SAN JOSE, Calif., April 25, 2012 /PRNewswire/
-- Symmetricom®, Inc. (NASDAQ: SYMM), a worldwide
leader in precision time and frequency technologies, today reported
financial results for its third quarter of fiscal year 2012 ended
April 1, 2012.
(Logo:
http://photos.prnewswire.com/prnh/20110829/AQ59077LOGO)
Net revenue for the third quarter of fiscal 2012 was
$60.4 million, up $2.1 million, or 3.7%, compared to the second
quarter of fiscal 2012, driven by strong performance overall in its
Government and Enterprise business. Symmetricom reported net
income of $2.2 million, or
$0.05 per share, for the third
quarter of fiscal 2012, compared to net income of $2.4 million, or $0.06 per share, in the second quarter of fiscal
2012.
Non-GAAP net income for the third quarter of fiscal 2012 was
$3.3 million, or $0.08 per share, compared to $4.2 million, or $0.10 per share, reported for the second quarter
of fiscal 2012.
Cash, cash equivalents and short-term investments totaled
$61.5 million as of April 1, 2012, an increase of $3.4 million from the $58.1 million reported as of January 1, 2012, reflecting strong cash inflows
from operations, offset by approximately $4.0 million in stock repurchases during the
third quarter of fiscal 2012. Net cash generated from
operating activities in the third quarter was $8.1 million, driven substantially by a decrease
in inventories. After subtracting approximately $1.2 million of property, plant and equipment
purchases, free cash flow was approximately $6.8 million.
"We continued to execute on our strategic initiatives in the
third quarter, as demonstrated by solid revenue growth and by the
on-going advancement of new customer and market relationships,"
said Dave Cote, president and chief
executive officer of Symmetricom. "In addition, we made
notable progress in reducing our inventory levels as our efforts to
refine our operating model are gaining traction. These
factors, combined with strong cash flow generation and increasing
customer demand for our solutions make us well positioned to
deliver profitable growth in 2012 and beyond."
Business Results
Revenue in the Communications Business in the third quarter of
fiscal 2012 was $32.6 million,
compared to $33.3 million reported in
the second quarter of fiscal 2012, and $30.4
million reported in the third quarter of fiscal 2011.
Revenue in the Government and Enterprise Business in the third
quarter of fiscal 2012 was $27.8
million, compared to $25.0
million reported in the second quarter of fiscal 2012, and
$20.8 million reported in the third
quarter of fiscal 2011.
Fourth Quarter 2012 Guidance
Symmetricom's guidance for the fourth quarter of fiscal 2012 is
as follows:
- Net revenue is expected to be in the range of $56 million to $62 million
- GAAP earnings per share is expected to be in the range of
$0.04 to $0.09
- Non-GAAP earnings per share is expected to be in the range of
$0.07 to $0.12
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 +1-312-470-7232 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 +1-203-369-3402.
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 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 fourth quarter fiscal 2012 guidance and future
performance, expectations regarding diversification of our revenue
streams, increasing customer demand, our strategic initiatives and
focus on profitable growth 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's.
