EX-99.1 3 f89665exv99w1.htm EXHIBIT 99.1 Exhibit 99.1
 

Exhibit 99.1

Contact : Laura Graves, (408) 944-1817, ir@stratexnet.com

FOR IMMEDIATE RELEASE

STRATEX NETWORKS ANNOUNCES

FOURTH QUARTER AND FISCAL YEAR 2003 FINANCIAL RESULTS

SAN JOSE, Calif., April 29, 2003 – –Stratex Networks, Inc. (NASDAQ: STXN), a leading independent provider of wireless transmission solutions, today reported financial results for the fourth quarter and fiscal year 2003, ended March 31, 2003. Net sales in the fourth quarter of fiscal year 2003 totaled $46.6 million compared to $46.1 million reported in the fourth quarter of fiscal year 2002. Net loss in the fourth quarter of fiscal year 2003 was $8.1 million or $0.10 per share, compared to a net loss of $8.9 million or $0.11 per share reported in the fourth quarter of fiscal year 2002. Excluding restructuring and special charges of $8.4 million incurred during the fourth quarter of fiscal year 2003, the company had a net profit of $0.3 million for the quarter.

     For the fiscal year 2003, Stratex Networks reported net sales of $197.7 million compared to $228.8 million reported for the fiscal year 2002. Net loss for fiscal year 2003 was $51.6 million or $0.62 per share compared to a net loss of $168.9 million or $2.13 per share in fiscal year 2002.

     Stratex Networks received $40 million in orders during the fourth quarter. Total orders for fiscal year 2003 were $190 million. The backlog as of March 31, 2003 was $50 million.

     ” We made substantial progress over the past year despite a very difficult market for telecommunications equipment,” stated Chuck Kissner, Chairman and Chief Executive Officer. “Financial performance improved through process changes, cycle time reductions, product enhancements, manufacturing outsourcing, and fixed cost reductions. Important balance sheet metrics improved with reduced DSOs, increased inventory turns, and higher cash balances. Bottom line results improved considerably while revenues for fiscal year 2003 were down 14% from the prior year. We progressed from appreciable quarterly losses last year to a slight profit in Q4 of fiscal year 2003, excluding the restructuring and special charges of $8.4 million recorded in the fourth quarter.”

 


 

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STRATEX NETWORKS, INC. REPORTS FOURTH QUARTER
AND FISCAL YEAR 2003 FINANCIAL RESULTS

     Kissner continued, “While the coming year appears to be no less of a challenge for the telecom industry, we are committed to meeting that challenge with the impact of other programs we began during the last year, aimed at new market initiatives, significant new product introductions, and continued process improvements.”

     The company has scheduled a conference call today at 5:00 p.m. EDT (2:00 p.m. PDT) to discuss these matters and answer questions. Investors are invited to listen to the call live via the Internet by accessing http://www.stratexnet.com/. Investors can listen via telephone by dialing (877) 543-9372 domestic or (706) 643-3737 international. Investors can also listen to a telephone replay by calling (800) 642-1687 domestic or (706) 645-9291 international and entering access code 9210077. The Internet link and telephone replay will be available for a period of two weeks following the conference call.

About Stratex Networks, Inc.

With headquarters in San Jose, California, Stratex Networks, Inc. is an industry leader in the development, manufacture and marketing of microwave radio solutions for point-to-point applications, enabling the development of complex communications networks worldwide. Since it was founded in 1984, the company has achieved international recognition for quality, innovation, and technical superiority in delivering wireless transmission systems for the transport of data, voice and video communication systems, including comprehensive service and support. Stratex Networks has built a global customer base spanning a wide variety of applications and geographic locations, with deployment of more than 220,000 systems in over 100 countries representing one of the largest installed bases in the industry. Stratex Networks, with its broad product offering and worldwide sales and support organization, is strategically positioned to serve its customers’ needs in wireless high-capacity transmission technology. ISO-9001:2000 registered and committed to Total Quality Management, Stratex provides its customers with the highest possible degree of quality and value, service and support. Additional information is available at www.stratexnet.com.

Note Regarding Forward-Looking Statements: This press release contains statements that qualify as “forward-looking statements” under the Private Securities Litigation Reform Act of 1995, including statements regarding future results of programs aimed at new market initiatives, significant new product introductions, and continued process improvements. These forward-looking statements are based on current expectations and we assume no obligation to update this information. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of certain risks and uncertainties, including the risk of increased competition, continuation or further tightening of global capital markets for telecommunications and mobile cellular projects, and economic and political instability in the markets in which we compete. In addition, our backlog is not necessarily indicative of our revenues in any future period. For a further discussion of such factors, see the information provided under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations —Factors that May Affect Future Financial Results” in the Company’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2002, filed with the Securities and Exchange Commission on February 14, 2003.

