SpectraLink Reports 84% Earnings Growth for First Quarter 2001

Apr 19, 2001, 01:00 ET from SpectraLink Corporation

    BOULDER, Colo., April 19 /PRNewswire/ -- SpectraLink Corporation
 (Nasdaq:   SLNK) today reported exceptional earnings growth for the first
 quarter of 2001.  Earnings for the quarter were $1.7 million, or $0.09 per
 diluted share, representing an 84% increase over earnings of $0.9 million, or
 $0.05 per diluted share, in the first quarter of 2000.  Year-over-year
 quarterly revenue also grew substantially to $14.1 million from $11.6 million
 a year ago.
     Bruce Holland, SpectraLink president and CEO, said, "I am very pleased
 that in these difficult economic times, we were able to deliver earnings
 growth in excess of 80%.  In addition, it was gratifying to see our growth
 within the industry further solidified in recent industry reports.
 SpectraLink was once again identified as the clear market leader in North
 America providing innovative wireless telephone systems for the workplace."
     SpectraLink has established partnerships with top-tier resellers in North
 America and Europe to further expand sales into a huge potential market for
 workplace wireless solutions that remains largely under-penetrated.  Resellers
 in North America include BellSouth, Comdial, Fujitsu Business Communication
 Systems, Inter-Tel, Norstan, Panasonic Telecommunications, SBC Communications,
 Siemens Information and Communication Networks, and Verizon.  In Europe, the
 Company has signed with leading distributors of Agere Systems, BreezeCOM, and
 Cisco wireless LANs such as Anixter, ARtem, Ascom, CNP, Miel, PHI DATA,
 Upgrade Communications, Westcon and WiND.
 
     Webcast Information
     SpectraLink will hold an audio webcast to discuss first quarter 2001
 earnings results, as well as 2001 guidance, today, April 19th, at 4:45 p.m.
 Eastern Time.  You can access the webcast and replay at
 http://www.spectralink.com.
 
     About SpectraLink
     SpectraLink Corporation has helped thousands of commercial enterprises
 improve productivity and customer service as the leading manufacturer and
 provider of wireless telephone systems for the workplace.  Headquartered in
 Boulder, Colo., SpectraLink has more installed systems and accumulated more
 experience and application knowledge than any other provider in North America.
 SpectraLink distributes its products through industry-leading service,
 equipment and application providers, cultivating a vast customer base among
 industries including retail, education, healthcare, manufacturing, finance,
 information systems and telecommunications.  A sample of customers includes:
 Amazon.com, Arthur Andersen, AT&T, Barnes & Noble, Cisco Systems, Dow Jones,
 General Motors, GTE, IBM, Lowe's, Marriott International, Microsoft,
 MCI WorldCom, National Semiconductor, Sun Microsystems, Toys 'R' Us,
 UCLA Medical Center, the U.S. Postal Service and Volvo.  For more information
 contact 1-800-676-5465 or http://www.spectralink.com.
 
     This release, as it relates to revenues and other company matters,
 contains forward-looking statements, which are made pursuant to the safe
 harbor provisions of the Private Securities Litigation Reform Act of 1995.
 Investors are cautioned that all forward-looking statements involve risks and
 uncertainties.  Investors are directed to the Risk Factors section and other
 information contained in the company's most recent 10-Q and 10-K filings with
 the Securities and Exchange Commission for a more complete description of the
 risks and uncertainties relating to the material in this release as well as to
 other aspects of the company's business.
 
     All trademarks, trade names, registered trademarks, or registered trade
 names are property of their respective holders.  For more information visit
 the SpectraLink website at http://www.spectralink.com.
 
 
                     SPECTRALINK CORPORATION AND SUBSIDIARY
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                    (In thousands, except per share amounts)
                                  (Unaudited)
 
                                                    Three Months Ended
                                                         March 31,
                                                   2001             2000
 
     NET SALES                                   $14,063          $11,602
     COST OF SALES                                 4,495            4,387
       Gross profit                                9,568            7,215
 
 
     OPERATING EXPENSES
       Research and development                    1,275            1,078
       Marketing and selling                       5,151            4,337
       General and administrative                    805              684
         Total operating expenses                  7,231            6,099
 
     INCOME FROM OPERATIONS                        2,337            1,116
     INVESTMENT INCOME AND OTHER, net                441              398
     INCOME BEFORE INCOME TAXES                    2,778            1,514
     INCOME TAX EXPENSE                            1,041              568
 
     NET INCOME                                   $1,737             $946
 
     BASIC EARNINGS PER SHARE                      $0.09            $0.05
 
     BASIC WEIGHTED AVERAGE
      SHARES OUTSTANDING                          19,080           19,170
 
     DILUTED EARNINGS PER SHARE                    $0.09            $0.05
 
     DILUTED WEIGHTED AVERAGE
      SHARES OUTSTANDING                          20,050           20,680
 
 
                       SPECTRALINK CORPORATION AND SUBSIDIARY
                            CONSOLIDATED BALANCE SHEETS
                                   (In thousands)
 
