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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