Telular Corporation Announces Record Revenue and Bottom Line Increases During Second Quarter

Second Quarter Highlights



- Record revenue, increase of 299% over last year to $38.6 million

- Royalty settlement added $4.7 million of revenue

- Profit of $0.66 per share vs. loss of $(0.12) per share last year

- Positive $13.9 million in cash from operations



Apr 26, 2001, 01:00 ET from Telular Corporation

    VERNON HILLS, Ill., April 26 /PRNewswire/ -- Telular Corporation
 (Nasdaq: WRLS) Telular Corporation today reported second-quarter revenue of
 $38.6 million, $28.9 million more than for the same period of fiscal year
 2000. The Company also reported that its bottom line improved $9.8 million
 during the second quarter, which ended March 31, 2001.  The Company generated
 $53.7 million in revenue and earned $8.5 million for the six months ended
 March 31, 2001.
     "This marks the fourth consecutive quarter with record Fixed Wireless
 Terminal (FWT) product sales in Latin America and the eighth consecutive
 quarter of at least double digit increases in FWT revenues -- a 449% increase
 this quarter over last year and a 154% increase from the first quarter of this
 fiscal year.  Thanks to a vibrant Wireless Local Loop market and a settlement
 over accumulated royalties, this quarter's revenue nearly exceeded our
 revenues for all of last fiscal year," said Kenneth E. Millard, President and
 Chief Executive Officer.
 
     Significant Revenue and Bottom Line Increases
     Total revenue for the second quarter of $38.6 million was $28.9 million,
 or 299%, more than the second quarter of fiscal year 2000.  FWT product sales
 increased 449%, royalty revenue increased 237% and wireless alarm revenues
 increased 15% during the second quarter compared to the same period last year.
 Total revenue for the first six months of fiscal year 2001 of $53.7 million
 compares to $18.7 million for the same period of fiscal year 2000.
     "Revenue from Latin America of $28.7 million was especially strong because
 our customer in Mexico challenged us to ship 66% more than the contracted
 amount during the second quarter; and we met their challenge.  Our revenues
 also benefited from a $4.7 million royalty settlement with Motorola during the
 quarter," added Millard.
     Gross margin of 35% for the second quarter increased by 6 percentage
 points over the same period last year. Gross margin was favorably impacted by
 the significant increases in royalties and product sales, but was partially
 offset by a special charge of $1 million to reduce the carrying cost of CDMA
 inventory.  Fiscal year-to-date gross margin improved 9 percentage points to
 34%, compared to 25% last year.
     "Increased competition in the CDMA FWT market has caused a significant
 drop in market prices for our CDMA products.  As such, we needed to write down
 our CDMA inventories.  Much of this competition is coming from probable
 infringers of our patents and we are aggressively pursuing these companies in
 the courts.  Unfortunately, the legal process takes more time than the typical
 product life cycle in this business," stated Millard.
     Operating expenses rose by 21 percent from the previous year during the
 three months ended March 31, 2001, due primarily to the increase in sales
 volume.  Year-to-date operating expenses rose by 15 percent from the previous
 year, due primarily to the increase in sales volume and an increase in product
 development expense for new FWTs and Wireless Desktop Phones for GSM/GPRS
 markets.
     Telular earned $8.3 million, or 66 cents per share during the second
 quarter, compared with a net loss of $(1.5) million, or (12) cents per share,
 a year earlier.  On a fiscal year-to-date basis, Telular earned $8.5 million,
 or 67 cents per share, compared with a net loss of $(3.9) million, or
 (33) cents per share, a year earlier.
 
     Cash Flows
     The Company generated $13.9 million in cash from operations during the
 second quarter, compared to ($2.0) million of cash used last year.  The
 increase is primarily due to the $10.7 million improvement in EBITDA.  On a
 year-to-date basis, the Company generated $16.2 million in cash from
 operations, compared to ($1.8) million of cash used last year.
 
     Investor Conference Call
     Telular's quarterly conference call will be held tomorrow, April 27th at
 10:00 A.M. CST.  A simultaneous Internet webcast will be available at
 www.vcall.com.
 
     About Telular
     Telular Corporation is a leader in the design and manufacturing of Fixed
 Wireless Terminals and Wireless Desktop Phones.  Telular's proprietary
 telecommunications interface technology enables standard phone systems, fax
 machines, computer modems or monitored alarm systems to utilize available
 cellular wireless service for either primary or back-up communications.  Their
 product lines incorporate the world's leading cellular standards (GSM, TDMA,
 CDMA, AMPS) and are marketed worldwide.  Headquartered in Vernon Hills,
 Illinois, Telular has regional sales offices in Atlanta, Miami, Singapore and
 the United Kingdom.  For further Company information, visit Telular at
 http://www.telular.com .
     Please be advised that information included here present the Company's or
 management's intentions, hopes, beliefs, expectations or predictions of the
 future and are forward-looking comments. It is important to note that the
 company's actual results could differ materially from what appears here.
 Additional information concerning factors that could cause actual results to
 differ materially from those in the forward-looking statements is contained
 from time to time in the company's SEC filings, including but not limited to
 the company's report on Form 10-K for the fiscal year ended September 30,
 2000. Copies of these filings may be obtained by contacting the Company or the
 SEC.
 
