Exhibit 99.1
Computer Access Technology Reports Earnings Per Share of $0.02 On Revenue of
$4.6 Million for Q1 2004
SANTA CLARA, Calif., April 22 /PRNewswire-FirstCall/ -- Computer Access
Technology Corporation (CATC) (Nasdaq: CATZ), a communication protocols expert
company, today reported financial results for the first quarter ended March
31, 2004. Revenue for the first quarter of 2004 was $4.6 million, compared to
$3.3 million for the first quarter of 2003 and $4.1 million for the fourth
quarter of 2003. The Company reported an operating profit of $203,000 for the
first quarter of 2004 compared with an operating loss of $624,000 in the first
quarter of 2003. Combined with net other income of $158,000, the resulting
net profit for the first quarter of 2004 was $361,000, or $0.02 basic and
diluted per share, compared to a net loss of $463,000, or $(0.02) basic and
diluted per share in the first quarter of 2003. The Company's net profit
includes the amortization of stock based compensation and the amortization of
purchased intangibles. The Company generated $958,000 in cash flow from
operations during the first quarter of 2004.
For the first quarter of 2004, the Company's gross profit margin was
82.2%, compared to 79.4% in the first quarter of 2003. The Company's
operating expenses totaled $3.6 million.
Dan Wilnai, Chairman of the Board and Chief Executive Officer, said: "Our
continuing commitment to enhance and expand our expert analysis product
portfolio, along with the strong efforts of our employees to quickly,
efficiently and cost-effectively develop and sell these products, converged
nicely to produce a successful first quarter. We are determined to maintain
this positive momentum and to continue to deliver sophisticated products that
address our customers' needs for multi-protocol analysis systems that can be
used throughout the lifecycle of their products, from development to
production to installation and maintenance.
During the quarter and in recent weeks CATC made the following corporate
announcements:
-- CATC filed a registration statement with the Securities and Exchange
Commission for the sale of common stock owned by certain existing
shareholders in a secondary offering underwritten by B. Riley & Co.
CATC furthermore announced that it was not participating in, nor would
it receive any proceeds from, the secondary offering. On March 17,
2004, CATC announced that 4.25 million shares of common stock were sold
in connection with the secondary offering. On April 15, 2004, B. Riley
& Co. exercised an over-allotment option granted by the selling
shareholders to purchase an additional 637,500 shares for a total of
4,887,500 shares of common stock sold pursuant to the secondary
offering. The shares sold in the secondary offering were priced at
$4.60 per share.
-- CATC formed an alliance with dashcourses, Inc. to offer integrated
training solutions to engineers and developers including demonstrations
and hands-on lab exercises featuring CATC's expert protocol analyzer
and exerciser products. Together, the companies will initially deliver
open enrollment training for InfiniBand(R), iSCSI, PCI Express(TM),
SAS, SATA, SCSI, and USB at CATC's headquarters in Santa Clara.
During the quarter CATC made the following product related announcements:
-- Availability of device emulation capabilities for its USBTracer/Trainer
expert analysis system, allowing users to generate USB device traffic
and enabling testing of a USB hosts and device drivers' ability to
handle error conditions and exceptions. USB device emulation
complements the existing capabilities of CATC's USBTrainer exerciser
module, creating a comprehensive system design and debug environment.
-- Release of its SASTrainer -- a 3 Gbps traffic generator and bus
exerciser option for its SAS and SATA expert analysis system. The
SASTracer/Trainer v1.1 protocol analyzer/exerciser system is designed
to address both SAS and pure Serial ATA development environments making
it a flexible and cost-effective solution for end-to-end SAS and SATA
test and analysis.
-- Selection by Mellanox(R) Technologies Ltd., of the CATC PETracer ML,
PCI Express(TM) protocol analyzer for use in the design and debug of
its third generation InfiniBand Host Channel Adapters (HCA), the
InfiniHost III Ex.
-- Release of version 1.1 of its SASTracer expert analysis software
allowing comprehensive Serial ATA recording and analysis for up to four
1.5 or 3 Gbps SATA links, the addition of full SATA and STP
capabilities, and other improvements. With the release of the version
1.1 software, the SASTracer is well suited for 4-wide SAS or 4 port
SATA verification tasks and for testing SAS, SATA and mixed SAS/SATA
single and multi-link environments.
