CNT Reports Third Quarter Results Pro Forma EPS of $.07 Tops
Consensus; GAAP EPS of $.01 MINNEAPOLIS, Nov. 20
/PRNewswire-FirstCall/ -- CNT today reported financial results for
the fiscal third quarter and nine months ended October 31, 2003.
Third quarter revenue totaled $99.6 million, compared to $55.9
million in the third quarter of 2002. Revenue for the nine months
ended October 31, 2003 totaled $248.7 million, compared to $150.0
million in the first nine months of 2002. Revenues for the third
quarter and first nine months of 2003 include the acquisition of
Inrange Technologies from May 5, 2003. (Logo:
http://www.newscom.com/cgi-bin/prnh/20020415/CNTLOGO ) On the basis
of generally accepted accounting principles (GAAP), the company
reported a net profit for the fiscal third quarter of $237,000, or
$.01 per share, compared to a net loss of $864,000, or $.03 per
share, in the year-ago quarter. On a pro forma basis, the company
reported net income of $2.0 million or $.07 per share in the fiscal
third quarter, compared to a net loss of $718,000 or $.03 per share
in the year-ago quarter. Pro forma results for the fiscal 2003
third quarter exclude integration charges and amortization of
intangibles related to our recent acquisition of Inrange of $1.3
million and $1.7 million, respectively. Pro forma results for the
third quarter of 2002 exclude earn-out costs related to the BI-Tech
acquisition of $537,000 and earnings from discontinued operations
of $207,000. Pro forma net income (loss) for the fiscal third
quarter of 2003 and 2002 include income taxes at a 34% effective
rate, compared to GAAP tax rates for the third quarter of 2003 and
2002 of a negative 69% and 34%, respectively. On the basis of
generally accepted accounting principles (GAAP), the company
reported a net loss for the nine months ended October 31, 2003 of
$27.7 million, or $1.02 per share, compared to a net loss of $16.7
million, or $.59 per share, for the same period of fiscal 2002. On
a pro forma basis, the company reported a net profit of $1.9
million or $.07 per share for the nine months ended October 31,
2003, compared to a net loss of $6.5 million or $.23 per share, for
the same period of fiscal 2002. Pro forma results for the first
nine months of 2003 exclude charges of $19.7 million for in-process
research and development, integration charges of $6.3 million, and
intangibles amortization of $3.3 million, all related to the recent
acquisition of Inrange Technologies, and $312,000 for the BI-Tech
earn- out. Pro forma results for the first nine months of 2002
exclude a $10.1 million charge for the cumulative effect of a
change in accounting principle, $626,000 of costs for the BI-Tech
earn-out and discontinued operations. Pro forma results for the
first nine months of 2003 and 2002 include income taxes at a 34%
effective rate, compared to GAAP tax rates for the first nine
months of 2003 and 2002 of negative 3% and 34%, respectively. CNT
product sales for the third quarter of 2003 were up $31.3 million
or 147% over the same period of fiscal 2002 due to the acquisition
of Inrange and strong customer acceptance of our integrated product
offerings. Third party product sales for the third quarter of 2003
were down $4.5 million or 25% over the third quarter of 2002, due
to the deferral of several large third party product orders and our
focus on the integration of the two companies. Backlog at October
31, 2003 was approximately $17 million, up from approximately $12.5
million at the end of the second quarter. "We are pleased with the
improvement in our profitability during the third quarter. Our pro
forma profit of $.07 per share represents our highest pro forma
quarterly profit since fiscal year 2000. We are starting to reap
the benefits of our integration strategy and the impact of the
significant cost savings we realized following our acquisition of
Inrange on May 5, 2003, and remain on track to deliver over $20
million in expected annual cost savings from our integration of the
two companies," commented Tom Hudson, CNT's chairman, president and
chief executive officer. During the quarter CNT announced an
agreement to expand our strategic alliance with Brocade to extend
storage area networks (SANs) over distance and to improve data
availability for our customers. As part of the strategic
relationship, Brocade will recommend our UltraNet Edge products as
a preferred SAN extension solution to its OEM and reseller channels
worldwide. More than 300 customers have already deployed Brocade
SANs with our extension products. Hudson continued, "Together, we
provide our customers a proven storage solution that includes the
