Tollgrade Reports 25% First Quarter Revenue Increase: Announces Cost Realignment Initiative

Apr 19, 2001, 01:00 ET from Tollgrade Communications, Inc.

    PITTSBURGH, April 19 /PRNewswire/ --
     Tollgrade Communications, Inc. (Nasdaq:   TLGD) today reported a 24.9%
 increase in first quarter revenue and a 10.3% increase in earnings per share
 for the period that ended March 31, 2001 as compared to the similar quarter in
 the prior year.  At the same time, the company announced a cost realignment
 initiative that will likely yield about $4,300,000 in annual pre-tax savings.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19990920/TLGDLOGO )
     First quarter revenue grew to $27,990,002 from $22,417,535 in 2000.  Net
 income increased 10.2% to $5,755,169, from $5,224,614 in the prior-year
 quarter.  Diluted earnings per share rose to $.43 per share from $.39 per
 share in the year-ago quarter.
     The strong revenue growth reflected:
      -- Increased sales of core MCU(R) products to Verizon, SBC and BellSouth.
          The increase in sales to Verizon and BellSouth related primarily to
          special incentive programs within their regional networks to improve
          testability rates system-wide.  The increase in sales to SBC related
          primarily to Project Pronto, its program to roll out DSL service.
          Sales of MCU technology represented 65.4% of total revenue for the
          quarter.
      -- Higher sales of Tollgrade's DigiTest(R) system products to Nortel
          Networks.  Overall sales of DigiTest Products represented 18.1% of
          total revenue for the quarter.
      -- Initial sales of the company's new DigiTest Access Unit (DAU), a test
          access device, to Sprint USA.  Overall sales of test access products
          represented 5% of total revenue for the quarter.
      -- Sales of Tollgrade's LIGHTHOUSE(R) Cable Status Monitoring system
          represented 5% of first quarter revenue.
      -- Shipment of a one-time order of our Broadcast Program Channel Units,
          for use at the Salt Lake City Winter Olympic Games, which represented
          $1,300,000 in revenue.
     Gross profit increased 11.9% to $15,715,719 from $14,045,875 in the first
 quarter of 2000.  As a percentage of sales, gross profit was 56.1% versus
 62.7% a year ago, primarily due to product costs associated with the
 introduction of the new DAU product; lower margins associated with the sale of
 the Broadcast Program Channel Units; and an increase in allocated unit costs
 arising from lower production volume.  Income from operations rose 8.9% to
 $8,376,202 from $7,693,801 in the first quarter of 2000.
     Operating details, compared to the first quarter of 2000, include:
      -- Selling and marketing expenses increased 2.8% to $2,449,824,
          reflecting primarily the hiring of additional sales, marketing and
          customer support personnel over the past year.  This was offset in
          part by reduced spending on general advertising, promotion and
          related marketing activities.
      -- General and administrative expenses increased 11.1% to $1,530,152
          primarily associated with an increase in the contingency provision
          for potential bad debts and an increase in proxy solicitation and
          distribution-related costs.
      -- Research and development expenses increased 29.7% to $3,359,541, due
          to the addition of personnel and related costs associated with
          developing new products and new technologies, and enhancing features
          of existing products.
     Order backlog, which consists of firm customer purchase orders, was
 $5,605,349 as of March 31, 2001.  This compares to $8,224,460 at December 31,
 2000.  Approximately 60% of current backlog is currently scheduled for
 shipment in the second quarter of 2001.
 
     Cost Realignment Program
     Tollgrade Chairman and Chief Executive Officer Chris Allison said today:
 "After unprecedented growth last year, Tollgrade has entered a period where we
 believe the key to future growth will be to build on our strong foundation of
 core technologies, products and people, and to manage costs prudently.  In the
 first quarter, we took significant steps to control discretionary costs, and
 we gave our markets every opportunity to rebound.  Today Tollgrade is
 announcing a realignment initiative to streamline our operations and maintain
 a healthy margin level, while controlling costs.  Our goal is to become a more
 nimble, focused and efficient company that is better positioned to achieve
 sustainable growth and meet our customers' needs."
     The realignment will reduce Tollgrade's work force by approximately
 80 positions, primarily in general, administrative, research and development
 and support areas.  After the realignment, Tollgrade expects to employ 296,
 which is about the size of the company's work force at the beginning of 2000.
 Tollgrade announced that it expects recurring annual pre-tax savings of
 approximately $4,300,000.  This equates to a savings of approximately $.20 per
 share on an annual basis.  The company expects to record a charge for
 severance, outplacement and other related costs of approximately $400,000 or
 $.02 per share in the second quarter of 2001.
     Tollgrade also reported that Allison asked the Board of Directors to
 reduce his salary by 20% effective immediately and eliminate any bonuses that
 would be payable to him for fiscal 2001.
 