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
|
|
Nine
months ended
|
|
|
|
|
April
1,
|
|
January
1,
|
|
March
27,
|
|
April
1,
|
|
March
27,
|
|
|
|
|
2012
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenue
|
|
|
$60,438
|
|
$58,294
|
|
$51,234
|
|
$175,110
|
|
$147,457
|
|
Cost of
sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of products and
services
|
|
|
35,638
|
|
32,225
|
|
26,778
|
|
97,693
|
|
76,606
|
|
Amortization of intangible
assets
|
|
|
74
|
|
185
|
|
260
|
|
445
|
|
814
|
|
Restructuring
charges
|
|
|
65
|
|
674
|
|
1,330
|
|
1,156
|
|
8,987
|
|
Total cost of sales
|
|
|
35,777
|
|
33,084
|
|
28,368
|
|
99,294
|
|
86,407
|
|
Gross profit
|
|
|
24,661
|
|
25,210
|
|
22,866
|
|
75,816
|
|
61,050
|
|
Gross margin
|
|
|
40.8%
|
|
43.2%
|
|
44.6%
|
|
43.3%
|
|
41.4%
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
7,129
|
|
6,548
|
|
6,717
|
|
20,575
|
|
20,061
|
|
Selling, general and
administrative
|
|
|
14,281
|
|
14,864
|
|
13,592
|
|
43,955
|
|
39,987
|
|
Amortization of intangible
assets
|
|
|
52
|
|
52
|
|
60
|
|
156
|
|
183
|
|
Restructuring
charges
|
|
|
(76)
|
|
103
|
|
(1,142)
|
|
123
|
|
(1,985)
|
|
Total operating expenses
|
|
|
21,386
|
|
21,567
|
|
19,227
|
|
64,809
|
|
58,246
|
|
Operating income
|
|
|
3,275
|
|
3,643
|
|
3,639
|
|
11,007
|
|
2,804
|
|
Interest
income, net of amortization (accretion) of premium (discount) on
investments
|
|
|
225
|
|
(296)
|
|
441
|
|
(5)
|
|
664
|
|
Interest
expense
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(55)
|
|
Income from continuing
operations before taxes
|
|
|
3,500
|
|
3,347
|
|
4,080
|
|
11,002
|
|
3,413
|
|
Income tax
provision
|
|
|
1,296
|
|
902
|
|
1,095
|
|
3,604
|
|
810
|
|
Income from continuing
operations
|
|
|
2,204
|
|
2,445
|
|
2,985
|
|
7,398
|
|
2,603
|
|
Income
from discontinued operations, net of tax
|
|
|
-
|
|
-
|
|
19
|
|
-
|
|
97
|
|
Net income
|
|
|
$
2,204
|
|
$
2,445
|
|
$
3,004
|
|
$
7,398
|
|
$
2,700
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share - basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
|
$
0.05
|
|
$
0.06
|
|
$
0.07
|
|
$
0.18
|
|
$
0.06
|
|
Income from discontinued
operations
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Net
income
|
|
|
$
0.05
|
|
$
0.06
|
|
$
0.07
|
|
$
0.18
|
|
$
0.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding - basic
|
|
|
41,795
|
|
42,292
|
|
43,153
|
|
42,258
|
|
43,285
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share - diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
|
$
0.05
|
|
$
0.06
|
|
$
0.07
|
|
$
0.17
|
|
$
0.06
|
|
Income from discontinued
operations
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Net
income
|
|
|
$
0.05
|
|
$
0.06
|
|
$
0.07
|
|
$
0.17
|
|
$
0.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding - diluted
|
|
|
42,615
|
|
42,762
|
|
43,859
|
|
42,937
|
|
43,853
|
|
SYMMETRICOM, INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
April
1,
|
|
July
3,
|
|
|
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents
|
|
|
$
25,550
|
|
$
20,318
|
|
|
Short-term
investments
|
|
|
|
35,957
|
|
43,340
|
|
|
Accounts
receivable, net
|
|
|
40,408
|
|
40,511
|
|
|
Inventories
|
|
|
|
56,786
|
|
62,622
|
|
|
Prepaids
and other current assets
|
|
|
18,184
|
|
14,004
|
|
|
Total current
assets
|
|
|
|
176,885
|
|
180,795
|
|
Property,
plant and equipment, net
|
|
|
22,863
|
|
23,255
|
|
Acquisition assets
|
|
|
|
3,719
|
|
2,429
|
|
Deferred
taxes and other assets
|
|
|
26,042
|
|
29,361
|
|
|
Total assets
|
|
|
|
$
229,509
|
|
$
235,840
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
|
$
9,995
|
|
$
16,113
|
|
|
Accrued
compensation
|
|
|
|
11,909
|
|
13,743
|
|
|
Accrued
warranty
|
|
|
|
1,898
|
|
1,601
|
|
|
Other
accrued liabilities
|
|
|
|
11,190
|
|
14,683
|
|
|
Total current
liabilities
|
|
|
34,992
|
|
46,140
|
|
Long-term
obligations
|
|
|
|
5,906
|
|
5,212
|
|
Deferred
income taxes
|
|
|
|
334
|
|
334
|
|
|
Total liabilities
|
|
|
|
41,232
|
|
51,686
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
|
Common
stock
|
|
|
|
197,843
|
|
201,002
|
|
|
Accumulated other comprehensive income
(loss)
|
|
(145)
|
|
(29)
|
|
|
Accumulated deficit
|
|
|
|
(9,421)
|
|
(16,819)
|
|
|
Total stockholders'
equity
|
|
|
188,277
|
|
184,154
|
|
|
Total liabilities and stockholders' equity
|
|
$
229,509
|
|
$
235,840
|
|
SYMMETRICOM, INC.
