Telular Corporation Revenue up 76% in Fourth Quarter; Founder Retires From Board, Millard Elected Chairman; Shareholder DNIC Plans to Buy Additional Shares
-- Quarterly revenue $19 million vs. $11 million last year
-- Quarterly profit $0.07 per share vs. loss of $(0.05) per share last
-- William L. DeNicolo retires from Board of Directors; Millard elected
-- DeNicolo's firm, DNIC Brokerage Co., plans to buy shares on open
market, funded by advances against future payments owed to DNIC by
VERNON HILLS, Ill., Oct. 11 /PRNewswire/ -- Telular Corporation (Nasdaq: WRLS) today reported that its revenue rose 76% to $19.0 million from $10.8 million last year during its fourth fiscal quarter ended September 30, 2001. The Company reported quarterly earnings of $0.9 million, or $0.07 per share, compared to a loss of $(0.7) million, or $(0.05) per share, for the same period last year. The Company generated $101.2 million in revenue and earned $12.9 million, or $1.01 per share, during its full fiscal year ended September 30, 2001, compared to $40.4 million in revenue and a loss of $(5.9) million, or $(0.49) per share, for the same period last year. "Telular has just completed a very successful year," said Kenneth E. Millard, Chairman and Chief Executive Officer. "The Wireless Local Loop (WLL) market demonstrated strength despite the softness in Telecom markets in general." Millard added, "This is now the tenth consecutive quarter with at least a double digit increase in our Fixed Wireless business -- a 115% rise over the same quarter of last fiscal year." Operating Details Fixed Wireless product revenue increased 115% to $16.2 million for the fourth quarter from $7.5 million for the same period last year and Wireless Alarm revenue increased $0.1 million, or 5% to $2.6 million. Fixed Wireless product revenue increased 214% to $84.8 million for the full fiscal year 2001 from $27.0 million last fiscal year. Wireless Alarm revenue increased 3% to $10.9 million for the full fiscal year 2001 from $10.6 million during the same period last year. Royalty revenue declined from $0.8 million for the fourth quarter last year to $0.2 million for the fourth quarter of fiscal year 2001. Royalty revenue increased 101% to $5.4 million for the full fiscal year 2001 from $2.7 million during the same period last year. "Motorola's exit from the CDMA Fixed Wireless business earlier this year resulted in a significant one-time royalty settlement payment which increased royalty and royalty settlement revenue for the full fiscal year," said Millard. "Lower royalty revenue in our fourth quarter resulted from lower royalty payments from Motorola following their CDMA exit." Gross margin for the fourth quarter of 30% compares to 32% last year. Full fiscal year gross margin improved five percentage points from 27% last year to 32% this year. "With less emphasis on royalties, most of the gross profit in the fourth quarter resulted from product sales, an area that has improved significantly over the past few years," added Millard. Operating expenses rose by 14% and 15% from the previous year during the three- and twelve-month periods ending September 30, 2001, respectively. The increase in operating expenses for both periods resulted primarily from increases in product development expense for new GPRS (General Packet Radio Service) products and increases in legal expenses associated with ongoing claims of infringement on the Company's patents in Korea and the USA. Telular earned $0.9 million, or $0.07 per share, during the fourth quarter, compared with a net loss of $(0.7) million, or $(0.05) per share, a year earlier. For the full fiscal year, Telular earned $12.9 million, or $1.01 per share, compared with a net loss of $(5.9) million, or $(0.49) per share, a year earlier. The Company generated $0.7 million in cash from operations during the fourth quarter, compared to $0.3 million last year. For the full fiscal year, the Company has generated $17.9 million in cash from operations, compared to $(1.6) million of cash used last year. "This Company has generated positive cash flow from operations for five consecutive quarters," added Millard. DeNicolo retires, Millard elected Chairman; DNIC to Buy More Shares Separately, the Company reported that William L. DeNicolo, Telular's founder and Chairman, has retired from the Company's Board of Directors; Kenneth E. Millard, President and CEO, was elected Chairman. DNIC Brokerage Co., one of Telular's largest shareholders, plans to purchase additional shares of the Company's common stock on the open market. Mr. DeNicolo is a principal in DNIC. The Company has agreed to advance future payments owed to DNIC of up to $750,000 as part of these transactions. "Mr. DeNicolo has been a great visionary and supporter of the Company for many years and