Brooktrout (NASDAQ:BRKT)
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Brooktrout Announces First Quarter 2005 Results
NEEDHAM, Mass., April 21 /PRNewswire-FirstCall/ -- Brooktrout, Inc.
(NASDAQ:BRKT), a leading provider of innovative hardware and software platforms
that enable applications for the New Network(TM), today reported that revenue
for the first quarter of 2005 was $17,850,000 compared to $18,693,000 for the
first quarter of 2004. The company's net loss for the first quarter of 2005
was $488,000, or $0.04 per diluted share, compared to net income of $182,000,
or $0.01 per diluted share, for the same period of 2004. These results are
consistent with the company's previous revenue and earnings guidance provided
on April 5, 2005.
"During the first quarter, we continued to see encouraging signs that the
adoption of VoIP networks by service providers and the acceptance of voice
applications by enterprise customers is progressing steadily," said Eric Giler,
president. "While we experienced a slowdown in the TDM, or circuit- switched,
area of the business, we are seeing ongoing momentum in VoIP, as evidenced by
our increased first quarter backlog, and in new voice and fax application
development for both enterprises and service providers."
Business Outlook
Giler continued with the following outlook for the second quarter of 2005, "We
expect sequential and year-over-year growth to resume in the second quarter as
our VoIP and other product sales increase. Our expectation is, therefore, that
revenue for the second quarter of 2005 will be between $20 million and $21
million. For the second half of 2005, we expect to see 15% year-over-year
revenue growth. Given our revenue guidance range and our current assumptions
for a continuation of the current mix of products, we would anticipate second
quarter 2005 gross margin to be similar to the first quarter, or between 68%
and 70%. However, gross margin can fluctuate as a result of shifts in product
mix, changes in product sales volume, pricing and variability of component
costs. We anticipate that total operating expenses for the second quarter will
be slightly down as compared to the first quarter and will be between $12.8
million and $13.2 million. We expect net income to be $300,000 to $700,000 for
the second quarter of 2005."
Conference Call Details
As previously announced, Brooktrout's management will host a conference call at
5:00 p.m. ET today, April 21, 2005, to discuss these quarterly results, along
with business highlights and outlook. The conference call will be
simultaneously broadcast live over the Internet. Anyone interested in
listening to this teleconference can do so by logging onto the Brooktrout, Inc.
website at http://www.brooktrout.com/investor.
For those who cannot access the live broadcast, a replay will be available on
the overview page of the web site for five business days following the
presentation and will be archived in the Multimedia section thereafter.
Following the live broadcast, a telephone replay will also be available at 1-
973-341-3080, passcode #5932559 until midnight ET on Friday, April 22, 2005.
Note to Investors
Statements in this press release that are not historical facts are
forward-looking statements for purposes of the safe harbor provisions under The
Private Securities Litigation Reform Act of 1995. These statements include,
but are not limited to, the statements set forth above under "Business
Outlook," in particular those relating to revenues, revenue growth, gross
margins, operating expenses and net income. Readers should not place undue
reliance on forward-looking statements because they involve known and unknown
risks and uncertainties, which may cause actual events or our actual results,
performance, and achievements to differ materially from what are expressed or
implied by such forward-looking statements. In particular, there is a risk
that interest from potential customers for our solutions will not result in
sales of our products when projected or at all. Other risks and uncertainties
include, among other things, the adverse market conditions in the
telecommunication and Internet industries and the impact of such market
conditions on our customers' business and financial strength, the uncertainties
relating to global events, the ability to keep pace with the evolution of the
telecommunications hardware and software market, the impact of competition on
our business, the impact of changes to regulations affecting the
telecommunication and Internet industries, the market price of our stock
prevailing from time to time, the nature of other investment opportunities
presented to us from time to time, our cash flows from operations and general
economic conditions. Additional information concerning these and other risk
factors is contained in the "Factors That May Affect Future Results" section of
Brooktrout, Inc.'s Annual Report on Form 10-K for the year ended December 31,
2004 filed with the Securities and Exchange Commission on March 16, 2005. In
addition, any forward-looking statements represent our estimates only as of
today and should not be relied upon as representing our estimates as of any
subsequent date. While we may elect to update forward-looking statements at
some point in the future, we specifically disclaim any obligation to do so,
even if our estimates change.
About Brooktrout
Brooktrout, Inc., headquartered in Needham, MA, delivers communications
hardware and software products that enable applications for the New Network(TM)
-- a Network born through the marriage of the telephone and data networks.
Brooktrout, Inc.'s mission is to collaborate with its partners so they can
bring innovative solutions to market quickly, increase business and expand into
new markets. Brooktrout believes that a solid focus on customers, significant
first-to-market products and key acquisitions are making it a partner of choice
for today's hottest communications service and enterprise application
providers. Brooktrout is traded publicly on NASDAQ under the symbol BRKT. For
more information, visit http://www.brooktrout.com/investor.
Brooktrout and the New Network are trademarks or registered trademarks of
Brooktrout, Inc.
All other trademarks are the property of their respective owners.
CONTACT: Bob Leahy Erin Reilly
VP Finance & Operations Investor Relations
Brooktrout, Inc. Brooktrout, Inc.
(781) 433-9426 (781) 292-9378
BROOKTROUT, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(unaudited, in thousands, except per share data)
Quarter Ended March 31,
2005 2004
Revenue $17,850 $18,693
Costs and expenses:
Cost of product sold 5,483 5,968
Research and development 4,864 4,485
Selling, general and administrative 8,509 8,118
Total costs and expenses 18,856 18,571
Operating (loss) income (1,006) 122
Other income, net:
Interest income, net and other 320 182
Total other income, net 320 182
(Loss) income before income taxes (686) 304
Income tax (benefit) provision (198) 122
Net (loss) income $(488) $182
Net (loss) income per common share -
basic and diluted $(0.04) $0.01
Weighted average shares outstanding:
Basic 12,766 12,854
Diluted 12,766 14,305
BROOKTROUT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands)
March 31, December 31,
2005 2004
ASSETS
Current assets:
Cash, cash equivalents, and
marketable debt securities $50,805 $52,702
Accounts receivable (less allowance
for doubtful accounts
and sales returns of $1,037 in
2005 and $1,048 in 2004) 7,757 10,346
Inventory 4,434 4,118
Deferred taxes and other current assets 6,109 6,192
Total current assets 69,105 73,358
Equipment and furniture, less
accumulated depreciation and
amortization 2,646 2,477
Intangible assets, less accumulated
amortization 5,319 5,658
Deferred taxes and other non-current assets 18,064 17,584
Total assets $95,134 $99,077
LIABILITIES AND STOCKHOLDERS' EQUITY
Current and long term liabilities $15,830 $17,387
Stockholders' equity 79,304 81,690
Total liabilities and stockholders' equity $95,134 $99,077
DATASOURCE: Brooktrout, Inc.
CONTACT: Bob Leahy, VP Finance & Operations, +1-781-433-9426, or Erin
Reilly, Investor Relations, +1-781-292-9378 both of Brooktrout, Inc.
Web site: http://www.brooktrout.com/