|
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
|
(In
thousands, except per share amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended
|
|
Nine
months ended
|
|
|
April
1,
|
|
January
1,
|
|
March
27,
|
|
April
1,
|
|
March
27,
|
|
|
2012
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
Reconciliation from GAAP to Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
GAAP Net
income
|
$2,204
|
|
$
2,445
|
|
$
3,004
|
|
$
7,398
|
|
$
2,700
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Equity-based compensation expense:
|
|
|
|
|
|
|
|
|
|
|
Cost of products and
services
|
272
|
|
215
|
|
253
|
|
606
|
|
506
|
|
Research and
development
|
312
|
|
295
|
|
240
|
|
896
|
|
562
|
|
Selling, general and
administrative
|
1,154
|
|
1,170
|
|
1,055
|
|
3,079
|
|
2,050
|
|
Total
equity-based compensation expense
|
1,738
|
|
1,680
|
|
1,548
|
|
4,581
|
|
3,118
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets:
|
|
|
|
|
|
|
|
|
|
|
Cost of products and
services
|
74
|
|
185
|
|
260
|
|
445
|
|
814
|
|
Operating
expenses
|
52
|
|
52
|
|
60
|
|
156
|
|
183
|
|
Total
amortization of intangible assets
|
126
|
|
237
|
|
320
|
|
601
|
|
997
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring charges
|
(11)
|
|
777
|
|
188
|
|
1,279
|
|
7,002
|
|
Manufacturing transition costs
|
-
|
|
-
|
|
798
|
|
-
|
|
2,839
|
|
Income tax
effect of Non-GAAP adjustments
|
(793)
|
|
(934)
|
|
(586)
|
|
(2,263)
|
|
(4,314)
|
|
Non-GAAP
Net income
|
$3,264
|
|
$
4,205
|
|
$
5,272
|
|
$11,596
|
|
$
12,342
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share - diluted:
|
|
|
|
|
|
|
|
|
|
|
GAAP Net income
|
$
0.05
|
|
$
0.06
|
|
$
0.07
|
|
$
0.17
|
|
$
0.06
|
|
Non-GAAP Net
income
|
$
0.08
|
|
$
0.10
|
|
$
0.12
|
|
$
0.27
|
|
$
0.28
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding - diluted
|
42,615
|
|
42,762
|
|
43,859
|
|
42,937
|
|
43,853
|
|
SYMMETRICOM, INC.
