Datum Reports Record First Quarter Results

Revenues Increased 11% Over Prior Year to Highest Ever First Quarter Results



Apr 26, 2001, 01:00 ET from Datum Inc.

    IRVINE, Calif., April 26 /PRNewswire/ -- Datum Inc. (Nasdaq:   DATM), a
 leading designer and global supplier of synchronization, timing and frequency
 solutions, today announced results for the first quarter ended March 31, 2001.
 Net revenue for the first quarter increased to a record of $32.3 million from
 $28.9 million in the prior-year period.  Net income was also the highest ever
 for a first quarter period at $1.8 million or $0.28 per diluted share,
 compared to net income of $328,000, or $0.05 per diluted share, in the first
 quarter of 2000.
     "We delivered a very solid quarter, given the current market dynamics.
 Even though our revenues were slightly below the guidance range, we benefited
 from good expense control and favorable product mix to realize the
 $0.28 earnings per share," said Erik van der Kaay, Chairman and
 Chief Executive Officer of Datum.  "Despite the slowdown in telecommunications
 carriers' capital spending, our results demonstrate the continuing critical
 need for synchronization in telecommunications networks.  The quarter was also
 marked by several important achievements.  First, in support of our objective
 to strengthen our global distribution, our partnership with Wandel Global
 Services, as distribution partner for Latin America was an important
 milestone.  Their familiarity with the telecommunications industry and
 synchronization products, coupled with extensive knowledge of the broad
 customer base in Latin America should allow us to increase penetration into
 that dynamic region.
     "We have also continued to make appropriate investments in our future and
 have received important validation for our next generation products.  Our
 recently announced X72 rubidium oscillator patent awards will help solidify
 our technology edge, both improving our competitive position in wireless
 applications and opening new markets for applications where low-cost and
 high-performance characteristics are desirable to the end user.  The
 successful demonstration of our TimePieces technology at Nortel strongly
 validates the potential for that new market opportunity.  Nortel is expected
 to be our first major production customer starting later this year,
 integrating TimePieces into some of their existing and new central office
 multi-service platforms.  And finally, we announced our first major commercial
 TrustedTime relationship, with AuthentiDate, a trusted content authority.  The
 inclusion of Datum's auditable time stamp token in AuthentiDate's solution,
 will offer the highest level of authenticity to the content verification of
 any digitized document or electronic transaction.
     "We believe that the products resulting from these investments, together
 with our commitment to improving financial performance, will position Datum
 for superior long term growth in sales and earnings," Mr. van der Kaay
 concluded.
     Datum will host a conference call to discuss first quarter results and
 their outlook for the balance of this fiscal year today at 2:00 p.m. Pacific
 Time/5:00 p.m. Eastern Time.  The call can be accessed via the Internet at
 www.datum.com.
 
     About Datum
     Datum designs, manufactures and markets a wide variety of high-performance
 time and frequency products used to synchronize the flow of information in
 telecommunications networks.  The Company is also a leading supplier of
 precise timing products for computing networks, satellite systems, electronic
 commerce, and test and measurement applications.  Additional information about
 Datum is available at www.datum.com.
     This press release contains forward-looking statements.  The
 forward-looking statements, which reflect management's best judgment based on
 factors currently known, involve a number of risks and uncertainties,
 including the following:  customer concentration, competition, availability of
 supplies and components, fluctuations in demand for wireless and wireline
 communication services and products, and acceptance of the Company's products
 and technology.  These factors and other risks inherent in the Company's
 business are described from time to time in the Company's SEC filings,
 including its Annual Report on Form 10-K for the year ended December 31, 2000.
 Actual results may vary materially.  The Company undertakes no obligation to
 revise the forward-looking statements contained herein to reflect events or
 circumstances after the date hereof or to reflect the occurrence of
 unanticipated events.
 
