EXHIBIT 99.1
FOR IMMEDIATE RELEASE
ULTICOM SECOND QUARTER FISCAL 2005 RESULTS:
SALES OF $15,057,000, GAAP EARNINGS OF $0.10 PER DILUTED SHARE,
PRO FORMA EARNINGS OF $0.09 PER DILUTED SHARE
Mount Laurel, NJ, September 7, 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 second quarter of
fiscal year 2005, ended July 31, 2005.
For the quarter, Ulticom had sales of $15,057,000, a decrease of 6% when
compared with sales of $16,087,000 in the second quarter of fiscal year 2004 and
an increase of 7% sequentially, when compared with $14,141,000 for the first
quarter of fiscal year 2005. The Company posted net income on a generally
accepted accounting principles ("GAAP") basis for the quarter of $4,602,000
($0.10 per diluted share) compared to net income of $3,994,000 ($0.09 per
diluted share) for the second quarter of fiscal 2004 and net income of
$2,950,000 ($0.07 per diluted share) for the first quarter of fiscal year 2005.
The GAAP results for the second quarter of fiscal 2005 include a gain resulting
from a settlement of a breach of contract claim of $572,000, net of tax.
Excluding this gain, on a pro forma basis, the net income was $4,030,000 ($0.09
per diluted share) in the second quarter of fiscal 2005.
"During the quarter, Ulticom benefited from increased deployments of Signalware
in our wireless market segments of payment, messaging and mobility. In addition,
we saw continued installations of our products 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 applications," said
Shawn Osborne, President and CEO of Ulticom. "While carrier spending remains
unpredictable, we believe their continued investment over time in revenue
generating enhanced services and cost efficient packet infrastructure remains a
substantial opportunity for Ulticom. 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 communications."
The Company ended the quarter with cash, cash equivalents, and short-term
investments of $260,958,000, working capital of $263,052,000, total assets of
$281,849,000, and shareholders' equity of $267,389,000, all of which are record
levels.
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ULTICOM SECOND QUARTER FISCAL 2005 RESULTS:
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Financial highlights at and for the six-month and three-month periods ended July
31, 2005 and prior year comparisons are as follows:
FINANCIAL HIGHLIGHTS
(In thousands, except per share data)
Operations Data on a GAAP basis:
SIX MONTHS ENDED THREE MONTHS ENDED
(UNAUDITED) (UNAUDITED)
JULY 31, JULY 31, JULY 31, JULY 31,
2004 2005 2004 2005
---- ---- ---- ----
Sales $ 29,276 $ 29,198 $ 16,087 $ 15,057
Cost of sales 7,037 6,815 3,541 3,513
--------- --------- --------- ---------
Gross profit 22,239 22,383 12,546 11,544
Operating expenses:
Research and development 5,345 6,383 2,568 3,284
Selling, general and administrative 8,942 7,917 4,666 3,287
--------- --------- --------- ---------
Income from operations 7,952 8,083 5,312 4,973
Interest and other income, net 1,134 2,862 652 1,696
--------- --------- --------- ---------
Income before income tax provision 9,086 10,945 5,964 6,669
Income tax provision 2,907 3,393 1,970 2,067
--------- --------- --------- ---------
Net income $ 6,179 $ 7,552 $ 3,994 $ 4,602
========= ========= ========= =========
Earnings per share:
Basic $ 0.15 $ 0.17 $ 0.09 $ 0.11
========= ========= ========= =========
Diluted $ 0.14 $ 0.17 $ 0.09 $ 0.10
========= ========= ========= =========
Weighted average shares:
Basic 42,295 43,157 42,380 43,177
========= ========= ========= =========
Diluted 43,549 44,166 43,575 44,077
========= ========= ========= =========
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ULTICOM SECOND QUARTER FISCAL 2005 RESULTS:
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Ulticom provides pro forma net income and pro forma earnings per share data as
additional information for its operating results. These measures are not in
accordance with, or an alternative for, GAAP and may be different from pro forma
measures used by other companies. The Company believes that this presentation of
pro forma data provides useful information to management and investors regarding
certain additional financial and business trends relating to its financial
condition and results of operations. In addition, the Company's management uses
these measures for reviewing the financial results of the Company and for budget
planning purposes.
