Com21 Modifies Distribution Agreement; Files Annual Report on 10-K

$194M in 2000 Revenue Recognized



Apr 02, 2001, 01:00 ET from Com21, Inc.

    MILPITAS, Calif., April 2 /PRNewswire/ -- Com21, Inc. (Nasdaq: CMTO), a
 leading global provider of system solutions for the broadband access market,
 announced today that it will amend its distribution agreement with Broadband
 Services, Inc. (BSI).  The agreement, announced in October 2000, established a
 strategic partnership with BSI to distribute Com21's line of broadband access
 equipment to second and third tier U.S. cable operators.
     "Com21 and BSI have had extensive communications over the last several
 weeks regarding the industry-wide inventory rebalancing that occurred in the
 fourth quarter of last year and early this year and its impact upon Com21
 products," stated Bill Gallagher, Com21's vice president of sales and
 marketing.  "These discussions with BSI, including a review of current pricing
 and distribution models, have culminated in the redeployment of some Com21
 products sold."
     Com21 President and CEO Craig Soderquist noted, "Com21 and BSI remain
 committed to exploring new and creative ways to market to cable operators that
 are mutually beneficial to themselves and their customers.  Both companies
 believe that strong growth opportunity exists in the broadband industry.  I
 strongly believe that Com21's management and strategic partners are up to the
 challenge of taking advantage of this opportunity, and am confident in Com21's
 ability to transform itself during this time of economic uncertainty."
     Based on the amendment, Com21 will record the impact of the return in its
 results for the fourth quarter of 2000.  In addition, the Financial Accounting
 Standards Board Emerging Issues Task Force provided clarification in late
 January on the accounting for certain stock transactions.  Such clarification
 allows the Company to reverse a charge taken in the fourth quarter.
     The composite of the return in the amount of $3.5 million and the
 elimination of the charge for stock compensation in the amount of $700,000 is
 reflected in the Company's annual report on Form 10-K, filed today with the
 SEC.  As a result, Com21 reported revenue for 2000 of $194 million and a net
 loss of $56.5 million ($2.42 per diluted share).
 
     About Com21, Inc.
     Com21, Inc. (www.com21.com) is a leading global supplier of system
 solutions for the broadband access market.  The Company's DOCSIS, DVB, and
 ATM-based products enable cable operators and service providers to deliver
 high-speed, cost-effective Internet and telephony applications to corporate
 telecommuters, small businesses, home offices, and residential users. To date,
 Com21 has shipped over 1.2 million cable modems worldwide, along with over
 1,400 headend controllers.  Com21 systems offer commercial service in cable
 systems passing 17 million households worldwide.
     Com21 is an ISO 9001 registered company with over 450 employees worldwide.
 The Company's corporate headquarters is located in Milpitas, California, USA,
 with its European headquarters in Delft, The Netherlands.  In addition, Com21
 maintains research and development facilities in Ireland, Israel, Maryland,
 and New York, as well as sales and support offices in the United States and
 Canada, Europe, Asia, and Latin America.
 
     Safe Harbor Act Clause
     This press release contains forward-looking information within the meaning
 of Section 27A of the Securities Act of 1933 and Section21E of the Securities
 Exchange Act of 1934, and is subject to the safe harbors created by those
 sections.
     This press release contains forward-looking statements related to the
 growth opportunity existing in the cable broadband industry.  Actual results
 may differ materially due to a number of factors, including competitive
 offerings, Com21's ability to meet price requirements of its customers, and
 general economic conditions affecting subscriber demand for broadband access.
 The matters discussed in this press release may also involve risks and
 uncertainties concerning Com21's products and services described in Com21's
 filings with the Securities and Exchange Commission (SEC).  In particular, see
 the risk factors described in the Company's most recent Form 10-K and Form
 10-Q.  Com21 assumes no obligation to update the forward-looking information
 contained in this press release.
     NOTE:  Com21(R) is a registered trademark of Com21, Inc., Milpitas,
 California, U.S.A.  All other trademarks are the property of their respective
 owners.
 