     Expectations for Second Quarter and Beyond
     Reflecting the effect of general market conditions and order trends,
 Tollgrade today announced revised expectations for the second quarter and the
 remainder of 2001.
     "We anticipate that the remainder of 2001 will be a period of transition
 for Tollgrade and other telecommunications equipment manufacturers as the
 industry experiences a general downturn in orders," said Allison.  "We remain
 confident that our long-term strategy of meeting the POTS and DSL testing
 needs of the nation's leading local exchange carriers will position the
 company well for the future."
     As a result, Tollgrade anticipates approximate second quarter earnings per
 share of $.27-$.33 before severance, outplacement and other related charges
 and second quarter revenue of $20-$22 million.  A year ago, Tollgrade reported
 earnings per share of $.54 and revenue of $29,666,710 in the second quarter.
     "As we entered 2001, we anticipated revenue growth of 10-12%.
 Unfortunately, the rapid first quarter downturn in the U.S. economy, has had a
 dramatic effect on capital spending across all industries, including the
 telecommunications and cable television industries," Allison said.  "As a
 result, order visibility has declined and we can no longer assume near-term
 growth from our core markets.  Predicting with any level of certainty beyond
 the second quarter is not possible."
     Allison added, "In light of the current economic environment, Tollgrade is
 intensifying our focus on preserving our leadership position in our markets,
 which means renewed focus on continued development and marketing of our core
 technologies.  It also includes investing in staff as it relates to our
 Professional Services area for MCU testability improvement initiatives."
     "The potential of fiber optic, hybrid fiber coax and digital subscriber
 line technologies support our strategy to capitalize on opportunities in these
 areas through our MCU, LIGHTHOUSE and DigiTest technologies," added Allison.
 "And the steady growth of Plain Old Telephone Service (POTS) access line count
 further bolsters our long-term view of the future for both MCU and DigiTest."
     Tollgrade Communications, Inc., designs, engineers, markets and supports
 test system, test access and status monitoring products for the
 telecommunications and cable television industries.  Tollgrade, which is
 headquartered in Cheswick, Pa., a suburb of Pittsburgh, recorded 2000 revenues
 of $114.4 million.  The company maintains a presence in regions across the
 United States and in the United Kingdom.  Tollgrade's World Wide Web address
 is www.tollgrade.com.
 
     Statements included here, which are not historical in nature, are forward-
 looking statements made pursuant to the safe harbor provisions of the Private
 Securities Litigation Reform Act of 1995, including without limitation,
 statements as to management's beliefs, strategies, plans, expectations or
 opinions in connection with company performance, which are based on a number
 of assumptions concerning future conditions that may ultimately prove to be
 inaccurate.  The forward-looking statements must be qualified by important
 factors that could cause actual earnings and other results to differ
 materially from those achieved in the past or those expected by the company.
 These include: customers' ability to meet established purchase forecasts and
 their own growth projections; the ability of certain customers to maintain
 financial strength and access to capital; the ability for sales and marketing
 partners to meet their own performance objectives and provide vendor financing
 to certain local exchange carriers; rapid technological change along with the
 need to continually develop new products; the company's focus on a relatively
 narrow range of products; competition; the company's dependence on key
 employees and the ability to continue to recruit appropriate personnel;
 difficulties in managing the company's growth; the company's dependence upon
 certain customers and certain suppliers and contract manufacturers; potential
 consolidation and combinations within the company's customers; the company's
 dependence upon proprietary rights; risks of third party claims of
 infringement; and government regulation.  Statements included here speak as of
 the date of this release, and the company disclaims any duty to update.
 
