Glenayre Technologies Reports 1st Quarter 2001 Results

Apr 24, 2001, 01:00 ET from Glenayre Technologies, Inc.

    CHARLOTTE, N.C., April 24 /PRNewswire Interactive News Release/ --
     Glenayre Technologies Inc. (Nasdaq:   GEMS) today reported results for the
 first quarter ended March 31, 2001.
     Net sales for the quarter totaled $45.9 million, a 22 percent decrease
 compared with $58.7 million for the same quarter last year.  Enhanced Services
 Platform/Unified Communications Systems (ESP/UCS) product revenue was down
 slightly to $26.9 million compared with $28.2 million in the first quarter
 2000.  Wireless Messaging product revenue decreased 38 percent to $19.0
 million compared with $30.5 million in the first quarter 2000. The decline in
 wireless messaging sales, as anticipated, reflected continued decline in the
 paging infrastructure market driven by carrier consolidation, carrier
 financial condition and one-way subscriber loss by carriers.
     The company incurred a loss for the first quarter 2001 of ($5.7) million,
 or ($0.09) per share, compared with earnings of $1.1 million, or $0.02 per
 share, for the first quarter 2000.  The operating loss for the quarter was
 ($19.6) million compared with operating income of $0.8 million for the same
 quarter last year.  Earnings Before Interest, Taxes, Depreciation and
 Amortization (EBITDA) was a negative ($5.1) million, which includes $9.9
 million of realized one-time  gains, for the first quarter 2001 compared with
 a positive $5.8 million for the same quarter last year. Excluding net realized
 one-time gains on available-for-sale securities EBITDA for the first quarter
 would have been a negative ($15.0) million.  Results for the quarter are in
 line with previously announced company guidance and expectations.
     "Although network operators are being more cautious with their first half
 capital spending commitments, we've maintained our ESP/UCS market position.
 In a period of slowing economic conditions, we reported financial results in
 line with the guidance provided in March 2001," stated Bert Klein, Senior Vice
 President and Chief Financial Officer.  "We remain confident in our growth
 opportunities and our ability to self fund our growth strategy.  We continue
 to maintain a strong balance sheet with over $81 million in cash and no debt."
 During the quarter the company announced several strategic partnerships and
 alliances with application and solutions developers to create platforms that
 support interoperability between each developer's platform and the
 @ctiveLink(TM) wireless messaging module.  Other key developments for the
 quarter included:
 
     * @ctiveMessaging(TM) Large Scale platform was introduced. This platform
       supports up to 5 million subscribers and 6,000 ports while offering
       independent scaling and the widest range of deployable user applications
       and platform from new services.  With @ctiveMessaging Large Solution
       platform carriers can combine the advantages of a modular, distributed
       architecture with the efficiencies of centralized database,
       administration and new services deployment.
 
     * @ctiveVision(TM) Unified Messaging platform with Voice Activated
       Services was launched.  This platform, built on Glenayre's OpenUMS
       framework, allows users to access a robust suite of messaging resources
       through industry standard interfaces such as WAP, USSD, HTML and Voice
       Clients.   Users can access their messages from multiple devices through
       a single unified mailbox.  Voice activated service technology enables
       subscribers to use natural language commands to send and retrieve
       messages.
 
     * Glenayre launched its new Unified Messaging System 2.0 and X.9 core
       software which introduces a number of new voice mail call management
       features.  These features allow users to manage voice, e-mail, fax and
       alphanumeric messages through a single unified mailbox.
 
     * @ctiveTalk(TM) text-to-speech application for @ctiveLink users was
       launched.  This application enables users to stay even more connected by
       sending a "text-to-speech" message to any phone in the U.S. from their
       Handspring(TM) Visor(TM) handheld computer, coupled with the @ctiveLink.
 
     * Arch Wireless, Inc., a leading wireless Internet messaging and mobile
       information company, launched the Arch Webster(TM)300.    The Arch
       Webster 300 combines the ability to send and receive messages wirelessly
       with a full-featured handheld computer through the @ctiveLink module.
 
       Glenayre and Arch Wireless, Inc, also announced a strategic alliance
       valued at $25.9 million that includes ReFlex version 2.7 enhancements to
       Arch's Wireless Advanced Messaging Network.  The planned upgrade to
       Arch's network will expand network capacity tenfold and reduce latency
       to less than 20 seconds.  The planned upgrade will also permit Arch to
       provide such enhanced service offerings as instant messaging and chat
       applications.
 
