Terabeam (NASDAQ:TRBM)
Historical Stock Chart
From Oct 2019 to Oct 2024
Terabeam, Inc. (NASDAQ:TRBM), a global pioneer and leading developer and
supplier of Mesh, WiMAX, Wi-Fi and Millimeter Wave wireless products
and solutions, today announced its financial results for the third
quarter ended September 30, 2006.
Revenue for the quarter ended September 30, 2006 was $17.9 million, a
decrease of approximately 14% from the revenue of $20.8 million for the
quarter ended June 30, 2006 and a decrease of approximately 1% from the
revenue of $18.1 million for the quarter ended September 30, 2005.
Revenue for the nine months ended September 30, 2006 was $57.1 million,
an increase of approximately 79% from the revenue of $31.9 million for
the nine months ended September 30, 2005. The significant increase in
revenue over the prior year’s comparable
period resulted primarily from our acquisition of the operations of
Proxim Corporation in the third quarter of 2005. Due to it being a cash
acquisition, there was no equity dilution due to the acquisition.
The net loss for the quarter ended September 30, 2006 was $13.7 million
($0.63 per share-diluted) compared to net loss of $3.0 million ($0.14
per share-diluted) for the quarter ended June 30, 2006 and net loss of
$10.0 million ($0.47 per share-diluted) for the quarter ended September
30, 2005. The third quarter 2006 net loss included non-cash charges
totaling approximately $10.4 million (approximately $0.48 per
share-diluted), consisting of an inventory reserve of approximately $1.5
million and an impairment charge related to intangible assets of
approximately $8.9 million. The third quarter 2005 net loss included
$7.8 million of restructuring provisions and charges (approximately
$0.36 per share-diluted) as a result of our purchase of the operations
of Proxim Corporation.
Robert Fitzgerald, Terabeam’s Chief Executive
Officer, stated, “We are seeing customer
uptake of our WiMAX and Wi-Fi Mesh products. Although both of these
products are experiencing significant year over year percentage growth
for us, we must strive to make them significant contributors in terms of
overall revenue to realize our growth strategy. We have seen the
intended benefits of the cost reduction plan that we implemented in the
second quarter.”
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, November 13, 2006 starting at 5:00 p.m.
Eastern Time. The discussion may include forward-looking information.
To participate in this conference call, please dial 800-474-8920 (or
719-457-2727 for international callers), confirmation code 8883545 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 8883545 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; adverse impacts from 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.
TERABEAM, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
September 30,
December 31,
2006
2005
Assets
(unaudited)
Current assets:
Cash and cash equivalents
$12,387
$14,133
Investment securities – available-for-sale
166
260
Accounts receivable, net
5,214
8,378
Inventory
9,809
10,070
Prepaid expenses
1,715
1,045
Total current assets
29,291
33,886
Property and equipment, net
3,031
3,924
Other Assets:
Restricted cash
76
5,076
Goodwill
7,922
7,380
Intangible assets, net
12,078
23,817
Deposits and prepaid expenses
263
675
Total other assets
20,339
36,948
Total assets
$52,661
$74,758
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable and accrued expenses
$14,006
$15,600
Deferred revenue
2,938
2,503
License agreement payable - current maturities
858
981
Total current liabilities
17,802
19,084
License agreement payable, net of current maturities
2,309
2,956
Total liabilities
20,111
22,040
Commitments and contingencies
Stockholders’ Equity
Preferred stock, $0.01 par value; authorized 4,500,000, none issued
at September 30, 2006 and December 31, 2005
-
-
Common stock, $0.01 par value, 100,000,000 shares authorized,
21,540,865 issued and outstanding at September 30, 2006, and
21,446,217 issued and outstanding at December 31, 2005
215
214
Additional paid-in capital