 
                TOLLGRADE COMMUNICATIONS, INC. AND SUBSIDIARIES
                Condensed Consolidated Statements of Operations
                     (In thousands, except per-share data)
 
                                                     Three Months Ended
                                                 03/31/01        04/01/00
     Revenues                                    $27,990          $22,418
 
     Cost of product sales                        12,274            8,372
 
     Gross profit                                 15,716           14,046
 
     Operating expenses:
       Selling and marketing                       2,450            2,384
       General and administrative                  1,530            1,378
       Research and development                    3,360            2,590
          Total operating expenses                 7,340            6,352
 
     Income from operations                        8,376            7,694
 
     Other income                                    907              470
 
     Income before income taxes                    9,283            8,164
     Provision for income taxes                    3,528            2,939
          Net income                              $5,755           $5,225
 
     Diluted earnings per-share information:
     Weighted average shares of common stock
      and equivalents:                            13,377           13,546
       Net income per common and common
        equivalent shares                          $0.43            $0.39
 
 
                TOLLGRADE COMMUNICATIONS, INC. AND SUBSIDIARIES
                     Condensed Consolidated Balance Sheets
                                 (In thousands)
 
                                                 Mar. 31,        Dec. 31,
                                                   2001            2000
     ASSETS
 
     Current assets:
       Cash and cash equivalents                 $44,287          $30,424
       Short-term investments                     26,134           28,406
       Accounts receivable:
         Trade                                    20,008           18,776
         Other                                       770              814
       Inventories                                30,236           30,499
       Prepaid expenses and deposits                 549              787
       Deferred and refundable tax assets          1,876            9,934
          Total current assets                   123,860          119,640
 
     Long-term investments                         3,925            2,750
     Property and equipment, net                   6,994            6,504
     Deferred tax assets                           2,512            2,381
 
 
          Total assets                          $137,291         $131,275
 
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
 
     Current liabilities:
       Accounts payable                             $373           $1,874
       Accrued expenses                            2,160            1,938
       Accrued salaries and wages                    657            2,813
       Royalties payable                             882            1,143
       Income taxes payable                        4,261              637
       Deferred income                               100              100
          Total current liabilities                8,433            8,505
     Deferred tax liabilities                         10               10
          Total liabilities                        8,443            8,515
 
     Total shareholders' equity                  128,848          122,760
 
          Total liabilities and shareholders'
           equity                               $137,291         $131,275
 
 
 
                TOLLGRADE COMMUNICATIONS, INC. AND SUBSIDIARIES
                 Condensed Consolidated Statement of Cash Flows
                                 (In thousands)
 
                                                    Three Months Ended
                                                 Mar. 31,         Apr. 1,
                                                   2001             2000
     Cash flows from operating activities:
     Net income                                   $5,755           $5,225
     Adjustments to reconcile net income to
      net cash provided by operating activities:
       Depreciation and amortization                 581              375
       Deferred income taxes                        (223)              --
     Changes in assets and liabilities:
       Increase in accounts receivable-trade      (1,232)            (668)
       Decrease (increase) in accounts
        receivable-other                              44             (159)
       Decrease (increase) in inventories            263           (2,824)
       Decrease (increase) in prepaid expenses
        and other assets                             238              (64)
       (Decrease) increase in accounts payable    (1,501)           1,297
       Increase in accrued expenses and
        deferred income                              222            1,380
       (Decrease) increase in royalties payable     (260)             151
       Decrease in accrued salaries and wages     (2,156)          (1,166)
       Increase (decrease) in income taxes
        payable                                    3,624              (34)
          Net cash provided by operating
           activities                              5,355            3,513
     Cash flows from investing activities:
       Redemption/maturity of investments          7,003            2,328
       Purchase of investments                    (5,907)          (9,192)
       Capital expenditures                       (1,071)          (1,181)
          Net cash provided by (used in)
           investing activities                       25           (8,045)
     Cash flows from financing activities:
       Proceeds from exercise of stock options
        including related tax benefits               333            7,042
       Refund of prior year income taxes paid
        due to the exercise of stock options       8,150               --
          Net cash provided by financing
           activities                              8,483            7,042
     Net increase in cash and cash equivalents    13,863            2,510
     Cash and cash equivalents at beginning
      of period                                   30,424           15,556
     Cash and cash equivalents at end of period  $44,287          $18,066
 
 
     MCU(R) is a registered trademark of Tollgrade Communications, Inc.
     LIGHTHOUSE(R) is a registered trademark of Tollgrade Communications, Inc.
     DigiTest(R) is a registered trademark of Tollgrade Communications, Inc.
 
