Verilink Reports Fiscal Third Quarter Results

Apr 18, 2001, 01:00 ET from Verilink Corporation

    HUNTSVILLE, Ala., April 18 /PRNewswire/ --
 Verilink Corporation (Nasdaq: VRLK), a leading supplier of communications
 products that enable enhanced monitoring and control of next-generation
 packet-based networks, today reported its financial results for the third
 quarter of its fiscal year 2001.
     Net sales for the quarter were $10.3 million, down 42% from net sales of
 $17.8 million in the third quarter of fiscal 2000.  Sequentially, third
 quarter sales increased 14% from net sales of $9.0 million in second quarter
 of fiscal 2001.  The Company reported a net loss of $3.6 million in the third
 quarter, compared to a net profit of $1.8 in the comparable prior year period.
 This translates to a basic and diluted loss per share of ($0.24) for the third
 quarter of fiscal 2001, versus a third quarter of fiscal 2000 net profit of
 $0.13 per share basic and $0.11 per share diluted.
     The Company experienced a continuation of the softness that characterized
 the first and second fiscal quarters.  President and CEO Graham Pattison said,
 "The slowdown that started nine months ago in network rollout and capital
 spending is ongoing and the impact to our business remains with wireless and
 Telco infrastructure sales to a number of our largest customers."  He added
 that, "On a positive note, the third quarter results exceeded our quarter-ago
 outlook with quarter-over-quarter revenue growth of 14 percent, and we did see
 benefits from our organizational changes aimed at improving coverage and
 support for our indirect channels."
     Verilink's cash and short-term investment position ended the quarter at
 $11.1 million, down from $13.3 million in the prior quarter.
     A live Webcast of a conference call discussing Verilink's results and
 outlook will take place on Apr. 18th at 4:00 p.m. CDT and is available on the
 Internet by visiting
 
     http://www.videonewswire.com/VERILINK/041801/
 
     Instructions for listening, including the URL address and technical
 requirements are contained in the Company's press release dated Apr. 13, 2001
 and may be found on the Company's website.  A replay of the conference will be
 available on the PRNewswire website for 90 days.
 
     About Verilink Corporation
     Verilink provides business-to-business connectivity solutions for the
 'last mile' allowing network service providers to connect their enterprise
 customers over broadband access services such as T1, DSL, and Fiber, with a
 focus on application monitoring and control, increasing network visibility for
 next generation access networks from anywhere at anytime.  The Company's
 headquarters are located at 950 Explorer Blvd., Huntsville, AL 35806.
 Verilink stock trades on the Nasdaq National Market under the symbol VRLK.  To
 learn more about Verilink, visit the web site at www.verilink.com .
     Note: Statements in this press release that are not historical facts are
 forward looking and actual results could differ materially.  Among the factors
 that could cause actual results to differ are the impact of customer
 concentration, changes in expected orders toward the end of the fiscal period,
 and unforeseen changes in demand for the Company's products.  Readers should
 also refer to the risk disclosures outlined in the Company's Securities and
 Exchange Commission reports, including the latest Annual Report on Form 10-K
 and Form 10-Q for the prior quarters.  The Company disclaims any duty to
 update the forward-looking statements contained herein, except as may be
 required by law.
     Verilink and the Verilink logo are registered trademarks of Verilink
 Corporation. All other trademarks or registered trademarks are the property of
 the respective owners.
     For more information: Beverly McCorkle, Verilink Corporation
 Ph. 256.327.2344 FAX 256.327.2844 bmccorkle@verilink.com
 Michael Becce, MRB Public Relations, Inc.  Ph. 732.758.1100 FAX 732.758.1130
 www.mrb-pr.com .
 