industry's leading SAN infrastructure solutions and the industry's
most installed SAN extension devices. In addition, our global
support organization will provide support for all Brocade products
through our 24 x 7 x 365 call center and worldwide logistics
network. Our joint customers will also be able to fully leverage
our professional and global support services, including proactive
remote monitoring and management services. We also agreed to
qualify the interoperability between our FC/9000 director product
and Brocade SilkWorm fabric switches. "Today, Brocade has the
largest installed base of Fibre Channel switches and CNT has the
largest Fibre Channel Director at 256 ports, as well as the largest
install base of FC over IP. Together, we offer customers a seamless
approach to enterprise SAN/WAN storage networks. As a result of
this joint announcement, our customers will be able to build
storage area networks consisting of CNT and Brocade products. We
believe this relationship furthers our leadership position in the
SAN/WAN marketplace," added Hudson. "In this quarter, IBM-EMEA
began bundling our FC/9000 Director with its largest processors,
the 'T-Rex', again demonstrating CNT's commitment to quality,
reliability and large scale storage fabric deployment. "In another
first for CNT, we have become the first provider to remotely extend
a new IBM enterprise disk mirroring solution for storage networks
over a distance of 1,200 miles between our corporate offices in
Minnesota and New Jersey. The joint IBM/CNT offering demonstrates
the benefits of long distance disk mirroring for disaster recovery
and business continuity. The solution uses CNT's UltraNet Edge
Storage Router, which reliably extends IBM's Peer-to- Peer Remote
Copy (PPRC), for Fibre Channel, a controller-based disk mirroring
application for IBM TotalStorage Enterprise Storage Server (ESS)
Model 800. Our unmatched expertise in IBM disk mirroring solutions
allowed us to be first to market for extending PPRC-FC over longer
distances, thus giving customers key remote storage options. We're
very proud of our long history of delivering IBM storage solutions
to our customers, especially when we are providing unique value
through our UltraNet technology for remote storage," continued
Hudson. "This quarter, we began shipping the UltraNet Edge Storage
Router 2000, which provides superior, hardware-based data
compression and optimized performance for customers with IP
applications," said Hudson. "We will be formally launching the
product later this year. Early customers using the Edge 2000 have
seen up to ten times improved performance in networked storage
applications as well as dramatic reductions in their monthly
network costs. One customer was able to avoid costly network link
upgrades altogether." "We also recently announced the availability
of the first storage router that can seamlessly integrate both open
systems and mainframe environments over any distance. The UltraNet
Edge Storage Router 3000 storage router provides unprecedented
flexibility to customers by allowing businesses to move information
anywhere, anytime, with the highest performance available and at
dramatically reduced costs. NTT Communications Corporation (NTT
Com), the largest long distance and international
telecommunications provider in Japan recently choose the Edge 3000
product because of its superior performance and ease of use. For
the first time, customers can define on a port-by-port basis the
storage configurations that perfectly match their storage
requirements, whether 1 Gbps or 2 Gbps, FICON or Fibre Channel, IP
or SONET, point-to-point or multi-destination, SAN fabric or direct
connect, and easily adapt their storage networking infrastructure
requirements using a simple GUI tool," concluded Hudson.
"Integration charges of $1.3 million included in operating expenses
for the third quarter primarily reflect wages and severance for
terminated employees. During the fourth quarter we expect to record
an additional integration charge of approximately $500,000
primarily for wages and severance," said Greg Barnum, CNT's chief
financial officer. Outlook For the fourth quarter of 2003 we
anticipate that revenues will be in the range of $105 to $115
million and pro forma earnings from continuing operations will be
in the range of $.08 to $.12 per share, excluding amortization of
intangibles, integration charges and any earn-out related to the
BI-Tech acquisition. Conference Call and Webcast Information CNT
will hold a conference call and Webcast this afternoon, Thursday,
November 20, 2003 at 4:30 p.m. Central Standard Time, 5:30 p.m.
