EXHIBIT 99.1
ULTICOM THIRD QUARTER FISCAL 2005 RESULTS:
SALES OF $15,255,000; NET INCOME OF $7,692,000;
EARNINGS OF $0.17 PER DILUTED SHARE, INCLUDING TAX BENEFIT
OF $0.07 PER DILUTED SHARE
MOUNT LAUREL, NJ, DECEMBER 6, 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 third quarter of
fiscal year 2005, ended October 31, 2005.
For the quarter, Ulticom had sales of $15,255,000, a decrease of 10% when
compared with sales of $17,034,000 in the third quarter of fiscal year 2004. The
Company posted net income on a generally accepted accounting principles ("GAAP")
basis for the quarter of $7,692,000 ($0.17 per diluted share) compared to net
income of $4,867,000 ($0.11 per diluted share) for the third quarter of fiscal
2004. During the third quarter 2005, the Company recorded approximately $3.0
million ($0.07 per diluted share) favorable tax benefit related to the reversal
of tax reserves previously established for certain business credits, the
reconciliation of the book provision to prior year tax return, and the related
impact to interest income.
"During the quarter, we saw deployments of our signaling products for messaging
and mobility applications to support the continued growth in wireless voice and
data traffic in both emerging and developed markets. Our results also benefited
from Signalware deployments globally in IP-based switching solutions for
broadband networks as both incumbent and next generation fixed and mobile
service providers continue to invest in packet infrastructure," said Shawn
Osborne, President and CEO of Ulticom. "With our service essential software,
high-value customer base, and continued financial strength, we believe 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 $264,933,000, working capital of $270,685,000, total assets of
$290,083,000, and shareholders' equity of $275,636,000, all of which are record
levels.
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ULTICOM THIRD QUARTER FISCAL 2005 RESULTS:
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Financial highlights at and for the nine-month and three-month periods ended
October 31, 2005 and prior year comparisons are as follows:
FINANCIAL HIGHLIGHTS
--------------------
(In thousands, except per share data)
Operations Data on a GAAP basis:
Nine months ended Three months ended
(UNAUDITED) (UNAUDITED)
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
2004 2005 2004 2005
---- ---- ---- ----
Sales $ 46,310 $ 44,453 $ 17,034 $ 15,255
Cost of sales 10,786 11,122 3,749 4,307
---------- ---------- --------- ----------
Gross profit 35,524 33,331 13,285 10,948
Operating expenses:
Research and development 7,918 9,344 2,573 2,961
Selling, general and administrative 13,246 12,134 4,304 4,217
---------- ---------- --------- ----------
Income from operations 14,360 11,853 6,408 3,770
Interest and other income, net 2,130 5,849 996 2,987
---------- ---------- --------- ----------
Income before income tax provision 16,490 17,702 7,404 6,757
Income tax provision 5,444 2,458 2,537 (935)
---------- ---------- --------- ----------
Net income $ 11,046 $ 15,244 $ 4,867 $ 7,692
========== ========== ========= ==========
Earnings per share:
Basic $ 0.26 $ 0.35 $ 0.11 $ 0.18
========== ========== ========= ==========
Diluted $ 0.25 $ 0.35 $ 0.11 $ 0.17
========== ========== ========= ==========
Weighted average shares:
Basic 42,435 43,190 42,713 43,256
========== ========== ========= ==========
Diluted 43,740 44,178 44,114 44,204
========== ========== ========= ==========
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ULTICOM THIRD QUARTER FISCAL 2005 RESULTS:
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FINANCIAL HIGHLIGHTS
--------------------
(In thousands)
BALANCE SHEET DATA: JANUARY 31, OCTOBER 31,
2005 2005
---- ----
(UNAUDITED)
ASSETS
------
CURRENT ASSETS:
Cash, cash equivalents and short-term investments $ 246,672 $ 264,933
Accounts receivable, net 11,062 11,798
Inventories 1,286 936
Prepaid expenses and other current assets 3,558 7,465
----------- -----------
TOTAL CURRENT ASSETS 262,578 285,132
PROPERTY AND EQUIPMENT, net 2,274 2,926
INVESTMENTS 5,375 -
OTHER ASSETS 1,765 2,025
----------- -----------
TOTAL ASSETS $ 271,992 $ 290,083
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES:
Accounts payable and accrued expenses $ 11,966 $ 11,356
Deferred revenue 4,462 3,091
----------- -----------
TOTAL CURRENT LIABILITIES 16,428 14,447
SHAREHOLDERS' EQUITY 255,564 275,636
----------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 271,992 $ 290,083
=========== ===========
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 THIRD 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 Tuesday, December 6, 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 December 14th. Access this replay
by dialing 877-519-4471 and providing the PIN 6771489.
NOTE: This release may contain "forward-looking statements" under the
Private Securities Litigation Reform Act of 1995 that involve known and unknown
risks and uncertainties. These risks and uncertainties could cause our actual
results, performance or achievements 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 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;
changes in the demand for the company's products; changes in capital spending
among the company's current and prospective customers; aggressive competition
may force the company to reduce prices; 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
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; risks associated with rapidly changing
technology and the ability of the company to introduce new products on a timely
and cost-effective basis; 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 website 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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