Exhibit 99.1
FOR INVESTOR RELATIONS CONTACT:
INVESTOR RELATIONS
(650) 314-1000
ir@catapult.com
CATAPULT COMMUNICATIONS REPORTS RECORD REVENUES
AND INCOME FOR SECOND QUARTER OF FISCAL 2004
Mountain View, CA--April 15, 2004--Catapult Communications Corporation (Nasdaq:
CATT) today reported record quarterly revenues and net income for its second
fiscal quarter ended March 31, 2004. Total revenues for the quarter were $17.2
million, a 23 percent increase over revenues of $14.0 million reported in the
second quarter of fiscal 2003. Net income for the second fiscal quarter was a
record $4.5 million or $0.32 per diluted share. This compares to net income of
$1.7 million or $0.13 per diluted share in the second fiscal quarter of 2003.
Strong positive cash flow improved the Company's cash and short-term investment
position to $38.2 million, a $5.2 million increase over the first quarter of
fiscal year 2004.
"As a result of purchases by Japanese customers ahead of their March 31 fiscal
year end, our second quarter is typically the strongest of our fiscal year,"
said Dr. Richard A. Karp, Catapult's Chairman and CEO. "This year, for the
second quarter in a row, we saw increased demand in all our major regions: North
America, Europe and Japan. This increase was not fully reflected in revenue in
the second quarter because we gave shipping priority to Japanese fiscal year end
orders. As a result, 65 percent of our revenue in the second fiscal quarter was
generated in Japan, but we entered the third quarter with an uncharacteristic
backlog of North American and European orders."
BUSINESS OUTLOOK
"Our third fiscal quarter is historically sequentially lower due to slower sales
in Japan following their fiscal year end," Karp continued. "We currently expect
that our revenues in the third fiscal quarter will be $13.5 million, a 27
percent increase from the $10.6 million in the same quarter of fiscal 2003, and
that our diluted net income per share will be $0.15, a 50 percent improvement
from our net income of $0.10 per diluted share in the same quarter last year."
Catapult Communications will discuss its second quarter results on a conference
call today, beginning at 5:15 p.m. Eastern/2:15 p.m. Pacific. The toll-free
access number for the call is (800) 299-7635. International and local
participants can dial (617) 786-2901. Please reference Catapult Communications
or reservation number 20640910. The conference call will also be available on
the Internet from the Investor section of the Company's website at
www.catapult.com.
An online replay of this teleconference will be available on the Company's
website. A digital recording will also be available two hours after the
completion of the conference call until April 29, 2004. For access, please dial
(888) 286-8010 or (617) 801-6888 and enter reservation number 74941353.
ABOUT CATAPULT
Catapult Communications is a leading supplier of advanced digital telecom test
systems to global equipment manufacturers and service providers. The Catapult
DCT2000(R) and MGTS(R) systems deliver superior high-end test solutions for
hundreds of protocols and variants, spanning 3G, VoIP, GPRS, SS7, Intelligent
Network, ATM, ISDN and other network environments.
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.
FORWARD LOOKING STATEMENTS
The statement in this press release regarding the Company's expected revenues
and net income for its third fiscal quarter is a forward-looking statement. This
statement is 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)
(unaudited)
For the three months ended For the six months ended
March 31, March 31,
2004 2003 2004 2003
-------- -------- -------- --------
Revenues:
Products $ 13,931 $ 11,513 $ 22,352 $ 19,498
Services 3,311 2,523 5,939 4,923
-------- -------- -------- --------
Total revenues 17,242 14,036 28,291 24,421
-------- -------- -------- --------
Cost of revenues:
Products 1,565 1,792 2,566 3,169
Services 911 761 1,631 1,458
Amortization of purchased technology 172 172 343 343
-------- -------- -------- --------
Total cost of revenues 2,648 2,725 4,540 4,970
-------- -------- -------- --------
Gross profit 14,594 11,311 23,751 19,451
-------- -------- -------- --------
Operating expenses:
Research and development 3,068 3,695 5,720 7,063
Sales and marketing 4,661 3,808 8,611 7,330
General and administrative 1,779 1,550 3,455 3,563
-------- -------- -------- --------
Total operating expenses 9,508 9,053 17,786 17,956
-------- -------- -------- --------
Operating income 5,086 2,258 5,965 1,495
Interest income 185 212 379 411
Interest expense (87) (87) (175) (175)
Other income (expense) 58 (66) 162 740
-------- -------- -------- --------
Income before income taxes 5,242 2,317 6,331 2,471
Provision for income taxes 712 649 886 692
-------- -------- -------- --------
Net income $ 4,530 $ 1,668 $ 5,445 $ 1,779
======== ======== ======== ========
Net income per share:
Basic $ 0.35 $ 0.13 $ 0.42 $ 0.14
======== ======== ======== ========
Diluted $ 0.32 $ 0.13 $ 0.39 $ 0.13
======== ======== ======== ========
Shares used in per share calculation:
Basic 13,000 12,984 12,952 13,068
======== ======== ======== ========
Diluted 14,570 13,112 14,425 13,203
======== ======== ======== ========
CATAPULT COMMUNICATIONS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, September 30,
2004 2003
-------- --------
(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 18,847 $ 11,770
Short-term investments 19,342 18,901
Accounts receivable, net 12,975 10,598
Inventory 2,900 2,325
Other current assets 4,612 3,503
-------- --------
Total current assets 58,676 47,097
Property and equipment, net 2,875 3,384
Goodwill and other intangibles 54,977 55,487
Other assets 1,122 1,121
-------- --------
Total assets $117,650 $107,089
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued liabilities $ 10,057 $ 7,218
Deferred revenue 6,466 5,576
Convertible notes payable 17,470 17,674
-------- --------
Total current liabilities 33,993 30,468
Total stockholders' equity 83,657 76,621
-------- --------
Total liabilities and
stockholders' equity $117,650 $107,089
======== ========