EXHIBIT 99.1
FOR IMMEDIATE RELEASE
ULTICOM ANNOUNCES FOURTH QUARTER FISCAL 2004 RESULTS:
SALES OF $17,126,000, UP 69% YEAR-OVER YEAR;
RECORD NET INCOME OF $4,925,000, UP 303% YEAR-OVER-YEAR;
EARNINGS PER DILUTED SHARE OF $0.11
MOUNT LAUREL, NEW JERSEY, MARCH 14, 2005 - Ulticom, Inc. (NASDAQ: ULCM), a
leading provider of service-enabling signaling software for wireless, wireline,
and Internet communications, today announced financial results for the fourth
quarter of fiscal year 2004, ended January 31, 2005.
For the quarter, Ulticom had sales of $17,126,000, an increase of 69% over sales
of $10,124,000 in the fourth quarter of fiscal year 2003. Sales increased 1%
sequentially, compared with $17,034,000 for the third quarter of fiscal year
2004. Net income more than quadrupled to $4,925,000 ($0.11 per diluted share)
when compared with net income of $1,222,000 ($0.03 per diluted share) for the
fourth quarter of fiscal year 2003 and increased slightly when compared with net
income of $4,867,000 ($0.11 per diluted share) for the third quarter of fiscal
year 2004.
"During the fourth quarter, Ulticom benefited from Signalware deployments for
payment solutions in the world's emerging markets where rapid wireless
subscriber growth and strong demand for enhanced services has fueled the
investment in prepaid calling and data charging applications," said Shawn
Osborne, President and CEO of Ulticom. "For fiscal year 2004, Ulticom achieved
record sales, operating and net income as we saw increased installations of our
products in our major market segments of payment, switching, messaging, and
mobility. Looking forward, we plan to leverage our OEM relationships, efficient
operations, and strong balance sheet to expand our position in enabling wireless
and broadband services."
The Company ended the quarter with cash, cash equivalents, and short-term
investments of $246,672,000, working capital of $246,150,000, total assets of
$271,992,000, and shareholders' equity of $255,564,000, all of which are at
record levels.
-more-
ULTICOM ANNOUNCES FOURTH QUARTER FISCAL 2004 RESULTS:
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Financial highlights at and for the twelve-month and three-month periods ended
January 31, 2005 and prior year comparisons are as follows:
FINANCIAL HIGHLIGHTS
(In thousands, except per share data)
TWELVE MONTHS ENDED THREE MONTHS ENDED
(UNAUDITED)
JANUARY 31, JANUARY 31, JANUARY 31, JANUARY 31,
2004 2005 2004 2005
Sales $ 38,378 $ 63,436 $ 10,124 $ 17,126
Cost of sales 11,158 14,627 2,855 3,841
---------- ---------- ---------- ----------
Gross profit 27,220 48,809 7,269 13,285
Operating expenses:
Research and development 9,461 10,636 2,384 2,718
Selling, general and administrative 15,168 17,607 3,954 4,361
Workforce reduction and restructuring credit (233) - - -
---------- ---------- ---------- ----------
Income from operations 2,824 20,566 931 6,206
Interest and other income, net 3,493 3,275 754 1,145
---------- ---------- ---------- ----------
Income before income tax provision 6,317 23,841 1,685 7,351
Income tax provision 1,737 7,870 463 2,426
---------- ---------- ---------- ----------
Net income $ 4,580 $ 15,971 $ 1,222 $ 4,925
========== ========== ========== ==========
Earnings per share:
Basic $ 0.11 $ 0.37 $ 0.03 $ 0.11
========== ========== ========== ==========
Diluted $ 0.11 $ 0.36 $ 0.03 $ 0.11
========== ========== ========== ==========
Weighted average shares:
Basic 41,860 42,602 42,090 43,098
========== ========== ========== ==========
Diluted 43,261 44,009 43,503 44,682
========== ========== ========== ==========
-more-
ULTICOM ANNOUNCES FOURTH QUARTER FISCAL 2004 RESULTS:
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FINANCIAL HIGHLIGHTS
(In thousands)
Balance Sheet Data: JANUARY 31, JANUARY 31,
2004 2005
ASSETS
CURRENT ASSETS:
Cash, cash equivalents and short-term investments $ 224,382 $ 246,672
Accounts receivable, net 6,417 11,062
Inventories 762 1,286
Prepaid expenses and other current assets 3,448 3,558
---------- ----------
TOTAL CURRENT ASSETS 235,009 262,578
PROPERTY AND EQUIPMENT, net 2,182 2,274
INVESTMENTS 5,463 5,375
OTHER ASSETS 1,973 1,765
---------- ----------
TOTAL ASSETS $ 244,627 $ 271,992
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued expenses $ 9,073 $ 11,966
Deferred revenue 3,707 4,462
---------- ----------
TOTAL CURRENT LIABILITIES 12,780 16,428
SHAREHOLDERS' EQUITY 231,847 255,564
---------- ----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 244,627 $ 271,992
========== ==========
ABOUT ULTICOM:
Ulticom provides service-enabling, signaling software for wireless, wireline,
and Internet communications. Ulticom's products are used by leading
telecommunication equipment and service providers worldwide to deploy mobility,
location, payment, switching, and messaging services. Traded on NASDAQ, as ULCM,
Ulticom is headquartered in Mount Laurel, NJ with additional offices in the
United States, Europe, and Asia. For more information visit,
http://www.ulticom.com.
