Airspan Networks Inc. (NASDAQ: AIRN)
Highlights
-- $17.8 million in revenues for third quarter 2008
-- Cash, cash equivalents, short-term investments and restricted cash
amounted to $31.1 million at the end of the quarter
-- Cost reduction target achieved with continuing focus on attaining
profitability
-- Significant traction in the U.S. in the 3.65 GHz frequency band --
including FairPoint through Nortel
-- Successfully demonstrated a mobile multi-band, interoperable WiMAX
network
Airspan Networks Inc. (NASDAQ: AIRN), a leading provider of
WiMAX based broadband wireless access networks, today announced
results for the third quarter ending September 28, 2008. Third
quarter 2008 total revenues amounted to $17.8 million, and included
WiMAX revenues of $12.1 million. The third quarter gross margin was
31%, and total operating expenses were reduced from the second
quarter 2008 by 14% to $13.5 million. Net loss attributable to
common stockholders was $7.8 million or $0.13 per share for the
third quarter of 2008.
Key Figures
Third Qtr Third Qtr Second Qtr
In $US thousands except for EPS 2008 2007 2008
---------- ---------- ----------
Total Revenue 17,789 22,470 21,391
---------- ---------- ----------
WiMAX Revenue 12,107 16,120 12,708
---------- ---------- ----------
Non-WiMAX Revenue 5,682 6,350 8,683
---------- ---------- ----------
Gross profit 5,495 7,790 6,744
---------- ---------- ----------
Operating Expenses 13,473 13,883 15,735
---------- ---------- ----------
Net Loss (7,754) (9,907) (8,820)
---------- ---------- ----------
Net loss per share (basic and diluted) (0.13) ($ 0.24) (0.15)
---------- ---------- ----------
Weighted Average
Common Shares Outstanding (1) 59,030,071 41,905,579 58,682,735
---------- ---------- ----------
(1) Excludes shares of common stock issuable on exercise of stock options
and 21,630,856 shares of common stock issuable on conversion of the
Company's Series B preferred stock.
"We have focused our efforts on achieving our planned cost
reductions and we will continue to extend our efforts in the light
of the current economic environment. Our goal is to accelerate our
efforts to achieve profitability while maintaining critical R&D
activity and serving our customer base.
"Targeted operating cost savings have been achieved. However, we
are continuing to reduce our operating costs to reflect the
challenging economic environment. We have seen the worldwide credit
crisis impacting some of our customers' availability of funds,
which has contributed to a reduction of our reported revenue for
the quarter. We also expect continued short term challenges on the
demand side as capital expenditure budgets of our customers face
further reductions. However, we remain confident in Airspan's
technology and the viability of WiMAX as an alternative to
traditional broadband access. Our top priority is the creation of a
profitable business from product lines that we have developed,"
commented Eric Stonestrom, Airspan's President and Chief Executive
Officer.
"Commercial activity in the quarter included new contracts and
expansion orders with telecom service providers, significant growth
in the 3.65 GHz product deployments, and new distribution
agreements with vertical segment systems integration partners in
defense and the oil and gas sectors. Working together with our
partner Nortel, we were also awarded a significant U.S. WiMAX
project by FairPoint, a large U.S. telephone operator. This
deployment will provide high speed internet service throughout the
North-eastern U.S. in a more cost competitive mode than the
wireline alternatives and it underscores the potential for WiMAX in
providing broadband connectivity on a mass scale," continued Mr.
Stonestrom.
Third Quarter Financial Details
Total third quarter revenues decreased year over year by 21% to
$17.8 million compared with $22.5 million in the third quarter of
2007. Compared to revenues in the second quarter 2008 of $21.4
million, third quarter revenues decreased by 17%, due primarily to
a decrease in non-WiMAX revenues, which amounted to $5.9 million in
the third quarter. WiMAX revenues were down by 5% to $12.1 million
in the third quarter of 2008, compared to $12.7 million in the
second quarter 2008 and by 25% compared to the $16.1 million of
WiMAX revenue recorded in the third quarter of 2007. The sequential
quarter decrease in WiMAX revenues resulted primarily from several
shipments on hold pending receipt of letters of credit. The year
over year decrease in WiMAX revenues results primarily from
shipments on hold and lower average value shipments to larger
customers in the 2008 period.