Eastern Standard Time, to discuss fiscal third quarter financial
results. The Webcast is available through CNT's web site at
http://www.cnt.com/cnt/financials/ . To participate via telephone,
dial 212-346-7499 and ask for the CNT Earnings Call. A one-week
webcast replay will be available at
http://www.cnt.com/cnt/financials . A reconciliation of pro forma
information to generally accepted accounting principles are
available at http://www.cnt.com/cnt/financials/ . A two-day
telephone replay will be available at 800-633-8284 or 402-977-9140;
enter 21163902# at the reservation number prompt. About CNT CNT is
the expert in today's most cost-effective and reliable storage
networking solutions. For nearly 20 years, businesses around the
world have depended on us to improve their business efficiency,
increase data availability and manage their business-critical
information. CNT offers expertise in storage architecture and
business continuity, innovative UltraNet storage networking
technology, and the advantage of end-to-end solutions that include
consulting, multi-vendor integration, support, and managed
services. For more information, visit CNT's web site at or call
763-268-6000. All brand names and product names are trademarks or
registered trademarks of their respective companies. Certain
statements in this press release and in documents we have filed
with the Securities and Exchange Commission, and oral statements
made by or with the approval of our executive officers contain
"forward-looking statements" under the Private Securities
Litigation Reform Act of 1995. These forward-looking statements may
include statements about our anticipated receipt of orders and
their impact on quarterly sales, business strategy, expectations
regarding future revenue levels, gross margins, expenses, operating
margins and earnings per share, timing of and plans for the
introduction or phase-out of products or services, enhancements of
existing products or services, plans for hiring additional
personnel, entering into strategic partnerships, activities related
to the integration of Inrange into our business and other plans,
objectives, expectations and intentions that are not historical
fact. The words "may," "should," "expect," "plan," "anticipate,"
"believe," "estimate," "predict," "intend," "potential" or
"continue" and similar expressions are generally intended to
identify forward-looking statements, although not all CNT
forward-looking statements contain these identifying words. These
forward-looking statements involve risks and uncertainties. Actual
results could differ materially from those expressed or implied by
these forward-looking statements as a result of certain risk
factors, including but not limited to (i) competitive factors,
including pricing pressures, (ii) variability in quarterly sales,
(iii) economic trends generally and in various geographic markets;
(iv) relationships with our strategic partners; (v) unanticipated
risks associated with introducing new services, products and
features; (vi) technological change affecting our products; (vii)
whether any delayed orders will be received; (viii) whether we will
be able to successfully and efficiently integrate Inrange; (ix)
adverse judgments from pending and future litigation, and (x) other
events and other important factors disclosed previously and from
time to time in our filings with the U.S. Securities and Exchange
Commission. These statements are only predictions. Although we
believe that the expectations reflected in the forward-looking
statements are reasonable, we cannot guarantee future results,
levels of activity, performance or achievements. CNT CONSOLIDATED
STATEMENTS OF INCOME (in thousands, except per share data)
(unaudited) Three months ended Nine months ended October 31,
October 31, 2003 2002 2003 2002 Revenue: Product sales $65,871
$39,009 $163,764 $101,891 Service fees 33,745 16,894 84,895 48,090
Total revenue 99,616 55,903 248,659 149,981 Cost of revenue: Cost
of product sales 35,968 24,842 93,568 61,822 Cost of service fees
20,579 9,511 50,961 28,579 Amortization of developed technology
1,055 - 2,110 - Integration charge - - 1,607 - Total cost of
revenue 57,602 34,353 148,246 90,401 Gross profit 42,014 21,550