 
                                TELULAR CORPORATION
                       CONDENSED CONSOLIDATED BALANCE SHEETS
                            AND STATEMENTS OF CASH FLOWS
                     (Dollars in thousands, except share data)
 
 
                                   BALANCE SHEETS
 
                                                   March 31,          Sept. 30,
                                                     2001               2,000
        ASSETS                                    (Unaudited)
 
         Cash and cash equivalents                  $36,170            $20,527
         Short term investment                           29                147
         Receivables:
          Trade, net of allowance for doubtful
           accounts of $104 at March 31, 2001
           and September 30, 2000, respectively       8,060              6,771
          Royalties due from related party              217                900
         Total receivables                            8,277              7,671
         Inventories, net                             9,384              6,391
         Prepaid expenses and other current assets      569                442
         Total current assets                        54,429             35,178
 
         Restricted cash                              2,080              1,900
         Property and equipment, net                  4,226              4,266
         Other assets                                 2,946              3,242
 
         Total assets                               $63,681            $44,586
 
 
        LIABILITIES AND STOCKHOLDERS'
         EQUITY
         Current liabilities                        $17,079             $7,007
         Long term revolving line of credit           2,080              1,900
         Total stockholders' equity *                44,522             35,679
         Total liabilities and
          stockholders' equity                      $63,681            $44,586
 
         * At March 31, 2001, 12,745,395 shares were outstanding
 
 
                  CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS
 
                                                   Six Months Ended March 31,
                                                    2001               2000
                                                 (Unaudited)        (Unaudited)
 
          Net cash provided by (used in)
           operating activities                    $16,184            $(1,761)
 
          Net cash used in investing
           activities                                 (812)              (496)
 
          Subtotal net cash provided by
           (used in) before financing
           activities                              $15,372            $(2,257)
 
          Net cash provided by financing
           activities                                  271             14,886
 
          Net increase in cash and cash
           equivalents                             $15,643            $12,629
 
 
                                TELULAR CORPORATION
                  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                     (Dollars in thousands, except share data)
                                     Unaudited
 
                                                   Three Months Ended March 31,
                                                      2001              2000
 
        Net product sales                           $33,734            $8,220
        Royalty and royalty settlement revenue        4,827             1,434
        Total revenue                                38,561             9,654
        Cost of sales                                25,034             6,877
                                                     13,527             2,777
 
        Engineering and development expenses          1,548             1,475
        Selling and marketing expenses                2,135             1,706
        General and administrative expenses           1,599             1,182
           Income (loss) from operations              8,245            (1,586)
 
        Other income                                     98               111
 
        Income (loss) before income taxes             8,343            (1,475)
 
        Income taxes, net of tax benefit                -                 -
 
        Net income (loss)                            $8,343           $(1,475)
 
        Net income (loss) per common
         share:
 
        Basic                                         $0.66            $(0.12)
        Diluted                                       $0.64            $(0.12)
 
        Weighted average number of common
         shares outstanding:
 
        Basic                                    12,735,797        12,048,474
        Diluted                                  12,938,063        12,048,474
 
 
                                TELULAR CORPORATION
                  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                     (Dollars in thousands, except share data)
                                     Unaudited
 
                                                    Six Months Ended March 31,
                                                      2001              2000
 
        Net product sales                           $48,675           $17,070
        Royalty and royalty settlement revenue        5,038             1,605
        Total revenue                                53,713            18,675
        Cost of sales                                35,627            14,041
                                                     18,086             4,634
 
        Engineering and development expenses          3,126             2,755
        Selling and marketing expenses                3,916             3,449
        General and administrative expenses           2,822             2,403
           Income (loss) from operations              8,222            (3,973)
 
        Other income                                    271               144
 
        Income (loss) before income taxes             8,493            (3,829)
 
        Income taxes, net of tax benefit                -                 -
 
        Net income (loss)                            $8,493           $(3,829)
 
        Less:  Cumulative dividend on
         redeemable preferred stock                     -                 (28)
 
        Net income (loss) applicable to
         common shares                               $8,493           $(3,857)
 
        Net income (loss) per common
         share:
 
        Basic                                         $0.67            $(0.33)
        Diluted                                       $0.66            $(0.33)
 