57,696
56,638
Retained earnings (accumulated deficit)
(25,254)
(4,122)
Treasury stock
-
-
Accumulated other comprehensive income:
Net unrealized gain (loss) on available-for-sale securities
(107)
(12)
Total stockholders’ equity
32,550
52,718
Total liabilities and stockholders’ equity
$52,661
$74,758
TERABEAM, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
For the Three Months Ended
For the Nine Months Ended
September 30,
September 30,
2006
2005
2006
2005
Revenues
$17,876
$18,147
$57,162
$31,909
Cost of goods sold
9,805
10,503
32,762
17,509
Restructuring provision for excess and obsolete inventory
1,502
2,143
1,502
2,143
Gross profit
6,569
5,501
22,898
12,257
Operating expenses:
Selling costs
5,123
3,800
13,419
5,831
Restructuring charges
-
944
116
944
Restructuring charge for impairment of intangible assets
8,874
4,664
8,874
4,664
General and administrative
3,457
3,342
10,812
8,627
Research and development
2,823
2,788
11,471
4,438
Total operating expenses
20,277
15,538
44,692
24,504
Operating income (loss)
(13,708)
(10,037)
(21,794)
(12,247)
Other income (expenses):
Interest income
101
122
303
612
Interest expense
(50)
(4)
(151)
(140)
Other income (loss)
9
10
552
(106)
Total other income (expenses)
60
128
704
366
Income (loss) before income taxes
(13,648)
(9,909)
(21,090)
(11,881)
Benefit (provision) for income taxes
(16)
(3)
(42)
11
Income (loss) before minority interest
(13,664)
(9,912)
(21,132)
(11,870)
Minority interest in net income of Merry Fields
0
(101)
0
(101)
Net income (loss)
($13,664)
($10,013)
($21,132)
($11,971)
Weighted average shares - basic and diluted
21,541
21,163
21,515
21,932
EPS, basic and diluted
($0.63)
($0.47)
($0.98)
($0.55)
Terabeam, Inc. (NASDAQ:TRBM), a global pioneer and leading
developer and supplier of Mesh, WiMAX, Wi-Fi and Millimeter Wave
wireless products and solutions, today announced its financial results
for the third quarter ended September 30, 2006.
Revenue for the quarter ended September 30, 2006 was $17.9
million, a decrease of approximately 14% from the revenue of $20.8
million for the quarter ended June 30, 2006 and a decrease of
approximately 1% from the revenue of $18.1 million for the quarter
ended September 30, 2005. Revenue for the nine months ended September
30, 2006 was $57.1 million, an increase of approximately 79% from the
revenue of $31.9 million for the nine months ended September 30, 2005.
The significant increase in revenue over the prior year's comparable
period resulted primarily from our acquisition of the operations of
Proxim Corporation in the third quarter of 2005. Due to it being a
cash acquisition, there was no equity dilution due to the acquisition.
The net loss for the quarter ended September 30, 2006 was $13.7
million ($0.63 per share-diluted) compared to net loss of $3.0 million
($0.14 per share-diluted) for the quarter ended June 30, 2006 and net
loss of $10.0 million ($0.47 per share-diluted) for the quarter ended
September 30, 2005. The third quarter 2006 net loss included non-cash
charges totaling approximately $10.4 million (approximately $0.48 per
share-diluted), consisting of an inventory reserve of approximately
$1.5 million and an impairment charge related to intangible assets of
approximately $8.9 million. The third quarter 2005 net loss included
$7.8 million of restructuring provisions and charges (approximately
$0.36 per share-diluted) as a result of our purchase of the operations
of Proxim Corporation.
Robert Fitzgerald, Terabeam's Chief Executive Officer, stated, "We
are seeing customer uptake of our WiMAX and Wi-Fi Mesh products.
Although both of these products are experiencing significant year over
year percentage growth for us, we must strive to make them significant
contributors in terms of overall revenue to realize our growth
strategy. We have seen the intended benefits of the cost reduction
plan that we implemented in the second quarter."
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, November 13, 2006 starting at
5:00 p.m. Eastern Time. The discussion may include forward-looking
information.