                                   DATUM INC.
                              FINANCIAL HIGHLIGHTS
                      (In thousands except per share data)
                                  (Unaudited)
 
                                                        Three Months Ended
                                                              March 31,
                                                        2001           2000
 
     Net sales                                        $32,252        $28,944
 
     Costs and expenses
      Cost of goods sold                               17,461         16,722
      Selling                                           4,058          4,143
      Product development                               3,791          3,748
      General and administrative                        3,987          3,398
 
      Operating income                                  2,955            933
 
      Interest expense                                    119            441
      Interest income                                    (36)           (74)
 
     Income before income taxes                         2,872            566
     Income tax provision                               1,119            238
 
     Net income                                        $1,753           $328
 
     Net income per share:
      Basic                                             $0.29          $0.06
      Diluted                                           $0.28          $0.05
 
     EBITDA                                            $4,403         $2,445
 
     EBITDA per share - Basic                           $0.72          $0.42
     EBITDA per share - Diluted                         $0.69          $0.39
 
     Shares used in per share calculation:
      Basic                                             6,084          5,874
      Diluted                                           6,364          6,192
 
 
                                   DATUM INC.
                           CONSOLIDATED BALANCE SHEET
                                 (In thousands)
                                  (Unaudited)
 
                                                      March 31,      Dec. 31,
     A S S E T S                                        2001           2000
     Current assets
       Cash and cash equivalents                       $1,590         $1,017
       Accounts receivable                             30,948         34,988
       Inventories                                     28,110         26,400
       Prepaid expense                                    683            375
       Deferred income taxes                            4,613          4,613
       Income tax refund receivable                       160            161
         Total current assets                          66,104         67,554
 
     Land, buildings and equipment, net                15,347         14,732
     Excess purchase price over net
     assets acquired, net                              12,064         12,595
     Other assets                                         355            395
                                                      $93,870        $95,276
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Current liabilities
       Accounts payable                                $9,346         $8,777
       Accrued expenses                                 7,170          7,728
       Income taxes payable                               742          1,705
       Advances on line of credit                          82          2,020
       Current portion of long-term debt                3,000          3,000
         Total current liabilities                     20,340         23,230
 
     Long-term debt                                     1,000          1,750
     Postretirement benefits                            1,262          1,188
     Other long-term liabilities                          512            584
     Deferred income taxes                                985            985
 
     Stockholders' equity
       Common stock                                     1,526          1,517
       Additional paid-in capital                      52,021         51,441
       Retained earnings                               17,269         15,516
       Unamortized stock compensation                   (112)          (127)
       Accumulated other comprehensive income           (933)          (808)
         Total stockholders' equity                    69,771         67,539
                                                      $93,870        $95,276
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X18331487
 
 

SOURCE Datum Inc.
    IRVINE, Calif., April 26 /PRNewswire/ -- Datum Inc. (Nasdaq:   DATM), a
 leading designer and global supplier of synchronization, timing and frequency
 solutions, today announced results for the first quarter ended March 31, 2001.
 Net revenue for the first quarter increased to a record of $32.3 million from
 $28.9 million in the prior-year period.  Net income was also the highest ever
 for a first quarter period at $1.8 million or $0.28 per diluted share,
 compared to net income of $328,000, or $0.05 per diluted share, in the first
 quarter of 2000.
     "We delivered a very solid quarter, given the current market dynamics.
 Even though our revenues were slightly below the guidance range, we benefited
 from good expense control and favorable product mix to realize the
 $0.28 earnings per share," said Erik van der Kaay, Chairman and
 Chief Executive Officer of Datum.  "Despite the slowdown in telecommunications
 carriers' capital spending, our results demonstrate the continuing critical
 need for synchronization in telecommunications networks.  The quarter was also
 marked by several important achievements.  First, in support of our objective
 to strengthen our global distribution, our partnership with Wandel Global
 Services, as distribution partner for Latin America was an important
 milestone.  Their familiarity with the telecommunications industry and
 synchronization products, coupled with extensive knowledge of the broad
 customer base in Latin America should allow us to increase penetration into
 that dynamic region.
     "We have also continued to make appropriate investments in our future and
 have received important validation for our next generation products.  Our
 recently announced X72 rubidium oscillator patent awards will help solidify
 our technology edge, both improving our competitive position in wireless
 applications and opening new markets for applications where low-cost and
 high-performance characteristics are desirable to the end user.  The
 successful demonstration of our TimePieces technology at Nortel strongly
 validates the potential for that new market opportunity.  Nortel is expected
 to be our first major production customer starting later this year,
 integrating TimePieces into some of their existing and new central office
 multi-service platforms.  And finally, we announced our first major commercial
 TrustedTime relationship, with AuthentiDate, a trusted content authority.  The
 inclusion of Datum's auditable time stamp token in AuthentiDate's solution,
 will offer the highest level of authenticity to the content verification of
 any digitized document or electronic transaction.
     "We believe that the products resulting from these investments, together
 with our commitment to improving financial performance, will position Datum
 for superior long term growth in sales and earnings," Mr. van der Kaay
 concluded.
     Datum will host a conference call to discuss first quarter results and
 their outlook for the balance of this fiscal year today at 2:00 p.m. Pacific
 Time/5:00 p.m. Eastern Time.  The call can be accessed via the Internet at
 www.datum.com.
 
