EXHIBIT 99.1
TUT SYSTEMS, INC. REPORTS SECOND QUARTER 2003 RESULTS
Pleasanton, Calif., July 30, 2003—Tut Systems, Inc. (Nasdaq: TUTS), today announced its results for the second quarter 2003. Revenue for the quarter ended June 30, 2003, was $7.9 million compared with revenue of $2.5 million for the quarter ended June 30, 2002. This represents a year-over-year increase in revenues of 213%. Revenue for the six months ended June 30, 2003, was $14.5 million compared with $4.9 million for the six months ended June 30, 2002. This represents a year-over-year increase in revenues of 197%. The increases are the result of the strategic acquisition of VideoTele.com in November 2002. Further, revenue of $7.9 million for the quarter ended June 30, 2003 represents a 19% increase over first quarter 2003 revenues of $6.6 million.
The net loss for the three and six months ended June 30, 2003, was $(2.0) million or $(0.10) per basic and diluted share and $(4.3) million or $(0.21) per basic and diluted share, respectively. This compares with the net loss for the three and six months ended June 30, 2002 of $(12.0) million or $(0.73) per basic and diluted share and $(18.8) million or $(1.14) per basic and diluted share, respectively.
Second Quarter Conference Call Information
Tut Systems will host a conference call to discuss second quarter results beginning today at 2:00pm pacific time. For callers within the United States, please dial 800-939-8871 atleast 5 minutes before start time or visithttp://www.tutsystems.com. International participants may dial 706-643-1559 or visithttp://www.tutsystems.com.
For callers within the United States accessing the conference call replay, please dial 800-642-1687, conference identification code, 991164. International participants may dial +1-706-645-9291. The replay will be available athttp://www.tutsystems.com two hours after the call ends for at least one week.
Recent Announcements:
Significant announcements from Tut Systems since the first quarter earnings release include:
4/30/03 | Telcos Launch Digital TV Services With VideoTele.com Digital Headends | |
4/30/03 | Atlantic Telephone Deploys DVB System Over Cable Network Using VideoTele.com’s Digital TV Platform | |
5/07/03 | Tut Systems Introduces 10 mbps Line Card For Its Expresso Systems | |
5/08/03 | Tut Systems’ Expresso SMS/OCS Selected By Telmex To Manage It’s Wi-Fi Service | |
5/28/03 | VideoTele.com Debuts Astria™ Video Services Switch for Delivering Digital TV Over Existing xDSL Networks | |
6/10/03 | Paradyne Networks and VideoTele.com Announce Video Alliance | |
6/24/03 | Tut Systems Debuts New Solutions for Hospitality Industry at HITEC 2003 |
About Tut Systems, Inc.
Tut Systems, Inc. (NASDAQ: TUTS) delivers industry leading content processing and distribution products for deploying next-generation data and video services over broadband networks. Tut Systems products are used by telecommunications, cable, entertainment and communications companies, as well as government agencies from around the world, to enable the delivery of broadcast-quality video over any broadband network. VideoTele.com, a subsidiary of Tut Systems, is the world leader in delivering digital TV over xDSL networks.
Tut Systems is headquartered in Pleasanton, CA. with administrative offices in Lake Oswego, OR and on the Internet at <http://www.tutsystems.com>. Tut can be contacted at 925-460-3900, 503-594-1400 or 800-998-4888.
- FINANCIAL TABLES FOLLOW -
Contact:
Randy Gausman
Chief Financial Officer
Tut Systems
(503)-594-1400
RandallG@VideoTele.com
Jeff Schline
Manager, Corporate Communications
Tut Systems
(925) 201-4393
jschline@VideoTele.com
TUT SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2003 | 2002 | 2003 | 2002 | |||||||||||||
Revenues: | ||||||||||||||||
Product | $ | 7,700 | $ | 2,314 | $ | 14,101 | $ | 4,476 | ||||||||
License and royalty | 165 | 200 | 365 | 396 | ||||||||||||
Total revenues | 7,865 | 2,514 | 14,466 | 4,872 | ||||||||||||
Cost of goods sold: | ||||||||||||||||
Product | 4,015 | 6,568 | 7,274 | 8,091 | ||||||||||||
Gross margin | 3,850 | (4,054 | ) | 7,192 | (3,219 | ) | ||||||||||
49.0 | % | (161.3 | %) | 49.7 | % | (66.1 | %) | |||||||||
Operating expenses: | ||||||||||||||||
Sales and marketing | 1,927 | 2,466 | 3,854 | 4,782 | ||||||||||||
Research and development | 2,248 | 3,499 | 4,334 | 6,786 | ||||||||||||
General and administrative | 1,105 | 1,245 | 2,307 | 3,203 | ||||||||||||
Impairment of intangibles | 128 | 128 | ||||||||||||||
Amortization of intangibles | 459 | 299 | 918 | 599 | ||||||||||||
Total operating expenses | 5,867 | 7,509 | 11,541 | 15,370 | ||||||||||||
Loss from operations | (2,017 | ) | (11,563 | ) | (4,349 | ) | (18,589 | ) | ||||||||
Impairment of certain equity investments | (592 | ) | (592 | ) | ||||||||||||
Interest and other income, net | (8 | ) | 183 | 93 | 428 | |||||||||||
Net loss | $ | (2,025 | ) | $ | (11,972 | ) | $ | (4,256 | ) | $ | (18,753 | ) | ||||
Net loss per share, basic and diluted | $ | (0.10 | ) | $ | (0.73 | ) | $ | (0.21 | ) | $ | (1.14 | ) | ||||
Shares used in computing net loss, basic and diluted | 19,894 | 16,455 | 19,848 | 16,431 | ||||||||||||
TUT SYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
June 30, 2003 | December 31, 2002 | |||||
ASSETS | ||||||
Current assets: | ||||||
Cash, cash equivalents and short-term investments | $ | 15,682 | $ | 25,571 | ||
Accounts receivable, net | 4,892 | 1,972 | ||||
Inventories, net | 2,596 | 3,888 | ||||
Prepaid expenses and other | 1,454 | 1,082 | ||||
Total current assets | 24,624 | 32,513 | ||||
Property and equipment, net | 1,658 | 1,630 | ||||
Intangibles and other assets | 4,542 | 5,586 | ||||
Total assets | $ | 30,824 | $ | 39,729 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
Current liabilities: | ||||||
Accounts payable and accrued liabilities | $ | 2,974 | $ | 7,196 | ||
Deferred revenue | 399 | 921 | ||||
Total current liabilities | 3,373 | 8,117 | ||||
Deferred revenue, net of current portion | 35 | |||||
Other liabilities | 3,465 | 3,346 | ||||
Total liabilities | 6,838 | 11,498 | ||||
Stockholders’ equity | 23,986 | 28,231 | ||||
Total liabilities and stockholders’ equity | $ | 30,824 | $ | 39,729 | ||