Alphasmart (NASDAQ:ALSM)
Historical Stock Chart
From Jun 2019 to Jun 2024
AlphaSmart Announces Preliminary Second Quarter Results, Revises
Full Year 2004 Guidance
LOS GATOS, Calif., July 1 /PRNewswire-FirstCall/ -- AlphaSmart, Inc.
(NASDAQ:ALSM) today announced its preliminary expectations of operating results
for the second quarter ended June 30, 2004 and revised its forward-looking
guidance for the fiscal year ending December 31, 2004.
For the second quarter of 2004, the company expects to report net revenue
ranging from $11.0 million to $11.2 million and net income of $0.09 to $0.11
per share on a fully diluted basis, calculated in accordance with generally
accepted accounting principles (GAAP).
"Spending by certain school districts, particularly those that rely on federal
funding, was not as high as expected," said James M. Walker, vice president,
chief financial officer and chief operating officer of AlphaSmart. "As a
result, we were unable to realize the quarterly revenue and earnings that we
had anticipated. Nonetheless, we remain optimistic that our classroom
solutions will enable us to continue to penetrate the K-12 educational market."
AlphaSmart acknowledges that the second quarter results announced today are
preliminary and subject to change as a result of final review by management and
independent auditors and closing adjustments for the quarter. AlphaSmart
expects to report final second quarter results on July 15, 2004. Management
plans to conduct its regular quarterly conference call following the release of
final results. Details of the public webcast of this call will be announced
shortly.
Revised Forward-Looking Guidance
AlphaSmart also announced today a revision of its guidance for full year 2004
results, as disclosed publicly with first quarter results on April 14, 2004.
The company now expects 2004 net revenue to be in the range of $40 to $42
million, compared with prior guidance of $42 to $44 million. GAAP net income
per share on a fully diluted basis is now expected to be in the range of $0.27
to $0.31, compared with prior guidance of $0.31 to $0.35. Excluding the effect
of $588,000 in interest and a redemption premium paid on mandatorily redeemable
preferred stock in the first quarter of 2004, AlphaSmart now expects pro forma
net income per share on a fully diluted basis for the full year to be in the
range of $0.32 to $0.36, compared with prior guidance of $0.36 to $0.40.
Use of Non-GAAP Financial Measures
AlphaSmart believes that the supplemental presentation of projected net income
per share calculations, excluding the effects of interest and a redemption
premium paid on mandatorily redeemable preferred stock in the first quarter of
2004, provides meaningful non-GAAP financial measures to help investors
understand and compare business trends among different reporting periods on a
consistent basis, independently of events impacted by the company's initial
public offering in February 2004 or other infrequent or unusual events.
AlphaSmart management also uses pro forma financial measures to plan and
forecast results for future periods. Readers are cautioned not to view
non-GAAP results as an alternative to GAAP results or as being comparable to
results reported or forecasted by other companies. Readers should refer to the
reconciliation information provided above in reviewing the non-GAAP guidance.
AlphaSmart, Inc.
AlphaSmart, Inc. is a provider of technology solutions for the education
market. AlphaSmart's portable computer-companion products are used by students
in 8,000 U.S. school districts to enhance writing, keyboarding and
comprehension. Based in Los Gatos, California, AlphaSmart was founded in 1992
by former Apple Computer engineers.
Forward-Looking Statements Safe Harbor
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, including statements regarding (i) AlphaSmart's expected
net revenue and net income per share on a fully diluted basis for the second
quarter of 2004, (ii) AlphaSmart's forecasted net revenue and net income per
share for full year 2004, and (iii) AlphaSmart's optimism that its classroom
solutions will enable it to continue to penetrate the K-12 educational market.
AlphaSmart's expectations and beliefs regarding these matters may not
materialize. Actual results in future periods are subject to risks and
uncertainties that could cause actual results to differ materially from those
projected. These risks include: the potential impact of spending by certain
school districts, particularly those that rely on federal funding, on
AlphaSmart's quarterly revenue and earnings; fewer teachers and administrators
embracing technology solutions and one-to-one computing than AlphaSmart
expects; AlphaSmart's platforms failing to obtain broad market acceptance; a
decline in investment in, or a loss or reduction of funding for, educational
institutions; AlphaSmart's need to maintain and develop strong brand identity;
AlphaSmart's potential customers choosing the greater functionality offered by
PCs over its platforms; the risk that some government initiatives may not
endorse, or be complementary to, AlphaSmart's platforms; risks associated with
the lack of diversity among AlphaSmart's product offerings; the Dana by
AlphaSmart platform's dependence on AlphaSmart's license with PalmSource; and
AlphaSmart's dependence on its suppliers, particularly its single-source
suppliers, among other risks. The forward-looking statements contained in this
press release are also subject to other risks and uncertainties, including
those more fully described in AlphaSmart's filings with the Securities and
Exchange Commission, including its quarterly report on Form 10-Q related to the
three-month period ended March 31, 2004. AlphaSmart does not undertake to
update any forward-looking statements.
NOTE: AlphaSmart is a registered trademark of AlphaSmart, Inc. All other
trademarks are the property of their respective owners.
DATASOURCE: AlphaSmart, Inc.
CONTACT: investors, Manish Kothari, President of AlphaSmart, Inc.,
+1-408-355-1029, or
Web site: http://www.alphasmart.com/