     About Datum
     Datum designs, manufactures and markets a wide variety of high-performance
 time and frequency products used to synchronize the flow of information in
 telecommunications networks.  The Company is also a leading supplier of
 precise timing products for computing networks, satellite systems, electronic
 commerce, and test and measurement applications.  Additional information about
 Datum is available at www.datum.com.
     This press release contains forward-looking statements.  The
 forward-looking statements, which reflect management's best judgment based on
 factors currently known, involve a number of risks and uncertainties,
 including the following:  customer concentration, competition, availability of
 supplies and components, fluctuations in demand for wireless and wireline
 communication services and products, and acceptance of the Company's products
 and technology.  These factors and other risks inherent in the Company's
 business are described from time to time in the Company's SEC filings,
 including its Annual Report on Form 10-K for the year ended December 31, 2000.
 Actual results may vary materially.  The Company undertakes no obligation to
 revise the forward-looking statements contained herein to reflect events or
 circumstances after the date hereof or to reflect the occurrence of
 unanticipated events.
 
                                   DATUM INC.
                              FINANCIAL HIGHLIGHTS
                      (In thousands except per share data)
                                  (Unaudited)
 
                                                        Three Months Ended
                                                              March 31,
                                                        2001           2000
 
     Net sales                                        $32,252        $28,944
 
     Costs and expenses
      Cost of goods sold                               17,461         16,722
      Selling                                           4,058          4,143
      Product development                               3,791          3,748
      General and administrative                        3,987          3,398
 
      Operating income                                  2,955            933
 
      Interest expense                                    119            441
      Interest income                                    (36)           (74)
 
     Income before income taxes                         2,872            566
     Income tax provision                               1,119            238
 
     Net income                                        $1,753           $328
 
     Net income per share:
      Basic                                             $0.29          $0.06
      Diluted                                           $0.28          $0.05
 
     EBITDA                                            $4,403         $2,445
 
     EBITDA per share - Basic                           $0.72          $0.42
     EBITDA per share - Diluted                         $0.69          $0.39
 
     Shares used in per share calculation:
      Basic                                             6,084          5,874
      Diluted                                           6,364          6,192
 
 
                                   DATUM INC.
                           CONSOLIDATED BALANCE SHEET
                                 (In thousands)
                                  (Unaudited)
 
                                                      March 31,      Dec. 31,
     A S S E T S                                        2001           2000
     Current assets
       Cash and cash equivalents                       $1,590         $1,017
       Accounts receivable                             30,948         34,988
       Inventories                                     28,110         26,400
       Prepaid expense                                    683            375
       Deferred income taxes                            4,613          4,613
       Income tax refund receivable                       160            161
         Total current assets                          66,104         67,554
 
     Land, buildings and equipment, net                15,347         14,732
     Excess purchase price over net
     assets acquired, net                              12,064         12,595
     Other assets                                         355            395
                                                      $93,870        $95,276
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Current liabilities
       Accounts payable                                $9,346         $8,777
       Accrued expenses                                 7,170          7,728
       Income taxes payable                               742          1,705
       Advances on line of credit                          82          2,020
       Current portion of long-term debt                3,000          3,000
         Total current liabilities                     20,340         23,230
 
     Long-term debt                                     1,000          1,750
     Postretirement benefits                            1,262          1,188
     Other long-term liabilities                          512            584
     Deferred income taxes                                985            985
 
     Stockholders' equity
       Common stock                                     1,526          1,517
       Additional paid-in capital                      52,021         51,441
       Retained earnings                               17,269         15,516
       Unamortized stock compensation                   (112)          (127)
       Accumulated other comprehensive income           (933)          (808)
         Total stockholders' equity                    69,771         67,539
                                                      $93,870        $95,276
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X18331487
 
 SOURCE  Datum Inc.