EXHIBIT 99.1
FOR INVESTOR RELATIONS CONTACT:
INVESTOR RELATIONS
(650) 314-1000
ir@catapult.com
CATAPULT COMMUNICATIONS REPORTS RECORD REVENUES
FOR SECOND QUARTER OF FISCAL YEAR 2003
Mountain View, CA--APRIL 17, 2003--Catapult Communications Corporation (Nasdaq:
CATT) reported today record quarterly revenues for its second fiscal quarter
ended March 31, 2003. Total revenues for the quarter were $14 million, a 16
percent increase over revenues of $12.1 million reported in the second quarter
of fiscal year 2002. Almost 60 percent of the quarter's revenues were generated
in Japan, where Japanese fiscal year end sales were unexpectedly high.
Net income for the second fiscal quarter was $1.7 million or $0.13 per diluted
share. This compares to net income of $3.7 million or $0.28 per diluted share in
the second fiscal quarter of 2002. Results for the second quarter of 2003
include revenues and expenses of the network diagnostics business (NDB) acquired
from Tekelec last August.
During the second quarter of fiscal year 2003, for the first time, Catapult
repurchased 257,400 shares at a cost of $1.8 million under its previously
authorized stock repurchase program.
BUSINESS OUTLOOK
"As I indicated last quarter, we continue to see evidence that the worst may be
over for the telecom industry," said Dr. Richard A. Karp, Catapult's Chairman
and CEO. "We are seeing some preliminary signs that customers in both Europe and
Japan are beginning development efforts for 4G digital cellular, with initial
requirements being mandated as soon as late summer. These will be small projects
at first, but they give us some confidence that telecom is starting to plan for
the future, instead of merely surviving the present.
"Although sales in Europe and North America were not what we expected in the
quarter just completed, sales activity continues to improve. We remain cautious,
however, until we see this activity turn into orders. As a result, we are
projecting revenues of $12 million for the third quarter of fiscal year 2003.
This would represent a 50% increase over the third quarter of fiscal 2002," Dr.
Karp concluded.
Catapult Communications will discuss its first quarter results on a conference
call today, beginning at 5:15 p.m. Eastern/2:15 p.m. Pacific. The toll-free
access number for the call is (800) 500-0177. International and local
participants can dial (719) 457-2679. Please reference Catapult Communications
or reservation number 426554. The conference call will also be available on the
Internet from the Investor section of the Company's website at www.catapult.com.
An online replay of this teleconference will be available on the Company's
website. A digital recording will also be available two hours after the
completion of the conference call until May
1, 2003. For access, please dial (888) 203-1112 or (719) 457-0820 and enter
reservation number 426554.
ABOUT CATAPULT
Catapult Communications is the leading provider of advanced digital telecom test
systems to global equipment manufacturers and service providers including
Lucent, Motorola, NEC, NTT DoCoMo and Nortel. Catapult's DCT2000 and MGTS
systems deliver test solutions for hundreds of protocols and variants - spanning
3G, VoIP, GPRS, SS7, Intelligent Network, ATM, ISDN and other network
environments. The Company is committed to providing testing tools that are at
the forefront of the telecom technology curve.
Catapult is headquartered at 160 South Whisman Road, Mountain View, CA 94041.
Tel: 650-960-1025. International offices are located in the U.K., Germany,
France, Finland, Canada, Japan and Australia. Information about Catapult
Communications can be found on the Web at www.catapult.com.
FORWARD LOOKING STATEMENTS
The statements in this press release regarding the Company's business outlook
and projected revenues are a forward-looking statement. These statements are
subject to various risks and uncertainties that could cause actual results to
differ from those forecasted. Such risks include the Company's dependence on a
limited number of customers and the resulting effect of delays or cancellations
by such customers of their orders; inability by the Company to meet its
production and/or product development schedules; the demand for
telecommunications equipment in general, and, in particular, for software-based
telecommunications test systems; and new and enhanced product offerings by
competitors. For other factors that may cause actual results to differ from
those projected, please refer to the Company's Form 10-K, Forms 10-Q and other
filings with the Securities and Exchange Commission.
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CATAPULT COMMUNICATIONS CORPORATION
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME
(In thousands, except share and per share data; unaudited)
Three months ended Six months ended
March 31, March 31,
---------------------------- ----------------------------
2003 2002 2003 2002
------------ ------------ ------------ ------------
Revenues:
Products $ 11,513 $ 10,573 $ 19,498 $ 20,099
Services 2,523 1,554 4,923 2,911
------------ ------------ ------------ ------------
Total revenues 14,036 12,127 24,421 23,010
------------ ------------ ------------ ------------
Cost of revenues:
Products 1,792 803 3,169 1,417
Services 761 275 1,458 538
------------ ------------ ------------ ------------
Total cost of revenues 2,553 1,078 4,627 1,955
------------ ------------ ------------ ------------
Gross profit 11,483 11,049 19,794 21,055
------------ ------------ ------------ ------------
Operating expenses:
Research and development 3,695 1,807 7,063 3,445
Sales and marketing 3,808 2,696 7,330 5,470
General and administrative 1,722 1,636 3,906 2,815
------------ ------------ ------------ ------------
Total operating expenses 9,225 6,139 18,299 11,730
------------ ------------ ------------ ------------
Operating income 2,258 4,910 1,495 9,325
Interest income 212 323 411 756
Other income (expense) (153) (56) 565 (234)
------------ ------------ ------------ ------------
Income before income taxes 2,317 5,177 2,471 9,847
Provision for income taxes 649 1,450 692 2,758
------------ ------------ ------------ ------------
Net income $ 1,668 $ 3,727 $ 1,779 $ 7,089
============ ============ ============ ============
Net income per share
Basic $ 0.13 $ 0.29 $ 0.14 $ 0.54
============ ============ ============ ============
Dilute $ 0.13 $ 0.28 $ 0.13 $ 0.53
============ ============ ============ ============
Shares used in per share calculation:
Basic 12,984,000 13,044,000 13,068,000 13,026,000
Diluted 13,112,000 13,393,000 13,203,000 13,373,000
CATAPULT COMMUNICATIONS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands; unaudited)
March 31, September 30,
2003 2002
------------ -------------
ASSETS
Current Assets:
Cash and cash equivalents $ 14,299 $ 12,575
Short-term investments 17,453 22,790
Accounts receivable, net 10,612 11,009
Inventory 3,472 3,869
Other current assets 2,756 2,777
Assets of discontinued operations -- 2,636
------------ -------------
Total current assets 48,592 55,656
Property, plant and equipment, net 4,078 3,874
Goodwill and other intangibles 56,437 57,148
Other assets 1,206 1,172
------------ -------------
Total assets $ 110,313 $ 117,850
============ =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued liabilities $ 14,322 $ 21,423
Deferred revenue 4,727 4,492
Liabilities of discontinued operations -- 889
------------ -------------
Total current liabilities 19,049 26,804
Convertible notes payable 17,877 18,081
Total stockholders' equity 73,387 72,965
Total liabilities and ------------ -------------
stockholders' equity $ 110,313 $ 117,850
============ =============