation expense, $799,000 of amortization related to intangible assets, and $180,000 of restructuring charges. These items, which equate to $.04 on a diluted per share basis, are included in results reported under generally accepted accounting principles (GAAP), but are typically excluded from the analysts’ estimates comprising the First Call consensus number. C-COR is breaking out these numbers to improve comparability of the reported GAAP results and the non-GAAP First Call number.
C-COR anticipates that net sales from continuing operations for the first quarter of fiscal year 2008, ending September 28, 2007, will be between $70.0 and $74.0 million with earnings per share from continuing operations of between $.08 and $.12. These forecasts include approximately $650,000 of amortization related to intangible assets, $2.7 million of stock compensation expense, and $200,000 of restructuring charges. These items, which are projected to equate to $.07 per diluted share, are typically excluded from the First Call analysts’
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C-COR REPORTS FINANCIAL RESULTS FOR FOURTH QUARTER
AND FISCAL YEAR 2007 - ADD 2
projections. C-COR is breaking out these numbers to improve comparability of the projected GAAP results and the non-GAAP First Call number.
C-COR’s management will discuss C-COR’s financial results on a conference call at 9:45 AM (ET) on Thursday, August 23, 2007. To participate in the August 23rd call, dial 800-926-4402. International callers should use +1 212-231-2900. The live audio of the conference call will also be available via the Internet at C-COR’s web site (www.c-cor.com). For information on how to access the live audio and replay of the conference call, refer to C-COR’s news release dated April 4, 2007 (posted on the C-COR web site), or contact Investor Relations at 814-231-4402 or 814-231-4438.
About C-COR
C-COR technology and know-how are at the heart of today’s personalized, multi-screen communications and entertainment. The largest cable operators and other private and public network operators around the world look to C-COR for broadband access equipment to expand bandwidth, unified video platforms for delivery of on demand content, and integrated back-office OSS for a 360 degree view of the network, subscribers and workforce. C-COR’s common stock is listed on the NASDAQ Global Market (Symbol: CCBL) and is a component of the Russell 2000 Stock Index. For additional information regarding C-COR, visit www.c-cor.com.
Some of the information presented in this announcement constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent the Company’s judgment regarding future events, and are based on currently available information. Although the Company believes it has a reasonable basis for these forward-looking statements, the Company cannot guarantee their accuracy and actual results may differ materially from those the Company anticipated due to a number of known and unknown uncertainties. Factors which could cause actual results to differ from expectations include, among others, capital spending patterns of the communications industry, changes in regard to significant customers, the demand for network integrity, the trend toward more fiber in the network, the Company’s ability to develop new and enhanced products, the Company’s ability to provide complete network solutions, continued industry consolidation, the development of competing technology, the global demand for the Company’s products and services, the Company’s ability to implement its restructuring and cost reduction measures, and the Company’s ability to achieve its strategic objectives. For additional information concerning these and other important factors that may cause the Company’s actual results to differ materially from expectations and underlying assumptions, please refer to the reports filed by the Company with the Securities and Exchange Commission.
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C-COR REPORTS FINANCIAL RESULTS FOR FOURTH QUARTER
AND FISCAL YEAR 2007 - ADD 3
C-COR Incorporated
Condensed Consolidated Statements of Operations
(unaudited, in thousands except per share amounts)