To participate in this conference call, please dial 800-474-8920
(or 719-457-2727 for international callers), confirmation code 8883545
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 8883545 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; adverse impacts from
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.
-0-
*T
TERABEAM, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
September December
30, 31,
2006 2005
----------- --------
Assets (unaudited)
Current assets:
Cash and cash equivalents $12,387 $14,133
Investment securities - available-for-sale 166 260
Accounts receivable, net 5,214 8,378
Inventory 9,809 10,070
Prepaid expenses 1,715 1,045
----------- --------
Total current assets 29,291 33,886
Property and equipment, net 3,031 3,924
Other Assets:
Restricted cash 76 5,076
Goodwill 7,922 7,380
Intangible assets, net 12,078 23,817
Deposits and prepaid expenses 263 675
----------- --------
Total other assets 20,339 36,948
----------- --------
Total assets $52,661 $74,758
=========== ========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses $14,006 $15,600
Deferred revenue 2,938 2,503
License agreement payable - current maturities 858 981
----------- --------
Total current liabilities 17,802 19,084
License agreement payable, net of current
maturities 2,309 2,956
----------- --------
Total liabilities 20,111 22,040
Commitments and contingencies
Stockholders' Equity
Preferred stock, $0.01 par value; authorized
4,500,000, none issued at September 30, 2006 and
December 31, 2005 - -
Common stock, $0.01 par value, 100,000,000 shares
authorized, 21,540,865 issued and outstanding at
September 30, 2006, and 21,446,217 issued and
outstanding at December 31, 2005 215 214
Additional paid-in capital 57,696 56,638
Retained earnings (accumulated deficit) (25,254) (4,122)
Treasury stock - -
Accumulated other comprehensive income:
Net unrealized gain (loss) on available-for-sale
securities (107) (12)
----------- --------
Total stockholders' equity 32,550 52,718
----------- --------
Total liabilities and stockholders' equity $52,661 $74,758
=========== ========
*T
-0-
*T
TERABEAM, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
For the Three For the Nine Months
Months Ended Ended
September 30, September 30,
------------------- -------------------
2006 2005 2006 2005
--------- --------- --------- ---------
Revenues $17,876 $18,147 $57,162 $31,909
Cost of goods sold 9,805 10,503 32,762 17,509
Restructuring
provision for
excess and obsolete
inventory 1,502 2,143 1,502 2,143
--------- --------- --------- ---------
Gross profit 6,569 5,501 22,898 12,257
Operating expenses:
Selling costs 5,123 3,800 13,419 5,831
Restructuring
charges - 944 116 944
Restructuring
charge for
impairment of
intangible assets 8,874 4,664 8,874 4,664
General and
administrative 3,457 3,342 10,812 8,627
Research and
development 2,823 2,788 11,471 4,438
--------- --------- --------- ---------
Total operating
expenses 20,277 15,538 44,692 24,504
--------- --------- --------- ---------
Operating income
(loss) (13,708) (10,037) (21,794) (12,247)
Other income
(expenses):
Interest income 101 122 303 612
Interest expense (50) (4) (151) (140)
Other income (loss) 9 10 552 (106)
--------- --------- --------- ---------
Total other
income
(expenses) 60 128 704 366
--------- --------- --------- ---------
Income (loss) before
income taxes (13,648) (9,909) (21,090) (11,881)
Benefit (provision)
for income taxes (16) (3) (42) 11
--------- --------- --------- ---------
Income (loss) before
minority interest (13,664) (9,912) (21,132) (11,870)
Minority
interest in net
income of Merry
Fields 0 (101) 0 (101)
--------- --------- --------- ---------
Net income (loss) ($13,664) ($10,013) ($21,132) ($11,971)
========= ========= ========= =========
Weighted average
shares - basic and
diluted 21,541 21,163 21,515 21,932
--------- --------- --------- ---------
EPS, basic and
diluted ($0.63) ($0.47) ($0.98) ($0.55)
========= ========= ========= =========
*T