VINA Technologies Announces Q1 2001 Financial Results

Q1 2001 Revenue Increased by 113% From Q1 2000



Apr 24, 2001, 01:00 ET from VINA Technologies, Inc.

    NEWARK, Calif., April 24 /PRNewswire Interactive News Release/ --
 VINA Technologies, Inc. (Nasdaq:   VINA) today reported financial results for
 the first quarter ended March 31, 2001.  Revenue for the first quarter of 2001
 was $11.0 million, up 113 percent from $5.2 million reported in the
 first quarter of 2000.
     Excluding stock-based compensation, acquisition related charges and a
 provision for excess inventory purchase commitments of $1.8 million, pro forma
 net loss for the first quarter of 2001 was $6.0 million or $0.19 per share,
 compared with a pro forma net loss, excluding stock-based compensation, of
 $4.2 million or $0.18 per share for the first quarter of 2000.  The provision
 for excess inventory purchase commitments was primarily a result of a shift in
 our customers' demands from next generation ATM networks to traditional TDM
 networks.
     During the first quarter of 2001, VINA completed the acquisition of
 Woodwind Communication Systems.  VINA took a one-time charge for purchased
 in-process technology of $5.1 million and, together with amortization of
 acquisition related intangible assets of $.8 million, acquisition related
 charges increased VINA's net loss by approximately $0.19 per share in the
 first quarter of 2001.
     Net loss for the quarter, including stock-based compensation, acquisition
 related charges and the provision for excess inventory purchase commitments
 was $18.6 million, or $0.60 per share, compared to a net loss of $7.8 million,
 or $1.12 per share, reported in the same period last year.
     "VINA's focused execution allowed us to achieve our 7th consecutive
 quarter of revenue growth despite a challenging environment," said
 Steve Bauman, president and CEO of VINA Technologies.  "Our strategy to offer
 service providers the ability to meet their customers' demands regardless of
 technology, is working.  In addition, I am excited that our MBX-1000 central
 office product was recently shipped to beta.  I believe this expands VINA's
 role in providing broadband access solutions for the first mile."
     All pro forma per share amounts above assumes the conversion of all
 convertible preferred stock into common stock as if such conversion occurred
 at the date of original issuance.
 
     About VINA Technologies
     VINA Technologies creates broadband access solutions that allow
 communications service providers to extend the benefits of their core-network
 technology to the technologically underserved edge of the network.  By
 converging voice and data on existing network infrastructures, service
 providers can quickly implement new value-added services, reduce operational
 costs and increase their revenue opportunities.
     With VINA solutions, service providers can protect their investment in
 their existing networks while migrating from circuit-switched to
 packet-switched communications.  VINA solutions are protocol-independent
 enabling customers to migrate smoothly from existing technologies such as TDM
 to emerging technologies such as ATM or IP on one open, scalable platform.
 
     First Quarter 2001 Earnings Conference Call
     VINA Technologies' first quarter 2001 earnings conference call will be
 held on Tuesday, April 24 at 1:30 p.m. PDT/4:30 p.m. EDT.  To participate in
 the call, please dial 712-257-0402.  A replay of the call will be available
 for one week at 402-998-1080.  A webcast of the conference call will be
 available on www.vina-tech.com.
 
     Safe Harbor Statement
     Except for the historical information contained herein, the matters set
 forth in this press release are forward-looking statements within the meaning
 of the "safe harbor" provisions of the Private Securities Litigation Reform
 Act of 1995.  These forward-looking statements are subject to risks and
 uncertainties that may cause actual results to differ materially, including
 limited customer acceptance of VINA's products, changing customer
 requirements, the broadband access market growth, the ability to meet
 scheduled product deliveries, competition and other risks detailed from time
 to time in VINA's reports filed with the SEC, including its report on
 Form 10-K for the year ended December 31, 2000.  VINA disclaims any obligation
 to update these forward-looking statements.
 