his participation on our Board has been a great asset to Telular," said Millard. Motorola Sells Stake Telular also reported today that Motorola has sold its 9% stake in the Company to a private investor. Mr. Richard D. Haning, Motorola's former representative on the Company's Board of Directors, will remain on the Company's Board of Directors as an independent director. Investor Conference Call Telular's quarterly conference call will be held today at 10:00 A.M. CDT. A simultaneous Internet webcast will be available at www.vcall.com . About Telular Telular Corporation is a leader in the design and manufacturing of Fixed Wireless Terminals and Wireless Desktop Phones. Telular's proprietary telecommunications interface technology enables standard phone systems, fax machines, computer modems or monitored alarm systems to utilize available cellular wireless service for either primary or back-up communications. Their product lines incorporate the world's leading cellular standards (GSM, TDMA, CDMA, AMPS) and are marketed worldwide. Headquartered in Vernon Hills, Illinois, Telular has regional sales offices in Atlanta, Miami, Singapore and the United Kingdom. For further Company information, visit Telular at http://www.telular.com . Please be advised that information included here present the Company's or management's intentions, hopes, beliefs, expectations or predictions of the future and are forward-looking comments. It is important to note that the Company's actual results could differ materially from what appears here. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company's SEC filings, including but not limited to the Company's report on Form 10-K for the fiscal year ended September 30, 2000. Copies of these filings may be obtained by contacting the Company or the SEC. TELULAR CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS AND STATEMENTS OF CASH FLOWS (Dollars in thousands, except share data) BALANCE SHEET September 30, September 30, 2001 2000 (Unaudited) ASSETS Cash and cash equivalents $36,420 $20,527 Short term investment 15 147 Receivables: Trade, net of allowance for doubtful accounts of $210 and $104 at September 30, 2001 and 2000, respectively 5,151 6,771 Royalties due from related parties - 900 Total receivables 5,151 7,671 Inventories, net 10,008 6,391 Prepaid expenses and other current assets 363 442 Total current assets 51,957 35,178 Restricted cash 3,000 1,900 Property and equipment, net 3,743 4,266 Other assets 3,503 3,242 Total assets $62,203 $44,586 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities $10,148 $7,007 Long-term revolving line of credit 3,000 1,900 Total stockholders' equity * 49,055 35,679 Total liabilities and stockholders' equity $62,203 $44,586 * At September 30, 2001, 12,810,885 shares were outstanding CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS Year Ended September 30, 2001 2000 (Unaudited) Net cash provided by (used in) operating activities $17,856 $(1,634) Net cash used in investing activities (2,998) (2,696) Net cash provided (used) before financing activities $14,858 $(4,330) Net cash provided by financing activities 1,035 14,885 Net increase in cash and cash equivalents $15,893 $10,555 TELULAR CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except share data) Three Months Ended September 30, 2001 2000 (Unaudited) (Unaudited) Net product sales $18,832 $10,060 Royalty and royalty settlement revenue 154 757 Total revenue 18,986 10,817 Cost of sales 13,300 7,383 5,686 3,434 Engineering and development expenses 1,731 1,077 Selling and marketing expenses 1,850 2,147 General and administrative expenses 1,336 1,103 Income (loss) from operations 769 (893) Other income 138 228 Net income (loss) $907 $(665) Basic income (loss) per common share $0.07 $(0.05) Basic weighted average number of common shares outstanding 12,807,957 12,656,124 TELULAR CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except share data) Year Ended September 30, 2001 2000 (Unaudited) Net product sales $95,708 $37,650 Royalty and royalty settlement revenue 5,442 2,703 Total revenue 101,150 40,353 Cost of sales 68,724 29,463 32,426 10,890 Engineering and development expenses 6,499 5,162 Selling and marketing expenses 7,845 7,546 General and administrative expenses 5,656 4,672 Income (loss) from operations 12,426 (6,490) Other income 450 584 Net income (loss) $12,876 $(5,906) Less: Cumulative dividend on redeemable preferred stock - (29) Net income (loss) applicable to common shares $12,876 $(5,935) Basic income (loss) per common share $1.01 $(0.49) Basic weighted average number of common shares outstanding 12,748,648 12,183,022 MAKE YOUR OPINION COUNT - Click Here http://tbutton.prnewswire.com/prn/11690X46889845
SOURCE Telular Corporation
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