Sunrise Telecom® Reports Third Quarter 2011 Results

- Secured Key Wins for RxT™ Platform at Major Service Providers

- Announced New RxT Modules Targeting Mobile Backhaul and Carrier Ethernet Service Deployments

- Sunrise Telecom Test Platforms Rated Among Top Test Solution by BTR Diamond Technology Review

Oct 26, 2011, 17:00 ET from Sunrise Telecom

SAN JOSE, Calif., Oct. 26, 2011 /PRNewswire/ -- Sunrise Telecom® Incorporated (OTC: SRTI) today posted its unaudited financial results for the quarter ended Sept. 30, 2011.

In the quarter ending Sept. 30, 2011, Sunrise Telecom reported revenue of $7.1 million, compared to $6.3 million for the second quarter of 2011 and $7.9 million for the third quarter 2010.  EBITDA for the quarter was $(1.9) million.  Third quarter net loss was $(2.3) million, or (0.04) per share, compared to $(1.0) million in the third quarter of 2010.  The company's efforts to reduce cost of goods resulted in a one-time adjustment to standard cost and contributed to lower margin and an increase in net loss for the reporting quarter.

The company attributed its sequential revenue increase in the third quarter to new orders for its RxT Smart Productivity Test Platform from Tier-one Service providers and equipment manufacturers.  In addition, the company witnessed strong demand for its industry-leading line of CM3 series and AT2500 family of advanced RF spectrum analyzers.  

"The new customer wins around the globe for the RxT at major service providers is further evidence that our customers value the key features and benefits of our new smart productivity platform," said Bahaa Moukadam, Sunrise Telecom's chief executive officer.  "We continue to add new channel partners worldwide, lead in the development of advanced Ethernet activation technology and deliver on our roadmap of new test modules. This will enhance our ability to penetrate growing market segments with our award winning test platforms."

In the third quarter 2011, Sunrise Telecom announced new modules for the RxT platform, including Dual T1 and SHDSL.bis versions targeting Business Services and Mobile Backhaul deployments. In addition, the company launched new capabilities for the CM series of portable cable analyzers, including one-button proof-of-performance and enhanced QAM features, offering new and highly sophisticated RF network analysis and compliance benefits for cable plant operators.

"In spite of the typical challenges associated with third quarter seasonality and defying the historical norm, the company achieved a significant increase in sequential bookings and improved bookings on a year-over-year basis," added Moukadam. "We are also very pleased that our Telecom and Cable test platforms have been recently recognized as among the top test solutions by Broadband Technology Report (BTR) as part of their 2011 Diamond Reviews program."

The announcement related to our Diamond Review ratings can be found at http://bit.ly/tm3NJ3.

In the reporting quarter, Sunrise Telecom executed a repurchase of 417,500 shares of common stock in accordance with its recently announced repurchase program covering up to $1.0 million of company stock through June 2012.

About Sunrise Telecom

Sunrise Telecom develops and delivers high-quality communications test and measurement solutions for telecom, cable and wireless networks. The Company's robust portfolio of feature-rich, easy-to-use products enables service providers to deliver premium voice, video, data and next-generation digital multimedia services quickly, reliably, and cost-effectively. Based in San Jose, California, Sunrise Telecom distributes its products through a direct sales force and a global network of sales representatives and distributors.

Sunrise Telecom makes available, on or through its website, press releases and other information of interest to investors. Sunrise Telecom's website may be found at www.sunrisetelecom.com. Sunrise Telecom files with OTC Markets Group annual, quarterly and other reports, and any amendments to those reports. Sunrise Telecom files with OTC Markets Group yearly financial statements audited by independent auditor, Armanino McKenna LLP. Its quarterly financial statements filed with OTC Markets Group are unaudited and unreviewed by Armanino McKenna LLP.

For more information, visit http://www.sunrisetelecom.com or email info@sunrisetelecom.com.  