 

SOURCE Tollgrade Communications, Inc.
    PITTSBURGH, April 19 /PRNewswire/ --
     Tollgrade Communications, Inc. (Nasdaq:   TLGD) today reported a 24.9%
 increase in first quarter revenue and a 10.3% increase in earnings per share
 for the period that ended March 31, 2001 as compared to the similar quarter in
 the prior year.  At the same time, the company announced a cost realignment
 initiative that will likely yield about $4,300,000 in annual pre-tax savings.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19990920/TLGDLOGO )
     First quarter revenue grew to $27,990,002 from $22,417,535 in 2000.  Net
 income increased 10.2% to $5,755,169, from $5,224,614 in the prior-year
 quarter.  Diluted earnings per share rose to $.43 per share from $.39 per
 share in the year-ago quarter.
     The strong revenue growth reflected:
      -- Increased sales of core MCU(R) products to Verizon, SBC and BellSouth.
          The increase in sales to Verizon and BellSouth related primarily to
          special incentive programs within their regional networks to improve
          testability rates system-wide.  The increase in sales to SBC related
          primarily to Project Pronto, its program to roll out DSL service.
          Sales of MCU technology represented 65.4% of total revenue for the
          quarter.
      -- Higher sales of Tollgrade's DigiTest(R) system products to Nortel
          Networks.  Overall sales of DigiTest Products represented 18.1% of
          total revenue for the quarter.
      -- Initial sales of the company's new DigiTest Access Unit (DAU), a test
          access device, to Sprint USA.  Overall sales of test access products
          represented 5% of total revenue for the quarter.
      -- Sales of Tollgrade's LIGHTHOUSE(R) Cable Status Monitoring system
          represented 5% of first quarter revenue.
      -- Shipment of a one-time order of our Broadcast Program Channel Units,
          for use at the Salt Lake City Winter Olympic Games, which represented
          $1,300,000 in revenue.
     Gross profit increased 11.9% to $15,715,719 from $14,045,875 in the first
 quarter of 2000.  As a percentage of sales, gross profit was 56.1% versus
 62.7% a year ago, primarily due to product costs associated with the
 introduction of the new DAU product; lower margins associated with the sale of
 the Broadcast Program Channel Units; and an increase in allocated unit costs
 arising from lower production volume.  Income from operations rose 8.9% to
 $8,376,202 from $7,693,801 in the first quarter of 2000.
     Operating details, compared to the first quarter of 2000, include:
      -- Selling and marketing expenses increased 2.8% to $2,449,824,
          reflecting primarily the hiring of additional sales, marketing and
          customer support personnel over the past year.  This was offset in
          part by reduced spending on general advertising, promotion and
          related marketing activities.
      -- General and administrative expenses increased 11.1% to $1,530,152
          primarily associated with an increase in the contingency provision
          for potential bad debts and an increase in proxy solicitation and
          distribution-related costs.
      -- Research and development expenses increased 29.7% to $3,359,541, due
          to the addition of personnel and related costs associated with
          developing new products and new technologies, and enhancing features
          of existing products.
     Order backlog, which consists of firm customer purchase orders, was
 $5,605,349 as of March 31, 2001.  This compares to $8,224,460 at December 31,
 2000.  Approximately 60% of current backlog is currently scheduled for
 shipment in the second quarter of 2001.
 
     Cost Realignment Program
     Tollgrade Chairman and Chief Executive Officer Chris Allison said today:
 "After unprecedented growth last year, Tollgrade has entered a period where we
 believe the key to future growth will be to build on our strong foundation of
 core technologies, products and people, and to manage costs prudently.  In the
 first quarter, we took significant steps to control discretionary costs, and
 we gave our markets every opportunity to rebound.  Today Tollgrade is
 announcing a realignment initiative to streamline our operations and maintain
 a healthy margin level, while controlling costs.  Our goal is to become a more
 nimble, focused and efficient company that is better positioned to achieve
 sustainable growth and meet our customers' needs."
     The realignment will reduce Tollgrade's work force by approximately
 80 positions, primarily in general, administrative, research and development
 and support areas.  After the realignment, Tollgrade expects to employ 296,
 which is about the size of the company's work force at the beginning of 2000.
 Tollgrade announced that it expects recurring annual pre-tax savings of
 approximately $4,300,000.  This equates to a savings of approximately $.20 per
 share on an annual basis.  The company expects to record a charge for
 severance, outplacement and other related costs of approximately $400,000 or
 $.02 per share in the second quarter of 2001.
     Tollgrade also reported that Allison asked the Board of Directors to
 reduce his salary by 20% effective immediately and eliminate any bonuses that
 would be payable to him for fiscal 2001.
 