-more-
ULTICOM ANNOUNCES FOURTH QUARTER FISCAL 2004 RESULTS:
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CONFERENCE CALL INFORMATION:
The Company will host a conference call to discuss these results following this
release on Monday, March 14, 2005 at 4:30 p.m. eastern. The dial-in number is
973-935-2100. A web cast of the call, both live and archived, will be available
through the Ulticom website at www.ulticom.com. A digital replay of the call
will be available until 12 Midnight eastern on March 21st. Access this replay by
dialing 877-519-4471 and providing the digital PIN 5440176.
NOTE: This release may contain "forward-looking statements" under the Private
Securities Litigation Reform Act of 1995 that involve risks and uncertainties.
There can be no assurances that forward-looking statements will be achieved, and
actual results could differ materially from forecasts and estimates. Important
factors that could cause actual results to differ materially from forecasts and
estimates are: risks associated with weaknesses in certain sectors of the global
economy generally, and in certain sectors of the telecommunications industry in
particular; risks associated with rapid technological changes in the
telecommunications industry; risks associated with making significant
investments in the expansion of our business and with increased expenditures;
risks associated with holding a large proportion of our assets in cash
equivalents and short-term investments and the reduction of prevailing interest
rates; risks associated with our products being dependent upon their ability to
operate on new hardware and operating systems of other companies; risks
associated with our dependence on sales of our Signalware products; risks
associated with future networks not utilizing signaling systems and protocols
which our products are designed to support; risks associated with the
development and acceptance of new products and product features; risks
associated with our dependence on a limited number of customers for a
significant percentage of our revenues; risks associated with our products
having long sales cycles and our limited ability to forecast the timing and
amount of product sales; risks associated with the integration of our products
with those of equipment manufacturers and application developers and our ability
to establish and maintain channel and marketing relationships with leading
equipment manufacturers and application developers; risks associated with our
reliance on a limited number of independent manufacturers to manufacture boards
for our products and on a limited number of suppliers for our board components;
risks associated with becoming subjected to, defending and resolving allegations
or claims of infringement of intellectual property rights; risks associated with
others infringing on our intellectual property rights and the inappropriate use
by others of our proprietary technology; risks associated with prevailing
economic conditions and financial trends in the public securities markets in
general, and in the decline in the stock prices of technology companies in
particular, including Ulticom; risks associated with the need for the Company to
attract and retain key personnel and risks associated with the increased
difficulty in relying on equity incentive programs to attract and retain
talented employees and with any associated increased employment costs. These
risks and uncertainties, as well as others, are discussed in greater detail in
the filings of Ulticom with the Securities and Exchange Commission, including
our most recent Annual Report on Form 10-K and subsequent reports on Form 10-Q.
All documents are available through the SEC's Electronic Data Gathering Analysis
and Retrieval system (EDGAR) at www.sec.gov or from Ulticom's web site at
www.ulticom.com. Ulticom makes no commitment to revise or update any
forward-looking statements in order to reflect events or circumstances after the
date any such statement is made.
Ulticom, Signalware and Programmable Network are trademarks or registered
trademarks of Ulticom, Inc.
Contact: Chris Tunnard
Ulticom, Inc.
856 787 2972
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