Press Releases
Occam Networks Announces First-Quarter 2008 Results
FairPoint Win, Increased Customer Base and New FTTH Product Demonstrate Continued Momentum
SANTA BARBARA, Calif. – April 8, 2008 — Occam Networks® Inc. (NASDAQ: OCNW), a leading broadband access network supplier, today reported results for the first quarter of 2008, which ended March 31, 2008. The company reported quarterly revenue of $19.7 million, up 4 percent from the same quarter last year and down 8 percent compared with the prior quarter, reflecting first-quarter seasonality.
Net loss attributable to common stockholders for the first quarter of 2008, calculated in accordance with generally accepted accounting principles (GAAP), was $4.5 million, or a loss of $0.23 per basic share, compared with a $4.6 million net loss or $0.23 per basic share for the fourth quarter of 2007 and with net income of $29,000, or $0.00 per basic share, for the first quarter of 2007. The GAAP net loss for the first quarter of 2008 included a write-down of $0.9 million for the divestiture of certain legacy activities associated with the company's purchase of certain Terawave assets during the fourth quarter of 2007.
Non-GAAP net loss attributable to common stockholders, which excludes stock-based compensation expense and the Terawave-related divestiture charge, totaled $3.1 million, or a loss of $0.15 per basic share. This compares with a net loss of $1.9 million or a loss of $0.09 per basic share for the fourth quarter of 2007 and with net income of $0.7 million or $0.04 per diluted share, for the first quarter of 2007. A reconciliation of Occam's non-GAAP net loss to the company's GAAP net loss is contained in the financial statements at the end of this press release.
"We continued to focus on our strategic goals during Q1, chief among these is returning to profitability," said Bob Howard-Anderson, president and CEO of Occam Networks. "An important strategic development for Occam during the first quarter was the announcement that FairPoint Communications, the eighth largest telco in the U.S., has selected Occam to be its lead access-equipment provider for a major broadband initiative in northern New England.
"FairPoint owns and operates 32 local exchange companies in 18 states," Mr. Howard-Anderson continued. "It recently acquired approximately 1.6 million access lines from Verizon in March 2008 covering Maine, New Hampshire and Vermont. We see Occam's selection in this New England initiative as a major validation of our all-IP technology, having won this transaction over top industry competitors following a rigorous evaluation process."
Other important developments at Occam Networks during the first quarter of 2008 included:
- Occam's customer base increased to more than 280 telecommunications service providers, extending the company's string to 14 consecutive quarters with 10 or more new customer wins.
- Occam launched its FTTP Quick-Start service program, reflecting the company's focus on helping telcos minimize "time to revenue".
- The company began the initial field trial of its new GPON products, currently planned for Q2 customer availability.
Today's Conference Call
Starting at 4:30 p.m. EDT (1:30 p.m. PDT) on Thursday, May 8, 2008, Occam Networks will conduct a conference call to discuss its first quarter results. The call can be accessed by dialing (719) 325-4819 (for both U.S. and international callers). For those unable to listen at the designated time, a live and archived webcast of the call will be available on the Occam Networks website for up to one year after the call. To hear the webcast, go to the Investor Relations homepage, select "Earnings Calls" at the bottom of the page and click on the "Q1 Earnings Call" link. In addition to the webcast replay, a phone replay will be available for seven days after the live call at (719) 457-0820, code number 3260421.
Non-GAAP Disclosure
Certain non-GAAP financial measures are included in this press release. Occam's GAAP results have been adjusted to exclude stock-based compensation charges associated with the issuance of stock options, restricted stock units, and restricted stock in addition to the $0.9 million write-down charge associated with the divestiture of certain legacy activities partially offset by $0.3 million gain resulting from the collection of certain fully-reserved receivables included in the purchase of Terawave assets. These non-GAAP financial measures are provided to enhance the reader's overall understanding of the company's financial performance and company prospects for the future. Specifically, Occam believes non-GAAP measures can provide useful information to both management and investors by excluding certain non-cash expenses that are not indicative of the company's core operating results. Further, these non-GAAP financial measures are one of the primary indicators management uses for planning and forecasting future periods. In addition, since Occam has historically reported non-GAAP measures to the investment community, management believes the inclusion of non-GAAP measures provides consistency in Occam's financial reporting. The presentation of this additional information is not meant to be considered a substitute for financial measures prepared in accordance with generally accepted accounting principles. A reconciliation of GAAP to non-GAAP net loss is included below.
Cautionary Note Concerning Forward Looking Statements
This press release contains forward-looking statements within the meaning of applicable securities laws, including statements about the outlook for the company's business, the company's focus on increasing revenues, returning to profitability and improving operating performance, customer purchasing decisions, including potential purchases by FairPoint, and new customer growth rates. Forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from those indicated in forward-looking statements. In addition to the risk factors identified in the company's most recent Form 10-K and Form 10-Q, risks and uncertainties that could adversely affect the company's business, revenues, results of operations and financial condition include, without limitation, the following: (i) the company's revenues and operating results have varied substantially on a quarter-to-quarter basis in the past and are likely to continue to vary in the future based, among other factors, on levels of customer demand for the company's products, capital investment trends in the telecommunications industry, the size and timing of orders the company receives, and potentially substantial delays from the time the company receives orders until the company may recognize revenue under applicable revenue recognition rules; (ii) the company cannot predict the amount or timing of orders from FairPoint, if any, and cannot predict when or if it will be able to recognize revenues on any orders received from FairPoint; (iii) capital investment in the telecommunications industry may be reduced if macroeconomic weakness continues in North America; (iv) any inability to remedy previously disclosed internal control deficiencies could have an adverse impact on the reliability of the company's financial statements; and (iv) the company is subject to litigation risks associated with pending stockholder litigation arising from its recent audit committee investigation and financial restatement. Any forward-looking statements the company may make should be considered in light of various important factors, including the risks and uncertainties listed above, as well as others. The company makes no commitment to revise or update any forward-looking statements in order to reflect events or circumstances after the date any such statement is made. Please also refer to the company's most recent Annual Report on Form 10-K filed March 11, 2008 and Quarterly Reports on 10-Q to be filed on May 12, 2008, as well as the company's future filings with the SEC, for other important risk factors that could cause the company's actual results to differ materially from those contained in any forward-looking statements.
About Occam Networks Inc.
Occam Networks' broadband access solutions empower service providers to offer profitable new voice, data and video services over copper and fiber. Occam systems deliver flexibility and scalability in a Triple Play world. Over 1.9 million BLC 6000 ports are currently deployed at over 280 service providers in North America and the Caribbean. For more information, please visit www.occamnetworks.com.
# # #
Contact:
|
Financial Contact Debbie Demer Demir IR 1.925.938.2678 ddemer@demer-ir.com |
Media Contact Tim Johnson Stearns Johnson Communications 1.415.397.7600 tjohnson@stearnsjohnson.com |
Occam Networks and Occam BLC 6000 are either registered trademarks or trademarks of Occam Networks Inc. in the United States and/or other countries.
All other trademarks mentioned are the property of their respective owners.