Exhibit 99.1
October 25, 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 FIRST QUARTER OF
FISCAL YEAR 2008
State College, PA (October 25, 2007) - C-COR Incorporated (NASDAQ: CCBL) today reported its financial results for the first quarter of fiscal year 2008, ended September 28, 2007.
Net sales from continuing operations for the first quarter were $71.9 million compared to $60.4 million in the same period last year, for an increase of 19%. Bookings in the first quarter of fiscal year 2008 were $61.8 million for a book-to-bill ratio of .86.
Income from continuing operations for the first quarter of fiscal year 2008 was $5.4 million compared to $2.2 million for the same period last year. Income per share from continuing operations on a basic and diluted basis for the first quarter of fiscal year 2008 was $.11 compared to $.04 for the same period last year. C-COR’s results for the first quarter of fiscal year 2008 included $2.8 million of stock compensation expense, $1.2 million of transaction costs related to the proposed merger with ARRIS Group Inc., $633,000 of amortization related to intangible assets, and $205,000 of restructuring charges. These items, which equate to $.09 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.
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C-COR REPORTS FINANCIAL RESULTS FOR FIRST QUARTER OF
FISCAL YEAR 2008 – ADD 1
C-COR anticipates that net sales for the second quarter of fiscal year 2008, ending December 28, 2007, will be between $72.0 and $76.0 million with income per share from continuing operations of between $.15 and $.19. These projections include $1.1 million of stock compensation expense, $579,000 of amortization related to intangible assets, and approximately $150,000 of restructuring charges. These items, which are projected to equate to $.03 per diluted share, are typically excluded from the First Call analysts’ 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, October 25, 2007. To participate in the October 25th call, dial 800-926-7748. International callers should use +1 212-231-2917. 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 October 5, 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, visitwww.c-cor.com.
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C-COR REPORTS FINANCIAL RESULTS FOR FIRST QUARTER OF
FISCAL YEAR 2008 – ADD 2
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, the possibility that the proposed merger with ARRIS Group Inc. will not be consummated, 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 FIRST QUARTER OF
FISCAL YEAR 2008 – ADD 3
C-COR Incorporated
Condensed Consolidated Statements of Operations
(Unaudited, in thousands except per share amounts)
Thirteen Weeks Ended | Thirteen Weeks Ended September 29, 2006 | |||||||
Net sales | $ | 71,927 | $ | 60,366 | ||||
Cost of sales (1) | 40,805 | 34,793 | ||||||
Gross margin | 31,122 | 25,573 | ||||||
Operating expenses (1) | ||||||||
Selling and administrative | 17,039 | 14,397 | ||||||
Research and product development | 8,681 | 7,200 | ||||||
Amortization of other intangibles | 633 | 829 | ||||||
Loss on sale of product lines | 0 | 245 | ||||||
Restructuring costs | 205 | 400 | ||||||
Total operating expenses | 26,558 | 23,071 | ||||||
Income from operations | 4,564 | 2,502 | ||||||
Interest expense | (341 | ) | (360 | ) | ||||
Investment income | 1,506 | 695 | ||||||
Foreign exchange gain | 527 | 30 | ||||||
Other income, net | 102 | 71 | ||||||
Income before income taxes | 6,358 | 2,938 | ||||||
Income tax expense | 911 | 764 | ||||||
Income from continuing operations | 5,447 | 2,174 | ||||||
Discontinued operations, net of tax | ||||||||
Loss from discontinued operations | (536 | ) | (591 | ) | ||||
Net income | $ | 4,911 | $ | 1,583 | ||||
