C-COR.net Reports Third Quarter FY2001 Results

Apr 19, 2001, 01:00 ET from C-COR.net Corp.

    STATE COLLEGE, Pa., April 19 /PRNewswire/ --
 C-COR.net Corp. (Nasdaq: CCBL) today announced third quarter fiscal year 2001
 financial results, which are in line with the guidance issued in its March 30,
 2001, press release.  For the quarter ended March 30, 2001, C-COR.net posted
 revenues of $40.1 million and recorded a nonrecurring restructuring charge of
 $11.1 million.  Including the restructuring charge, the Company recorded a
 loss of $.36 per share.  Excluding the restructuring charge, the loss was $.15
 per share.  In the same quarter a year ago, revenues were $63.3 million, and
 earnings from continuing operations were $.13 per diluted share.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19990924/CCORLOGO )
     Bookings for the quarter were $37.5 million for a book-to-bill ratio of
 .94.  The Company made an adjustment, reducing backlog in the quarter by
 $20.6 million to reflect previously booked orders that will not be shippable
 in the foreseeable future based on various customer factors. As a result,
 backlog at the end of the quarter was $54.4 million.
     During the third quarter, C-COR.net has taken measures to align the
 Company's operations with current business requirements and economic
 conditions.  We have implemented aggressive cost-cutting initiatives and are
 carrying out a plan to consolidate manufacturing capabilities to match
 infrastructure costs with anticipated requirements.
     C-COR.net remains committed to providing network integrity to customers
 through its strategy of high quality product offerings and service solutions
 throughout the network life cycle.  We continue to invest for the future in
 ongoing R&D for core fiber optic products and for software development
 associated with our network management and automated workforce management
 systems service offerings to meet the long-term needs of broadband
 communication networks.
     Commenting on the current situation, C-COR.net Chairman and CEO David A.
 Woodle stated, "We will continue to address the shorter-term issues impacting
 profitability while preparing the organization to continue as a strong
 competitor when business levels improve.  We will make our decisions within
 the context of our strategic plan, and we will maintain our core commitment to
 quality and serving our customers."
 
     About C-COR.net
     C-COR.net provides technology and services through three operational
 groups in support of customers as they plan, design, build, maintain, and
 operate complex broadband communications networks around the world.
 C-COR.net's Telecommunications Equipment Group develops and is a supplier of
 high quality distribution electronics for two-way HFC (Hybrid Fiber Coax)
 networks, including a complete offering of headend/hub optical solutions and a
 wide variety of fiber optical nodes that facilitate evolving fiber-rich
 architectures to deliver analog video, digital video, high-speed data, and
 telephony applications over cable.
     C-COR.net's Broadband Management Services (BMS) Group and Worldbridge
 Technical Services Group, together, offer comprehensive customer service for
 the full HFC broadband network life cycle.  The BMS Group provides a network
 and operations management solution that is open and scalable, integrates
 legacy back-office systems to next-generation network management systems, and
 extends automation out to the field service technician.
     C-COR.net's Worldbridge Technical Services Group provides nationwide field
 service support in the areas of network engineering and design, outside plant
 technical support, network integration, end-user voice, video and data
 installation, and full system outsourcing capabilities.
     C-COR.net's common stock is listed on the Nasdaq National Market under the
 symbol CCBL.  The Company is also listed in the Russell 2000 Stock Index.
 C-COR.net's Web site is www.c-cor.net.
 
                       Consolidated Statements of Operations
                      (In thousands except per share amounts)
                                    (Unaudited)
                                              Thirteen Weeks Ended
                                                                    Increase
                                          March 30,     March 24,  (Decrease)
                                            2001          2000      percent
     Net sales                             $40,134       $63,339       (37%)
     Cost of sales                          38,486        46,670       (18%)
     Gross margin                            1,648        16,669
 
     Operating expenses:
       Selling and administrative            7,167         7,055        2%
       Research and product
        development                          4,463         4,323        3%
       Merger and restructuring costs       11,076         4,373
         Total operating expenses           22,706        15,751
 
     (Loss) income from operations         (21,058)          918
     Interest expense                          (36)          (14)
     Investment income                       1,820         1,884
     Other income, net                           8            73
 
     (Loss) income from continuing
      operations before income tax         (19,266)        2,861
     Income tax benefit                     (7,742)       (1,774)
     (Loss) income from continuing
      operations                           (11,524)        4,635
 
     Discontinued operations
       Gain on disposal of
        discontinued business
        segment, net of tax                      6           780
     Net (loss) income                    $(11,518)      $ 5,415
 
