Pliant Systems Announces First Quarter Financial Results

Apr 18, 2001, 01:00 ET from Pliant Systems Inc.

    RESEARCH TRIANGLE PARK, N.C., April 18 /PRNewswire/ --
     Pliant Systems Inc. (OTC Bulletin Board:   PLNS) today announced results for
 the first quarter ended March 31, 2001.  Net revenues for the quarter were
 $9.0 million, up from $6.6 million in the same period last year.  Product
 sales and contract revenues increased in the current quarter due to sales of
 the Pliant 3000 Integrated Access Platform and end-of-life orders for legacy
 products, while services revenues decreased slightly.  The second release of
 the Pliant 3000 became commercially available in January, and this favorably
 affected the Pliant 3000 orders and shipments for the first quarter of 2001.
 There were no shipments of the Pliant 3000 in the first quarter of 2000.
     The company reported a first quarter net loss of $8.1 million or ($0.59)
 per share compared to a net loss of $6.7 million or ($0.49) per share for the
 same period in 2000.  Gross margins increased as compared to the prior year
 due to the increased product revenue; however, the gross margin percentage
 declined to 46% from 55% due to the increased product sales as a percentage of
 total revenues.  The increased gross margin was offset by increased sales and
 marketing expenses that resulted in sales and field trials for the Pliant 3000
 as well as increased research and development expenses related to additional
 product features and functionality for the Pliant 3000.  The quarterly loss
 was also affected by lower interest income due to declining cash balances and
 financial and legal advisory fees associated with the company's efforts to
 restructure its debt and raise additional capital.
 
     About Pliant Systems
     Pliant Systems Inc. designs, manufactures and markets integrated multi-
 service access platforms for the telecommunications industry.  The company
 provides competitive local exchange carriers and incumbent local exchange
 carriers with integrated access systems capable of delivering voice, data and
 video services over diverse network topologies.  The company's primary
 product, the Pliant 3000 Integrated Access Platform, is designed to relieve
 the strain on digital loop carrier systems caused by the Internet explosion,
 utilizing a distributed architecture to deliver traditional telephony and
 emerging high-bandwidth services deep into the access network.  The company's
 web site is www.pliantsystems.com.
 
     This release contains forward-looking statements about the company's
 performance.  Forward-looking statements contained in this release include
 statements about the continued development of the company's new access
 product, customer orders, and sales.  This release also contains forward-
 looking statements about the company's debt restructuring and capital raising
 activities and the current progress of such discussions.  However, the outcome
 of forward-looking statements are beyond the ability of the company to control
 and in many cases could cause actual results to differ materially from those
 indicated by the forward-looking statements.  The company's Form 10-K, 10-Qs
 and other documents on file with the Securities and Exchange Commission
 identify important factors that could cause actual results to differ
 materially from those indicated by forward-looking statements.
 
 
                              PLIANT SYSTEMS, INC.
 
                            STATEMENTS OF OPERATIONS
 
 
 
                                                  Three Months Ended March 31
                                                       2001           2000
     (In thousands except per share amounts)              (Unaudited)
 
     Revenues:
      Product sales and contract revenues           $   4,065      $   1,558
      Services revenue                                  4,948          5,036
      Net revenues                                      9,013          6,594
 
     Costs and expenses:
      Cost of sales                                     4,878          2,991
      Research and development                          6,446          6,195
      Selling, general and administrative               3,804          3,527
      Total costs and expenses                         15,128         12,713
 
     Loss from operations                              (6,115)        (6,119)
 
     Other income (expense)
      Net interest income (expense)                    (1,251)          (583)
      Other (expense)                                    (765)            --
      Total other income (expense)                     (2,016)          (583)
 
     Net loss                                       $  (8,131)     $  (6,702)
 
     Net loss per share                             $   (0.59)     $   (0.49)
 
     Average number of shares used in per share
      calculations                                     13,773         13,614
 
 
                              PLIANT SYSTEMS, INC.
 
                                 BALANCE SHEETS
 
 
                                                      March 31    December 31
                                                       2001           2000
     (In thousands)                                 (Unaudited)     (Audited)
 
     Assets
     Current assets:
      Cash and short-term investments              $   11,086      $  25,569
      Restricted cash                                     400            400
      Accounts receivable trade, net                    6,329          5,185
      Inventories                                       7,882          4,514
      Prepaid and other current assets                  1,514            908
     Total current assets                              27,211         36,576
 
     Furniture, fixtures and equipment:
      Equipment                                        20,145         19,049
      Software                                          4,143          4,081
      Furniture and leasehold improvements              2,106          2,104
                                                       26,394         25,234
     Accumulated depreciation and amortization        (19,358)       (18,517)
     Net furniture, fixtures and equipment              7,036          6,717
 
     Deferred debt issuance costs                          96            283
     Other noncurrent assets                            1,931          2,134
 
     Total assets                                  $   36,274      $  45,710
 
     Liabilities and stockholders' deficit
     Current liabilities:
      Accounts payable                             $    4,880      $   5,309
      Accrued expenses                                  4,442          4,102
      Convertible debt                                115,000        115,000
      Deferred revenue                                  1,660          2,948
      Accrued warranty reserve                            353            366
     Total current liabilities                        126,335        127,725
 
     Stockholders' deficit:
      Common stock and additional paid-in capital     157,034        156,949
      Accumulated deficit                            (247,095)      (238,964)
     Total stockholders' deficit                      (90,061)       (82,015)
 
     Total liabilities and stockholders' deficit   $   36,274      $  45,710
 
 

