EXHIBIT 99.1
FOR IMMEDIATE RELEASE
Ulticom Announces First Quarter Fiscal 2005 Results:
Sales of $14,141,000, Up 7% Year-over Year;
Net Income of $2,950,000, Up 35% Year-over-Year;
Earnings Per Diluted Share of $0.07
Mount Laurel, New Jersey, June 1, 2005 - Ulticom, Inc. (NASDAQ: ULCM), a leading
provider of service enabling signaling software for fixed, mobile, and Internet
communications, today announced financial results for the first quarter of
fiscal year 2005, ended April 30, 2005.
For the quarter, Ulticom had sales of $14,141,000, an increase of 7% over sales
of $13,189,000 in the first quarter of fiscal year 2004. Sales decreased 17%
sequentially, compared with $17,126,000 for the fourth quarter of fiscal year
2004. Net income increased 35% to $2,950,000 ($0.07 per diluted share) when
compared with net income of $2,185,000 ($0.05 per diluted share) for the first
quarter of fiscal year 2004 and decreased 40% sequentially when compared with
net income of $4,925,000 ($0.11 per diluted share) for the fourth quarter of
fiscal year 2004.
"During the quarter, Ulticom's products were deployed in prepaid mobile
platforms for emerging and developed markets to accommodate subscriber growth
and network expansion. In addition, we saw increased installations of Signalware
in packet softswitches for incumbent and next-generation service provider
networks to enable long-distance backhaul as well as residential and business
voice over IP services," said Shawn Osborne, President and CEO of Ulticom.
"While the visibility and predictability in carrier spending on Ulticom related
projects remains limited, we believe the long-term prospects for mobile enhanced
services and IP packet infrastructure remain intact. With our service essential
software, high-value customer base, and continued financial strength, Ulticom is
well positioned to expand our role enabling wireless and broadband services."
The Company ended the quarter with cash, cash equivalents, and short-term
investments of $255,744,000, working capital of $255,390,000, total assets of
$274,437,000, and shareholders' equity of $259,550,000, all of which are record
levels.
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Ulticom Announces First Quarter Fiscal 2005 Results:
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Financial highlights at and for the three-month periods ended April 30, 2005 and
prior year comparisons are as follows:
Financial Highlights
(In thousands, except per share data)
Three months ended
(Unaudited)
April 30, April 30,
2004 2005
Sales $ 13,189 14,141
Cost of sales 3,496 3,302
----------- -----------
Gross profit 9,693 10,839
Operating expenses:
Research and development 2,777 3,099
Selling, general and administrative 4,276 4,630
----------- -----------
Income from operations 2,640 3,110
Interest and other income, net 482 1,166
----------- -----------
Income before income tax provision 3,122 4,276
Income tax provision 937 1,326
----------- -----------
Net income $ 2,185 $ 2,950
=========== ===========
Earnings per share:
Basic $ 0.05 $ 0.07
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Diluted $ 0.05 $ 0.07
=========== ===========
Weighted average shares:
Basic 42,207 43,136
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Diluted 43,525 44,268
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Ulticom Announces First Quarter Fiscal 2005 Results:
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Financial Highlights
(In thousands)
Balance Sheet Data: January 31, April 30,
2005 2005
(Unaudited)
ASSETS
------
CURRENT ASSETS:
Cash, cash equivalents and short-term investments $ 246,672 $ 255,744
Accounts receivable, net 11,062 8,967
Inventories 1,286 1,329
Prepaid expenses and other current assets 3,558 4,237
---------- ----------
TOTAL CURRENT ASSETS 262,578 270,277
PROPERTY AND EQUIPMENT, net 2,274 2,493
INVESTMENTS 5,375 -
OTHER ASSETS 1,765 1,667
---------- ----------
TOTAL ASSETS $ 271,992 $ 274,437
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LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES:
Accounts payable and accrued expenses $ 11,966 $ 10,830
Deferred revenue 4,462 4,057
---------- ----------
TOTAL CURRENT LIABILITIES 16,428 14,887
SHAREHOLDERS' EQUITY 255,564 259,550
---------- ----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 271,992 $ 274,437
========== ==========
About Ulticom:
Ulticom provides service enabling, signaling software for fixed, mobile, 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.
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Ulticom Announces First Quarter Fiscal 2005 Results:
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Conference Call Information:
The Company will host a conference call to discuss these results following this
release on Wednesday, June 1, 2005 at 4:30 p.m. eastern. The dial-in number is
973-935-2408. 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 June 8th. Access this replay by
dialing 877-519-4471 and providing the digital PIN 6104640.
Note: This release may contain "forward-looking statements" under the Private
Securities Litigation Reform Act of 1995 that involve risks and uncertainties.
Such forward-looking statements involve known and unknown risks, uncertainties,
and other important factors that could cause the actual results, performance or
achievements of results to differ materially from any future results,
performance or achievements expressed or implied by such forward-looking
statements. Important risks, uncertainties, and other important factors that
could cause actual results to differ materially include, among others: risks
associated with rapid technological changes in the telecommunications industry;
risks associated with making significant investments in the expansion of the
business and with increased expenditures; risks associated with holding a large
proportion of the company's assets in cash equivalents and short-term
investments; risks associated with the company's products being dependent upon
their ability to operate on new hardware and operating systems of other
companies; risks associated with dependence on sales of the company's Signalware
products; risks associated with future networks not utilizing signaling systems
and protocols that the company's products are designed to support; risks
associated with the development and acceptance of new products and product
features; risks associated with the company's dependence on a limited number of
customers for a significant percentage of the company's revenues; risks
associated with the products having long sales cycles and the limited ability to
forecast the timing and amount of product sales; risks associated with the
integration of the company's products with those of equipment manufacturers and
application developers and the company's ability to establish and maintain
channel and marketing relationships with leading equipment manufacturers and
application developers; risks associated with the company's reliance on a
limited number of independent manufacturers to manufacture boards for the
company's products and on a limited number of suppliers for 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 the company's intellectual property rights and the
inappropriate use by others of the company's proprietary technology; risks
associated with the company's ability to retain existing personnel and recruit
and retain qualified personnel; 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; changes in the demand for
the company's products; changes in capital spending among the company's current
and prospective customers; risks associated with rapidly changing technology and
the ability of the company to introduce new products on a timely and
cost-effective basis; aggressive competition may force the company to reduce
prices; risks associated with changes in the competitive or regulatory
environment in which the company operates; and other risks described in filings
with the Securities and Exchange Commission. 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. 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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