                                       ASSETS
 
                                                March 31,      December 31,
                                                  2001             2000
                                               (Unaudited)
 
     CURRENT ASSETS:
       Cash and cash equivalents                 $20,834          $20,793
       Short-term investments in
        marketable securities                      8,471           10,976
       Trade accounts receivable,
        net of allowance of $317
        and $308, respectively                    15,947           14,481
       Inventory, net                              9,404            9,029
       Deferred income taxes
        - current portion                          1,336            1,336
       Other                                       1,038            1,037
         Total current assets                     57,030           57,652
 
     INVESTMENTS IN MARKETABLE SECURITIES          1,014               --
 
     PROPERTY AND EQUIPMENT, at cost:
       Furniture and fixtures                      1,525            1,461
       Equipment                                   5,491            5,173
       Leasehold improvements                        824              805
                                                   7,840            7,439
 
       Less - Accumulated depreciation            (5,673)          (5,420)
         Net property and equipment                2,167            2,019
     DEFERRED INCOME TAXES - NON CURRENT             236              236
     OTHER                                           152              163
     TOTAL ASSETS                                $60,599          $60,070
 
 
                        LIABILITIES AND STOCKHOLDERS' EQUITY
 
     CURRENT LIABILITIES:
       Accounts payable                           $1,430           $1,549
       Accrued payroll, commissions,
        and employee benefits                      1,893            2,519
       Income taxes payable                          557               62
       Accrued sales, use and property taxes         191              266
       Accrued warranty expenses                     255              290
       Other accrued expenses                        774              695
       Deferred revenue                            2,963            2,932
         Total current liabilities                 8,063            8,313
     LONG-TERM LIABILITIES                           249              263
         Total liabilities                         8,312            8,576
 
 
     STOCKHOLDERS' EQUITY:
       Common stock                                  208              207
       Additional paid-in capital                 54,659           53,855
       Retained earnings                           7,733            5,996
       Treasury stock at cost                    (10,313)          (8,564)
     TOTAL STOCKHOLDERS' EQUITY                   52,287           51,494
     TOTAL LIABILITIES AND
      STOCKHOLDERS' EQUITY                       $60,599          $60,070
 
 

SOURCE SpectraLink Corporation
    BOULDER, Colo., April 19 /PRNewswire/ -- SpectraLink Corporation
 (Nasdaq:   SLNK) today reported exceptional earnings growth for the first
 quarter of 2001.  Earnings for the quarter were $1.7 million, or $0.09 per
 diluted share, representing an 84% increase over earnings of $0.9 million, or
 $0.05 per diluted share, in the first quarter of 2000.  Year-over-year
 quarterly revenue also grew substantially to $14.1 million from $11.6 million
 a year ago.
     Bruce Holland, SpectraLink president and CEO, said, "I am very pleased
 that in these difficult economic times, we were able to deliver earnings
 growth in excess of 80%.  In addition, it was gratifying to see our growth
 within the industry further solidified in recent industry reports.
 SpectraLink was once again identified as the clear market leader in North
 America providing innovative wireless telephone systems for the workplace."
     SpectraLink has established partnerships with top-tier resellers in North
 America and Europe to further expand sales into a huge potential market for
 workplace wireless solutions that remains largely under-penetrated.  Resellers
 in North America include BellSouth, Comdial, Fujitsu Business Communication
 Systems, Inter-Tel, Norstan, Panasonic Telecommunications, SBC Communications,
 Siemens Information and Communication Networks, and Verizon.  In Europe, the
 Company has signed with leading distributors of Agere Systems, BreezeCOM, and
 Cisco wireless LANs such as Anixter, ARtem, Ascom, CNP, Miel, PHI DATA,
 Upgrade Communications, Westcon and WiND.
 
     Webcast Information
     SpectraLink will hold an audio webcast to discuss first quarter 2001
 earnings results, as well as 2001 guidance, today, April 19th, at 4:45 p.m.
 Eastern Time.  You can access the webcast and replay at
 http://www.spectralink.com.
 
     About SpectraLink
     SpectraLink Corporation has helped thousands of commercial enterprises
 improve productivity and customer service as the leading manufacturer and
 provider of wireless telephone systems for the workplace.  Headquartered in
 Boulder, Colo., SpectraLink has more installed systems and accumulated more
 experience and application knowledge than any other provider in North America.
 SpectraLink distributes its products through industry-leading service,
 equipment and application providers, cultivating a vast customer base among
 industries including retail, education, healthcare, manufacturing, finance,
 information systems and telecommunications.  A sample of customers includes:
 Amazon.com, Arthur Andersen, AT&T, Barnes & Noble, Cisco Systems, Dow Jones,
 General Motors, GTE, IBM, Lowe's, Marriott International, Microsoft,
 MCI WorldCom, National Semiconductor, Sun Microsystems, Toys 'R' Us,
 UCLA Medical Center, the U.S. Postal Service and Volvo.  For more information
 contact 1-800-676-5465 or http://www.spectralink.com.
 