—Tables to follow—

 


 

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STRATEX NETWORKS, INC. REPORTS FOURTH QUARTER
AND FISCAL YEAR 2003 FINANCIAL RESULTS

CONDENSED CONSOLIDATED BALANCE SHEET

(in thousands)
(unaudited)
                     
        March 31,   March 31,
        2003   2002
       
 
Assets
               
Cash and short-term investments
  $ 90,182     $ 85,674  
Accounts receivable, net
    31,072       42,953  
Inventories
    20,307       31,094  
Other current assets
    14,032       10,775  
 
   
     
 
 
Total current assets
    155,593       170,496  
Property & equipment, net
    28,836       41,694  
Other assets
    356       1,927  
 
   
     
 
 
Total assets
  $ 184,785     $ 214,117  
 
   
     
 
Liabilities and Stockholders’ Equity
               
Accounts payable
  $ 23,095     $ 20,579  
Other current liabilities
    29,745       19,406  
 
   
     
 
 
Total current liabilities
    52,840       39,985  
Other long-term liabilities
    19,145       6,675  
 
   
     
 
   
Total liabilities
    71,985       46,660  
 
   
     
 
Stockholders’ equity
    112,800       167,457  
 
   
     
 
Total liabilities and stockholders’ equity
  $ 184,785     $ 214,117  
 
   
     
 

—continued—

 


 

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STRATEX NETWORKS, INC. REPORTS FOURTH QUARTER
AND FISCAL YEAR 2003 FINANCIAL RESULTS

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)
(unaudited)
                                   
      Three Months Ended   Twelve Months Ended
      March 31,   March 31,
     
 
      2003   2002   2003   2002
     
 
 
 
Net sales
  $ 46,560     $ 46,092     $ 197,704     $ 228,844  
 
Cost of sales
    33,086       38,790       149,165       184,527  
Inventory valuation charges (benefit)
    (49 )           (2,122 )     102,731  
 
   
     
     
     
 
Gross profit (loss)
    13,523       7,302       50,661       (58,414 )
 
   
     
     
     
 
Operating expenses:
                               
 
Research and development
    3,959       3,705       14,392       18,529  
 
Selling, general and administrative
    11,228       14,140       51,422       58,493  
 
Restructuring and other charges
    8,379             35,741       24,589  
 
   
     
     
     
 
Total operating expenses
    23,566       17,845       101,555       101,611  
 
   
     
     
     
 
Operating loss
    (10,043 )     (10,543 )     (50,894 )     (160,025 )
 
Other income (expense)
    514       396       (326 )     493  
 
Permanent impairment of investments
          926       (412 )     (7,918 )
 
   
     
     
     
 
Loss before income taxes
    (9,529 )     (9,221 )     (51,632 )     (167,450 )
 
Provision (benefit) for income taxes
    (1,416 )     (333 )     (77 )     1,423  
 
   
     
     
     
 
Net loss
    ($8,113 )     ($8,888 )     ($51,555 )     ($168,873 )
 
   
     
     
     
 
Basic and diluted loss per share
    ($0.10 )     ($0.11 )     ($0.62 )     ($2.13 )
Basic and diluted weighted average shares outstanding
    82,710       82,265       82,548       79,166  

—continued—

 


 

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STRATEX NETWORKS, INC. REPORTS FOURTH QUARTER
AND FISCAL YEAR 2003 FINANCIAL RESULTS

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES*

(in thousands)
(unaudited)
                   
      Three months ended
      March 31,
     
      2003   2002
     
 
GAAP loss
    ($8,113 )     ($8,888 )
Non-GAAP adjustments:
               
 
Restructuring and other charges
    8,379        
       
     
 
Total Non-GAAP adjustments
    8,379        
Non-GAAP income (loss)
  $ 266       ($8,888 )

* In addition to disclosing results that are determined in accordance with Generally Accepted Accounting Principles (GAAP), Stratex Networks, Inc. also discloses pro forma or non-GAAP results in order to assess and reflect operating performance. Management believes the pro forma measure helps indicate underlying trends and better enables period-to-period comparisons. Pro forma information excludes certain restructuring and special charges. Pro forma information should not be considered superior to or as a substitute for measures or data prepared in accordance with GAAP.

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