     Expectations for Second Quarter and Beyond
     Reflecting the effect of general market conditions and order trends,
 Tollgrade today announced revised expectations for the second quarter and the
 remainder of 2001.
     "We anticipate that the remainder of 2001 will be a period of transition
 for Tollgrade and other telecommunications equipment manufacturers as the
 industry experiences a general downturn in orders," said Allison.  "We remain
 confident that our long-term strategy of meeting the POTS and DSL testing
 needs of the nation's leading local exchange carriers will position the
 company well for the future."
     As a result, Tollgrade anticipates approximate second quarter earnings per
 share of $.27-$.33 before severance, outplacement and other related charges
 and second quarter revenue of $20-$22 million.  A year ago, Tollgrade reported
 earnings per share of $.54 and revenue of $29,666,710 in the second quarter.
     "As we entered 2001, we anticipated revenue growth of 10-12%.
 Unfortunately, the rapid first quarter downturn in the U.S. economy, has had a
 dramatic effect on capital spending across all industries, including the
 telecommunications and cable television industries," Allison said.  "As a
 result, order visibility has declined and we can no longer assume near-term
 growth from our core markets.  Predicting with any level of certainty beyond
 the second quarter is not possible."
     Allison added, "In light of the current economic environment, Tollgrade is
 intensifying our focus on preserving our leadership position in our markets,
 which means renewed focus on continued development and marketing of our core
 technologies.  It also includes investing in staff as it relates to our
 Professional Services area for MCU testability improvement initiatives."
     "The potential of fiber optic, hybrid fiber coax and digital subscriber
 line technologies support our strategy to capitalize on opportunities in these
 areas through our MCU, LIGHTHOUSE and DigiTest technologies," added Allison.
 "And the steady growth of Plain Old Telephone Service (POTS) access line count
 further bolsters our long-term view of the future for both MCU and DigiTest."
     Tollgrade Communications, Inc., designs, engineers, markets and supports
 test system, test access and status monitoring products for the
 telecommunications and cable television industries.  Tollgrade, which is
 headquartered in Cheswick, Pa., a suburb of Pittsburgh, recorded 2000 revenues
 of $114.4 million.  The company maintains a presence in regions across the
 United States and in the United Kingdom.  Tollgrade's World Wide Web address
 is www.tollgrade.com.
 
     Statements included here, which are not historical in nature, are forward-
 looking statements made pursuant to the safe harbor provisions of the Private
 Securities Litigation Reform Act of 1995, including without limitation,
 statements as to management's beliefs, strategies, plans, expectations or
 opinions in connection with company performance, which are based on a number
 of assumptions concerning future conditions that may ultimately prove to be
 inaccurate.  The forward-looking statements must be qualified by important
 factors that could cause actual earnings and other results to differ
 materially from those achieved in the past or those expected by the company.
 These include: customers' ability to meet established purchase forecasts and
 their own growth projections; the ability of certain customers to maintain
 financial strength and access to capital; the ability for sales and marketing
 partners to meet their own performance objectives and provide vendor financing
 to certain local exchange carriers; rapid technological change along with the
 need to continually develop new products; the company's focus on a relatively
 narrow range of products; competition; the company's dependence on key
 employees and the ability to continue to recruit appropriate personnel;
 difficulties in managing the company's growth; the company's dependence upon
 certain customers and certain suppliers and contract manufacturers; potential
 consolidation and combinations within the company's customers; the company's
 dependence upon proprietary rights; risks of third party claims of
 infringement; and government regulation.  Statements included here speak as of
 the date of this release, and the company disclaims any duty to update.
 