        Weighted average number of common
         shares outstanding:
 
        Basic                                    12,707,080        11,683,241
        Diluted                                  12,886,826        11,683,241
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X32673269
 
 

SOURCE Telular Corporation
    VERNON HILLS, Ill., April 26 /PRNewswire/ -- Telular Corporation
 (Nasdaq: WRLS) Telular Corporation today reported second-quarter revenue of
 $38.6 million, $28.9 million more than for the same period of fiscal year
 2000. The Company also reported that its bottom line improved $9.8 million
 during the second quarter, which ended March 31, 2001.  The Company generated
 $53.7 million in revenue and earned $8.5 million for the six months ended
 March 31, 2001.
     "This marks the fourth consecutive quarter with record Fixed Wireless
 Terminal (FWT) product sales in Latin America and the eighth consecutive
 quarter of at least double digit increases in FWT revenues -- a 449% increase
 this quarter over last year and a 154% increase from the first quarter of this
 fiscal year.  Thanks to a vibrant Wireless Local Loop market and a settlement
 over accumulated royalties, this quarter's revenue nearly exceeded our
 revenues for all of last fiscal year," said Kenneth E. Millard, President and
 Chief Executive Officer.
 
     Significant Revenue and Bottom Line Increases
     Total revenue for the second quarter of $38.6 million was $28.9 million,
 or 299%, more than the second quarter of fiscal year 2000.  FWT product sales
 increased 449%, royalty revenue increased 237% and wireless alarm revenues
 increased 15% during the second quarter compared to the same period last year.
 Total revenue for the first six months of fiscal year 2001 of $53.7 million
 compares to $18.7 million for the same period of fiscal year 2000.
     "Revenue from Latin America of $28.7 million was especially strong because
 our customer in Mexico challenged us to ship 66% more than the contracted
 amount during the second quarter; and we met their challenge.  Our revenues
 also benefited from a $4.7 million royalty settlement with Motorola during the
 quarter," added Millard.
     Gross margin of 35% for the second quarter increased by 6 percentage
 points over the same period last year. Gross margin was favorably impacted by
 the significant increases in royalties and product sales, but was partially
 offset by a special charge of $1 million to reduce the carrying cost of CDMA
 inventory.  Fiscal year-to-date gross margin improved 9 percentage points to
 34%, compared to 25% last year.
     "Increased competition in the CDMA FWT market has caused a significant
 drop in market prices for our CDMA products.  As such, we needed to write down
 our CDMA inventories.  Much of this competition is coming from probable
 infringers of our patents and we are aggressively pursuing these companies in
 the courts.  Unfortunately, the legal process takes more time than the typical
 product life cycle in this business," stated Millard.
     Operating expenses rose by 21 percent from the previous year during the
 three months ended March 31, 2001, due primarily to the increase in sales
 volume.  Year-to-date operating expenses rose by 15 percent from the previous
 year, due primarily to the increase in sales volume and an increase in product
 development expense for new FWTs and Wireless Desktop Phones for GSM/GPRS
 markets.
     Telular earned $8.3 million, or 66 cents per share during the second
 quarter, compared with a net loss of $(1.5) million, or (12) cents per share,
 a year earlier.  On a fiscal year-to-date basis, Telular earned $8.5 million,
 or 67 cents per share, compared with a net loss of $(3.9) million, or
 (33) cents per share, a year earlier.
 
     Cash Flows
     The Company generated $13.9 million in cash from operations during the
 second quarter, compared to ($2.0) million of cash used last year.  The
 increase is primarily due to the $10.7 million improvement in EBITDA.  On a
 year-to-date basis, the Company generated $16.2 million in cash from
 operations, compared to ($1.8) million of cash used last year.
 
     Investor Conference Call
     Telular's quarterly conference call will be held tomorrow, April 27th at
 10:00 A.M. CST.  A simultaneous Internet webcast will be available at
 www.vcall.com.
 
     About Telular
     Telular Corporation is a leader in the design and manufacturing of Fixed
 Wireless Terminals and Wireless Desktop Phones.  Telular's proprietary
 telecommunications interface technology enables standard phone systems, fax
 machines, computer modems or monitored alarm systems to utilize available
 cellular wireless service for either primary or back-up communications.  Their
 product lines incorporate the world's leading cellular standards (GSM, TDMA,
 CDMA, AMPS) and are marketed worldwide.  Headquartered in Vernon Hills,
 Illinois, Telular has regional sales offices in Atlanta, Miami, Singapore and
 the United Kingdom.  For further Company information, visit Telular at
 http://www.telular.com .
     Please be advised that information included here present the Company's or
 management's intentions, hopes, beliefs, expectations or predictions of the
 future and are forward-looking comments. It is important to note that the
 company's actual results could differ materially from what appears here.
 Additional information concerning factors that could cause actual results to
 differ materially from those in the forward-looking statements is contained
 from time to time in the company's SEC filings, including but not limited to
 the company's report on Form 10-K for the fiscal year ended September 30,
 2000. Copies of these filings may be obtained by contacting the Company or the
 SEC.
 