     VINA Technologies, Inc.
     CONDENSED CONSOLIDATED BALANCE SHEETS
     (IN THOUSANDS)
     (Unaudited)
 
                                                     March 31,       Dec. 31,
                                                       2001            2000
 
     ASSETS
     Current Assets:
      Cash, cash equivalents and investments          $35,470        $44,499
      Accounts receivable, net                          7,133          5,243
      Inventories                                       1,687          1,973
      Prepaid expenses and other                        1,910          2,649
     Total current assets                              46,200         54,364
 
     Property and equipment, net                        4,967          4,096
     Other assets                                         211             76
     Intangible assets, net                            38,626             --
     TOTAL ASSETS                                     $90,004        $58,536
 
     LIABILITIES & STOCKHOLDERS' EQUITY
     Current Liabilities:
      Accounts payable                                 $9,230         $8,536
      Other current liabilities                         6,240          5,171
     Total current liabilities                         15,470         13,707
     Deferred income taxes                              1,966             --
     Total stockholders' equity                        72,568         44,829
     TOTAL LIABILITIES & STOCKHOLDERS' EQUITY         $90,004        $58,536
 
 
     VINA Technologies, Inc.
     (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
     (UNAUDITED)
                                                        Three Months Ended
                                                             March 31,
                                                       2001            2000
 
     Net revenue                                      $11,029         $5,187
     Cost of revenue                                    8,246          3,239
     Gross profit                                       2,783          1,948
     Costs and expenses:
      Research and development                          4,705          2,505
      Selling, general and administrative               6,511          3,721
      Stock based compensation                          4,843          3,653
      Purchased In-process technology                   5,081             --
      Amortization of intangible assets                   830             --
 
     Total costs and expenses                          21,970          9,879
     Loss from operations                            (19,187)        (7,931)
      Other income - net                                  612            126
     Net loss                                       ($18,575)       ($7,805)
 
     Net loss per share                               ($0.60)        ($1.12)
     Shares used (basic and diluted)                   31,084          6,957
 
     Pro forma net loss per share (A)                 ($0.19)        ($0.18)
     Shares used (basic and diluted)-pro-forma (B)     31,084         23,278
 
     (A) Pro forma net loss excludes the impact of the $1.8 million provision
 for excess inventory purchase commitments, stock based compensation, purchased
 in-process technology and amortization of intangible assets.
     (B) Shares used in the pro forma computations for 2000 include the
 weighted average number of shares resulting from the assumed conversion of
 convertible preferred stock.
 
                      MAKE YOUR OPINION COUNT - Click Here
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SOURCE VINA Technologies, Inc.
    NEWARK, Calif., April 24 /PRNewswire Interactive News Release/ --
 VINA Technologies, Inc. (Nasdaq:   VINA) today reported financial results for
 the first quarter ended March 31, 2001.  Revenue for the first quarter of 2001
 was $11.0 million, up 113 percent from $5.2 million reported in the
 first quarter of 2000.
     Excluding stock-based compensation, acquisition related charges and a
 provision for excess inventory purchase commitments of $1.8 million, pro forma
 net loss for the first quarter of 2001 was $6.0 million or $0.19 per share,
 compared with a pro forma net loss, excluding stock-based compensation, of
 $4.2 million or $0.18 per share for the first quarter of 2000.  The provision
 for excess inventory purchase commitments was primarily a result of a shift in
 our customers' demands from next generation ATM networks to traditional TDM
 networks.
     During the first quarter of 2001, VINA completed the acquisition of
 Woodwind Communication Systems.  VINA took a one-time charge for purchased
 in-process technology of $5.1 million and, together with amortization of
 acquisition related intangible assets of $.8 million, acquisition related
 charges increased VINA's net loss by approximately $0.19 per share in the
 first quarter of 2001.
     Net loss for the quarter, including stock-based compensation, acquisition
 related charges and the provision for excess inventory purchase commitments
 was $18.6 million, or $0.60 per share, compared to a net loss of $7.8 million,
 or $1.12 per share, reported in the same period last year.
     "VINA's focused execution allowed us to achieve our 7th consecutive
 quarter of revenue growth despite a challenging environment," said
 Steve Bauman, president and CEO of VINA Technologies.  "Our strategy to offer
 service providers the ability to meet their customers' demands regardless of
 technology, is working.  In addition, I am excited that our MBX-1000 central
 office product was recently shipped to beta.  I believe this expands VINA's
 role in providing broadband access solutions for the first mile."
     All pro forma per share amounts above assumes the conversion of all
 convertible preferred stock into common stock as if such conversion occurred
 at the date of original issuance.
 
