Vodavi (NASDAQ:VTEK)
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Vodavi Technology Inc. (Nasdaq: VTEK), a provider of
business telecommunications solutions, today announced results for its
third quarter ended Sept. 30, 2005.
For the third quarter of 2005, the company reported revenue of
$12.3 million compared with revenue of $11.7 million in the third
quarter of 2004. Net income totaled $666,000, or $0.16 per share, in
the most recent quarter compared with net income of $657,000, or $0.16
per share, in the comparable period of 2004.
The company reported revenue of $32.7 million for each of the
nine-month periods ended Sept. 30, 2005 and 2004. Net income for the
first nine months of 2005 totaled $1.2 million, or $0.30 per share,
compared with $1.3 million, or $0.32 per share, in the comparable
period of 2004.
Gregory K. Roeper, chief executive officer, stated, "We are
pleased with the increase in revenue generated during the quarter.
Several of our dealers had outstanding quarters and our distributors
maintained or slightly increased inventory levels. In addition, sales
of VoIP-related products increased 64% over the same quarter in 2004.
"During the quarter, the company did incur some expenses related
to the investigation of a strategic M&A transaction which did not
materialize. While this did have a negative impact on reported
earnings for the quarter, management is committed to exploring
strategic opportunities to enhance the value of our company while at
the same time committed to continue our efforts to improve our
operating results.
"We also continued with our planned investments into our sales
force. While these investments also negatively impacted our reported
earnings in the third quarter, we remain optimistic that these
investments will pay off."
For a more detailed discussion of the company's financial results,
please refer to the company's Form 10-Q for the quarterly period ended
Sept. 30, 2005, filed with the Securities and Exchange Commission.
Teleconference Information
The company has scheduled a teleconference to discuss its results
on Tuesday, Oct. 25, 2005, at 5 p.m. Eastern time. To participate in
the teleconference, please dial 800-834-7251 at least 10 minutes
prior to the start of the call. International participants should dial
706-645-9262. Please refer to Conference ID: 1746534.
A replay of the teleconference will be available beginning Oct.
25, 2005, at approximately 7 p.m. Eastern time through Nov. 25, 2005.
To listen to the replay by phone, dial 800-642-1687. If calling
internationally, please call 706-645-9291.
About Vodavi
Vodavi Technology Inc. is an advanced telephony solutions provider
delivering innovative business communications solutions that help
small to large enterprises increase productivity and reduce costs.
Vodavi's full range of telephony solutions include traditional
telephone systems, Voice over IP (VoIP) technology and converged
telephony solutions that allow enterprises to deploy traditional
digital or VoIP communications simultaneously, providing a flexible
and cost-effective migration path to new technology. The company is
headquartered in Phoenix. For more information on Vodavi, visit
www.vodavi.com.
This press release contains forward-looking statements, including
statements regarding the company's business strategies, the company's
business, and the industry in which the company operates as well as
expectations regarding revenue and income levels, and the market
acceptance of new product introductions. These forward-looking
statements are based primarily on the company's current expectations
and are subject to a number of risks and uncertainties, some of which
are out of the company's control.
Actual results could differ materially from the forward-looking
statements as a result of numerous factors, including those set forth
in the company's Form 10-K filed with the Securities and Exchange
Commission.
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VODAVI TECHNOLOGY INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
In thousands except per share amounts
Three Months Ended Six Months Ended
Sept. 30, Sept. 30,
------------------- ------------------
2005 2004 2005 2004
-------- -------- -------- --------
REVENUE, net $12,256 $11,690 $32,721 $32,717
COST OF GOODS SOLD 7,729 7,529 20,856 21,232
-------- -------- -------- --------
GROSS MARGIN 4,527 4,161 11,865 11,485
-------- -------- -------- --------
OPERATING EXPENSES:
Engineering and product
development 485 447 1,503 1,460
Selling, general and
administrative 2,998 2,649 8,440 7,860
-------- -------- -------- --------
3,483 3,096 9,943 9,320
-------- -------- -------- --------
OPERATING INCOME 1,044 1,065 1,922 2,165
INTEREST (INCOME) EXPENSE (30) (3) (64) 11
-------- -------- -------- --------
INCOME BEFORE INCOME TAXES 1,074 1,068 1,986 2,154
INCOME TAX PROVISION 408 411 753 828
-------- -------- -------- --------
NET INCOME $ 666 $ 657 $ 1,233 $ 1,326
======== ======== ======== ========
EARNINGS PER COMMON SHARE:
Diluted $ 0.16 $ 0.16 $ 0.30 $ 0.32
======== ======== ======== ========
WEIGHTED AVERAGE SHARES
OUTSTANDING:
Diluted 4,071 4,087 4,101 4,106
======== ======== ======== ========
VODAVI TECHNOLOGY INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
In thousands
Sept. 30, Dec. 31,
2005 2004
----------- -----------
CURRENT ASSETS:
Cash $ 5,561 $ 4,000
Accounts receivable, net 7,251 7,145
Inventory 3,262 4,569
Deferred income taxes 454 454
Prepaids and other current assets 664 519
----------- -----------
Total current assets 17,192 16,687
PROPERTY AND EQUIPMENT, net 1,327 1,363
GOODWILL 725 725
OTHER LONG-TERM ASSETS 45 50
----------- -----------
$ 19,289 $ 18,825
=========== ===========
CURRENT LIABILITIES:
Trade accounts payable $ 610 $ 497
Accrued liabilities 1,379 1,352
Accrued rebates 522 641
Trade accounts payable to stockholder 3,324 3,990
----------- -----------
Total current liabilities 5,835 6,480
DEFERRED INCOME TAXES 24 24
STOCKHOLDERS' EQUITY 13,430 12,321
----------- -----------
$ 19,289 $ 18,825
=========== ===========
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