 
                                TELULAR CORPORATION
                       CONDENSED CONSOLIDATED BALANCE SHEETS
                            AND STATEMENTS OF CASH FLOWS
                     (Dollars in thousands, except share data)
 
 
                                   BALANCE SHEETS
 
                                                   March 31,          Sept. 30,
                                                     2001               2,000
        ASSETS                                    (Unaudited)
 
         Cash and cash equivalents                  $36,170            $20,527
         Short term investment                           29                147
         Receivables:
          Trade, net of allowance for doubtful
           accounts of $104 at March 31, 2001
           and September 30, 2000, respectively       8,060              6,771
          Royalties due from related party              217                900
         Total receivables                            8,277              7,671
         Inventories, net                             9,384              6,391
         Prepaid expenses and other current assets      569                442
         Total current assets                        54,429             35,178
 
         Restricted cash                              2,080              1,900
         Property and equipment, net                  4,226              4,266
         Other assets                                 2,946              3,242
 
         Total assets                               $63,681            $44,586
 
 
        LIABILITIES AND STOCKHOLDERS'
         EQUITY
         Current liabilities                        $17,079             $7,007
         Long term revolving line of credit           2,080              1,900
         Total stockholders' equity *                44,522             35,679
         Total liabilities and
          stockholders' equity                      $63,681            $44,586
 
         * At March 31, 2001, 12,745,395 shares were outstanding
 
 
                  CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS
 
                                                   Six Months Ended March 31,
                                                    2001               2000
                                                 (Unaudited)        (Unaudited)
 
          Net cash provided by (used in)
           operating activities                    $16,184            $(1,761)
 
          Net cash used in investing
           activities                                 (812)              (496)
 
          Subtotal net cash provided by
           (used in) before financing
           activities                              $15,372            $(2,257)
 
          Net cash provided by financing
           activities                                  271             14,886
 
          Net increase in cash and cash
           equivalents                             $15,643            $12,629
 
 
                                TELULAR CORPORATION
                  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                     (Dollars in thousands, except share data)
                                     Unaudited
 
                                                   Three Months Ended March 31,
                                                      2001              2000
 
        Net product sales                           $33,734            $8,220
        Royalty and royalty settlement revenue        4,827             1,434
        Total revenue                                38,561             9,654
        Cost of sales                                25,034             6,877
                                                     13,527             2,777
 
        Engineering and development expenses          1,548             1,475
        Selling and marketing expenses                2,135             1,706
        General and administrative expenses           1,599             1,182
           Income (loss) from operations              8,245            (1,586)
 
        Other income                                     98               111
 
        Income (loss) before income taxes             8,343            (1,475)
 
        Income taxes, net of tax benefit                -                 -
 
        Net income (loss)                            $8,343           $(1,475)
 
        Net income (loss) per common
         share:
 
        Basic                                         $0.66            $(0.12)
        Diluted                                       $0.64            $(0.12)
 
        Weighted average number of common
         shares outstanding:
 
        Basic                                    12,735,797        12,048,474
        Diluted                                  12,938,063        12,048,474
 
 
                                TELULAR CORPORATION
                  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                     (Dollars in thousands, except share data)
                                     Unaudited
 
                                                    Six Months Ended March 31,
                                                      2001              2000
 
        Net product sales                           $48,675           $17,070
        Royalty and royalty settlement revenue        5,038             1,605
        Total revenue                                53,713            18,675
        Cost of sales                                35,627            14,041
                                                     18,086             4,634
 
        Engineering and development expenses          3,126             2,755
        Selling and marketing expenses                3,916             3,449
        General and administrative expenses           2,822             2,403
           Income (loss) from operations              8,222            (3,973)
 
        Other income                                    271               144
 
        Income (loss) before income taxes             8,493            (3,829)
 
        Income taxes, net of tax benefit                -                 -
 
        Net income (loss)                            $8,493           $(3,829)
 
        Less:  Cumulative dividend on
         redeemable preferred stock                     -                 (28)
 
        Net income (loss) applicable to
         common shares                               $8,493           $(3,857)
 
        Net income (loss) per common
         share:
 
        Basic                                         $0.67            $(0.33)
        Diluted                                       $0.66            $(0.33)
 
        Weighted average number of common
         shares outstanding:
 
        Basic                                    12,707,080        11,683,241
        Diluted                                  12,886,826        11,683,241
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X32673269
 
 SOURCE  Telular Corporation