100,413 59,580 Operating expenses: Sales and marketing 23,188
13,614 60,453 43,399 Engineering and development 12,137 7,063
29,739 20,322 General and administrative 3,846 2,696 10,523 7,903
Amortization of customer list and trademarks 607 - 1,214 -
In-process research and development charge - - 19,706 - Integration
charge 1,252 - 4,681 - Total operating expenses 41,030 23,373
126,316 71,624 Income (loss) from operations 984 (1,823) (25,903)
(12,044) Other income (expense): Net gain on sale of marketable
securities - - 747 - Other, net (844) 198 (1,610) 1,627 Other
income (expense), net (844) 198 (863) 1,627 Income (loss) before
income taxes 140 (1,625) (26,766) (10,417) Provision (benefit) for
income taxes (97) (554) 901 (3,543) Net income (loss) before
cumulative effect of Change in accounting principle 237 (1,071)
(27,667) (6,874) Discontinued operations, net of tax - 207 - 207
Cumulative effect of change in accounting principle - - - (10,068)
Net income (loss) $237 $(864) $(27,667) $(16,735) Basic income
(loss) per share: Net income (loss) before cumulative effect of
change in accounting principle $.01 $(.04) $(1.02) $(.24)
Discontinued operations $- $.01 $- $.01 Cumulative effect of change
in accounting principle $- $- $- $(.35) Net income (loss) $.01
$(.03) $(1.02) $(.59) Shares 27,193 26,896 27,047 28,574 Diluted
income (loss) per share: Net income (loss) before cumulative effect
of change in accounting principle $.01 $(.04) $(1.02) $(.24)
Discontinued operations $- $.01 $- $.01 Cumulative effect of change
in accounting principle $- $- $- $(.35) Net income (loss) $.01
$(.03) $(1.02) $(.59) Shares 28,750 26,896 27,047 28,574 CNT
CONSOLIDATED PRO FORMA STATEMENTS OF INCOME (in thousands, except
per share data) (unaudited) Three months ended Nine months ended
October 31, October 31, 2003 2002 2003 2002 Revenue: Product sales
$65,871 $39,009 $163,764 $101,891 Service fees 33,745 16,894 84,895
48,090 Total revenue 99,616 55,903 248,659 149,981 Cost of revenue:
Cost of product sales 35,968 24,842 93,568 61,822 Cost of service
fees 20,579 9,376 50,830 28,426 Total cost of revenue 56,547 34,218
144,398 90,248 Gross profit 43,069 21,685 104,261 59,733 Operating
expenses: Sales and marketing 23,188 13,480 60,295 43,238
Engineering and development 12,137 6,849 29,739 20,073 General and
administrative 3,846 2,642 10,500 7,840 Total operating expenses
39,171 22,971 100,534 71,151 Income (loss) from operations 3,898
(1,286) 3,727 (11,418) Other income (expense), net (844) 198 (863)
1,627 Income (loss) before income taxes 3,054 (1,088) 2,864 (9,791)
Provision (benefit) for income taxes 1,038 (370) 974 (3,329) Net
income (loss) $2,016 $(718) $1,890 $(6,462) Basic income (loss) per
share: Net income (loss) $.07 $(.03) $.07 $(.23) Shares 27,193
26,896 27,047 28,574 Diluted income (loss) per share: Net income
(loss) $.07 $(.03) $.07 $(.23) Shares 28,750 26,896 28,129 28,574
CNT CONSOLIDATED BALANCE SHEETS (in thousands, except per share
data) October 31, 2003 January 31, (unaudited) 2003 Assets Current
assets: Cash and cash equivalents $62,614 $98,341 Marketable
securities 3,882 111,143 Receivables, net 94,799 56,040 Inventories
23,374 24,091 Other current assets 5,019 2,118 Total current assets
189,688 291,733 Property and equipment, net 40,458 22,566 Field
support spares, net 11,269 6,009 Goodwill, net 107,612 14,113 Other
intangibles, net 34,903 1,669 Other assets 6,164 3,079 $390,094
$339,169 Liabilities and Shareholders' Equity Total current
liabilities $127,964 $61,997 Obligations under capital leases, less
current installments 727 - Convertible subordinated debt 125,000
125,000 Deferred tax liability 462 541 Total liabilities 254,153
187,538 Shareholders equity: Preferred stock - - Common stock, $.01
par value; authorized 100,000 shares, issued and outstanding 27,320
at October 31, 2003 and 26,921 at January 31, 2003 272 269
Additional paid-in capital 185,819 173,955 Unearned compensation
(436) (675) Accumulated deficit (50,613) (22,946) Accumulated other
comprehensive income 899 1,028 Total shareholders' equity 135,941
151,631 $390,094 $339,169 CNT CONSOLIDATED PRO FORMA PRODUCT AND
SERVICE GROSS MARGINS (in thousands, except per share data)
(unaudited) Three months ended Three months ended October 31, 2003