     Net (loss) income per share - (basic):
       Continuing operations                $(0.36)        $0.14
       Gain on disposal of
        discontinued operations               0.00          0.02
     Net (loss) income                      $(0.36)        $0.16
 
     Net (loss) income per share - (diluted):
       Continuing operations                $(0.36)        $0.13
       Gain on disposal of
        discontinued operations               0.00          0.02
     Net (loss) income                      $(0.36)        $0.15
 
     Weighted average common shares
      and common share equivalents
       Basic                                32,314        33,315
       Diluted                              32,314        37,065
 
 
                       Consolidated Statements of Operations
                      (In thousands except per share amounts)
                                    (Unaudited)
                                             Thirty-Nine Weeks Ended
                                                                     Increase
                                          March 30,     March 24,   (Decrease)
                                            2001          2000        percent
     Net sales                            $184,514      $203,181       (9%)
     Cost of sales                         143,941       149,900       (4%)
     Gross margin                           40,573        53,281
 
     Operating expenses:
       Selling and administrative           23,417        24,228       (3%)
       Research and product development     13,276        11,006       21%
       Merger and restructuring costs       11,726         8,046
         Total operating expenses           48,419        43,280
 
     (Loss) income from operations          (7,846)       10,001
     Interest expense                          (65)         (775)
     Investment income                       5,737         2,802
     Other expense, net                       (203)         (226)
 
     (Loss) income from continuing
      operations before income tax          (2,377)       11,802
     Income tax (benefit) expense             (951)        2,532
     (Loss) income from continuing
      operations                            (1,426)        9,270
 
     Discontinued operations
       Gain on disposal of discontinued
        business segment, net of tax             2           822
     Net (loss) income                     $(1,424)      $10,092
 
     Net (loss) income per share - (basic):
       Continuing operations                $(0.04)        $0.32
       Gain on disposal of discontinued
        operations                            0.00          0.03
     Net (loss) income                      $(0.04)        $0.35
 
     Net (loss) income per share - (diluted):
       Continuing operations                $(0.04)        $0.28
       Gain on disposal of discontinued
        operations                            0.00          0.03
     Net (loss) income                      $(0.04)        $0.31
 
     Weighted average common shares and
      common share equivalents
         Basic                              33,103        28,624
         Diluted                            33,103        32,824
 
 
                            Consolidated Balance Sheets
                             (In thousands of dollars)
 
                                             March 30,        June 30,
                                               2001             2000
                                            (Unaudited)
     ASSETS
     Current assets
       Cash and cash equivalents             $111,784          $95,379
       Marketable securities                    8,799           42,154
       Interest receivable                        411            1,007
       Accounts and notes receivables, net     31,755           49,325
       Inventories                             39,307           31,760
       Deferred taxes                           8,256            7,470
       Other                                    8,564            3,826
     Total current assets                     208,876          230,921
 
     Property, plant, and equipment, net       20,140           28,322
     Intangible assets, net                     2,174            2,477
     Deferred taxes                             5,598            4,909
     Other long-term assets                     6,266            6,410
     Total                                   $243,054         $273,039
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
     Current liabilities
       Accounts payable                       $15,345          $21,341
       Accrued liabilities                     19,701           20,056
       Current portion of long-term debt          214              225
     Total current liabilities                 35,260           41,622
 
     Long-term debt, less current portion       1,375            1,527
     Other long-term liabilities                1,872            2,232
     Shareholders' equity                     204,547          227,658
     Total                                   $243,054         $273,039
 
     Some of the information presented in this announcement constitutes
 forward-looking statements made pursuant to the safe harbor provisions of the
 Private Securities Litigation Reform Act of 1995.  Forward-looking statements
 represent the Company's judgment regarding future events.  Although the
 Company believes it has a reasonable basis for these forward-looking
 statements, the Company cannot guarantee their accuracy and actual results may
 differ materially from those the Company anticipated due to a number of
 uncertainties, many of which the Company is not aware.  Factors which could
 cause actual results to differ from expectations include, among others,
 capital spending patterns of the communications industry, the demand for
 network integrity, the trend toward more fiber in the network, the Company's
 ability to develop new and enhanced products, the Company's ability to provide
 complete network solutions, continued industry consolidation, the development
 of competing technology, the global demand for the Company's products and
 services, and the Company's ability to achieve its strategic objectives.  For
 additional information concerning these and other important factors which may
 cause the Company's actual results to differ materially from expectations and
 underlying assumptions, please refer to the reports filed by the Company with
 the Securities and Exchange Commission.
 
