Company Returns to Profitability and Positive Cash Flow; Revenue Hits Post-Acquisition High of $43.7 Million
SAN JOSE, Calif.—April 29, 2004—Symmetricom, Inc. (NASDAQ:SYMM), a leading worldwide supplier of atomic clocks and network synchronization and timing solutions, today reported results for its fiscal third quarter ended March 31, 2004.
Fiscal third quarter revenue was $43.7 million, an increase of $2.8 million, or 6.8 percent, over prior quarter revenue of $41.0 million, and an increase of $6.9 million, or 18.7 percent, over the same period last year. For the nine month period ended March 31, 2004, revenue was $123.2 million, an increase of $28.1 million, or 29.5 percent, over the prior year period. The net profit from continuing operations for the fiscal third quarter was $1.8 million, or $0.04 per share on a fully diluted basis, which compares to a net loss from continuing operations for the prior quarter of $3.9 million, or $(0.09) per share, including a $0.10 per share restructuring charge. The company posted a net loss from continuing operations of $5.4 million, or $(0.13) per share, for the same period last year, which includes acquisition related restructuring charges of $0.03 per share. The net loss from continuing operations for the nine month period ended March 31, 2004, was $4.4 million, or $(0.10) per share, including various acquisition related charges of $0.11 per share. This compares to a net loss from continuing operations in the prior year period of $27.9 million, or $(0.83) per share, including acquisition related charges of $0.57 per share.
Comparison of nine month revenue and net loss results may not be meaningful as prior year results do not include full period results for Datum and TrueTime, which were both acquired in October 2002.
"All of our hard work over the last year has resulted in the company's return to profitability," said Thomas Steipp, chief executive officer of Symmetricom. "Revenue hit a post-acquisition high on the strength of our wireline, wireless and government businesses, while our continued focus on cost control and efficiency led to improved gross margins, exclusive of restructuring costs, for the fourth consecutive quarter. We are also pleased that our strong performance increased our cash and investment balances to $36.2 million in the third fiscal quarter from $28.9 million at the end of the prior quarter."
Outlook for Q4 FY04
Symmetricom expects fiscal fourth quarter revenue to be between $43 million and $48 million and fiscal fourth quarter earnings to be between $0.04 and $0.07 per share. As a result of the acquisitions of Datum and TrueTime, Symmetricom has excess office and manufacturing space that it is seeking to sub-lease. Should Symmetricom be unable to find tenants for these vacant facilities, the company will have to take an additional lease impairment charge that will impact operating results.
INVESTOR CONFERENCE CALL
As previously announced, management will hold a conference call to discuss these results today, April 29, 2004 at 1:30 p.m. Pacific Time. Those wishing to join should dial 712-257-0003, passcode "Symmetricom". Please reference the conference leader: Thomas Steipp. A live webcast of the conference call will also be available via the company’s website at www.symmetricom.com or www.vcall.com. A replay of the call will be available for one week. To access the replay, please dial 800-282-5583.
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 estimates of future revenue and earnings. 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: reduced rates of demand for telecommunication products or test and measurement products, timing of orders, cancellation or delay of customer orders, difficulties in manufacturing products to specification or customer volume requirements, customer acceptance of new products, customer delays in qualification and field trials of key new products, geopolitical risks such as terrorist acts and the risk factors listed from time to time in Symmetricom's reports filed with the Securities and Exchange Commission, including but not limited to, the report on Form 10-K for the year ended June 30, 2003 and subsequent Form 10-Q and Form 8-K filings.
Note: Financial schedules attached