October 31, 2002 Pro Pro forma forma As Adjust- Pro As Adjust- Pro
Reported ments forma Reported ments forma Revenue: CNT product
sales $52,710 $- $52,710 $21,373 $- $21,373 Third party product
sales 13,161 - 13,161 17,636 - 17,636 Maintenance fees 20,532 -
20,532 10,772 - 10,772 Consulting fees 13,213 - 13,213 6,122 -
6,122 Total revenue 99,616 - 99,616 55,903 - 55,903 Cost of
revenue: Cost of CNT product sales 25,286 - 25,286 10,899 - 10,899
Cost of third party product sales 10,682 - 10,682 13,943 - 13,943
Cost of maintenance fees 10,770 - 10,770 5,663 - 5,663 Cost of
consulting fees 9,809 - 9,809 3,848 (3) (135) 3,713 Amortization of
developed technology 1,055 (1) (1,055) - - - - Total cost of
revenue 57,602 (1,055) 56,547 34,353 (135) 34,218 Gross profit
$42,014 $1,055 $43,069 $21,550 $135 $21,685 Nine months ended Nine
months ended October 31, 2003 October 31, 2002 Pro Pro forma forma
As Adjust- Pro As Adjust- Pro Reported ments forma Reported ments
forma Revenue: CNT product sales $122,042 $- $122,042 $67,285 $-
$67,285 Third party product sales 41,722 - 41,722 34,606 - 34,606
Maintenance fees 53,388 - 53,388 32,665 - 32,665 Consulting fees
31,507 - 31,507 15,425 - 15,425 Total revenue 248,659 - 248,659
149,981 - 149,981 Cost of revenue: Cost of CNT product sales 59,321
- 59,321 34,223 - 34,223 Cost of third party product sales 34,247 -
34,247 27,599 - 27,599 Cost of maintenance fees 27,549 - 27,549
17,108 - 17,108 Cost of consulting fees 23,412 (3) (131) 23,281
11,471 (3) (153) 11,318 Amortization of developed technology 2,110
(1) (2,110) - - - - Integration charge 1,607 (2) (1,607) - - - -
Total cost of revenue 148,246 (3,848) 144,398 90,401 (153) 90,248
Gross profit $100,413 $3,848 $104,261 $59,580 $153 $59,733 (1)
Amortization expense related to developed technology from the
Inrange acquisition (2) Write-down of inventory resulting from
integration of CNT and Inrange product offerings (3) Represents the
expense related to the earn-out payable to the BI-Tech employees.
CNT CONSOLIDATED PRO FORMA STATEMENTS OF INCOME (in thousands,
except per share data) (unaudited) Three months ended Three months
ended October 31, 2003 October 31, 2002 Pro Pro forma forma As
Adjust- Pro As Adjust- Pro Reported ments forma Reported ments
forma Revenue: Product sales $65,871 $- $65,871 $39,009 $- $39,009
Service fees 33,745 - 33,745 16,894 - 16,894 Total revenue 99,616 -
99,616 55,903 - 55,903 Cost of revenue: Cost of product sales
35,968 - 35,968 24,842 - 24,842 Cost of service fees 20,579 -
20,579 9,511 (1) (135) 9,376 Amortization of developed technology
1,055 (2) (1,055) - - - - Total cost of revenue 57,602 (1,055)
56,547 34,353 (135) 34,218 Gross profit 42,014 1,055 43,069 21,550
135 21,685 Operating expenses: Sales and marketing 23,188 - 23,188
13,614 (1) (134) 13,480 Engineering and development 12,137 - 12,137
7,063 (1) (214) 6,849 General and admini- strative 3,846 - 3,846
2,696 (1) (54) 2,642 Amortization of customer list and trademarks
607 (3) (607) - - - - Integration charge 1,252 (4) (1,252) - - - -
Total operating expenses 41,030 (1,859) 39,171 23,373 (402) 22,971
Income (loss) from operations 984 2,914 3,898 (1,823) 537 (1,286)
Other income (expense), net (844) - (844) 198 - 198 Income (loss)
before income taxes 140 2,914 3,054 (1,625) 537 (1,088) Provision
(benefit) for income taxes (97)(5) 1,135 1,038 (554)(5) 184 (370)
Income (loss) from continuing operations 237 1,779 2,016 (1,071)
353 (718) Discontinued operations, net of tax - - - 207 (6) (207) -
Net income (loss) $237 $1,779 $2,016 $(864) $146 $(718) Basic
income (loss) per share: Continuing operations $.01 $.07 $.07
$(.04) $.01 $(.03) Discontinued operations $- $- $- $.01 $(.01) $-
Net income (loss) $.01 $.07 $.07 $(.03) $- $(.03) Shares 27,193
27,193 27,193 26,896 26,896 26,896 Diluted income (loss) per share:
Continuing operations $.01 $ .06 $.07 $(.04) $.01 $(.03)
Discontinued operations $- $- $- $.01 $ (.01) $- Net income (loss)
$.01 $.06 $.07 $(.03) $- $(.03) Shares 28,750 28,750 28,750 26,896
26,896 26,896 (1) - Represents the expense related to the earn-out
payable to the Bi-Tech employees. (2) - Amortization expense
related to the developed technology from the Inrange acquisition.