     * Glenayre announced an agreement with China Unicom, the largest worldwide
       paging operator, to conduct a ReFlex technical trial over China's
       nationwide Flex Paging Network in Qingdao, Chengdu and Nanjing, China
 
     * Epic/Diginet announced 1Num using Glenayre's Unified Messaging Services.
       1Num features the first Putonghua-version text-to-speech feature,
       developed using Glenayre's OpenUMS API for developers.
 
     * Industry expert joined Board.  Glenayre announced that Matthew J. Desch,
       Chairman of the Board of Airspan Networks, a global supplier of fixed
       and wireless DSL systems and solutions based on Code Division Multiple
       Access technology, was elected to the company's Board of Directors.
 
     "As anticipated, wireless messaging revenue decreased significantly.
 Although the demand for two-way ReFlex subscribers continues to increase, this
 increase has not yet been adequate to offset the decline in carriers' revenue
 resulting from one-way subscriber loss," stated Eric Doggett, President and
 Chief Executive Officer.  "Although in the long run we believe the ReFlex
 carrier consolidation and restructuring will be good for the overall wireless
 messaging industry, in the short term it represents a significant challenge
 for both carriers and suppliers.  Additionally, the deferral of capital
 spending by the majority of North American carriers across network
 technologies and the weakening general economic climate are having a
 significant impact on the telecommunications industry.  However, we continue
 to hold our ESP/UCS market position that accounted for approximately 60
 percent of our revenue this quarter.  We will continue to capitalize on our
 core competencies and focus on our vision to lead the convergence of unified
 messaging, wireless and the Internet to emerge from these challenging times as
 a much stronger company."
     Doggett continued, "During the March conference call we reported that the
 we are reviewing the company's operations and operating structure and would be
 announcing a plan to streamline and enhance the overall business model.  We
 are currently evaluating various strategies.  As previously announced, we
 expect to provide details of our plan over the next 60 days.  We remain
 confident that Glenayre has the resources to manage and execute through this
 challenging environment."
     Glenayre's current outlook is that second quarter 2001 revenue will be
 flat to first quarter and management will provide additional guidance when the
 restructuring plan is announced during the second quarter 2001.
     A teleconference regarding Glenayre's first quarter earnings will be held
 Wednesday, April 25, 2001, at 8:30 a.m. Eastern Time.  To listen to the call,
 please dial 913-981-5510.  The conference call also will be accessible at the
 Investor Relations page at www.glenayre.com.  Audio replay of the call will be
 available for one week from April 25, 2001, by calling 719-457-0820 and
 entering access code #517688.
 
     About Glenayre:
     For more than 35 years, Glenayre has developed and provided leading-edge
 personal communication systems for the global market.  We are focused on
 delivering our Solutions for an @ctive World(TM) portfolio, leveraging core
 competencies in the converging sectors of the wireless Internet and unified
 messaging.  Our wireless messaging products and systems include one- and two-
 way wireless messaging infrastructure equipment; award-winning Always
 @ctive(TM) two-way messaging devices; an array of Enhanced Services
 Platform/Unified Messaging products featuring voice mail, fax messaging,
 voice-activated services, personal one-number services; and debit/prepaid
 calling card platforms.  Glenayre, headquartered in Charlotte, North Carolina,
 has 1,300 employees located in 14 countries with 2000 net sales exceeding $252
 million.
     For more information on Glenayre, its products, and services, visit
 www.glenayre.com.
     Glenayre, the Glenayre logo, Solutions for an @ctive World, the Solutions
 for an @ctive World logo, Always @ctive, AccessLink and @ctiveLink are
 trademarks of Glenayre Electronics, Inc.
 
     ReFLEX is a trademark of Motorola, Inc.
 
     This news release contains statements that may be forward looking within
 the meaning of applicable securities laws.  The statements may include
 projections regarding future revenues and earnings results, and are based upon
 the company's current forecasts, expectations and assumptions, which are
 subject to a number of risks and uncertainties that could cause the actual
 outcomes and results to differ materially.  These results and uncertainties
 are discussed in the company's most recently filed Form 10-K.  These factors
 may include: dependence on new product development; availability of
 manufacturing components and materials; control of costs and expenses;
 potential product mix changes which affect the company's overall profit
 margin; decline in the wireless messaging infrastructure market; effective
 convergence of technologies; potential market changes resulting from rapid
 technological advances; growth of two-way interactive wireless messaging
 market; competition; variability of quarterly results; volatility of the
 company's stock price; limits on protection of proprietary technologies;
 potential changes in government regulation; financing customer purchases for
 development of the two-way communications market; international business
 risks; and the continuation and expansion of strategic alliances and
 partnerships.
 