     About VINA Technologies
     VINA Technologies creates broadband access solutions that allow
 communications service providers to extend the benefits of their core-network
 technology to the technologically underserved edge of the network.  By
 converging voice and data on existing network infrastructures, service
 providers can quickly implement new value-added services, reduce operational
 costs and increase their revenue opportunities.
     With VINA solutions, service providers can protect their investment in
 their existing networks while migrating from circuit-switched to
 packet-switched communications.  VINA solutions are protocol-independent
 enabling customers to migrate smoothly from existing technologies such as TDM
 to emerging technologies such as ATM or IP on one open, scalable platform.
 
     First Quarter 2001 Earnings Conference Call
     VINA Technologies' first quarter 2001 earnings conference call will be
 held on Tuesday, April 24 at 1:30 p.m. PDT/4:30 p.m. EDT.  To participate in
 the call, please dial 712-257-0402.  A replay of the call will be available
 for one week at 402-998-1080.  A webcast of the conference call will be
 available on www.vina-tech.com.
 
     Safe Harbor Statement
     Except for the historical information contained herein, the matters set
 forth in this press release are forward-looking statements within the meaning
 of the "safe harbor" provisions of the Private Securities Litigation Reform
 Act of 1995.  These forward-looking statements are subject to risks and
 uncertainties that may cause actual results to differ materially, including
 limited customer acceptance of VINA's products, changing customer
 requirements, the broadband access market growth, the ability to meet
 scheduled product deliveries, competition and other risks detailed from time
 to time in VINA's reports filed with the SEC, including its report on
 Form 10-K for the year ended December 31, 2000.  VINA disclaims any obligation
 to update these forward-looking statements.
 
     VINA Technologies, Inc.
     CONDENSED CONSOLIDATED BALANCE SHEETS
     (IN THOUSANDS)
     (Unaudited)
 
                                                     March 31,       Dec. 31,
                                                       2001            2000
 
     ASSETS
     Current Assets:
      Cash, cash equivalents and investments          $35,470        $44,499
      Accounts receivable, net                          7,133          5,243
      Inventories                                       1,687          1,973
      Prepaid expenses and other                        1,910          2,649
     Total current assets                              46,200         54,364
 
     Property and equipment, net                        4,967          4,096
     Other assets                                         211             76
     Intangible assets, net                            38,626             --
     TOTAL ASSETS                                     $90,004        $58,536
 
     LIABILITIES & STOCKHOLDERS' EQUITY
     Current Liabilities:
      Accounts payable                                 $9,230         $8,536
      Other current liabilities                         6,240          5,171
     Total current liabilities                         15,470         13,707
     Deferred income taxes                              1,966             --
     Total stockholders' equity                        72,568         44,829
     TOTAL LIABILITIES & STOCKHOLDERS' EQUITY         $90,004        $58,536
 
 
     VINA Technologies, Inc.
     (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
     (UNAUDITED)
                                                        Three Months Ended
                                                             March 31,
                                                       2001            2000
 
     Net revenue                                      $11,029         $5,187
     Cost of revenue                                    8,246          3,239
     Gross profit                                       2,783          1,948
     Costs and expenses:
      Research and development                          4,705          2,505
      Selling, general and administrative               6,511          3,721
      Stock based compensation                          4,843          3,653
      Purchased In-process technology                   5,081             --
      Amortization of intangible assets                   830             --
 
     Total costs and expenses                          21,970          9,879
     Loss from operations                            (19,187)        (7,931)
      Other income - net                                  612            126
     Net loss                                       ($18,575)       ($7,805)
 
     Net loss per share                               ($0.60)        ($1.12)
     Shares used (basic and diluted)                   31,084          6,957
 
     Pro forma net loss per share (A)                 ($0.19)        ($0.18)
     Shares used (basic and diluted)-pro-forma (B)     31,084         23,278
 
     (A) Pro forma net loss excludes the impact of the $1.8 million provision
 for excess inventory purchase commitments, stock based compensation, purchased
 in-process technology and amortization of intangible assets.
     (B) Shares used in the pro forma computations for 2000 include the
 weighted average number of shares resulting from the assumed conversion of
 convertible preferred stock.
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X11872368
 
 SOURCE  VINA Technologies, Inc.