Exhibit 99.1
Contact : Laura Graves, (408) 944-1817, ir@stratexnet.com
FOR IMMEDIATE RELEASE
STRATEX NETWORKS ANNOUNCES
FIRST QUARTER FISCAL YEAR 2004 FINANCIAL RESULTS
SAN JOSE, CALIF., JULY 23, 2003 - - Stratex Networks, Inc. (NASDAQ: STXN), a
leading independent provider of wireless transmission solutions, today reported
financial results for the first quarter of fiscal year 2004, ended June 30,
2003. Net sales in the first quarter of fiscal year 2004 totaled $36.0 million
compared to $49.3 million reported in the first quarter of fiscal year 2003. Net
loss in the first quarter of fiscal year 2004 was $3.4 million or $0.04 per
share, compared to a net loss of $22.9 million or $0.28 per share reported in
the first quarter of fiscal year 2003. Excluding a $3.6 million benefit related
to the favorable resolution of a previously reserved legal claim, net loss in
the first quarter of fiscal year 2004 was $6.9 million or $0.08 per share.
Stratex Networks received $41.8 million in orders during the first
quarter. The backlog as of June 30, 2003 was $41 million.
"Customer activity increased during the first quarter of fiscal 2004,
resulting in a 4% sequential increase in new orders," stated Chuck Kissner,
Chairman & CEO of Stratex Networks. "As previously announced, the delay in the
issuance of a letter of credit for a large shipment to one customer impacted
revenue for the quarter."
Stratex Networks recently held a new product seminar in conjunction
with its annual meeting. The seminar showcased Eclipse(TM), the first microwave
radio platform optimized for building networks, rather than just links. Eclipse
is designed to provide a scaleable capacity architecture with minimal hardware
swap-outs, and a range of flexible capacity and interface choices to meet
current and future customer requirements. According to Mr. Kissner, development
of Eclipse is on schedule for initial commercial shipments before the end of the
current fiscal year ending March 31, 2004.
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STRATEX NETWORKS, INC. REPORTS FIRST QUARTER
FISCAL YEAR 2004 FINANCIAL RESULTS
"The company is well on its way to achieving another `first' in the
microwave segment of the wireless industry," continued Kissner. "Customer
interest in our new product platform is highly encouraging. As the wireless
industry continues to face market challenges and competitive pressure, we are
increasingly confident that the combination of our streamlined company
infrastructure and new product platform will position Stratex Networks for
long-term profitability and value generation."
A conference call with company management will follow this
announcement at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). Investors are
invited to listen to the call live via the Internet at
http://www.stratexnet.com/. Investors can listen via telephone by dialing (877)
543-9372 domestic or (706) 643-3737 international and entering conference
identification number 1537194. A telephone replay using the same conference
identification number will be accessible at (800) 642-1687 domestic or (706)
645-9291 international beginning approximately two hours after conclusion of the
live call. The Internet link and telephone replay will be available for a period
of two weeks following the conference call.
ABOUT STRATEX NETWORKS: With its broad product offering and worldwide
sales and support organization, Stratex Networks is strategically positioned to
serve wireless high-capacity transmission technology needs in a global
environment. Since it was founded in 1984, Stratex Networks has achieved
international recognition for quality, innovation, and technical superiority in
delivering data, voice, and video communication systems, including comprehensive
service and support. Additional information is available at www.stratexnet.com.
SAFE HARBOR STATEMENT: This press release contains statements that
qualify as "forward-looking statements" under the Private Securities Litigation
Reform Act of 1995, including statements relating to the Company's expectations
regarding initial commercial shipments of the Eclipse, market acceptance of the
Eclipse and the Company's positioning for long-term profitability and value
generation. These forward-looking statements are based on current expectations
and the Company assumes no obligation to update this information. The Company's
actual results could differ materially from those anticipated in these
forward-looking statements as a result of certain risk factors including
unexpected delays in the schedule for initial commercial shipments of Eclipse,
negative trends in the general economic condition of the worldwide economy,
order cancellations, postponements in product deliveries resulting in delayed
revenue recognition, increased competition, downward pressures on the price of
the Company's products and services and the introduction of competing products
and technologies. In addition, orders and backlog are not necessarily indicative
of revenue in any future period. For a further discussion of these and other
factors that impact the Company's business in general, see the information
provided under the heading "Factors That May Affect Future Financial Results" in
the Company's Annual Report on Form 10-K for the year ended March 31, 2003,
filed with the Securities and Exchange Commission on May 19, 2003.
--Tables to follow--
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STRATEX NETWORKS, INC. REPORTS FIRST QUARTER
FISCAL YEAR 2004 FINANCIAL RESULTS
CONDENSED CONSOLIDATED BALANCE SHEET
(IN THOUSANDS)
(UNAUDITED)
JUNE 30, MARCH 31,
2003 2003
-------- --------
ASSETS
Cash and short-term investments $ 84,819 $ 90,182
Accounts receivable, net 25,633 31,072
Inventories 21,502 20,307
Other current assets 13,366 14,032
-------- --------
Total current assets 145,320 155,593
Property & equipment, net 28,763 28,836
Other assets 361 356
-------- --------
Total assets $174,444 $184,785
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LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $ 20,626 $ 23,095
Other current liabilities 24,763 29,745
-------- --------
Total current liabilities 45,389 52,840
Other long-term liabilities 18,173 19,145
-------- --------
Total liabilities 63,562 71,985
-------- --------
Stockholders' equity 110,882 112,800
-------- --------
Total liabilities and stockholders' equity $174,444 $184,785
======== ========
--continued--
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STRATEX NETWORKS, INC. REPORTS FIRST QUARTER
FISCAL YEAR 2004 FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
THREE MONTHS ENDED
JUNE 30,
2003 2002
-------- --------
Net sales $ 35,967 $ 49,319
Cost of sales 28,621 38,769
-------- --------
Gross profit 7,346 10,550
-------- --------
Operating expenses:
Research and development 3,886 3,622
Selling, general and administrative 10,506 14,596
Restructuring and other charges (credits) (3,550) 14,173
-------- --------
Total operating expenses 10,842 32,391
-------- --------
Loss from operations (3,496) (21,841)
Other income (expense) 52 (225)
-------- --------
Loss before income taxes (3,444) (22,066)
Provision (benefit) for income taxes (69) 797
-------- --------
Net loss ($ 3,375) ($22,863)
======== ========
Basic and diluted net loss per share ($ 0.04) ($ 0.28)
Basic and diluted weighted average shares outstanding 82,810 82,380
--continued--
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STRATEX NETWORKS, INC. REPORTS FIRST QUARTER
FISCAL YEAR 2004 FINANCIAL RESULTS
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES*
(IN THOUSANDS)
(UNAUDITED)
THREE MONTHS ENDED
JUNE 30, 2003
------------------
GAAP net loss ($3,375)
Non-GAAP adjustments:
Reduction of reserve for legal claims (3,550)
-------
Total Non-GAAP adjustments (3,550)
Non-GAAP net loss ($6,925)
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* In addition to disclosing results that are determined in accordance with
Generally Accepted Accounting Principles (GAAP), Stratex Networks, Inc. also
discloses pro forma or non-GAAP results in order to assess and reflect operating
performance. Management believes the pro forma measure helps indicate underlying
trends and better enables period-to-period comparisons. Pro forma information
excludes certain restructuring and special charges. Pro forma information should
not be considered superior to or as a substitute for measures or data prepared
in accordance with GAAP.
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