 
                              VERILINK CORPORATION
 
     Summary Consolidated Financial Statements (thousands except per share
      amounts)
 
                            Three months ended            Nine months ended
     CONSOLIDATED          March 30,     March 31,     March 30,     March 31,
      STATEMENTS OF          2001          2000          2001          2000
      OPERATIONS         (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)
 
     Net sales              $10,290       $17,822      $31,155       $48,857
     Cost of sales            6,305         8,569       17,391        25,380
     Gross Profit             3,985         9,253       13,764        23,477
     Research and development 3,461         1,743       16,551         7,078
     Selling, general and
       administrative         4,239         5,913       14,407        17,009
     Restructuring and other
       non-recurring charges    ---           ---          ---         8,300
     Operating income (loss) (3,715)        1,597      (17,194)       (8,910)
     Interest and other
       income, net               95           203          716           596
     Income (loss) before
       provision for
       income taxes          (3,620)        1,800      (16,478)       (8,314)
     Provision for income taxes ---           ---        6,311           ---
     Net income (loss)      $(3,620)       $1,800     $(22,789)       (8,314)
     Net income (loss) per
       share - Basic         $(0.24)        $0.13       $(1.53)       $(0.59)
     Net income (loss) per
       share - Diluted       $(0.24)        $0.11       $(1.53)       $(0.59)
     Shares used to compute
       net income (loss) per
       share - Basic         15,312        14,301       14,915        14,074
     Shares used to compute
       net income (loss) per
       share - Diluted       15,312        15,896       14,915        14,074
 
 
     CONSOLIDATED BALANCE SHEETS                      March 30,
                                                         2001        June 30,
                                                     (Unaudited)        2000
     Current assets:
       Cash and cash equivalents                      $10,603         $6,617
       Restricted cash                                    500            500
       Short-term investments                             516          4,079
       Accounts receivable, net                         4,895         15,233
       Notes receivable                                 2,072          1,440
       Other receivable                                   223            515
       Inventories                                      4,760          4,840
       Deferred tax assets                                ---          2,638
       Other current assets                               232            575
     Total current assets                              23,801         36,437
     Property, plant and equipment, net                14,063         10,790
     Restricted cash, long-term                           500            500
     Notes receivable, long-term                        1,518          2,276
     Deferred tax assets                                  ---          4,828
     Other assets                                       4,175          3,889
     Total assets                                     $44,057        $58,720
 
     Current liabilities                               $6,998        $10,085
     Long-term debt                                     5,797          3,521
     Stockholders' equity                              31,262         45,114
     Total liabilities and stockholders' equity       $44,057        $58,720
 
 

SOURCE Verilink Corporation
    HUNTSVILLE, Ala., April 18 /PRNewswire/ --
 Verilink Corporation (Nasdaq: VRLK), a leading supplier of communications
 products that enable enhanced monitoring and control of next-generation
 packet-based networks, today reported its financial results for the third
 quarter of its fiscal year 2001.
     Net sales for the quarter were $10.3 million, down 42% from net sales of
 $17.8 million in the third quarter of fiscal 2000.  Sequentially, third
 quarter sales increased 14% from net sales of $9.0 million in second quarter
 of fiscal 2001.  The Company reported a net loss of $3.6 million in the third
 quarter, compared to a net profit of $1.8 in the comparable prior year period.
 This translates to a basic and diluted loss per share of ($0.24) for the third
 quarter of fiscal 2001, versus a third quarter of fiscal 2000 net profit of
 $0.13 per share basic and $0.11 per share diluted.
     The Company experienced a continuation of the softness that characterized
 the first and second fiscal quarters.  President and CEO Graham Pattison said,
 "The slowdown that started nine months ago in network rollout and capital
 spending is ongoing and the impact to our business remains with wireless and
 Telco infrastructure sales to a number of our largest customers."  He added
 that, "On a positive note, the third quarter results exceeded our quarter-ago
 outlook with quarter-over-quarter revenue growth of 14 percent, and we did see
 benefits from our organizational changes aimed at improving coverage and
 support for our indirect channels."
     Verilink's cash and short-term investment position ended the quarter at
 $11.1 million, down from $13.3 million in the prior quarter.
     A live Webcast of a conference call discussing Verilink's results and
 outlook will take place on Apr. 18th at 4:00 p.m. CDT and is available on the
 Internet by visiting
 
     http://www.videonewswire.com/VERILINK/041801/
 
     Instructions for listening, including the URL address and technical
 requirements are contained in the Company's press release dated Apr. 13, 2001
 and may be found on the Company's website.  A replay of the conference will be
 available on the PRNewswire website for 90 days.
 
