Exhibit 99.1
Computer Access Technology Reports Earnings Per Share of $0.03 on Revenue of
$4.9 Million for Q2 2004
SANTA CLARA, Calif., July 22 /PRNewswire-FirstCall/ -- Computer Access
Technology Corporation [CATC] (Nasdaq: CATZ), a communication protocols expert
company, today reported financial results for the second quarter ended June 30,
2004. Revenue for the second quarter of 2004 was $4.9 million, compared to $3.9
million for the second quarter of 2003 and $4.6 million for the first quarter of
2004. The Company reported an operating profit of $334,000 for the second
quarter of 2004 compared with an operating loss of $78,000 in the second quarter
of 2003. Combined with net other income of $218,000, the resulting net profit
for the second quarter of 2004 was $552,000, or $0.03 per share, compared to a
net profit of $120,000, or $0.01 per share in the second quarter of 2003. The
Company generated $731,000 in cash flow from operations during the second
quarter of 2004. For the second quarter of 2004, the Company's gross profit
margin was 82.4%, compared to 79.3% in the second quarter of 2003. The Company's
operating expenses totaled $3.7 million.
Carmine Napolitano, President and CEO, said: "We are pleased with the most
recent financial results, as they continue to validate the growth strategy we
put in place two years ago. The investments we made to significantly expand our
product footprint, and with it our addressable market, have begun to pay-off in
the form of operating leverage and profitability."
During the quarter and in recent weeks CATC made the following corporate
announcements:
-- On July 9, 2004, CATC announced that it had significantly
strengthened its storage distribution network in North America by
granting Sierra Technologies, LLC the right to sell CATC's Storage
products along the East Coast of the U.S. Over the past 13 years,
Sierra Technologies has established itself as a leading provider of
electronic test, measurement, and manufacturing systems to the
storage market, supporting a strong and loyal customer base.
During the quarter CATC made the following product related announcements:
-- Release of the FCTracer(TM) 4G, a 4 Gbps Fibre Channel expert
analysis system offering 4 Gbps Fibre Channel early adopters a test
platform that combines advanced capture, display, analysis and
reporting tools with the ability to capture traffic at 1, 2 and
4 Gbps signaling speed. With this product release, CATC becomes
among the first to deliver support for 4G Fibre Channel, enabling us
to challenge entrenched market participants.
-- Release of its PETracer(TM) EML, a 16-lane PCI Express(R) expert
analysis system built on CATC's newest and most advanced Universal
Protocol Analyzer System(TM), the UPAS 100K. The PETracer EML
captures, analyzes and displays bidirectional 16-Lane PCI Express
traffic to allow semiconductor, motherboard and add-in card
manufacturers to accelerate market introduction of their PCI Express
solutions. The UPAS 100K is specifically designed for high-speed
serial protocols such as PCI Express and provides future scalability
with expanded hardware capabilities, significantly reducing the
lifecycle cost of ownership.
Separately, CATC announced this morning the retirement of Chief Executive
Officer Dan Wilnai and new appointments to executive management and the Board of
Directors.
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, July 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 August 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, 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, its most recent Form 10-Q filed on May 13,
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, FCTracer, PETracer,
Universal Protocol Analyzer System, and UPAS 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)
June 30, December 31,
2004 2003
ASSETS
Current assets:
Cash and cash equivalents $18,176 $34,116
Short-term investments 2,617 1,055
Trade accounts receivable, net 3,000 3,180
Inventories 1,592 907
Other current assets 615 675
Total current assets 26,000 39,933
Long-term investments 24,779 9,367
Property and equipment, net 980 768
Purchased intangibles 98 167
Other assets 135 114
$51,992 $50,349
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $795 $393
Accrued expenses 3,116 2,919
Accrued restructuring 15 29
Deferred revenue 581 535
Total current liabilities 4,507 3,876
Deferred rent 15 2
Total liabilities 4,522 3,878
Stockholders' equity:
Common stock 20 19
Additional paid-in capital 52,960 52,595
Deferred stock-based compensation -- (32)
Unrealized loss on investments (312) --
Accumulated deficit (5,198) (6,111)
Total stockholders' equity 47,470 46,471
$51,992 $50,349
COMPUTER ACCESS TECHNOLOGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except per share amounts)
Three Month Period Six Month Period
Ended Ended
June 30, June 30,
2004 2003 2004 2003
Revenue $4,896 $3,856 $9,541 $7,118
Cost of revenue 853 791 1,669 1,455
Amortization of acquired
developed technology 9 9 17 18
Gross profit 4,034 3,056 7,855 5,645
Operating expenses:
Research and development 1,569 1,249 3,172 2,557
Sales and marketing 1,515 1,193 2,796 2,337
General and administrative 590 585 1,272 1,261
Amortization of
purchased intangibles 26 26 52 52
Amortization of deferred
stock-based compensation -- 81 26 140
Total operating expenses 3,700 3,134 7,318 6,347
Income (loss) from operations 334 (78) 537 (702)
Other income, net 218 198 376 359
Income (loss)
before income taxes 5,522 120 913 (343)
Income taxes -- -- -- --
Net income (loss) $552 $120 $913 $(343)
Net income (loss) per share:
Basic $0.03 $0.01 $0.02 $(0.02)
Diluted $0.03 $0.01 $0.02 $(0.02)
Weighted average
shares outstanding
Basic 19,551 19,442 19,509 19,411
Diluted 20,718 19,980 20,688 19,411
SOURCE Computer Access Technology Corporation
-0- 07/22/2004
/CONTACT: Jason LeBeck of Computer Access Technology Corporation,
+1-408-486-7202, or investorinfo@catc.com/
/Web site: http://www.catc.com/
(CATZ)
CO: Computer Access Technology Corporation
ST: California
IN: CPR STW
SU: ERN CCA PER