Conference Call, Webcast
CATC has scheduled a conference call for analysts and investors to discuss
our quarterly results at 8:00 a.m. PDT on Thursday, April 22, 2004. Open to
the public, a live Webcast of the conference call will be accessible from the
"Investor Relations" section of CATC's website
( http://www.catc.com/investor/ ). Following the live Webcast, an archived
version of the Webcast will be available on the CATC website through
May 31, 2004.
About CATC
CATC, a communication protocol expert company, provides advanced
verification systems and connectivity products for existing and emerging
digital communications standards such as Bluetooth, Ethernet, Fibre Channel,
IEEE 1394, InfiniBand, PCI Express, SCSI, Serial ATA, Serial Attached SCSI
(SAS) and USB. CATC products are used by semiconductor, device, system and
software companies at each phase of their products' lifecycles from
development through production and market deployment. CATC's expert protocol
analysis systems allow customers to monitor communications traffic, diagnose
design and operational problems and confirm interoperability and standards
compliance. Technicians also use CATC's test and analysis products on
production lines and for maintenance of deployed systems and networks. CATC
was founded in 1992 and is headquartered in Santa Clara, California. For more
information regarding CATC and its products, please visit
http://www.catc.com/.
Regarding Forward-Looking Statements
This press release may contain forward-looking statements based on CATC's
current expectations, such as availability of product, market acceptance and
competition, management capability and experience, levels of growth,
profitability and shareholder value. These forward-looking statements involve
risks and uncertainties. A number of important factors could cause actual
results to differ materially from those in the forward-looking statements,
such as CATC's production of new products, market acceptance of its products,
competitive pressures, management performance, success of growth,
profitability and increased shareholder value. These factors, as well as
other factors that could cause actual results to differ materially, are
discussed in more detail in CATC's Annual Report on Form 10-K, filed
February 20, 2004, as amended by its Form 10-K/A filed on March 3, 2004, and
subsequent filings CATC may make with the SEC, as amended, which can be viewed
at the Securities and Exchange Commission's website at http://www.sec.gov/.
NOTE: CATC, Computer Access Technology Corporation, PETracer ML,
SASTracer, SASTracer/Trainer, SASTrainer, USB Tracer/Trainer, and USBTrainer
are proprietary marks of Computer Access Technology Corporation. All other
company names and marks may be trademarks of the respective companies with
which they are associated.
COMPUTER ACCESS TECHNOLOGY CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands)
March 31, December 31,
2004 2003
ASSETS
Current assets:
Cash and cash equivalents $23,161 $34,116
Short-term investments 630 1,055
Trade accounts receivable, net 2,884 3,180
Inventories 1,059 907
Other current assets 582 675
Total current assets 28,316 39,933
Long-term investments 21,760 9,367
Property and equipment, net 793 768
Purchased intangibles 133 167
Other assets 128 114
$51,130 $50,349
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $326 $393
Accrued expenses 2,969 2,919
Accrued restructuring 23 29
Deferred revenue 607 535
Total current liabilities 3,925 3,876
Deferred rent 8 2
Total liabilities 3,933 3,878
Stockholders' equity:
Common stock 20 19
Additional paid-in capital 52,901 52,595
Deferred stock-based compensation -- (32)
Unrealized gain on investments 26 --
Accumulated deficit (5,750) (6,111)
Total stockholders' equity 47,197 46,471
$51,130 $50,349
COMPUTER ACCESS TECHNOLOGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except per share amounts)
Three Month
Periods Ended
March 31,
2004 2003
Revenue $4,645 $3,262
Cost of revenue 816 664
Amortization of acquired developed technology 8 9
Gross profit 3,821 2,589
Operating expenses:
Research and development 1,603 1,308
Sales and marketing 1,281 1,144
General and administrative 682 676
Amortization of purchased intangibles 26 26
Amortization of deferred stock-based
compensation 26 59
Total operating expenses 3,618 3,213
Income (loss) from operations 203 (624)
Other income, net 158 161
Income (loss) before provision for
(benefit from) income taxes 361 (463)
Provision for (benefit from) income taxes -- --
Net income (loss) $361 $(463)
Net income (loss) per share:
Basic and diluted $0.02 $(0.02)
Weighted average shares outstanding:
Basic 19,479 19,443
Diluted 20,643 19,443
SOURCE Computer Access Technology Corporation
-0- 04/22/2004
/CONTACT: Computer Access Technology Corporation, +1-408-486-7786, or
investorinfo@catc.com/
/Web site: http://www.catc.com /
(CATZ)
CO: Computer Access Technology Corporation
ST: California
IN: CPR STW SEM TLS
SU: ERN CCA