SAN JOSE, Calif., Aug. 8, 2012 /PRNewswire/
-- Symmetricom®, Inc. (NASDAQ: SYMM), a worldwide leader
in precision time and frequency technologies, today reported
financial results for its fourth quarter and fiscal year 2012 ended
July 1, 2012.
(Logo:
http://photos.prnewswire.com/prnh/20110829/AQ59077LOGO)
Net revenue for the fourth quarter of fiscal 2012 was
$62.6 million, a year-over-year
increase of $1.9 million, driven by
strong performance overall in the Government and Enterprise
business and continued strength in PackeTime® for wireless and
Ethernet backhaul deployments. Symmetricom reported net
income of $4.0 million, or
$0.09 per share, for the fourth
quarter of fiscal 2012, compared to a net loss of $1.3 million, or $0.03 per share, in the fourth quarter of fiscal
2011.
Non-GAAP net income for the fourth quarter of fiscal 2012 was
$5.2 million, or $0.12 per share, compared to $5.4 million, or $0.12 per share, reported for the fourth quarter
of fiscal 2011.
Net revenue for fiscal 2012 was $237.7
million, compared to $208.1
million for fiscal 2011. Symmetricom reported net
income of $11.4 million, or
$0.27 per share, in fiscal 2012,
compared to net income of $1.4
million, or $0.03 per share,
in fiscal 2011. Non-GAAP net income for fiscal 2012 was
$16.8 million, or $0.39 per share, compared to $17.7 million, or $0.40 per share, reported for the prior year.
Cash, cash equivalents and short-term investments totaled
$66.9 million as of July 1, 2012, an increase of $5.4 million from the $61.5 million reported as of April 1, 2012, reflecting strong cash inflows
from operations, offset by approximately $6.0 million in stock repurchases during the
fourth quarter of fiscal 2012. Net cash generated from
operating activities in the fourth quarter was approximately
$12.2 million, driven by a sequential
decrease in inventories, as compared to the prior quarter.
After subtracting approximately $1.4
million of property, plant and equipment purchases, free
cash flow was approximately $10.9
million.
"We had another quarter of solid earnings, as we delivered
revenue growth and generated strong cash flow. Our Government
and Enterprise business delivered robust growth overall, driven
primarily by solid government programs and Quantum™ SA.45s Chip
Scale Atomic Clock (CSAC) revenue. In Communications, we
continued to grow our PackeTime® revenue for wireless and Ethernet
backhaul networks," said Dave Côté, president and chief executive
officer of Symmetricom. "We are expanding our reach in new
and existing vertical markets with our industry-leading Quantum™
CSAC and PackeTime® solutions, further diversifying our product and
customer base. Looking forward to fiscal 2013, our primary
focus will be on ramping new products. Our diverse product
portfolio and geographic footprint is a key differentiator for
Symmetricom as we face a challenging macro-economic environment in
the near-term. With a strong competitive position supported
by a wide range of timing technologies, we are well positioned for
future growth."
Business Results
Revenue in the Communications Business in the fourth quarter of
fiscal 2012 was $32.8 million,
compared to $35.2 million reported in
the fourth quarter of fiscal 2011. Revenue in the Government
and Enterprise Business in the fourth quarter of fiscal 2012 was
$29.8 million, compared to
$25.5 million reported in the fourth
quarter of fiscal 2011.
First Quarter 2013 Guidance
Symmetricom's guidance for the first quarter of fiscal 2013 is
as follows:
- Net revenue is expected to be in the range of $55 million to $61 million
- GAAP earnings per share is expected to be in the range of
$0.01 to $0.07
- Non-GAAP earnings per share is expected to be in the range of
$0.05 to $0.10
A reconciliation of GAAP and non-GAAP guidance is provided at
the end of this press release.
Investor Conference Call
As previously announced, management will hold a conference call
to discuss these results today, at 1:30 p.m.
Pacific Time. Investors are invited to join the
conference call by dialing +1-517-308-9149 and referencing
"Symmetricom." A live webcast will also be available on the
investor relations section of the company's website at
http://www.symmetricom.com. An audio replay will be available
for one week and can be accessed by dialing +1-203-369-0530.
About Symmetricom, Inc.