Use of Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933, including, but not limited to, material contained in quotations and statements related to the release and expected future sales of new products. These forward-looking statements are subject to many risks and uncertainties that could cause actual results to differ materially from those projected. Specific factors that may cause results to differ include the following: customer acceptance of Sunrise Telecom's new or enhanced products and modules may be slower than expected; product development or introduction into the marketplace may take longer or be more expensive than we anticipate; product delivery schedules may be delayed for development, manufacturing or other reasons; and end-user demand for telecommunications services may be lower than our customers expect, leading to corresponding cutbacks in their spending on our products. These and other risks and uncertainties are described in more detail in Sunrise Telecom's reports including, but not limited to, its annual report for the year ended December 31, 2010 and its quarterly reports for the quarters ended March 31, 2011 and June 30, 2011 filed with OTC Markets Group. Sunrise Telecom assumes no obligation to update the forward-looking statements included in this press release.

Contact:
Lyron Bentovim
Chief Operating Officer/Chief Financial Officer
+1 408 363-8000


SUNRISE TELECOM INCORPORATED

CONSOLIDATED BALANCE SHEETS (unaudited)

(in thousands, except share data)








September 30,


December 31,



2011


2010

Assets





Current assets:





Cash and cash equivalents  


$                 7,190


$                 7,329

Held-to-maturity investments


1,009


1,527

Accounts receivable, net of allowances of $362 and $320, respectively

4,780


9,390

Inventories  


7,462


7,079

Prepaid expenses and other assets  


655


940

Total current assets  


21,096


26,265

Property and equipment, net  


15,273


15,754

Held-to-maturity investments


-


1,026

Other assets  


694


691

Total assets  


$              37,063


$              43,736






Liabilities and Stockholders' Equity





Current liabilities:





Accounts payable  


$                 1,399


$                 2,049

Other accrued liabilities


4,503


5,416

Income taxes payable  


22


49

Deferred revenue  


242


149

Total current liabilities  


6,166


7,663

Income taxes payable  


1,756


1,805

Other non-current liabilities


194


164

Total liabilities


8,116


9,632






Stockholders' equity:





Preferred stock, $0.001 par value per share; 10,000,000 shares





authorized, none issued and outstanding


-


-

Common stock, $0.001 par value per share; 175,000,000 shares





authorized; 50,878,000 and 51,345,000 shares issued and 50,878,000 and 51,295,000 shares outstanding as of September 30, 2011 and December 31, 2010, respectively


51


51

Treasury stock, 50,000 shares as of December 31, 2010


-


(22)

Additional paid-in capital  


78,986


78,844

Accumulated deficit


(49,966)


(44,671)

Accumulated other comprehensive loss


(124)


(98)

Total stockholders' equity  


28,947


34,104

Total liabilities and stockholders' equity  


$              37,063


$              43,736






See accompanying notes to consolidated financial statements





SUNRISE TELECOM INCORPORATED

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in thousands, except per share data)










Three Months Ended


Nine Months Ended


September 30,


September 30,


2011


2010


2011


2010

Net sales

$             7,122


$             7,972


$           21,540


$           27,388

Cost of sales

4,204


3,506


10,886


11,046

Gross profit

2,918


4,466


10,654


16,342









Operating expenses:








Research and development

2,191


2,498


6,863


7,397

Selling and marketing

2,255


2,195


6,723


7,474

General and administrative

1,038


1,032


3,153


3,163

Restructuring reversals

-


-


-


(40)

  Total operating expenses

5,484


5,725


16,739


17,994

Operating loss

(2,566)


(1,259)


(6,085)


(1,652)

Other income, net

237


184


758


85

Loss before income taxes

(2,329)


(1,075)


(5,327)


(1,567)

Income tax benefit

(72)


(32)


(32)


(290)

Net loss

$           (2,257)


$           (1,043)


$           (5,295)


$           (1,277)









Net loss per share:








Basic

$              (0.04)


$              (0.02)


$              (0.10)


$              (0.02)

Diluted

$              (0.04)


$              (0.02)


$              (0.10)


$              (0.02)









Shares used in computing net loss








Basic

51,150


51,345


51,246


51,345

Diluted

51,150


51,345


51,246


51,345









See accompanying notes to consolidated financial statements




SOURCE Sunrise Telecom



RELATED LINKS

http://www.sunrisetelecom.com