                           Glenayre Technologies Inc.
                Condensed Consolidated Statements of Operations
                    (in thousands, except per share amounts)
                                  (unaudited)
 
                                                        Three Months Ended
                                                             March 31,
 
 
                                                         2001           2000
 
     NET SALES                                         $45,925        $58,656
 
     COSTS AND EXPENSES:
      Cost of Sales                                     25,757         27,516
 
      Selling, general & administrative                 20,774         16,927
 
      Provision for doubtful receivables                 2,833            169
 
      Research & development                            11,592          8,779
 
      Depreciation & amortization                        4,685          5,038
 
      Adjustment to loss on sale of business               (94)          (524)
 
      Total costs and expenses                          65,547         57,905
 
      INCOME (LOSS) FROM OPERATIONS                    (19,622)           751
 
 
     OTHER INCOME (EXPENSES):
      Interest Income                                    1,507          1,293
 
       Interest Expense                                    (65)           (14)
 
      Realized gain on available-for-sale
       securities, net                                   9,871             --
 
      Other, net                                           (30)             5
 
      Total Other Income (Expenses), net                11,283          1,284
 
     INCOME (LOSS) BEFORE INCOME TAXES                  (8,339)         2,035
 
     PROVISION (BENEFIT) FOR INCOME TAXES               (2,685)           910
 
     NET INCOME (LOSS)                                 ($5,654)        $1,125
 
 
     INCOME (LOSS) PER WEIGHTED
      AVERAGE COMMON SHARE:                             ($0.09)         $0.02
 
     INCOME (LOSS) PER COMMON SHARE -
     ASSUMING DILUTION:                                 ($0.09)         $0.02
     Number of shares used to compute
     per share data                                     64,578         66,990
 
 
                           Glenayre Technologies Inc.
                     Condensed Consolidated Balance Sheets
                             (dollars in thousands)
 
                                                     March 31,     December 31,
                                                        2001            2000
                                                    (Unaudited)
     ASSETS
     Current Assets:
      Cash and cash equivalents                        $68,389        $71,866
 
      Restricted cash                                   13,153         16,893
 
      Accounts receivable, net                          83,881         94,977
 
      Notes receivable                                   4,914          4,434
 
      Inventories                                       38,942         40,104
 
      Deferred income taxes                             21,669         19,140
 
      Prepaid expenses and other current assets          5,056          6,177
 
       Total current assets                            236,004        253,591
 
     Notes receivable, net                               5,736          7,224
 
     Property, plant and equipment, net                 93,598         89,055
 
     Goodwill, net                                      44,635         45,311
 
     Deferred income taxes                              36,941         34,917
 
     Other assets                                        9,811         15,988
 
     TOTAL ASSETS                                     $426,725       $446,086
 
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Current Liabilities:
      Accounts payable                                 $16,824        $25,150
 
      Accrued liabilities                               40,236         43,299
 
      Other current liabilities                             65             66
       Total current liabilities                        57,125         68,515
 
     Other liabilities                                   6,557          6,644
 
     Stockholders' Equity:
     Preferred stock, $.01 par value; 5,000,000 shares
     authorized, no shares issued and outstanding          --              --
 
     Common stock, $.02 par value; authorized:
      200,000,000 shares; outstanding: March 31,
       2001- 64,649,031 shares;
        December 31,2000 - 64,446,012 shares            1,292           1,288
 
     Contributed capital                              360,049         359,181
 
     Retained earnings (deficit)                       (2,419)          3,235
 
     Accumulated other comprehensive income             4,121           7,223
     Total stockholders' equity                       363,043         370,927
 
     TOTAL LIABILITIES AND STOCKHOLDERS'
      EQUITY                                         $426,725        $446,086
 
 
                               NET SALES BREAKOUT
                                 (In Thousands)
                                  (Unaudited)
 
                                                       Three Months Ended
                                                             March 31,
     By Product Segment:                                2001           2000
 
     Wireless messaging
     U.S.                                             $14,410        $16,444
 
     International                                      4,588         14,047
 
     Subtotal                                          18,998         30,491
 
 
     Enhanced Services platform
     U.S.                                              22,670         19,059
 
     International                                      4,257          9,106
 
     Subtotal                                          26,927         28,165
 
 
     Totals                                           $45,925        $58,656
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X75649559
 
 