|
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
|
(In
thousands, except per share amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended
|
|
Nine
months ended
|
|
|
|
|
April
1,
|
|
January
1,
|
|
March
27,
|
|
April
1,
|
|
March
27,
|
|
|
|
|
2012
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
Revenue
|
|
$60,438
|
|
$58,294
|
|
$51,234
|
|
$175,110
|
|
$147,457
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from GAAP to Non-GAAP Gross
Profit:
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Gross
profit
|
(A)
|
$24,661
|
|
$25,210
|
|
$22,866
|
|
$
75,816
|
|
$
61,050
|
|
|
GAAP Gross
margin
|
|
40.8%
|
|
43.2%
|
|
44.6%
|
|
43.3%
|
|
41.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity-based compensation expense
|
|
272
|
|
215
|
|
253
|
|
606
|
|
506
|
|
|
Amortization of intangible assets
|
|
74
|
|
185
|
|
260
|
|
445
|
|
814
|
|
|
Restructuring charges
|
|
65
|
|
674
|
|
1,330
|
|
1,156
|
|
8,987
|
|
|
Manufacturing transition costs
|
|
-
|
|
-
|
|
798
|
|
-
|
|
2,839
|
|
Non-GAAP
Gross profit
|
(B)
|
$25,072
|
|
$26,284
|
|
$25,507
|
|
$
78,023
|
|
$
74,196
|
|
|
Non-GAAP
Gross margin
|
|
41.5%
|
|
45.1%
|
|
49.8%
|
|
44.6%
|
|
50.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from GAAP to Non-GAAP Operating
Expense:
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
Operating expenses
|
(C)
|
$21,386
|
|
$21,567
|
|
$19,227
|
|
$
64,809
|
|
$
58,246
|
|
|
Operating
expense % to revenue
|
|
35.4%
|
|
37.0%
|
|
37.5%
|
|
37.0%
|
|
39.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity-based compensation expense
|
|
(1,466)
|
|
(1,465)
|
|
(1,295)
|
|
(3,975)
|
|
(2,612)
|
|
|
Amortization of intangible assets
|
|
(52)
|
|
(52)
|
|
(60)
|
|
(156)
|
|
(183)
|
|
|
Restructuring charges
|
|
76
|
|
(103)
|
|
1,142
|
|
(123)
|
|
1,985
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
operating expenses
|
(D)
|
$19,944
|
|
$19,947
|
|
$19,014
|
|
$
60,555
|
|
$
57,436
|
|
|
Non-GAAP
operating expenses % to revenue
|
|
33.0%
|
|
34.2%
|
|
37.1%
|
|
34.6%
|
|
39.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from GAAP to Non-GAAP Operating Income
(loss):
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
Operating income
|
(A) -
(C)
|
$
3,275
|
|
$
3,643
|
|
$
3,639
|
|
$
11,007
|
|
$
2,804
|
|
|
Operating
income % to revenue
|
|
5.4%
|
|
6.2%
|
|
7.1%
|
|
6.3%
|
|
1.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Operating income
|
(B) -
(D)
|
$
5,128
|
|
$
6,337
|
|
$
6,493
|
|
$
17,468
|
|
$
16,760
|
|
|
Operating
income % to revenue
|
|
8.5%
|
|
10.9%
|
|
12.7%
|
|
10.0%
|
|
11.4%
|
|
SYMMETRICOM, INC.
|
RECONCILIATION OF FORWARD-LOOKING GUIDANCE FOR GAAP
REVENUE AND EPS
|
TO
NON-GAAP GUIDANCE FOR REVENUE AND EPS
|
(In
thousands, except per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ending July 1, 2012
|
|
|
|
Revenue
|
|
Earnings
Per Share
|
|
|
|
From
|
To
|
|
From
|
To
|
|
|
|
|
|
|
|
|
|
GAAP
Guidance
|
$56,000
|
$62,000
|
|
$0.04
|
$0.09
|
|
|
|
|
|
|
|
|
|
Estimated Non-GAAP Adjustments
|
|
|
|
|
|
|
|
Equity-based compensation expense
|
|
|
|
0.04
|
0.03
|
|
|
Amortization of intangible assets
|
|
|
|
0.01
|
0.01
|
|
|
Income tax
effect of non-GAAP adjustments
|
|
|
|
(0.02)
|
(0.01)
|
|
|
Total
Non-GAAP Adjustments
|
|
|
|
0.03
|
0.03
|
|
|
|
|
|
|
|
|
|
Non-GAAP Guidance
|
$56,000
|
$62,000
|
|
$0.07
|
$0.12
|
SOURCE Symmetricom, Inc.