Eagle Broadband (AMEX:EAG)
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Eagle Broadband, Inc. (AMEX:EAG), a leading provider of
broadband, Internet Protocol (IP) and communications technology and
services, today announced financial results for its fiscal 2006 first
quarter ended November 30, 2005.
Total revenues in the first quarter were $1.9 million, reflecting
a 27% increase compared to revenues of $1.5 million for the same
period last year. Eagle posted a gross profit of $517,000 for the
fiscal first quarter of 2006, compared to a negative gross profit for
the same period last year. Operating expenses for the first quarter
were $3.2 million, which is a 27% decrease from the same period last
year when Eagle incurred $4.3 million in operating expenses. Net loss
from operations was $2.6 million for the first quarter of 2006, which
is a 41% reduction compared to the first quarter of 2005 when Eagle
incurred a $4.4 million net loss from operations.
"This was an important quarter for Eagle as we have begun to see
results in our efforts to control and reduce costs and strengthen our
operational effectiveness as we reposition the company into the IPTV
and satellite communications markets," said Dave Micek, President and
CEO of Eagle Broadband. "We have shown marked improvements in our
revenue, cost of goods sold, operating expenses, and our net loss as
compared to the same period last year. At the same time, we are in a
better position with no long term debt and a reduction in accounts
payable of $2.1 million during the current quarter."
Micek continued, "On the sales and contracts side, we saw wins
across all of our product lines, including IPTVComplete(TM) and IP
set-top boxes, as well as our SatMAX(TM) non-line-of-sight satellite
communications technology. We received and delivered an important
order for our high-end MediaPro IP5000 set-top box through KoolConnect
to a second high-profile resort and casino in Las Vegas. We have begun
to see good interest in our recently introduced low-cost MediaPro
IP3000, which is well into production. With the signed IPTVComplete
contract for AllAccess Las Vegas, we now have a third initial market
commitment in addition to Miami and rural Ohio for our new end-to-end
IPTV service offering. In addition, our managed services group
achieved the highest quarterly revenues in its history. Also during
the quarter, we received a SatMAX order from a new customer, a large
defense contractor.
Summary of financial and operational highlights in the 2006 first
quarter includes:
-- Achieved a 27% increase in first quarter revenues versus the
comparable period last year
-- Achieved a $517,000 gross profit for the quarter, representing
a gross profit margin of 27% compared to a negative 10% gross
profit margin for the comparable period last year
-- 27% reduction in first quarter operating expenses versus the
comparable period last year
-- Recovered bad debt of $904,000
-- Closed the first quarter with no long term debt and a
reduction in accounts payable of $2.1 million
-- Reduced first quarter legal and professional fees and contract
labor by 57% to $991,000 versus the comparable period last
year
-- Hired Jeff Adams as new in-house corporate counsel
-- Promoted Dick Sanger to Vice President of Administration,
adding corporate operations responsibilities
-- Promoted Frederick Reynolds to Vice President of Marketing,
assuming all investor relations and marketing responsibilities
-- Hired Brian Morrow as General Manager of the IPTV Solutions
Division which includes IPTVComplete and the MediaPro line of
IP set-top boxes
-- Engaged TR Moore & Company, PC to assist the management team
during the CFO transition
-- Promoted Juliet Markovich to Principal Accounting Officer
-- Hired additional engineering resources for SatMAX
-- Implemented Board approved 2006 Operating Plan with profit and
cost center discipline and accountability
-- Independent Auditors' report dated November 18, 2005 stated
that the Company maintained effective internal controls over
financial reporting as of August 31, 2005
-- Signed IPTVComplete contract with AllAccess for market
expansion into Las Vegas
-- Received and delivered order from KoolConnect for MediaPro
IP5000HD set-top box installations at a second high-profile
resort and casino in Las Vegas
-- Received and shipped SatMAX order from a large defense
contractor as part of an initial phase of a Department of
Defense program
About Eagle Broadband
Eagle Broadband is a leading provider of broadband, Internet
Protocol (IP) and communications technology and services that create
new revenue opportunities for broadband providers and enhance
communications for government, military and enterprise customers.
Eagle leverages years of proven experience delivering advanced,
IP-based broadband bundled services to provide service provider
partners with a way to deliver next generation entertainment,
communications and security services to their subscribers. The
company's product offerings include IPTVComplete(TM), the fastest,
lowest cost way for broadband providers to deliver the most
competitive IP video services, the MediaPro line of HDTV-ready IP set
top boxes that enable broadband providers and hotel operators to
maximize revenues by delivering state-of-the-art, interactive
entertainment services and the SatMAX(TM) satellite communications
system that provides government, military, homeland security and
enterprise customers with reliable, non-line-of-sight, voice and data
communications from any location on Earth. The company is
headquartered in Houston, Texas. For more information, please visit
www.eaglebroadband.com or call 281-538-6000. (EAGF)
Forward-looking statements in this release regarding Eagle
Broadband, Inc., are made pursuant to the "safe harbor" provisions of
the Private Securities Litigation Reform Act of 1995. Investors are
cautioned that such forward-looking statements involve risks and
uncertainties, including, without limitation, continued acceptance of
the company's products, increased levels of competition, new products
and technological changes, the company's dependence upon third-party
suppliers, intellectual property rights, and other risks detailed from
time to time in the company's periodic reports filed with the
Securities and Exchange Commission.