 

SOURCE Com21, Inc.
    MILPITAS, Calif., April 2 /PRNewswire/ -- Com21, Inc. (Nasdaq: CMTO), a
 leading global provider of system solutions for the broadband access market,
 announced today that it will amend its distribution agreement with Broadband
 Services, Inc. (BSI).  The agreement, announced in October 2000, established a
 strategic partnership with BSI to distribute Com21's line of broadband access
 equipment to second and third tier U.S. cable operators.
     "Com21 and BSI have had extensive communications over the last several
 weeks regarding the industry-wide inventory rebalancing that occurred in the
 fourth quarter of last year and early this year and its impact upon Com21
 products," stated Bill Gallagher, Com21's vice president of sales and
 marketing.  "These discussions with BSI, including a review of current pricing
 and distribution models, have culminated in the redeployment of some Com21
 products sold."
     Com21 President and CEO Craig Soderquist noted, "Com21 and BSI remain
 committed to exploring new and creative ways to market to cable operators that
 are mutually beneficial to themselves and their customers.  Both companies
 believe that strong growth opportunity exists in the broadband industry.  I
 strongly believe that Com21's management and strategic partners are up to the
 challenge of taking advantage of this opportunity, and am confident in Com21's
 ability to transform itself during this time of economic uncertainty."
     Based on the amendment, Com21 will record the impact of the return in its
 results for the fourth quarter of 2000.  In addition, the Financial Accounting
 Standards Board Emerging Issues Task Force provided clarification in late
 January on the accounting for certain stock transactions.  Such clarification
 allows the Company to reverse a charge taken in the fourth quarter.
     The composite of the return in the amount of $3.5 million and the
 elimination of the charge for stock compensation in the amount of $700,000 is
 reflected in the Company's annual report on Form 10-K, filed today with the
 SEC.  As a result, Com21 reported revenue for 2000 of $194 million and a net
 loss of $56.5 million ($2.42 per diluted share).
 
     About Com21, Inc.
     Com21, Inc. (www.com21.com) is a leading global supplier of system
 solutions for the broadband access market.  The Company's DOCSIS, DVB, and
 ATM-based products enable cable operators and service providers to deliver
 high-speed, cost-effective Internet and telephony applications to corporate
 telecommuters, small businesses, home offices, and residential users. To date,
 Com21 has shipped over 1.2 million cable modems worldwide, along with over
 1,400 headend controllers.  Com21 systems offer commercial service in cable
 systems passing 17 million households worldwide.
     Com21 is an ISO 9001 registered company with over 450 employees worldwide.
 The Company's corporate headquarters is located in Milpitas, California, USA,
 with its European headquarters in Delft, The Netherlands.  In addition, Com21
 maintains research and development facilities in Ireland, Israel, Maryland,
 and New York, as well as sales and support offices in the United States and
 Canada, Europe, Asia, and Latin America.
 
     Safe Harbor Act Clause
     This press release contains forward-looking information within the meaning
 of Section 27A of the Securities Act of 1933 and Section21E of the Securities
 Exchange Act of 1934, and is subject to the safe harbors created by those
 sections.
     This press release contains forward-looking statements related to the
 growth opportunity existing in the cable broadband industry.  Actual results
 may differ materially due to a number of factors, including competitive
 offerings, Com21's ability to meet price requirements of its customers, and
 general economic conditions affecting subscriber demand for broadband access.
 The matters discussed in this press release may also involve risks and
 uncertainties concerning Com21's products and services described in Com21's
 filings with the Securities and Exchange Commission (SEC).  In particular, see
 the risk factors described in the Company's most recent Form 10-K and Form
 10-Q.  Com21 assumes no obligation to update the forward-looking information
 contained in this press release.
     NOTE:  Com21(R) is a registered trademark of Com21, Inc., Milpitas,
 California, U.S.A.  All other trademarks are the property of their respective
 owners.
 
 SOURCE  Com21, Inc.