Terabeam (NASDAQ:TRBM)
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Terabeam, Inc. (NASDAQ:TRBM), a leading developer and
supplier of broadband wireless solutions, today announced its
financial results for the second quarter ended June 30, 2006.
Revenue for the quarter ended June 30, 2006 was $20.8 million, an
increase of approximately 12% from the revenue of $18.5 million for
the quarter ended March 31, 2006 and an increase of approximately 189%
from the revenue of $7.2 million for the quarter ended June 30, 2005.
The significant increase in revenue over the prior year's comparable
quarter resulted primarily from Terabeam's acquisition of the
operations of Proxim Corporation in the third quarter of 2005.
The net loss for the quarter ended June 30, 2006 was $3.0 million
($0.14 per share-diluted) compared to net loss of $4.5 million ($0.21
per share-diluted) for the quarter ended March 31, 2006 and net loss
of $987,000 ($0.04 per share-diluted) for the quarter ended June 30,
2005. The significant increase in net loss over the prior year's
comparable quarter resulted primarily from Terabeam's acquisition of
the operations of Proxim Corporation in the third quarter of 2005.
Robert Fitzgerald, Terabeam's Chief Executive Officer, stated,
"The second quarter has been a quarter of transition for the company.
Our new President, Pankaj Manglik, has brought an ambitious and
decisive management style that has energized the organization. We have
taken cost reduction actions that have decreased our operating
expenses. We are very encouraged by the response of the market to our
AP-4000-MR family of metropolitan scale Wi-Fi mesh products, and we
expect our mesh products to contribute an increasing percentage of our
overall revenues over the second half of the year. We still have less
visibility into the revenue side of the equation than we would like
but are addressing the situation with an enhanced management team and
renewed energy."
Conference Call Information
Terabeam will host a conference call to discuss this release,
financial results, developments at the company, and other matters of
interest to investors and others today, August 2, 2006 starting at
5:00 p.m. Eastern Time. The discussion may include forward-looking
information.
To participate in this conference call, please dial 800-500-0177
(or 719-457-2679 for international callers), confirmation code 9274323
for all callers, at least ten minutes before start time. The
conference call will also be broadcast live over the Internet.
Investors and others are invited to visit Terabeam's website at
http://www.terabeam.com to access this broadcast. Replays will be
available telephonically for approximately one week by dialing
888-203-1112 for domestic callers and 719-457-0820 for international
callers, confirmation code 9274323 for all callers, and over the
Internet for approximately 90 days at Terabeam's website at
http://www.terabeam.com.
About Terabeam
Terabeam, Inc. has two primary subsidiaries Proxim Wireless
Corporation and Ricochet Networks, Inc. Proxim Wireless Corporation is
a global leader in providing mesh, WiMAX, Wi-Fi, and other broadband
wireless solutions to meet the performance, scalability, and security
requirements of enterprises, government, and service providers.
Ricochet Networks, Inc. is a leading portable Wireless Internet
Service Provider (WISP) with operational markets in Denver, Colorado
and San Diego, California. Additional information about the company
can be found at the company's website located at
http://www.terabeam.com or by contacting the company by telephone at
413-584-1425 or by email at IR@terabeam.com.
Safe Harbor Statement
Statements in this press release that are not statements of
historical facts are forward-looking statements that involve risks,
uncertainties, and assumptions. Terabeam's actual results may differ
materially from the results anticipated in these forward-looking
statements. The forward-looking statements involve risks and
uncertainties that could contribute to such differences including
those relating to and arising from the ongoing uncertainty in the
telecommunications industry and larger economy; the intense
competition in our industries and resulting impacts on our pricing,
gross margins, and general financial performance; time and costs
associated with developing and launching new products; uncertainty
about market acceptance of products we introduce; potential long sales
cycles for new products such that there may be extended periods of
time before new products contribute positively to our financial
results; time, costs, political considerations, typical multitude of
constituencies, and other factors involved in evaluating, equipping,
installing, and operating municipal networks; difficulties or delays
in developing and supplying new products with the contemplated or
desired features, performance, compliances, certifications, cost,
price, and other characteristics and at the times and in the
quantities contemplated or desired; the difficulties in predicting
Terabeam's future financial performance; Terabeam's acquisition of
Proxim Corporation's operations, assets, and relationships; and the
impacts and effects of any other strategic transactions Terabeam may
evaluate or consummate. Further information on these and other factors
that could affect Terabeam's actual results is and will be included in
filings made by Terabeam from time to time with the Securities and
Exchange Commission and in its other public statements.