(3) - Amortization expense related to the customer list and
trademarks from the Inrange acquisition (4) - Integration charge
related to the Inrange acquisition, primarily wages and severance.
(5) - Tax expense calculated at an effective tax rate of 34%. (6) -
Discontinued operations. CNT CONSOLIDATED PRO FORMA STATEMENTS OF
INCOME (in thousands, except per share data) (unaudited) Nine
months ended Nine months ended October 31, 2003 October 31, 2002
Pro Pro forma forma As Adjust- Pro As Adjust- Pro Reported ments
forma Reported ments forma Revenue: Product sales $163,764 $-
$163,764 $101,891 $- $101,891 Service fees 84,895 - 84,895 48,090 -
48,090 Total revenue 248,659 - 248,659 149,981 - 149,981 Cost of
revenue: Cost of product sales 93,568 - 93,568 61,822 - 61,822 Cost
of service fees 50,961 (1) (131) 50,830 28,579 (1) (153) 28,426
Amortization of developed technology 2,110 (2) (2,110) - - - -
Integration charge 1,607 (8) (1,607) - - - - Total cost of revenue
148,246 (3,848) 144,398 90,401 (153) 90,248 Gross profit 100,413
3,848 104,261 59,580 153 59,733 Operating expenses: Sales and
marketing 60,453 (1) (158) 60,295 43,399 (1) (161) 43,238
Engineering and development 29,739 - 29,739 20,322 (1) (249) 20,073
General and admini- strative 10,523 (1) (23) 10,500 7,903 (1) (63)
7,840 Amortization of customer list and trademarks 1,214 (4)
(1,214) - - - - In-process research and development charge 19,706
(5) (19,706) - - - - Integration charge 4,681 (3) (4,681) - - - -
Total operating expenses 126,316 (25,782) 100,534 71,624 (473)
71,151 Income (loss) from operations (25,903) 29,630 3,727 (12,044)
626 (11,418) Other income (expense), net (863) - (863) 1,627 -
1,627 Income (loss) before income taxes (26,766) 29,630 2,864
(10,417) 626 (9,791) Provision (benefit) for income taxes 901 (6)
73 974 (3,543)(6) 214 (3,329) Net loss before cumulative effect of
change in accounting principle (27,667) 29,557 1,890 (6,874) 412
(6,462) Discontinued operations, net of tax - - - 207 (9) (207) -
Cumulative effect of change in accounting principle - - -
(10,068)(7) 10,068 - Net income (loss) $(27,667) $29,557 $1,890
$(16,735) $10,273 $(6,462) Basic income (loss) per share: Net
income (loss) before cumulative effect of change in accounting
principle $(1.02) $ 1.09 $.07 $(.24) $.01 $(.23) Discontinued
operations $- $- $- $.01 $(.01) $- Cumulative effect of change in
accounting principle $- $- $- $(.35) $.35 $- Net income (loss)
$(1.02) $1.09 $.07 $(.59) $.36 $(.23) Shares 27,047 27,047 27,047
28,574 28,574 28,574 Diluted income (loss) per share: Net income
(loss) before cumulative effect of change in accounting principle
$(1.02) $1.09 $.07 $(.24) $.01 $(.23) Discontinued operations $- $-
$- $.01 $(.01) $- Cumulative effect of change in accounting
principle $- $- $- $(.35) $.35 $- Net income (loss) $(1.02) $1.09
$.07 $(.59) $.36 $(.23) Shares 27,047 27,047 28,129 28,574 28,574
28,574 (1) - Represents the expense related to the earn-out payable
to the Bi-Tech employees. (2) - Amortization expense related to the
developed technology from the Inrange acquisition (3) - Integration
charge related to the Inrange acquisition, primarily wages and
severance. (4) - Amortization expense related to the customer list
and trademarks from the Inrange acquisition. (5) - In-process
research and development charge related to the Inrange acquisition.
(6) - Tax expense calculated at an effective tax rate of 34%. (7) -
Cumulative effect of change in accounting for goodwill. (8) -
Write-down of inventory resulting from integration of CNT and
Inrange product offerings (9) - Discontinued operations
http://www.newscom.com/cgi-bin/prnh/20020415/CNTLOGO
http://photoarchive.ap.org/ DATASOURCE: CNT CONTACT: Greg Barnum,
VP of Finance & CFO, +1-763-268-6110, , or Jennifer Weidauer,
Public Relations, +1-763-268-8367, , both of CNT Web site:
http://www.cnt.com/
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