FINANCIAL HIGHLIGHTS
(In thousands, except per share data)
Operations Data on a pro forma basis, excluding a $572,000 gain, net of taxes,
for the six-month and three-month periods ended July 31, 2005:
SIX MONTHS ENDED THREE MONTHS ENDED
(UNAUDITED) (UNAUDITED)
JULY 31, JULY 31, JULY 31, JULY 31,
2004 2005 2004 2005
---- ---- ---- ----
Sales $ 29,276 $ 29,198 $ 16,087 $ 15,057
Cost of sales 7,037 6,815 3,541 3,513
--------- --------- --------- ---------
Gross profit 22,239 22,383 12,546 11,544
Operating expenses:
Research and development 5,345 6,383 2,568 3,284
Selling, general and administrative 8,942 8,745 4,666 4,115
--------- --------- --------- ---------
Income from operations 7,952 7,255 5,312 4,145
Interest and other income, net 1,134 2,862 652 1,696
--------- --------- --------- ---------
Income before income tax provision 9,086 10,117 5,964 5,841
Income tax provision 2,907 3,137 1,970 1,811
--------- --------- --------- ---------
Pro forma net income $ 6,179 $ 6,980 $ 3,994 $ 4,030
========= ========= ========= =========
Pro forma earnings per share:
Basic $ 0.15 $ 0.16 $ 0.09 $ 0.09
========= ========= ========= =========
Diluted $ 0.14 $ 0.16 $ 0.09 $ 0.09
========= ========= ========= =========
Weighted average shares:
Basic 42,295 43,157 42,380 43,177
========= ========= ========= =========
Diluted 43,549 44,166 43,575 44,077
========= ========= ========= =========
Reconciliation of GAAP basis net income to pro forma basis net income:
GAAP basis net income $ 6,179 $ 7,552 $ 3,994 $ 4,602
========= ========= ========= =========
Adjustments:
Gain on settlement - (828) - (828)
Income tax provision - 256 - 256
--------- --------- --------- ---------
Pro forma basis net income $ 6,179 $ 6,980 $ 3,944 $ 4,030
========= ========= ========= =========
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ULTICOM SECOND QUARTER FISCAL 2005 RESULTS:
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FINANCIAL HIGHLIGHTS
(In thousands)
BALANCE SHEET DATA: JANUARY 31, JULY 31,
2005 2005
---- ----
(UNAUDITED)
ASSETS
- ------
CURRENT ASSETS:
Cash, cash equivalents and short-term investments $ 246,672 $ 260,958
Accounts receivable, net 11,062 9,846
Inventories 1,286 1,599
Prepaid expenses and other current assets 3,558 5,109
---------- ----------
TOTAL CURRENT ASSETS 262,578 277,512
PROPERTY AND EQUIPMENT, net 2,274 2,760
INVESTMENTS 5,375 -
OTHER ASSETS 1,765 1,577
---------- ----------
TOTAL ASSETS $ 271,992 $ 281,849
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
- ------------------------------------
CURRENT LIABILITIES:
Accounts payable and accrued expenses $ 11,966 $ 10,715
Deferred revenue 4,462 3,745
---------- ----------
TOTAL CURRENT LIABILITIES 16,428 14,460
SHAREHOLDERS' EQUITY 255,564 267,389
---------- ----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 271,992 $ 281,849
========== ==========
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 Second 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, September 7, 2005 at 4:30 p.m. eastern. The dial-in number
is 800-683-1585. 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 September 14th. Access
this replay by dialing 877-519-4471 and providing the digital PIN 6439054.
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 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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