     About Verilink Corporation
     Verilink provides business-to-business connectivity solutions for the
 'last mile' allowing network service providers to connect their enterprise
 customers over broadband access services such as T1, DSL, and Fiber, with a
 focus on application monitoring and control, increasing network visibility for
 next generation access networks from anywhere at anytime.  The Company's
 headquarters are located at 950 Explorer Blvd., Huntsville, AL 35806.
 Verilink stock trades on the Nasdaq National Market under the symbol VRLK.  To
 learn more about Verilink, visit the web site at www.verilink.com .
     Note: Statements in this press release that are not historical facts are
 forward looking and actual results could differ materially.  Among the factors
 that could cause actual results to differ are the impact of customer
 concentration, changes in expected orders toward the end of the fiscal period,
 and unforeseen changes in demand for the Company's products.  Readers should
 also refer to the risk disclosures outlined in the Company's Securities and
 Exchange Commission reports, including the latest Annual Report on Form 10-K
 and Form 10-Q for the prior quarters.  The Company disclaims any duty to
 update the forward-looking statements contained herein, except as may be
 required by law.
     Verilink and the Verilink logo are registered trademarks of Verilink
 Corporation. All other trademarks or registered trademarks are the property of
 the respective owners.
     For more information: Beverly McCorkle, Verilink Corporation
 Ph. 256.327.2344 FAX 256.327.2844 bmccorkle@verilink.com
 Michael Becce, MRB Public Relations, Inc.  Ph. 732.758.1100 FAX 732.758.1130
 www.mrb-pr.com .
 
 
                              VERILINK CORPORATION
 
     Summary Consolidated Financial Statements (thousands except per share
      amounts)
 
                            Three months ended            Nine months ended
     CONSOLIDATED          March 30,     March 31,     March 30,     March 31,
      STATEMENTS OF          2001          2000          2001          2000
      OPERATIONS         (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)
 
     Net sales              $10,290       $17,822      $31,155       $48,857
     Cost of sales            6,305         8,569       17,391        25,380
     Gross Profit             3,985         9,253       13,764        23,477
     Research and development 3,461         1,743       16,551         7,078
     Selling, general and
       administrative         4,239         5,913       14,407        17,009
     Restructuring and other
       non-recurring charges    ---           ---          ---         8,300
     Operating income (loss) (3,715)        1,597      (17,194)       (8,910)
     Interest and other
       income, net               95           203          716           596
     Income (loss) before
       provision for
       income taxes          (3,620)        1,800      (16,478)       (8,314)
     Provision for income taxes ---           ---        6,311           ---
     Net income (loss)      $(3,620)       $1,800     $(22,789)       (8,314)
     Net income (loss) per
       share - Basic         $(0.24)        $0.13       $(1.53)       $(0.59)
     Net income (loss) per
       share - Diluted       $(0.24)        $0.11       $(1.53)       $(0.59)
     Shares used to compute
       net income (loss) per
       share - Basic         15,312        14,301       14,915        14,074
     Shares used to compute
       net income (loss) per
       share - Diluted       15,312        15,896       14,915        14,074
 
 
     CONSOLIDATED BALANCE SHEETS                      March 30,
                                                         2001        June 30,
                                                     (Unaudited)        2000
     Current assets:
       Cash and cash equivalents                      $10,603         $6,617
       Restricted cash                                    500            500
       Short-term investments                             516          4,079
       Accounts receivable, net                         4,895         15,233
       Notes receivable                                 2,072          1,440
       Other receivable                                   223            515
       Inventories                                      4,760          4,840
       Deferred tax assets                                ---          2,638
       Other current assets                               232            575
     Total current assets                              23,801         36,437
     Property, plant and equipment, net                14,063         10,790
     Restricted cash, long-term                           500            500
     Notes receivable, long-term                        1,518          2,276
     Deferred tax assets                                  ---          4,828
     Other assets                                       4,175          3,889
     Total assets                                     $44,057        $58,720
 
     Current liabilities                               $6,998        $10,085
     Long-term debt                                     5,797          3,521
     Stockholders' equity                              31,262         45,114
     Total liabilities and stockholders' equity       $44,057        $58,720
 
 SOURCE  Verilink Corporation