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TERABEAM, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
June 30, December 31,
2006 2005
----------- -----------
Assets (unaudited)
Current assets:
Cash and cash equivalents $13,426 $14,133
Investment securities - available-for-sale 181 260
Accounts receivable, net 5,901 8,378
Inventory 10,822 10,070
Prepaid expenses 1,661 1,045
----------- -----------
Total current assets 31,991 33,886
Property and equipment, net 3,406 3,924
Other Assets:
Restricted cash 76 5,076
Goodwill 7,923 7,380
Intangible assets, net 21,881 23,817
Deposits and prepaid expenses 238 675
----------- -----------
Total other assets 30,118 36,948
----------- -----------
Total assets $65,515 $74,758
=========== ===========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses $12,152 $15,600
Deferred revenue 4,229 2,503
License agreement payable - current
maturities 813 981
----------- -----------
Total current liabilities 17,194 19,084
License agreement payable, net of current
maturities 2,527 2,956
----------- -----------
Total liabilities 19,721 22,040
Commitments and contingencies
Stockholders' Equity
Preferred stock, $0.01 par value; authorized
4,500,000, none issued at June 30, 2006 and
December 31, 2005 - -
Common stock, $0.01 par value, 100,000,000
shares authorized, 21,540,865 issued and
outstanding at June 30, 2006, and 21,446,217
issued and outstanding at December 31, 2005 215 214
Additional paid-in capital 57,261 56,638
Retained earnings (accumulated deficit) (11,590) (4,122)
Accumulated other comprehensive income:
Net unrealized gain (loss) on available-for-
sale securities (92) (12)
----------- -----------
Total stockholders' equity 45,794 52,718
----------- -----------
Total liabilities and stockholders' equity $65,515 $74,758
=========== ===========
TERABEAM, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ -----------------
2006 2005 2006 2005
---------- ------- -------- --------
Revenues $20,750 $7,165 $39,286 $13,762
Cost of goods sold 12,062 3,687 22,957 7,006
---------- ------- -------- --------
Gross profit 8,688 3,478 16,329 6,756
Operating expenses:
Selling costs 4,027 1,034 8,296 2,031
Restructuring Charges 116 - 116 -
General and administrative 4,021 2,777 7,355 5,285
Research and development 3,762 879 8,648 1,650
---------- ------- -------- --------
Total operating expenses 11,926 4,690 24,415 8,966
---------- ------- -------- --------
Operating loss (3,238) (1,212) (8,086) (2,210)
Other income (expenses):
Interest income 114 269 202 490
Interest expense (68) (70) (101) (136)
Other income (loss) 212 3 543 (116)
---------- ------- -------- --------
Total other income
(expenses) 258 202 644 238
---------- ------- -------- --------
Loss before income taxes (2,980) (1,010) (7,442) (1,972)
Benefit (provision) for
income taxes (5) 23 (26) 14
---------- ------- -------- --------
Net loss ($2,985) ($987) ($7,468) ($1,958)
========== ======= ======== ========
Weighted average shares -
basic and diluted 21,541 22,009 21,502 22,204
========== ======= ======== ========
Loss per share, basic and
diluted ($0.14) ($0.04) ($0.35) ($0.09)
========== ======= ======== ========
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