Symmetricom (NASDAQ:SYMM), a world leader in precise time
solutions, sets the world's standard for time. The company
generates, distributes and applies precise time for the
communications, aerospace/defense, IT infrastructure and metrology
industries. Symmetricom's customers, from communications service
providers and network equipment manufacturers to governments and
their suppliers worldwide, are able to build more reliable networks
and systems by using the company's advanced timing technologies,
atomic clocks, services and solutions. All products support today's
precise timing standards, including GPS-based timing, IEEE 1588
(PTP), Network Time Protocol (NTP), Synchronous Ethernet and
DOCSIS® timing. Symmetricom is based in San Jose, Calif., with offices worldwide. For
more information, visit: http://www.symmetricom.com or join the
dialogue at http://www.twitter.com/symmetricom.
Non-GAAP Information
Certain non-GAAP financial information is included in this press
release. In the reconciliation of GAAP to non-GAAP results,
Symmetricom excludes certain items related to non-cash equity-based
compensation, amortization of intangible assets, restructuring
charges, and manufacturing transition costs and non-cash income tax
expenses for valuation allowances against deferred tax assets that
the company does not consider indicative of its ongoing
performance. The income tax effect after these non-GAAP
adjustments is determined based upon Symmetricom's estimate of its
annual non-GAAP effective tax rate excluding these non-GAAP
adjustments. Symmetricom believes that excluding such items
provides investors, analysts and management with a representation
of the Company's core operating performance and with information
useful in assessing, in conjunction with GAAP results, underlying
trends in operating performance. Management uses such
non-GAAP information to evaluate financial results and to establish
operational goals. Non-GAAP information should not be
considered superior to or as a substitute for data prepared in
accordance with GAAP. A reconciliation of the non-GAAP
results to the GAAP results is provided in the financial schedules
portion of this press release.
Free cash flow is defined as net cash provided by or used in
operating activities minus purchases of property, plant and
equipment. Symmetricom believes this metric provides useful
information to its investors, analysts, and management about the
level of cash generated by or used in normal business operations,
including the use of cash for the purchase of property, plant and
equipment. Management also views it as a measure of cash
available to pay debt and return cash to stockholders. Free
cash flow is not a GAAP financial measure and should not be
considered superior to or a substitute for operating cash flow or
other cash flow data prepared in accordance with GAAP.
Safe Harbor
This press release contains forward-looking information within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, and is subject to the safe harbor created by those
sections. These forward-looking statements include statements
concerning first quarter fiscal 2013 guidance and future
performance, expectations regarding positioning for future growth,
ramping of new products, diversification of our revenue streams and
customer base as well as the information regarding the usefulness
of the non-GAAP financial information. The statements in this
press release are made as of the date of this press release, even
if subsequently made available by Symmetricom on its website or
otherwise. Symmetricom expressly disclaims any obligation to
update or revise any forward-looking statement contained herein,
whether as a result of a change in its expectations, a change in
any events, conditions or circumstances on which a forward-looking
statement is based, or otherwise. Symmetricom's actual
results could differ materially from those projected or suggested
in these forward-looking statements. Factors that could cause
future actual results to differ materially from the results
projected in or suggested by such forward-looking statements
include: but are not limited to, risks relating to general economic
conditions in the markets we address and the telecommunications
market in general, risks related to the development of our new
products and services, reliance on our contract manufacturer, the
effects of increasing competition and competitive pricing pressure,
uncertainties associated with changing intellectual property laws,
developments in and expenses related to litigation, the inability
to obtain sufficient amounts of key components, the rescheduling or
cancellation of key customer orders, the loss of a key customer,
the effects of new and emerging technologies, the risk that excess
inventory may result in write-offs, price erosion and decreased
demand, fluctuations in the rate of exchange of foreign currency,
changes in our effective tax rate, market acceptance of our new
products and services, technological advancements, undetected
errors or defects in our products, the risks associated with our
international sales, potential short-term investment losses and
other risks due to credit market dislocation, geopolitical risks
and risk of terrorist activities, the risks associated with
attempting to integrate other companies and businesses we acquire,
and the risk factors listed from time to time in Symmetricom's
reports filed with the Securities and Exchange Commission,
including the annual report on Form 10-K for the fiscal year ended
July 3, 2011 and subsequent Forms
10-Q and 8-K.