Thirteen Weeks Ended June 29, 2007 | Fourteen Weeks Ended June 30, 2006 | Fifty-two Weeks Ended June 29, 2007 | Fifty-three Weeks Ended June 30, 2006 | |||||||||||||
Net sales | $ | 74,425 | $ | 59,569 | $ | 277,329 | $ | 213,946 | ||||||||
Cost of sales (1) | 39,867 | 32,573 | 151,958 | 126,397 | ||||||||||||
Excess and obsolete inventory charge | 0 | 244 | 0 | 8,598 | ||||||||||||
Total cost of sales | 39,867 | 32,817 | 151,958 | 134,995 | ||||||||||||
Gross margin | 34,558 | 26,752 | 125,371 | 78,951 | ||||||||||||
Operating expenses (1) | ||||||||||||||||
Selling and administrative | 17,555 | 17,741 | 62,987 | 65,398 | ||||||||||||
Research and product development | 8,282 | 8,744 | 32,512 | 38,203 | ||||||||||||
Amortization of other intangibles | 799 | 885 | 3,286 | 4,591 | ||||||||||||
Impairment charges (recovery) | 0 | (112 | ) | 0 | 7,010 | |||||||||||
Loss (gain) on sale of product lines | 0 | 18 | 245 | (1,952 | ) | |||||||||||
Restructuring costs | 180 | 1,546 | 960 | 6,583 | ||||||||||||
Total operating expenses | 26,816 | 28,822 | 99,990 | 119,833 | ||||||||||||
Income (loss) from operations | 7,742 | (2,070 | ) | 25,381 | (40,882 | ) | ||||||||||
Interest expense | (350 | ) | (360 | ) | (1,434 | ) | (1,350 | ) | ||||||||
Investment income | 1,337 | 920 | 3,760 | 2,001 | ||||||||||||
Foreign exchange gain (loss) | (40 | ) | 30 | (166 | ) | 248 | ||||||||||
Gain on sale of bankruptcy trade claims | 0 | 9,715 | 0 | 9,715 | ||||||||||||
Other income, net | 40 | 2,656 | 429 | 3,135 | ||||||||||||
Income (loss) before income taxes | 8,729 | 10,891 | 27,970 | (27,133 | ) | |||||||||||
Income tax expense | 494 | 1,005 | 2,791 | 2,939 | ||||||||||||
Income (loss) from continuing operations | 8,235 | 9,886 | 25,179 | (30,072 | ) | |||||||||||
Discontinued operations, net of tax | ||||||||||||||||
Income (loss) from discontinued operations | 511 | 1,295 | (1,626 | ) | 2,766 | |||||||||||
Gain on sale of discontinued operations | 4,810 | 0 | 4,810 | 0 | ||||||||||||
Net income (loss) | $ | 13,556 | $ | 11,181 | $ | 28,363 | $ | (27,306 | ) | |||||||
Net income (loss) per share: basic | ||||||||||||||||
Continuing operations | $ | 0.16 | $ | 0.20 | $ | 0.52 | $ | (0.63 | ) | |||||||
Discontinued operations | 0.11 | 0.03 | 0.06 | 0.06 | ||||||||||||
Net income (loss) | $ | 0.27 | $ | 0.23 | $ | 0.58 | $ | (0.57 | ) | |||||||
Net income (loss) per share: diluted | ||||||||||||||||
Continuing operations | $ | 0.16 | $ | 0.20 | $ | 0.50 | $ | (0.63 | ) | |||||||
Discontinued operations | 0.10 | 0.02 | 0.06 | 0.06 | ||||||||||||
Net income (loss) | $ | 0.26 | $ | 0.22 | $ | 0.56 | $ | (0.57 | ) | |||||||
Weighted average common shares and common share equivalents | ||||||||||||||||
Basic | 49,670 | 47,999 | 48,762 | 47,891 | ||||||||||||
Diluted | 53,670 | 51,292 | 52,565 | 47,891 | ||||||||||||
(1) Stock-based compensation is included as follows: | ||||||||||||||||
Cost of sales | $ | 132 | $ | 87 | $ | 327 | $ | 249 | ||||||||
Selling and administrative | 906 | 699 | 2,803 | 2,800 | ||||||||||||
Research and product development | 319 | 210 | 658 | 618 | ||||||||||||
Total stock-based compensation | $ | 1,357 | $ | 996 | $ | 3,788 | $ | 3,667 |
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C-COR REPORTS FINANCIAL RESULTS FOR FOURTH QUARTER
AND FISCAL YEAR 2007 - ADD 4
C-COR Incorporated
Consolidated Balance Sheets
(in thousands of dollars)
June 29, 2007 | March 30, 2007 | June 30, 2006 | |||||||
(unaudited) | (unaudited) | ||||||||
ASSETS | |||||||||
Current assets | |||||||||
Cash and cash equivalents | $ | 54,856 | $ | 44,447 | $ | 44,658 | |||
Restricted cash | 2,620 | 3,594 | 1,409 | ||||||
Marketable securities | 53,453 | 47,108 | 16,270 | ||||||
Accounts receivable, net | 63,375 | 58,014 | 49,188 | ||||||
Unbilled receivables | 2,268 | 2,908 | 3,308 | ||||||
Inventories | 28,150 | 36,009 | 25,437 | ||||||
Deferred costs | 8,476 | 7,848 | 4,555 | ||||||
Assets held for sale | 0 | 0 | 303 | ||||||
Other current assets | 4,270 | 3,185 | 4,239 | ||||||
Total current assets | 217,468 | 203,113 | 149,367 | ||||||
Property, plant and equipment, net | 19,217 | 20,359 | 20,074 | ||||||
Goodwill | 129,518 | 131,034 | 131,209 | ||||||
Other intangible assets, net | 1,849 | 2,648 | 5,135 | ||||||