 

SOURCE C-COR.net Corp.
    STATE COLLEGE, Pa., April 19 /PRNewswire/ --
 C-COR.net Corp. (Nasdaq: CCBL) today announced third quarter fiscal year 2001
 financial results, which are in line with the guidance issued in its March 30,
 2001, press release.  For the quarter ended March 30, 2001, C-COR.net posted
 revenues of $40.1 million and recorded a nonrecurring restructuring charge of
 $11.1 million.  Including the restructuring charge, the Company recorded a
 loss of $.36 per share.  Excluding the restructuring charge, the loss was $.15
 per share.  In the same quarter a year ago, revenues were $63.3 million, and
 earnings from continuing operations were $.13 per diluted share.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19990924/CCORLOGO )
     Bookings for the quarter were $37.5 million for a book-to-bill ratio of
 .94.  The Company made an adjustment, reducing backlog in the quarter by
 $20.6 million to reflect previously booked orders that will not be shippable
 in the foreseeable future based on various customer factors. As a result,
 backlog at the end of the quarter was $54.4 million.
     During the third quarter, C-COR.net has taken measures to align the
 Company's operations with current business requirements and economic
 conditions.  We have implemented aggressive cost-cutting initiatives and are
 carrying out a plan to consolidate manufacturing capabilities to match
 infrastructure costs with anticipated requirements.
     C-COR.net remains committed to providing network integrity to customers
 through its strategy of high quality product offerings and service solutions
 throughout the network life cycle.  We continue to invest for the future in
 ongoing R&D for core fiber optic products and for software development
 associated with our network management and automated workforce management
 systems service offerings to meet the long-term needs of broadband
 communication networks.
     Commenting on the current situation, C-COR.net Chairman and CEO David A.
 Woodle stated, "We will continue to address the shorter-term issues impacting
 profitability while preparing the organization to continue as a strong
 competitor when business levels improve.  We will make our decisions within
 the context of our strategic plan, and we will maintain our core commitment to
 quality and serving our customers."
 
     About C-COR.net
     C-COR.net provides technology and services through three operational
 groups in support of customers as they plan, design, build, maintain, and
 operate complex broadband communications networks around the world.
 C-COR.net's Telecommunications Equipment Group develops and is a supplier of
 high quality distribution electronics for two-way HFC (Hybrid Fiber Coax)
 networks, including a complete offering of headend/hub optical solutions and a
 wide variety of fiber optical nodes that facilitate evolving fiber-rich
 architectures to deliver analog video, digital video, high-speed data, and
 telephony applications over cable.
     C-COR.net's Broadband Management Services (BMS) Group and Worldbridge
 Technical Services Group, together, offer comprehensive customer service for
 the full HFC broadband network life cycle.  The BMS Group provides a network
 and operations management solution that is open and scalable, integrates
 legacy back-office systems to next-generation network management systems, and
 extends automation out to the field service technician.
     C-COR.net's Worldbridge Technical Services Group provides nationwide field
 service support in the areas of network engineering and design, outside plant
 technical support, network integration, end-user voice, video and data
 installation, and full system outsourcing capabilities.
     C-COR.net's common stock is listed on the Nasdaq National Market under the
 symbol CCBL.  The Company is also listed in the Russell 2000 Stock Index.
 C-COR.net's Web site is www.c-cor.net.
 
                       Consolidated Statements of Operations
                      (In thousands except per share amounts)
                                    (Unaudited)
                                              Thirteen Weeks Ended
                                                                    Increase
                                          March 30,     March 24,  (Decrease)
                                            2001          2000      percent
     Net sales                             $40,134       $63,339       (37%)
     Cost of sales                          38,486        46,670       (18%)
     Gross margin                            1,648        16,669
 
     Operating expenses:
       Selling and administrative            7,167         7,055        2%
       Research and product
        development                          4,463         4,323        3%
       Merger and restructuring costs       11,076         4,373
         Total operating expenses           22,706        15,751
 
     (Loss) income from operations         (21,058)          918
     Interest expense                          (36)          (14)
     Investment income                       1,820         1,884
     Other income, net                           8            73
 
     (Loss) income from continuing
      operations before income tax         (19,266)        2,861
     Income tax benefit                     (7,742)       (1,774)
     (Loss) income from continuing
      operations                           (11,524)        4,635
 
     Discontinued operations
       Gain on disposal of
        discontinued business
        segment, net of tax                      6           780
     Net (loss) income                    $(11,518)      $ 5,415
 