SYMM-F
Contact:
Dan Madden
VP Finance & Investor Relations
+1-408-428-7929
dmadden@symmetricom.com
SYMMETRICOM, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In
thousands, except per share amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended
|
|
Twelve
months ended
|
|
|
July
1,
|
|
April
1,
|
|
July
3,
|
|
July
1,
|
|
July
3,
|
|
|
2012
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenue
|
|
$62,606
|
|
$60,438
|
|
$60,689
|
|
$237,716
|
|
$208,146
|
Cost of
sales:
|
|
|
|
|
|
|
|
|
|
|
Cost of products and
services
|
|
34,214
|
|
35,638
|
|
31,384
|
|
131,907
|
|
107,990
|
Amortization of purchased
technology
|
|
174
|
|
74
|
|
260
|
|
619
|
|
1,073
|
Restructuring
charges
|
|
22
|
|
65
|
|
364
|
|
1,178
|
|
9,351
|
Total cost of sales
|
|
34,410
|
|
35,777
|
|
32,008
|
|
133,704
|
|
118,414
|
Gross profit
|
|
28,196
|
|
24,661
|
|
28,681
|
|
104,012
|
|
89,732
|
Gross margin
|
|
45.0%
|
|
40.8%
|
|
47.3%
|
|
43.8%
|
|
43.1%
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
7,385
|
|
7,129
|
|
6,984
|
|
27,960
|
|
27,045
|
Selling, general and
administrative
|
|
14,966
|
|
14,281
|
|
16,620
|
|
58,921
|
|
56,607
|
Amortization of intangible
assets
|
|
86
|
|
52
|
|
60
|
|
242
|
|
243
|
Restructuring
charges
|
|
(78)
|
|
(76)
|
|
691
|
|
45
|
|
(1,294)
|
Total operating expenses
|
|
22,359
|
|
21,386
|
|
24,355
|
|
87,168
|
|
82,601
|
Operating income
|
|
5,837
|
|
3,275
|
|
4,326
|
|
16,844
|
|
7,131
|
Interest
income, net of amortization (accretion) of premium (discount)
on investments
|
|
287
|
|
225
|
|
294
|
|
282
|
|
957
|
Interest
expense
|
|
-
|
|
-
|
|
(3)
|
|
-
|
|
(58)
|
Income from continuing
operations before income taxes
|
|
6,124
|
|
3,500
|
|
4,617
|
|
17,126
|
|
8,030
|
Income tax
provision
|
|
2,167
|
|
1,296
|
|
6,051
|
|
5,771
|
|
6,861
|
Income (loss) from
continuing operations
|
|
3,957
|
|
2,204
|
|
(1,434)
|
|
11,355
|
|
1,169
|
Income
from discontinued operations, net of tax
|
|
-
|
|
-
|
|
157
|
|
-
|
|
254
|
Net income
(loss)
|
|
$
3,957
|
|
$
2,204
|
|
$
(1,277)
|
|
$
11,355
|
|
$
1,423
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
(loss) per share - basic:
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing
operations
|
|
$
0.10
|
|
$
0.05
|
|
$
(0.03)
|
|
$
0.27
|
|
$
0.03
|
Income from discontinued
operations
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Net
earnings (loss)
|
|
$
0.10
|
|
$
0.05
|
|
$
(0.03)
|
|
$
0.27
|
|
$
0.03
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding - basic
|
|
41,152
|
|
41,795
|
|
42,897
|
|
41,981
|
|
43,188
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
(loss) per share - diluted:
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
|
$
0.09
|
|
$
0.05
|
|
$
(0.03)
|
|
$
0.27
|
|
$
0.03
|
Income from discontinued
operations
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Net
earnings (loss)
|
|
$
0.09
|
|
$
0.05
|
|
$
(0.03)
|
|
$
0.27
|
|
$
0.03
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding - diluted
|
|
41,927
|
|
42,615
|
|
42,897
|
|
42,697
|
|
43,782
|
SYMMETRICOM, INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
July
1,
|
|
July
3,
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and
cash equivalents
|
$
27,659
|
|
$
20,318
|
|
|
Short-term
investments
|
39,280
|
|
43,340
|
|
|
Accounts
receivable, net
|
45,952
|
|
40,511
|
|
|
Inventories, net
|
47,618
|
|
61,368
|
|
|
Prepaids
and other current assets
|
17,386
|
|
14,004
|
|
|
Total current
assets
|
177,895
|
|
179,541
|
|
Property,
plant and equipment, net
|
22,702
|
|
23,255
|
|
Intangible
assets, net
|
3,458
|
|
2,429
|
|
Deferred
taxes and other assets
|
26,970
|
|
30,615
|
|
|
Total assets
|
$231,025
|
|
$235,840
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
$
9,300
|
|
$
16,113
|
|
|
Accrued
compensation
|
14,574
|
|
13,743
|
|
|
Accrued
warranty
|
1,722
|
|
1,601
|
|
|
Other
accrued liabilities
|
11,841
|
|
14,683
|
|
|
Total current
liabilities
|
37,437
|
|
46,140
|
|
Long-term
obligations
|
5,472
|
|
5,212
|
|
Deferred
income taxes
|
334
|
|
334
|
|
|
Total liabilities
|
43,243
|
|
51,686
|
|
Stockholders' equity:
|
|
|
|
|
|
Common
stock
|
193,478
|
|
201,002
|
|
|
Accumulated other comprehensive loss
|
(232)
|
|
(29)
|
|
|
Accumulated deficit
|
(5,464)
|
|
(16,819)
|
|
|
Total stockholders'
equity
|
187,782
|
|
184,154
|
|
|
Total liabilities and stockholders' equity
|
$231,025
|
|
$235,840
|
|
SYMMETRICOM, INC.