     This release, as it relates to revenues and other company matters,
 contains forward-looking statements, which are made pursuant to the safe
 harbor provisions of the Private Securities Litigation Reform Act of 1995.
 Investors are cautioned that all forward-looking statements involve risks and
 uncertainties.  Investors are directed to the Risk Factors section and other
 information contained in the company's most recent 10-Q and 10-K filings with
 the Securities and Exchange Commission for a more complete description of the
 risks and uncertainties relating to the material in this release as well as to
 other aspects of the company's business.
 
     All trademarks, trade names, registered trademarks, or registered trade
 names are property of their respective holders.  For more information visit
 the SpectraLink website at http://www.spectralink.com.
 
 
                     SPECTRALINK CORPORATION AND SUBSIDIARY
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                    (In thousands, except per share amounts)
                                  (Unaudited)
 
                                                    Three Months Ended
                                                         March 31,
                                                   2001             2000
 
     NET SALES                                   $14,063          $11,602
     COST OF SALES                                 4,495            4,387
       Gross profit                                9,568            7,215
 
 
     OPERATING EXPENSES
       Research and development                    1,275            1,078
       Marketing and selling                       5,151            4,337
       General and administrative                    805              684
         Total operating expenses                  7,231            6,099
 
     INCOME FROM OPERATIONS                        2,337            1,116
     INVESTMENT INCOME AND OTHER, net                441              398
     INCOME BEFORE INCOME TAXES                    2,778            1,514
     INCOME TAX EXPENSE                            1,041              568
 
     NET INCOME                                   $1,737             $946
 
     BASIC EARNINGS PER SHARE                      $0.09            $0.05
 
     BASIC WEIGHTED AVERAGE
      SHARES OUTSTANDING                          19,080           19,170
 
     DILUTED EARNINGS PER SHARE                    $0.09            $0.05
 
     DILUTED WEIGHTED AVERAGE
      SHARES OUTSTANDING                          20,050           20,680
 
 
                       SPECTRALINK CORPORATION AND SUBSIDIARY
                            CONSOLIDATED BALANCE SHEETS
                                   (In thousands)
 
                                       ASSETS
 
                                                March 31,      December 31,
                                                  2001             2000
                                               (Unaudited)
 
     CURRENT ASSETS:
       Cash and cash equivalents                 $20,834          $20,793
       Short-term investments in
        marketable securities                      8,471           10,976
       Trade accounts receivable,
        net of allowance of $317
        and $308, respectively                    15,947           14,481
       Inventory, net                              9,404            9,029
       Deferred income taxes
        - current portion                          1,336            1,336
       Other                                       1,038            1,037
         Total current assets                     57,030           57,652
 
     INVESTMENTS IN MARKETABLE SECURITIES          1,014               --
 
     PROPERTY AND EQUIPMENT, at cost:
       Furniture and fixtures                      1,525            1,461
       Equipment                                   5,491            5,173
       Leasehold improvements                        824              805
                                                   7,840            7,439
 
       Less - Accumulated depreciation            (5,673)          (5,420)
         Net property and equipment                2,167            2,019
     DEFERRED INCOME TAXES - NON CURRENT             236              236
     OTHER                                           152              163
     TOTAL ASSETS                                $60,599          $60,070
 
 
                        LIABILITIES AND STOCKHOLDERS' EQUITY
 
     CURRENT LIABILITIES:
       Accounts payable                           $1,430           $1,549
       Accrued payroll, commissions,
        and employee benefits                      1,893            2,519
       Income taxes payable                          557               62
       Accrued sales, use and property taxes         191              266
       Accrued warranty expenses                     255              290
       Other accrued expenses                        774              695
       Deferred revenue                            2,963            2,932
         Total current liabilities                 8,063            8,313
     LONG-TERM LIABILITIES                           249              263
         Total liabilities                         8,312            8,576
 
 
     STOCKHOLDERS' EQUITY:
       Common stock                                  208              207
       Additional paid-in capital                 54,659           53,855
       Retained earnings                           7,733            5,996
       Treasury stock at cost                    (10,313)          (8,564)
     TOTAL STOCKHOLDERS' EQUITY                   52,287           51,494
     TOTAL LIABILITIES AND
      STOCKHOLDERS' EQUITY                       $60,599          $60,070
 
 SOURCE  SpectraLink Corporation

RELATED LINKS

http://www.spectralink.com