Gross margin at 31% was slightly lower than the 32% recorded in
the second quarter 2008. Gross margin was at 35% in the third
quarter of 2007. Total operating expenses for the third quarter of
2008 were $13.5 million, a 14% decrease over the second quarter of
2008, and a 3% decrease compared to the third quarter 2007.
Net loss attributable to common stockholders was $7.8 million or
$0.13 per share for the third quarter of 2008, compared with a loss
of $8.8 million or $0.15 per share in the second quarter of 2008,
and $9.9 million or $0.24 per share in the third quarter of
2007.
Geographically, in the third quarter of 2008, approximately 26%
of revenue was derived from customers in Mexico, Latin America and
the Caribbean, 27% from customers in Europe, 11% from customers in
Africa and the Middle East, 22% from customers in the United States
and Canada and 14% from customers in Asia.
Cash, cash equivalents, short-term investments, and restricted
cash amounted to $31.1 million compared to $33.1 million at June
29, 2008. As a result of our renegotiated debt facility with
Silicon Valley Bank, during the quarter we made an additional
drawdown under this credit line of $5.0 million. Days Sales
Outstanding (DSOs) were 77 at the end of the third quarter.
"We reached our cost cutting target in the third quarter. We
plan to continue reducing overall operating expenditures in light
of the general economic uncertainty, while not sacrificing our key
commercial and R&D activities. We believe that this focus will
allow us to realize additional cost savings in 2009, lowering the
quarterly revenue run rate required to achieve breakeven,"
commented David Brant, Airspan's Chief Financial Officer.
Outlook
The capital expenditure environment has tightened in the last
few months and as a result, we are revising our full year revenue
outlook to around $80 million. We expect to have more visibility
into 2009 in the next conference call.
Conference Call: The Company has scheduled an investor
conference call for 8:30 a.m. EST today. Please call the following
dial-in number to participate in the call: US toll-free number is
(888) 443-9987; the international access dial-in number is +1 (706)
634-0598. Please reference the Airspan Networks quarterly
conference call, Conference ID 69728094. A replay of the call will
be available approximately two hours following the live session
through November 20, 2008. The U.S. toll-free number for the replay
is (800) 642-1687; international dial-in number for the replay is
+1 (706) 645-9291. Please use access code 69728094.
Investors may also register for the audio webcast of the
conference call under the 'financial calendar' tab of the Investor
Relations section of the Airspan Web site at
http://www.visualwebcaster.com/event.asp?id=52543
About Airspan Networks Inc.
Airspan is the industry's leading WiMAX pure player, ranked #1
for IEEE802.16-2004 WiMAX revenue in 2007 and has now been selected
for some of the world's largest mobile WiMAX deployments. With
direct sales offices throughout Asia, EMEA and the Americas, a
worldwide network of resellers and agents, and partnership
alliances with major OEMs, Airspan boasts over 100 commercial WiMAX
deployments worldwide. www.airspan.com.
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. All statements,
other than statements of historical facts, including statements
regarding our strategy, future operations, financial position,
future revenues, projected costs, prospects, plans and objectives
of management, may be deemed to be forward-looking statements. The
words "anticipates," "believes," "estimates," "expects," "intends,"
"may," "plans," "projects," "will," "would" and similar expressions
or negative variations thereof are intended to identify
forward-looking statements, although not all forward-looking
statements contain these identifying words. We may not actually
achieve the plans, intentions or expectations disclosed in our
forward-looking statements and you should not place undue reliance
on our forward-looking statements. There are a number of important
factors that could cause actual results or events to differ
materially from the plans, intentions and expectations disclosed in
the forward-looking statements we make. Investors and others are
therefore cautioned that a variety of factors, including certain
risks, may affect our business and cause actual results to differ
materially from those set forth in the forward-looking statements.
The Company is subject to the risks and uncertainties described in
its filings with the Securities and Exchange Commission, including
its Annual Report on Form 10-K for the year ended December 31, 2007
and Quarterly Reports on Form 10-Q for 2008. You should read those
factors as being applicable to all related forward-looking
statements wherever they appear in this press release. We do not
assume any obligation to update any forward-looking statements.