SOURCE Pliant Systems Inc.
    RESEARCH TRIANGLE PARK, N.C., April 18 /PRNewswire/ --
     Pliant Systems Inc. (OTC Bulletin Board:   PLNS) today announced results for
 the first quarter ended March 31, 2001.  Net revenues for the quarter were
 $9.0 million, up from $6.6 million in the same period last year.  Product
 sales and contract revenues increased in the current quarter due to sales of
 the Pliant 3000 Integrated Access Platform and end-of-life orders for legacy
 products, while services revenues decreased slightly.  The second release of
 the Pliant 3000 became commercially available in January, and this favorably
 affected the Pliant 3000 orders and shipments for the first quarter of 2001.
 There were no shipments of the Pliant 3000 in the first quarter of 2000.
     The company reported a first quarter net loss of $8.1 million or ($0.59)
 per share compared to a net loss of $6.7 million or ($0.49) per share for the
 same period in 2000.  Gross margins increased as compared to the prior year
 due to the increased product revenue; however, the gross margin percentage
 declined to 46% from 55% due to the increased product sales as a percentage of
 total revenues.  The increased gross margin was offset by increased sales and
 marketing expenses that resulted in sales and field trials for the Pliant 3000
 as well as increased research and development expenses related to additional
 product features and functionality for the Pliant 3000.  The quarterly loss
 was also affected by lower interest income due to declining cash balances and
 financial and legal advisory fees associated with the company's efforts to
 restructure its debt and raise additional capital.
 
     About Pliant Systems
     Pliant Systems Inc. designs, manufactures and markets integrated multi-
 service access platforms for the telecommunications industry.  The company
 provides competitive local exchange carriers and incumbent local exchange
 carriers with integrated access systems capable of delivering voice, data and
 video services over diverse network topologies.  The company's primary
 product, the Pliant 3000 Integrated Access Platform, is designed to relieve
 the strain on digital loop carrier systems caused by the Internet explosion,
 utilizing a distributed architecture to deliver traditional telephony and
 emerging high-bandwidth services deep into the access network.  The company's
 web site is www.pliantsystems.com.
 
     This release contains forward-looking statements about the company's
 performance.  Forward-looking statements contained in this release include
 statements about the continued development of the company's new access
 product, customer orders, and sales.  This release also contains forward-
 looking statements about the company's debt restructuring and capital raising
 activities and the current progress of such discussions.  However, the outcome
 of forward-looking statements are beyond the ability of the company to control
 and in many cases could cause actual results to differ materially from those
 indicated by the forward-looking statements.  The company's Form 10-K, 10-Qs
 and other documents on file with the Securities and Exchange Commission
 identify important factors that could cause actual results to differ
 materially from those indicated by forward-looking statements.
 
 
                              PLIANT SYSTEMS, INC.
 
                            STATEMENTS OF OPERATIONS
 
 
 
                                                  Three Months Ended March 31
                                                       2001           2000
     (In thousands except per share amounts)              (Unaudited)
 
     Revenues:
      Product sales and contract revenues           $   4,065      $   1,558
      Services revenue                                  4,948          5,036
      Net revenues                                      9,013          6,594
 
     Costs and expenses:
      Cost of sales                                     4,878          2,991
      Research and development                          6,446          6,195
      Selling, general and administrative               3,804          3,527
      Total costs and expenses                         15,128         12,713
 
     Loss from operations                              (6,115)        (6,119)
 
     Other income (expense)
      Net interest income (expense)                    (1,251)          (583)
      Other (expense)                                    (765)            --
      Total other income (expense)                     (2,016)          (583)
 
     Net loss                                       $  (8,131)     $  (6,702)
 
     Net loss per share                             $   (0.59)     $   (0.49)
 
     Average number of shares used in per share
      calculations                                     13,773         13,614
 
 
                              PLIANT SYSTEMS, INC.
 
                                 BALANCE SHEETS
 
 
                                                      March 31    December 31
                                                       2001           2000
     (In thousands)                                 (Unaudited)     (Audited)
 
     Assets
     Current assets:
      Cash and short-term investments              $   11,086      $  25,569
      Restricted cash                                     400            400
      Accounts receivable trade, net                    6,329          5,185
      Inventories                                       7,882          4,514
      Prepaid and other current assets                  1,514            908
     Total current assets                              27,211         36,576
 
     Furniture, fixtures and equipment:
      Equipment                                        20,145         19,049
      Software                                          4,143          4,081
      Furniture and leasehold improvements              2,106          2,104
                                                       26,394         25,234
     Accumulated depreciation and amortization        (19,358)       (18,517)
     Net furniture, fixtures and equipment              7,036          6,717
 
     Deferred debt issuance costs                          96            283
     Other noncurrent assets                            1,931          2,134
 
     Total assets                                  $   36,274      $  45,710
 
     Liabilities and stockholders' deficit
     Current liabilities:
      Accounts payable                             $    4,880      $   5,309
      Accrued expenses                                  4,442          4,102
      Convertible debt                                115,000        115,000
      Deferred revenue                                  1,660          2,948
      Accrued warranty reserve                            353            366
     Total current liabilities                        126,335        127,725
 
     Stockholders' deficit:
      Common stock and additional paid-in capital     157,034        156,949
      Accumulated deficit                            (247,095)      (238,964)
     Total stockholders' deficit                      (90,061)       (82,015)
 
     Total liabilities and stockholders' deficit   $   36,274      $  45,710
 
 SOURCE  Pliant Systems Inc.