|
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
|
(In
thousands, except per share amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended
|
|
Twelve
months ended
|
|
July
1,
|
|
April
1,
|
|
July
3,
|
|
July
1,
|
|
July
3,
|
|
2012
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
Reconciliation from GAAP to Non-GAAP
|
|
|
|
|
|
|
|
|
|
GAAP
Income (loss) from continuing operations
|
$3,957
|
|
$2,204
|
|
$(1,434)
|
|
$11,355
|
|
$
1,169
|
|
|
|
|
|
|
|
|
|
|
Add
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
Equity-based compensation expense:
|
|
|
|
|
|
|
|
|
|
Cost of products and
services
|
261
|
|
272
|
|
296
|
|
867
|
|
802
|
Research and
development
|
287
|
|
312
|
|
308
|
|
1,183
|
|
870
|
Selling, general and
administrative
|
1,013
|
|
1,154
|
|
1,190
|
|
4,092
|
|
3,240
|
Total
equity-based compensation expense
|
1,561
|
|
1,738
|
|
1,794
|
|
6,142
|
|
4,912
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets:
|
|
|
|
|
|
|
|
|
|
Cost of products and
services
|
174
|
|
74
|
|
260
|
|
619
|
|
1,073
|
Operating
expenses
|
86
|
|
52
|
|
60
|
|
242
|
|
243
|
Total
amortization of intangible assets
|
260
|
|
126
|
|
320
|
|
861
|
|
1,316
|
Restructuring charges
|
(56)
|
|
(11)
|
|
1,055
|
|
1,223
|
|
8,057
|
Manufacturing transition costs
|
-
|
|
-
|
|
-
|
|
-
|
|
2,839
|
Valuation
allowance on Ca R&D tax credits
|
-
|
|
-
|
|
4,476
|
|
-
|
|
4,476
|
Income tax
effect of Pretax Non-GAAP adjustments
|
(511)
|
|
(793)
|
|
(772)
|
|
(2,774)
|
|
(5,086)
|
Non-GAAP
Income from continuing operations
|
$5,211
|
|
$3,264
|
|
$
5,439
|
|
$16,807
|
|
$17,683
|
|
|
|
|
|
|
|
|
|
|
Earnings
from continuing operations per share-diluted:
|
|
|
|
|
|
|
|
|
|
GAAP income (loss) from
continuing operations
|
$
0.09
|
|
$
0.05
|
|
$
(0.03)
|
|
$
0.27
|
|
$
0.03
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP income from
continuing operations
|
$
0.12
|
|
$
0.08
|
|
$
0.12
|
|
$
0.39
|
|
$
0.40
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding - diluted
|
41,927
|
|
42,615
|
|
43,562
|
|
42,697
|
|
43,782
|
SYMMETRICOM, INC.
