Telular Corporation Revenue up 76% in Fourth Quarter; Founder Retires From Board, Millard Elected Chairman; Shareholder DNIC Plans to Buy Additional Shares Highlights



-- Quarterly revenue $19 million vs. $11 million last year

-- Quarterly profit $0.07 per share vs. loss of $(0.05) per share last

year

-- William L. DeNicolo retires from Board of Directors; Millard elected

Chairman

-- DeNicolo's firm, DNIC Brokerage Co., plans to buy shares on open

market, funded by advances against future payments owed to DNIC by

the Company



    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
 
 
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SOURCE Telular Corporation

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