 
                TOLLGRADE COMMUNICATIONS, INC. AND SUBSIDIARIES
                Condensed Consolidated Statements of Operations
                     (In thousands, except per-share data)
 
                                                     Three Months Ended
                                                 03/31/01        04/01/00
     Revenues                                    $27,990          $22,418
 
     Cost of product sales                        12,274            8,372
 
     Gross profit                                 15,716           14,046
 
     Operating expenses:
       Selling and marketing                       2,450            2,384
       General and administrative                  1,530            1,378
       Research and development                    3,360            2,590
          Total operating expenses                 7,340            6,352
 
     Income from operations                        8,376            7,694
 
     Other income                                    907              470
 
     Income before income taxes                    9,283            8,164
     Provision for income taxes                    3,528            2,939
          Net income                              $5,755           $5,225
 
     Diluted earnings per-share information:
     Weighted average shares of common stock
      and equivalents:                            13,377           13,546
       Net income per common and common
        equivalent shares                          $0.43            $0.39
 
 
                TOLLGRADE COMMUNICATIONS, INC. AND SUBSIDIARIES
                     Condensed Consolidated Balance Sheets
                                 (In thousands)
 
                                                 Mar. 31,        Dec. 31,
                                                   2001            2000
     ASSETS
 
     Current assets:
       Cash and cash equivalents                 $44,287          $30,424
       Short-term investments                     26,134           28,406
       Accounts receivable:
         Trade                                    20,008           18,776
         Other                                       770              814
       Inventories                                30,236           30,499
       Prepaid expenses and deposits                 549              787
       Deferred and refundable tax assets          1,876            9,934
          Total current assets                   123,860          119,640
 
     Long-term investments                         3,925            2,750
     Property and equipment, net                   6,994            6,504
     Deferred tax assets                           2,512            2,381
 
 
          Total assets                          $137,291         $131,275
 
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
 
     Current liabilities:
       Accounts payable                             $373           $1,874
       Accrued expenses                            2,160            1,938
       Accrued salaries and wages                    657            2,813
       Royalties payable                             882            1,143
       Income taxes payable                        4,261              637
       Deferred income                               100              100
          Total current liabilities                8,433            8,505
     Deferred tax liabilities                         10               10
          Total liabilities                        8,443            8,515
 
     Total shareholders' equity                  128,848          122,760
 
          Total liabilities and shareholders'
           equity                               $137,291         $131,275
 
 
 
                TOLLGRADE COMMUNICATIONS, INC. AND SUBSIDIARIES
                 Condensed Consolidated Statement of Cash Flows
                                 (In thousands)
 
                                                    Three Months Ended
                                                 Mar. 31,         Apr. 1,
                                                   2001             2000
     Cash flows from operating activities:
     Net income                                   $5,755           $5,225
     Adjustments to reconcile net income to
      net cash provided by operating activities:
       Depreciation and amortization                 581              375
       Deferred income taxes                        (223)              --
     Changes in assets and liabilities:
       Increase in accounts receivable-trade      (1,232)            (668)
       Decrease (increase) in accounts
        receivable-other                              44             (159)
       Decrease (increase) in inventories            263           (2,824)
       Decrease (increase) in prepaid expenses
        and other assets                             238              (64)
       (Decrease) increase in accounts payable    (1,501)           1,297
       Increase in accrued expenses and
        deferred income                              222            1,380
       (Decrease) increase in royalties payable     (260)             151
       Decrease in accrued salaries and wages     (2,156)          (1,166)
       Increase (decrease) in income taxes
        payable                                    3,624              (34)
          Net cash provided by operating
           activities                              5,355            3,513
     Cash flows from investing activities:
       Redemption/maturity of investments          7,003            2,328
       Purchase of investments                    (5,907)          (9,192)
       Capital expenditures                       (1,071)          (1,181)
          Net cash provided by (used in)
           investing activities                       25           (8,045)
     Cash flows from financing activities:
       Proceeds from exercise of stock options
        including related tax benefits               333            7,042
       Refund of prior year income taxes paid
        due to the exercise of stock options       8,150               --
          Net cash provided by financing
           activities                              8,483            7,042
     Net increase in cash and cash equivalents    13,863            2,510
     Cash and cash equivalents at beginning
      of period                                   30,424           15,556
     Cash and cash equivalents at end of period  $44,287          $18,066
 
 
     MCU(R) is a registered trademark of Tollgrade Communications, Inc.
     LIGHTHOUSE(R) is a registered trademark of Tollgrade Communications, Inc.
     DigiTest(R) is a registered trademark of Tollgrade Communications, Inc.
 
 SOURCE  Tollgrade Communications, Inc.

RELATED LINKS

http://www.tollgrade.com