|
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
|
(In
thousands, except per share amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended
|
|
Twelve
months ended
|
|
|
|
July
1,
|
|
April
1,
|
|
July
3,
|
|
July
1,
|
|
July
3,
|
|
|
|
2012
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
Revenue
|
|
$62,606
|
|
$60,438
|
|
$60,689
|
|
$237,716
|
|
$208,146
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from GAAP to Non-GAAP Gross
Margin:
|
|
|
|
|
|
|
|
|
|
|
GAAP Gross
profit
|
(A)
|
$28,196
|
|
$24,661
|
|
$28,681
|
|
$104,012
|
|
$
89,732
|
|
GAAP Gross
margin
|
|
45.0%
|
|
40.8%
|
|
47.3%
|
|
43.8%
|
|
43.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Equity-based compensation expense
|
|
261
|
|
272
|
|
296
|
|
867
|
|
802
|
|
Amortization of intangible assets
|
|
174
|
|
74
|
|
260
|
|
619
|
|
1,073
|
|
Restructuring charges
|
|
22
|
|
65
|
|
364
|
|
1,178
|
|
9,351
|
|
Manufacturing transition costs
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2,839
|
Non-GAAP
Gross profit
|
(B)
|
$28,653
|
|
$25,072
|
|
$29,601
|
|
$106,676
|
|
$103,797
|
|
Non-GAAP
Gross margin
|
|
45.8%
|
|
41.5%
|
|
48.8%
|
|
44.9%
|
|
49.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from GAAP to Non-GAAP Operating
Expense:
|
|
|
|
|
|
|
|
|
|
GAAP
Operating expenses
|
(C)
|
$22,359
|
|
$21,386
|
|
$24,355
|
|
$
87,168
|
|
$
82,601
|
|
Operating
expense % to revenue
|
|
35.7%
|
|
35.4%
|
|
40.1%
|
|
36.7%
|
|
39.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Equity-based compensation expense
|
|
(1,300)
|
|
(1,466)
|
|
(1,498)
|
|
(5,275)
|
|
(4,110)
|
|
Amortization of intangible assets
|
|
(86)
|
|
(52)
|
|
(60)
|
|
(242)
|
|
(243)
|
|
Restructuring charges
|
|
78
|
|
76
|
|
(691)
|
|
(45)
|
|
1,294
|
Non-GAAP
operating expenses
|
(D)
|
$21,051
|
|
$19,944
|
|
$22,106
|
|
$
81,606
|
|
$
79,542
|
|
Non-GAAP
operating expenses % to revenue
|
|
33.6%
|
|
33.0%
|
|
36.4%
|
|
34.3%
|
|
38.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from GAAP to Non-GAAP Operating
Income:
|
|
|
|
|
|
|
|
|
|
GAAP
Operating income
|
(A) -
(C)
|
$
5,837
|
|
$
3,275
|
|
$
4,326
|
|
$
16,844
|
|
$
7,131
|
|
Operating
income % to revenue
|
|
9.3%
|
|
5.4%
|
|
7.1%
|
|
7.1%
|
|
3.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Operating income
|
(B) -
(D)
|
$
7,602
|
|
$
5,128
|
|
$
7,495
|
|
$
25,070
|
|
$
24,255
|
|
Non-GAAP
Operating income % to revenue
|
|
12.1%
|
|
8.5%
|
|
12.3%
|
|
10.5%
|
|
11.7%
|
SYMMETRICOM, INC.
|
RECONCILIATION OF FORWARD-LOOKING GUIDANCE FOR
NON-GAAP FINANCIAL MEASURES
|
TO
PROJECTED GAAP REVENUE AND EPS
|
(In
thousands, except per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ending September 30, 2012
|
|
|
Revenue
|
|
Income
(Loss) Per Share from Continuing Operations
|
|
|
From
|
To
|
|
From
|
To
|
|
|
|
|
|
|
|
GAAP
Guidance
|
$55,000
|
$61,000
|
|
$0.01
|
$0.07
|
|
|
|
|
|
|
|
Estimated Non-GAAP Adjustments
|
|
|
|
|
|
|
Equity-based compensation expense
|
|
|
|
0.04
|
0.03
|
|
Amortization of intangible assets
|
|
|
|
0.01
|
0.01
|
|
Restructuring charges
|
|
|
|
0.01
|
0.01
|
|
Income tax
effect of non-GAAP adjustments
|
|
|
|
(0.02)
|
(0.02)
|
|
Total
Non-GAAP Adjustments
|
-
|
-
|
|
0.04
|
0.03
|
|
|
|
|
|
|
|
Non-GAAP Guidance
|
$55,000
|
$61,000
|
|
$0.05
|
$0.10
|
SOURCE Symmetricom, Inc.