     Net (loss) income per share - (basic):
       Continuing operations                $(0.36)        $0.14
       Gain on disposal of
        discontinued operations               0.00          0.02
     Net (loss) income                      $(0.36)        $0.16
 
     Net (loss) income per share - (diluted):
       Continuing operations                $(0.36)        $0.13
       Gain on disposal of
        discontinued operations               0.00          0.02
     Net (loss) income                      $(0.36)        $0.15
 
     Weighted average common shares
      and common share equivalents
       Basic                                32,314        33,315
       Diluted                              32,314        37,065
 
 
                       Consolidated Statements of Operations
                      (In thousands except per share amounts)
                                    (Unaudited)
                                             Thirty-Nine Weeks Ended
                                                                     Increase
                                          March 30,     March 24,   (Decrease)
                                            2001          2000        percent
     Net sales                            $184,514      $203,181       (9%)
     Cost of sales                         143,941       149,900       (4%)
     Gross margin                           40,573        53,281
 
     Operating expenses:
       Selling and administrative           23,417        24,228       (3%)
       Research and product development     13,276        11,006       21%
       Merger and restructuring costs       11,726         8,046
         Total operating expenses           48,419        43,280
 
     (Loss) income from operations          (7,846)       10,001
     Interest expense                          (65)         (775)
     Investment income                       5,737         2,802
     Other expense, net                       (203)         (226)
 
     (Loss) income from continuing
      operations before income tax          (2,377)       11,802
     Income tax (benefit) expense             (951)        2,532
     (Loss) income from continuing
      operations                            (1,426)        9,270
 
     Discontinued operations
       Gain on disposal of discontinued
        business segment, net of tax             2           822
     Net (loss) income                     $(1,424)      $10,092
 
     Net (loss) income per share - (basic):
       Continuing operations                $(0.04)        $0.32
       Gain on disposal of discontinued
        operations                            0.00          0.03
     Net (loss) income                      $(0.04)        $0.35
 
     Net (loss) income per share - (diluted):
       Continuing operations                $(0.04)        $0.28
       Gain on disposal of discontinued
        operations                            0.00          0.03
     Net (loss) income                      $(0.04)        $0.31
 
     Weighted average common shares and
      common share equivalents
         Basic                              33,103        28,624
         Diluted                            33,103        32,824
 
 
                            Consolidated Balance Sheets
                             (In thousands of dollars)
 
                                             March 30,        June 30,
                                               2001             2000
                                            (Unaudited)
     ASSETS
     Current assets
       Cash and cash equivalents             $111,784          $95,379
       Marketable securities                    8,799           42,154
       Interest receivable                        411            1,007
       Accounts and notes receivables, net     31,755           49,325
       Inventories                             39,307           31,760
       Deferred taxes                           8,256            7,470
       Other                                    8,564            3,826
     Total current assets                     208,876          230,921
 
     Property, plant, and equipment, net       20,140           28,322
     Intangible assets, net                     2,174            2,477
     Deferred taxes                             5,598            4,909
     Other long-term assets                     6,266            6,410
     Total                                   $243,054         $273,039
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
     Current liabilities
       Accounts payable                       $15,345          $21,341
       Accrued liabilities                     19,701           20,056
       Current portion of long-term debt          214              225
     Total current liabilities                 35,260           41,622
 
     Long-term debt, less current portion       1,375            1,527
     Other long-term liabilities                1,872            2,232
     Shareholders' equity                     204,547          227,658
     Total                                   $243,054         $273,039
 
     Some of the information presented in this announcement constitutes
 forward-looking statements made pursuant to the safe harbor provisions of the
 Private Securities Litigation Reform Act of 1995.  Forward-looking statements
 represent the Company's judgment regarding future events.  Although the
 Company believes it has a reasonable basis for these forward-looking
 statements, the Company cannot guarantee their accuracy and actual results may
 differ materially from those the Company anticipated due to a number of
 uncertainties, many of which the Company is not aware.  Factors which could
 cause actual results to differ from expectations include, among others,
 capital spending patterns of the communications industry, the demand for
 network integrity, the trend toward more fiber in the network, the Company's
 ability to develop new and enhanced products, the Company's ability to provide
 complete network solutions, continued industry consolidation, the development
 of competing technology, the global demand for the Company's products and
 services, and the Company's ability to achieve its strategic objectives.  For
 additional information concerning these and other important factors which may
 cause the Company's actual results to differ materially from expectations and
 underlying assumptions, please refer to the reports filed by the Company with
 the Securities and Exchange Commission.
 
 SOURCE  C-COR.net Corp.