Deferred taxes | 222 | 424 | 497 | ||||||
Other long-term assets | 7,754 | 5,675 | 6,847 | ||||||
Total | $ | 376,028 | $ | 363,253 | $ | 313,129 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||
Current liabilities | |||||||||
Accounts payable | $ | 20,698 | $ | 27,820 | $ | 25,796 | |||
Accrued liabilities | 31,371 | 32,490 | 26,423 | ||||||
Deferred revenue | 32,534 | 29,984 | 19,674 | ||||||
Deferred taxes | 1,317 | 1,317 | 374 | ||||||
Liabilities held for sale | 0 | 0 | 415 | ||||||
Current portion of long-term debt | 384 | 378 | 299 | ||||||
Total current liabilities | 86,304 | 91,989 | 72,981 | ||||||
Long-term debt, less current portion | 35,968 | 36,064 | 35,966 | ||||||
Deferred revenue | 3,892 | 4,472 | 2,705 | ||||||
Deferred taxes | 3,067 | 3,078 | 2,986 | ||||||
Other long-term liabilities | 5,615 | 4,861 | 3,624 | ||||||
Shareholders’ equity | 241,182 | 222,789 | 194,867 | ||||||
Total | $ | 376,028 | $ | 363,253 | $ | 313,129 | |||
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C-COR REPORTS FINANCIAL RESULTS FOR FOURTH QUARTER
AND FISCAL YEAR 2007 - ADD 5
C-COR Incorporated
Financial Data Table
(Unaudited, in thousands except percentages)
Business Segment | ||||||||||||||||||||
Business Segment: | Broadband Systems Solutions | Total | Network Services | Consolidated | ||||||||||||||||
Product Category: | Access | Solutions | Services | |||||||||||||||||
Thirteen Weeks ended June 29, 2007: | ||||||||||||||||||||
Bookings (1) | $ | 52,880 | $ | 15,552 | $ | 68,432 | $ | 190 | $ | 68,622 | ||||||||||
Net sales | 57,240 | 15,905 | 73,145 | 1,280 | 74,425 | |||||||||||||||
Gross margin | 24,867 | 9,167 | 34,034 | 524 | 34,558 | |||||||||||||||
Gross margin percentage | 43.4 | % | 57.6 | % | 46.5 | % | 40.9 | % | 46.4 | % | ||||||||||
Backlog at June 29, 2007 (1): | ||||||||||||||||||||
Less than 12 months | 30,188 | 43,003 | 73,191 | 779 | 73,970 | |||||||||||||||
Greater than 12 months | 0 | 18,337 | 18,337 | 0 | 18,337 | |||||||||||||||
Total Backlog | 30,188 | 61,340 | 91,528 | 779 | 92,307 | |||||||||||||||
Fourteen Weeks ended June 30, 2006: | ||||||||||||||||||||
Bookings (1) | $ | 46,045 | $ | 11,326 | $ | 57,371 | $ | 3,465 | $ | 60,836 | ||||||||||
Net sales | 45,039 | 12,807 | 57,846 | 1,723 | 59,569 | |||||||||||||||
Gross margin | 19,327 | 6,620 | 25,947 | 805 | 26,752 | |||||||||||||||
Gross margin percentage | 42.9 | % | 51.7 | % | 44.9 | % | 46.7 | % | 44.9 | % | ||||||||||
Backlog at June 30, 2006 (1): | ||||||||||||||||||||
Less than 12 months | 27,668 | 36,234 | 63,902 | 3,195 | 67,097 | |||||||||||||||
Greater than 12 months | 0 | 10,383 | 10,383 | 0 | 10,383 | |||||||||||||||
Total Backlog | 27,668 | 46,617 | 74,285 | 3,195 | 77,480 | |||||||||||||||
Fifty-two Weeks ended June 29, 2007: | ||||||||||||||||||||
Bookings (1) | $ | 213,973 | $ | 74,779 | $ | 288,752 | $ | 3,404 | $ | 292,156 | ||||||||||
Net sales | 211,453 | 60,056 | 271,509 | 5,820 | 277,329 | |||||||||||||||
Gross margin | 87,084 | 36,228 | 123,312 | 2,059 | 125,371 | |||||||||||||||
Gross margin percentage | 41.2 | % | 60.3 | % | 45.4 | % | 35.4 | % | 45.2 | % | ||||||||||
Backlog at June 29, 2007 (1) | ||||||||||||||||||||
Less than 12 months | 30,188 | 43,003 | 73,191 | 779 | 73,970 | |||||||||||||||
Greater than 12 months | 0 | 18,337 | 18,337 | 0 | 18,337 | |||||||||||||||
Total Backlog | 30,188 | 61,340 | 91,528 | 779 | 92,307 | |||||||||||||||
Fifty-three weeks ended June 30, 2006: | ||||||||||||||||||||
Bookings (1) | $ | 159,963 | $ | 65,455 | $ | 225,418 | $ | 6,990 | $ | 232,408 | ||||||||||
Net sales | 157,991 | 51,639 | 209,630 | 4,316 | 213,946 | |||||||||||||||
Gross margin | 51,785 | 25,418 | 77,203 | 1,748 | 78,951 | |||||||||||||||
Gross margin percentage | 32.8 | % | 49.2 | % | 36.8 | % | 40.5 | % | 36.9 | % | ||||||||||
Backlog at June 30, 2006 (1) | ||||||||||||||||||||
Less than 12 months | 27,668 | 36,234 | 63,902 | 3,195 | 67,097 | |||||||||||||||
Greater than 12 months | 0 | 10,383 | 10,383 | 0 | 10,383 | |||||||||||||||
Total Backlog | 27,668 | 46,617 | 74,285 | 3,195 | 77,480 | |||||||||||||||
(1) | Amounts derived from our internal operating records. |
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