SOURCE Glenayre Technologies, Inc.
    CHARLOTTE, N.C., April 24 /PRNewswire Interactive News Release/ --
     Glenayre Technologies Inc. (Nasdaq:   GEMS) today reported results for the
 first quarter ended March 31, 2001.
     Net sales for the quarter totaled $45.9 million, a 22 percent decrease
 compared with $58.7 million for the same quarter last year.  Enhanced Services
 Platform/Unified Communications Systems (ESP/UCS) product revenue was down
 slightly to $26.9 million compared with $28.2 million in the first quarter
 2000.  Wireless Messaging product revenue decreased 38 percent to $19.0
 million compared with $30.5 million in the first quarter 2000. The decline in
 wireless messaging sales, as anticipated, reflected continued decline in the
 paging infrastructure market driven by carrier consolidation, carrier
 financial condition and one-way subscriber loss by carriers.
     The company incurred a loss for the first quarter 2001 of ($5.7) million,
 or ($0.09) per share, compared with earnings of $1.1 million, or $0.02 per
 share, for the first quarter 2000.  The operating loss for the quarter was
 ($19.6) million compared with operating income of $0.8 million for the same
 quarter last year.  Earnings Before Interest, Taxes, Depreciation and
 Amortization (EBITDA) was a negative ($5.1) million, which includes $9.9
 million of realized one-time  gains, for the first quarter 2001 compared with
 a positive $5.8 million for the same quarter last year. Excluding net realized
 one-time gains on available-for-sale securities EBITDA for the first quarter
 would have been a negative ($15.0) million.  Results for the quarter are in
 line with previously announced company guidance and expectations.
     "Although network operators are being more cautious with their first half
 capital spending commitments, we've maintained our ESP/UCS market position.
 In a period of slowing economic conditions, we reported financial results in
 line with the guidance provided in March 2001," stated Bert Klein, Senior Vice
 President and Chief Financial Officer.  "We remain confident in our growth
 opportunities and our ability to self fund our growth strategy.  We continue
 to maintain a strong balance sheet with over $81 million in cash and no debt."
 During the quarter the company announced several strategic partnerships and
 alliances with application and solutions developers to create platforms that
 support interoperability between each developer's platform and the
 @ctiveLink(TM) wireless messaging module.  Other key developments for the
 quarter included:
 
     * @ctiveMessaging(TM) Large Scale platform was introduced. This platform
       supports up to 5 million subscribers and 6,000 ports while offering
       independent scaling and the widest range of deployable user applications
       and platform from new services.  With @ctiveMessaging Large Solution
       platform carriers can combine the advantages of a modular, distributed
       architecture with the efficiencies of centralized database,
       administration and new services deployment.
 
     * @ctiveVision(TM) Unified Messaging platform with Voice Activated
       Services was launched.  This platform, built on Glenayre's OpenUMS
       framework, allows users to access a robust suite of messaging resources
       through industry standard interfaces such as WAP, USSD, HTML and Voice
       Clients.   Users can access their messages from multiple devices through
       a single unified mailbox.  Voice activated service technology enables
       subscribers to use natural language commands to send and retrieve
       messages.
 
     * Glenayre launched its new Unified Messaging System 2.0 and X.9 core
       software which introduces a number of new voice mail call management
       features.  These features allow users to manage voice, e-mail, fax and
       alphanumeric messages through a single unified mailbox.
 
     * @ctiveTalk(TM) text-to-speech application for @ctiveLink users was
       launched.  This application enables users to stay even more connected by
       sending a "text-to-speech" message to any phone in the U.S. from their
       Handspring(TM) Visor(TM) handheld computer, coupled with the @ctiveLink.
 
     * Arch Wireless, Inc., a leading wireless Internet messaging and mobile
       information company, launched the Arch Webster(TM)300.    The Arch
       Webster 300 combines the ability to send and receive messages wirelessly
       with a full-featured handheld computer through the @ctiveLink module.
 
       Glenayre and Arch Wireless, Inc, also announced a strategic alliance
       valued at $25.9 million that includes ReFlex version 2.7 enhancements to
       Arch's Wireless Advanced Messaging Network.  The planned upgrade to
       Arch's network will expand network capacity tenfold and reduce latency
       to less than 20 seconds.  The planned upgrade will also permit Arch to
       provide such enhanced service offerings as instant messaging and chat
       applications.
 
