Exhibit 99.1
Investor Relations:
Leigh Salvo
(650) 314-1000
ir@catapult.com
CATAPULT COMMUNICATIONS REPORTS FOURTH QUARTER
FISCAL YEAR 2003 FINANCIAL RESULTS
Mountain View, CA--October 30, 2003--Catapult Communications Corporation
(Nasdaq: CATT) today reported revenues of $10.2 million for its fourth fiscal
quarter ended September 30, 2003, an increase of 13% over the fourth quarter of
fiscal 2002. Net income for the quarter was $0.09 per diluted share, compared
with $0.02 per diluted share in the same quarter the previous year.
In absolute terms, quarterly net income was $1.23 million, after a $730,000
restructuring charge and the recognition of $1.5 million in additional tax
benefits. In the same quarter of the previous year, net income from continuing
operations was $242,000 after a $1.4 million acquisition-related charge.
Revenues for the fiscal year ended September 30, 2003 were $45.2 million, an
increase of 13% over fiscal 2002. Net income for the fiscal year ended September
30, 2003 was $4.4 million or $0.33 per diluted share. This compares to net
income of $9.2 million or $0.69 per diluted share for fiscal year 2002.
"Earnings were positively impacted since our previous published earnings
estimate due to the likely favorable completion of a tax audit by Japanese
taxing authorities," said Dr. Richard A. Karp, Catapult's Chairman and CEO.
"This positive change, which we learned of only in the past few days, resulted
in a favorable adjustment to our estimate of tax payable as at the end of the
fiscal year."
BUSINESS OUTLOOK
"Although my overall feeling is positive, I am not forecasting a return to more
normal revenue growth until we begin to see it occur", continued Karp.
"Therefore, I am projecting that revenues for the first quarter of fiscal 2004
are likely to be comparable to last fiscal year's first quarter at $10.4
million. On the bottom line, I expect that we will be able to achieve diluted
net income per share of $0.04 for the first quarter of fiscal 2004, an
improvement over the $0.01 per share over the first quarter of fiscal 2003."
Catapult Communications will discuss its fourth quarter results on a conference
call today, beginning at 5:15 p.m. Eastern/2:15 p.m. Pacific. Please dial (800)
901-5231 to access the conference call. International and local participants can
dial (617) 786-2961. Please reference Catapult Communications or reservation
number 64630540. The conference call will also be available on the Internet from
the Investor section of the Company's website.
An online replay of this teleconference will be available on the Company's
website for two weeks following the conference call. A digital recording will
also be available one hour after the completion of the conference call through
midnight on November 13, 2003. To access the replay, please dial (888) 286-8010
or (617) 801-6888 and enter reservation number 34051403.
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 its projected revenues and net income are forward-looking statements. 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.
###
CATAPULT COMMUNICATIONS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share and per share data)
For the three months ended For the twelve months ended
September 30, September 30,
2003 2002 2003 2002
------------ ------------ ------------ ------------
Revenues:
Products $ 7,502 $ 7,266 $ 35,344 $ 33,988
Services 2,704 1,740 9,880 6,051
------------ ------------ ------------ ------------
Total revenues 10,206 9,006 45,224 40,039
------------ ------------ ------------ ------------
Cost of revenues:
Products 1,370 751 5,652 2,700
Services 698 401 2,825 1,172
------------ ------------ ------------ ------------
Total cost of revenues 2,068 1,152 8,477 3,872
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Gross profit 8,138 7,854 36,747 36,167
------------ ------------ ------------ ------------
Operating expenses:
Research and development 3,107 2,301 13,519 7,520
Sales and marketing 3,605 2,588 14,506 10,714
General and administrative 1,803 1,436 7,365 4,956
Restructuring costs 730 730 --
Purchased in-process research and development -- 1,400 -- 1,400
------------ ------------ ------------ ------------
Total operating expenses 9,245 7,725 36,120 24,590
------------ ------------ ------------ ------------
Operating income (1,107) 129 627 11,577
Interest income 106 325 436 1,427
Other expense, net 544 (119) 1,216 (219)
------------ ------------ ------------ ------------
Income from continuing operations before income taxes (457) 335 2,279 12,785
Provision for income taxes (1,682) 93 (2,086) 3,580
------------ ------------ ------------ ------------
Net income from continuing operations 1,225 242 4,365 9,205
Net loss from discontinued operations -- (56) -- (56)
------------ ------------ ------------ ------------
Net income $ 1,225 $ 186 $ 4,365 $ 9,149
============ ============ ============ ============
Net income per share - basic:
Income from continuing operations $ 0.10 $ 0.02 $ 0.34 $ 0.71
Loss from discontinued operations -- (0.00) -- (0.00)
------------ ------------ ------------ ------------
Net income per share - basic: $ 0.10 $ 0.01 $ 0.34 $ 0.70
============ ============ ============ ============
Net income per share - diluted
Income from continuing operations $ 0.09 $ 0.02 $ 0.33 $ 0.69
Loss from discontinued operations -- (0.00) -- (0.00)
------------ ------------ ------------ ------------
Net income per share - diluted: $ 0.09 $ 0.01 $ 0.33 $ 0.69
============ ============ ============ ============
Shares used in per share calculation:
Basic 12,879,000 13,054,000 12,948,000 13,039,000
============ ============ ============ ============
Diluted 13,121,000 13,567,000 13,113,000 13,313,000
============ ============ ============ ============
CATAPULT COMMUNICATIONS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
September 30, September 30,
2003 2002
------------- -------------
ASSETS
Current Assets:
Cash and cash equivalents $ 11,770 $ 12,575
Short-term investments 18,901 22,790
Accounts receivable, net 10,598 11,009
Inventory 2,325 3,869
Other current assets 3,503 2,777
Assets of discontinued operations -- 2,636
-------- --------
Total current assets 47,097 55,656
Property, plant and equipment, net 3,384 3,874
Goodwill and other intangibles 55,487 57,148
Other assets 1,121 1,172
-------- --------
Total assets $107,089 $117,850
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued liabilities $ 7,218 $ 21,423
Deferred revenue 5,576 4,492
Liabilities of discontinued operation -- 889
-------- --------
Total current liabilities 12,794 26,804
Convertible notes payable 17,674 18,081
Total stockholders' equity 76,621 72,965
-------- --------
Total liabilities and
stockholders' equity $107,089 $117,850
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