Airspan Networks Inc.
Consolidated Statements of Operations
(in thousands except for share and per share data)
Quarter End Year-to-Date
---------------------- ----------------------
September September September September
28, 2008 30, 2007 28, 2008 30, 2007
---------- ---------- ---------- ----------
(unaudited) (unaudited)
Revenue $ 17,789 $ 22,470 $ 56,339 $ 71,203
Cost of revenue (12,294) (14,680) (38,864) (53,312)
---------- ---------- ---------- ----------
Gross profit 5,495 7,790 17,475 17,891
---------- ---------- ---------- ----------
Operating expenses:
Research and development 5,511 6,185 19,185 17,572
Sales and marketing 3,653 3,521 12,194 10,391
Bad debt provision 492 632 965 1,587
General and administrative 3,537 3,311 11,072 11,475
Amortization of intangibles 230 234 698 702
Restructuring 50 - 690 (485)
---------- ---------- ---------- ----------
Total operating expenses 13,473 13,883 44,804 41,242
---------- ---------- ---------- ----------
Loss from operations (7,978) (6,093) (27,329) (23,351)
Interest income, net 54 31 287 518
Other income, net (358) 317 (45) 321
---------- ---------- ---------- ----------
Loss before income taxes (8,282) (5,745) (27,087) (22,512)
Income tax
(provision)/benefit 528 (24) 461 (61)
---------- ---------- ---------- ----------
Net loss before deemed
dividend (7,754) (5,769) (26,626) (22,573)
Deemed dividend associated
with preferred stock - (4,138) - (4,138)
---------- ---------- ---------- ----------
Net loss attributable to
common shareholders $ (7,754) $ (9,907) $ (26,626) $ (26,711)
========== ========== ========== ==========
Net loss attributable to
common shareholders per
share - basic and diluted $ (0.13) $ (0.24) $ (0.45) $ (0.65)
Weighted average shares
outstanding- basic and
diluted 59,030,071 41,905,579 58,770,836 41,084,881
Airspan Networks Inc.
Consolidated Balance Sheets
(in thousands)
September 28, December 31,
2008 2007
------------ ------------
Unaudited Audited
ASSETS
Current Assets
Cash and cash equivalents $ 21,936 $ 30,815
Restricted cash 200 393
Short-term investments 9,013 5,504
Accounts receivable, less allowance for
doubtful accounts 18,251 33,853
Inventory 13,101 16,720
Prepaid expenses and other current assets 5,655 5,338
------------ ------------
Total Current Assets 68,156 92,623
Property, plant and equipment, net 5,121 5,895
Goodwill 10,231 10,231
Intangible assets, net 1,171 1,870
Other non-current assets 3,475 3,402
------------ ------------
Total Assets $ 88,154 $ 114,021
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 9,214 $ 11,938
Deferred revenue 3,407 5,125
Customer advances 291 892
Other accrued expenses 11,471 13,063
Short-term debt 12,500 7,500
------------ ------------
Total Current Liabilities 36,883 38,518
------------ ------------
Non Current Liabilities
Long-term debt 1,787 1,787
Accrued interest on long term debt 191 191
------------ ------------
Total Liabilities 38,861 40,496
------------ ------------
Stockholders? Equity
Common stock 18 17
Note receivable - stockholder (87) (87)
Additional paid in capital 352,111 349,718
Accumulated deficit (302,749) (276,123)
------------ ------------
Total Stockholders? Equity 49,293 73,525
------------ ------------
------------ ------------
Total Liabilities and Stockholders?
Equity $ 88,154 $ 114,021
============ ============
For Investor Relations and Media Inquiries, contact: David Brant
Senior Vice President & Chief Financial Officer Tel: +1 561
893-8650 Fax: +1 561 893-8681 Email: dbrant@airspan.com Charlotte
Laurent-Ottomane Investor Relations Email: clottomane@airspan.com
Tel. +561 395 4581
Airspan Networks (MM) (NASDAQ:AIRN)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
Airspan Networks (MM) (NASDAQ:AIRN)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024