     * Glenayre announced an agreement with China Unicom, the largest worldwide
       paging operator, to conduct a ReFlex technical trial over China's
       nationwide Flex Paging Network in Qingdao, Chengdu and Nanjing, China
 
     * Epic/Diginet announced 1Num using Glenayre's Unified Messaging Services.
       1Num features the first Putonghua-version text-to-speech feature,
       developed using Glenayre's OpenUMS API for developers.
 
     * Industry expert joined Board.  Glenayre announced that Matthew J. Desch,
       Chairman of the Board of Airspan Networks, a global supplier of fixed
       and wireless DSL systems and solutions based on Code Division Multiple
       Access technology, was elected to the company's Board of Directors.
 
     "As anticipated, wireless messaging revenue decreased significantly.
 Although the demand for two-way ReFlex subscribers continues to increase, this
 increase has not yet been adequate to offset the decline in carriers' revenue
 resulting from one-way subscriber loss," stated Eric Doggett, President and
 Chief Executive Officer.  "Although in the long run we believe the ReFlex
 carrier consolidation and restructuring will be good for the overall wireless
 messaging industry, in the short term it represents a significant challenge
 for both carriers and suppliers.  Additionally, the deferral of capital
 spending by the majority of North American carriers across network
 technologies and the weakening general economic climate are having a
 significant impact on the telecommunications industry.  However, we continue
 to hold our ESP/UCS market position that accounted for approximately 60
 percent of our revenue this quarter.  We will continue to capitalize on our
 core competencies and focus on our vision to lead the convergence of unified
 messaging, wireless and the Internet to emerge from these challenging times as
 a much stronger company."
     Doggett continued, "During the March conference call we reported that the
 we are reviewing the company's operations and operating structure and would be
 announcing a plan to streamline and enhance the overall business model.  We
 are currently evaluating various strategies.  As previously announced, we
 expect to provide details of our plan over the next 60 days.  We remain
 confident that Glenayre has the resources to manage and execute through this
 challenging environment."
     Glenayre's current outlook is that second quarter 2001 revenue will be
 flat to first quarter and management will provide additional guidance when the
 restructuring plan is announced during the second quarter 2001.
     A teleconference regarding Glenayre's first quarter earnings will be held
 Wednesday, April 25, 2001, at 8:30 a.m. Eastern Time.  To listen to the call,
 please dial 913-981-5510.  The conference call also will be accessible at the
 Investor Relations page at www.glenayre.com.  Audio replay of the call will be
 available for one week from April 25, 2001, by calling 719-457-0820 and
 entering access code #517688.
 
     About Glenayre:
     For more than 35 years, Glenayre has developed and provided leading-edge
 personal communication systems for the global market.  We are focused on
 delivering our Solutions for an @ctive World(TM) portfolio, leveraging core
 competencies in the converging sectors of the wireless Internet and unified
 messaging.  Our wireless messaging products and systems include one- and two-
 way wireless messaging infrastructure equipment; award-winning Always
 @ctive(TM) two-way messaging devices; an array of Enhanced Services
 Platform/Unified Messaging products featuring voice mail, fax messaging,
 voice-activated services, personal one-number services; and debit/prepaid
 calling card platforms.  Glenayre, headquartered in Charlotte, North Carolina,
 has 1,300 employees located in 14 countries with 2000 net sales exceeding $252
 million.
     For more information on Glenayre, its products, and services, visit
 www.glenayre.com.
     Glenayre, the Glenayre logo, Solutions for an @ctive World, the Solutions
 for an @ctive World logo, Always @ctive, AccessLink and @ctiveLink are
 trademarks of Glenayre Electronics, Inc.
 
     ReFLEX is a trademark of Motorola, Inc.
 
     This news release contains statements that may be forward looking within
 the meaning of applicable securities laws.  The statements may include
 projections regarding future revenues and earnings results, and are based upon
 the company's current forecasts, expectations and assumptions, which are
 subject to a number of risks and uncertainties that could cause the actual
 outcomes and results to differ materially.  These results and uncertainties
 are discussed in the company's most recently filed Form 10-K.  These factors
 may include: dependence on new product development; availability of
 manufacturing components and materials; control of costs and expenses;
 potential product mix changes which affect the company's overall profit
 margin; decline in the wireless messaging infrastructure market; effective
 convergence of technologies; potential market changes resulting from rapid
 technological advances; growth of two-way interactive wireless messaging
 market; competition; variability of quarterly results; volatility of the
 company's stock price; limits on protection of proprietary technologies;
 potential changes in government regulation; financing customer purchases for
 development of the two-way communications market; international business
 risks; and the continuation and expansion of strategic alliances and
 partnerships.
 