Net income (loss) per share: basic | ||||||||
Continuing operations | $ | 0.11 | $ | 0.04 | ||||
Discontinued operations | (0.01 | ) | (0.01 | ) | ||||
Net income | $ | 0.10 | $ | 0.03 | ||||
Net income (loss) per share: diluted | ||||||||
Continuing operations | $ | 0.11 | $ | 0.04 | ||||
Discontinued operations | (0.01 | ) | (0.01 | ) | ||||
Net income | $ | 0.10 | $ | 0.03 | ||||
Weighted average common shares and common share equivalents | ||||||||
Basic | 50,229 | 48,048 | ||||||
Diluted | 53,916 | 48,529 | ||||||
(1) Stock-based compensation is included as follows:
| ||||||||
Cost of sales | $ | 218 | $ | 100 | ||||
Selling and administrative | 2,287 | 659 | ||||||
Research and product development | 306 | 140 | ||||||
Total stock-based compensation | $ | 2,811 | $ | 899 | ||||
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C-COR REPORTS FINANCIAL RESULTS FOR FIRST QUARTER OF
FISCAL YEAR 2008 – ADD 4
C-COR Incorporated
Consolidated Balance Sheets
(in thousands of dollars)
September 28, 2007 | June 29, 2007 | |||||
(unaudited) | ||||||
ASSETS | ||||||
Current assets | ||||||
Cash and cash equivalents | $ | 60,968 | $ | 54,913 | ||
Restricted cash | 4,404 | 2,563 | ||||
Marketable securities | 71,508 | 53,453 | ||||
Accounts receivable, net | 42,021 | 63,375 | ||||
Unbilled receivables | 1,890 | 2,268 | ||||
Inventories | 23,753 | 28,150 | ||||
Deferred costs | 9,116 | 8,476 | ||||
Other current assets | 4,440 | 4,935 | ||||
Total current assets | 218,100 | 218,133 | ||||
Property, plant and equipment, net | 19,594 | 19,381 | ||||
Goodwill | 128,610 | 128,825 | ||||
Other intangible assets, net | 1,215 | 1,849 | ||||
Deferred taxes | 702 | 778 | ||||
Other long-term assets | 6,507 | 7,754 | ||||
Total | $ | 374,728 | $ | 376,720 | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
Current liabilities | ||||||
Accounts payable | $ | 18,553 | $ | 20,699 | ||
Accrued liabilities | 23,662 | 31,291 | ||||
Deferred revenue | 28,074 | 32,534 | ||||
Deferred taxes | 219 | 219 | ||||
Current portion of long-term debt | 391 | 384 | ||||
Total current liabilities | 70,899 | 85,127 | ||||
Long-term debt, less current portion | 35,870 | 35,968 | ||||
Deferred revenue | 3,393 | 3,892 | ||||
Deferred taxes | 5,414 | 5,234 | ||||
Other long-term liabilities | 6,777 | 5,587 | ||||
Shareholders’ equity | 252,375 | 240,912 | ||||
Total | $ | 374,728 | $ | 376,720 | ||
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C-COR REPORTS FINANCIAL RESULTS FOR FIRST QUARTER OF
FISCAL YEAR 2008 – ADD 5
C-COR Incorporated
Financial Data Table
(Unaudited, in thousands except percentages)
Product Category: | Access | Solutions | Total | |||||||||
Thirteen Weeks ended September 28, 2007: | ||||||||||||
Bookings (1) | $ | 45,189 | $ | 16,591 | $ | 61,780 | ||||||
Net sales | 52,921 | 19,006 | 71,927 | |||||||||
Gross margin | 19,986 | 11,136 | 31,122 | |||||||||
Gross margin percentage | 37.8 | % | 58.6 | % | 43.3 | % | ||||||
Backlog at September 28, 2007 (1): | ||||||||||||
Less than 12 months | 22,433 | 42,966 | 65,399 | |||||||||
Greater than 12 months | 0 | 15,959 | 15,959 | |||||||||
Total Backlog | 22,433 | 58,925 | 81,358 | |||||||||
Thirteen Weeks ended September 29, 2006: | ||||||||||||
Bookings (1) | $ | 44,138 | $ | 17,024 | $ | 61,162 | ||||||
Net sales | 47,622 | 12,744 | 60,366 | |||||||||
Gross margin | 17,447 | 8,126 | 25,573 | |||||||||
Gross margin percentage | 36.6 | % | 63.8 | % | 42.4 | % | ||||||
Backlog at September 29, 2006 (1): | ||||||||||||
Less than 12 months | 27,379 | 40,287 | 67,666 | |||||||||
Greater than 12 months | 0 | 10,610 | 10,610 | |||||||||
Total Backlog | 27,379 | 50,897 | 78,276 | |||||||||
(1) | Amounts derived from our internal operating records. |
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