                           Glenayre Technologies Inc.
                Condensed Consolidated Statements of Operations
                    (in thousands, except per share amounts)
                                  (unaudited)
 
                                                        Three Months Ended
                                                             March 31,
 
 
                                                         2001           2000
 
     NET SALES                                         $45,925        $58,656
 
     COSTS AND EXPENSES:
      Cost of Sales                                     25,757         27,516
 
      Selling, general & administrative                 20,774         16,927
 
      Provision for doubtful receivables                 2,833            169
 
      Research & development                            11,592          8,779
 
      Depreciation & amortization                        4,685          5,038
 
      Adjustment to loss on sale of business               (94)          (524)
 
      Total costs and expenses                          65,547         57,905
 
      INCOME (LOSS) FROM OPERATIONS                    (19,622)           751
 
 
     OTHER INCOME (EXPENSES):
      Interest Income                                    1,507          1,293
 
       Interest Expense                                    (65)           (14)
 
      Realized gain on available-for-sale
       securities, net                                   9,871             --
 
      Other, net                                           (30)             5
 
      Total Other Income (Expenses), net                11,283          1,284
 
     INCOME (LOSS) BEFORE INCOME TAXES                  (8,339)         2,035
 
     PROVISION (BENEFIT) FOR INCOME TAXES               (2,685)           910
 
     NET INCOME (LOSS)                                 ($5,654)        $1,125
 
 
     INCOME (LOSS) PER WEIGHTED
      AVERAGE COMMON SHARE:                             ($0.09)         $0.02
 
     INCOME (LOSS) PER COMMON SHARE -
     ASSUMING DILUTION:                                 ($0.09)         $0.02
     Number of shares used to compute
     per share data                                     64,578         66,990
 
 
                           Glenayre Technologies Inc.
                     Condensed Consolidated Balance Sheets
                             (dollars in thousands)
 
                                                     March 31,     December 31,
                                                        2001            2000
                                                    (Unaudited)
     ASSETS
     Current Assets:
      Cash and cash equivalents                        $68,389        $71,866
 
      Restricted cash                                   13,153         16,893
 
      Accounts receivable, net                          83,881         94,977
 
      Notes receivable                                   4,914          4,434
 
      Inventories                                       38,942         40,104
 
      Deferred income taxes                             21,669         19,140
 
      Prepaid expenses and other current assets          5,056          6,177
 
       Total current assets                            236,004        253,591
 
     Notes receivable, net                               5,736          7,224
 
     Property, plant and equipment, net                 93,598         89,055
 
     Goodwill, net                                      44,635         45,311
 
     Deferred income taxes                              36,941         34,917
 
     Other assets                                        9,811         15,988
 
     TOTAL ASSETS                                     $426,725       $446,086
 
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Current Liabilities:
      Accounts payable                                 $16,824        $25,150
 
      Accrued liabilities                               40,236         43,299
 
      Other current liabilities                             65             66
       Total current liabilities                        57,125         68,515
 
     Other liabilities                                   6,557          6,644
 
     Stockholders' Equity:
     Preferred stock, $.01 par value; 5,000,000 shares
     authorized, no shares issued and outstanding          --              --
 
     Common stock, $.02 par value; authorized:
      200,000,000 shares; outstanding: March 31,
       2001- 64,649,031 shares;
        December 31,2000 - 64,446,012 shares            1,292           1,288
 
     Contributed capital                              360,049         359,181
 
     Retained earnings (deficit)                       (2,419)          3,235
 
     Accumulated other comprehensive income             4,121           7,223
     Total stockholders' equity                       363,043         370,927
 
     TOTAL LIABILITIES AND STOCKHOLDERS'
      EQUITY                                         $426,725        $446,086
 
 
                               NET SALES BREAKOUT
                                 (In Thousands)
                                  (Unaudited)
 
                                                       Three Months Ended
                                                             March 31,
     By Product Segment:                                2001           2000
 
     Wireless messaging
     U.S.                                             $14,410        $16,444
 
     International                                      4,588         14,047
 
     Subtotal                                          18,998         30,491
 
 
     Enhanced Services platform
     U.S.                                              22,670         19,059
 
     International                                      4,257          9,106
 
     Subtotal                                          26,927         28,165
 
 
     Totals                                           $45,925        $58,656
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X75649559
 
 SOURCE  Glenayre Technologies, Inc.

RELATED LINKS

http://www.glenayre.com