EX-99.1 3 f93819exv99w1.htm EXHIBIT 99.1 Exhibit 99.1
 

Exhibit 99.1

Carl Thomsen, (408) 943-0777, ir@stratexnet.com

FOR IMMEDIATE RELEASE

STRATEX NETWORKS ANNOUNCES
SECOND QUARTER FISCAL YEAR 2004 FINANCIAL RESULTS

Company reports strong interest in new Eclipse product and increasing orders

SAN JOSE, Calif., October 22, 2003 – –Stratex Networks, Inc. (NASDAQ: STXN), a leading independent provider of wireless transmission solutions, today reported financial results for the second quarter of fiscal year 2004, ended September 30, 2003. Net sales totaled $36.9 million compared to $52.6 million reported in the second quarter of fiscal 2003. Net loss in the second quarter of fiscal year 2004 was $7.0 million or $0.08 per share, compared to a net loss of $4.4 million or $0.05 per share reported in the second quarter of fiscal year 2003.

     Stratex Networks received $44.5 million in new orders during the quarter. The backlog as of September 30, 2003 was $45.5 million.

     “While revenue and earnings came in at the low end of our guidance, new orders strengthened, largely as a result of customer interest in the new Eclipse platform,” stated Charles D. Kissner, Chairman and Chief Executive Officer. “We received our first orders for Eclipse during the quarter in anticipation of beginning commercial shipments in Q4. Customer interest in moving to Eclipse is very strong. As a result, we have better visibility on future revenue than in recent history.”

     A conference call with company management will follow this announcement at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). Investors are invited to listen to the call live via the Internet at http://www.stratexnet.com/. Investors can listen via telephone by dialing (877) 543-9372 domestic or (706) 643-3737 international and entering conference identification number 2751038. A telephone replay using the same conference identification number will be accessible at (800) 642-1687 domestic or (706) 645-9291 international beginning approximately two hours after conclusion of the live call. The Internet link and telephone replay will be available for a period of two weeks following the conference call.

 


 

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STRATEX NETWORKS, INC. REPORTS SECOND QUARTER
FISCAL YEAR 2004 FINANCIAL RESULTS

     About Stratex Networks: With its broad product offering and worldwide sales and support organization, Stratex Networks is strategically positioned to serve wireless high-capacity transmission technology needs in a global environment. Since it was founded in 1984, Stratex Networks has achieved international recognition for quality, innovation, and technical superiority in delivering data, voice, and video communication systems, including comprehensive service and support. Additional information is available at www.stratexnet.com.

Safe Harbor Statement: This press release contains statements that qualify as “forward-looking statements” under the Private Securities Litigation Reform Act of 1995, including statements relating to the Company’s expectations regarding initial commercial shipments of the Eclipse, market acceptance of the Eclipse, visibility of future revenues and the Company’s positioning to serve wireless high-capacity transmission technology needs in a global environment. These forward-looking statements are based on current expectations and the Company assumes no obligation to update this information. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of certain risk factors including unexpected delays in the schedule for initial commercial shipments of Eclipse, negative trends in the general economic condition of the worldwide economy, order cancellations, postponements in product deliveries resulting in delayed revenue recognition, increased competition, downward pressures on the price of the Company’s products and services and the introduction of competing products and technologies. In addition, orders and backlog are not necessarily indicative of revenue in any future period. For a further discussion of these and other factors that impact the Company’s business in general, see the information provided under the heading “Factors That May Affect Future Financial Results” in the Company’s Annual Report on Form 10-Q for the quarter ended June 30, 2003, filed with the Securities and Exchange Commission on August 13, 2003.

—Tables to follow—

 


 

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STRATEX NETWORKS, INC. REPORTS SECOND QUARTER
FISCAL YEAR 2004 FINANCIAL RESULTS

CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands)

                     
        September 30,   March 31,
        2003   2003
       
 
        (unaudited)        
Assets
               
Cash and short-terms investments
  $ 74,957     $ 90,182  
Accounts receivable, net
    28,932       31,072  
Inventories
    20,289       20,307  
Other current assets
    13,103       14,032  
 
   
     
 
 
Total current assets
    137,281       155,593  
Property & equipment, net
    29,521       28,836  
Other assets
    353       356  
 
   
     
 
 
Total assets
  $ 167,155     $ 184,785  
 
   
     
 
Liabilities and Stockholders’ Equity
               
Accounts payable
  $ 24,454     $ 23,095  
Other current liabilities
    21,581       29,745  
 
   
     
 
 
Total current liabilities
    46,035       52,840  
Other liabilities
    17,157       19,145  
 
   
     
 
 
Total liabilities
    63,192       71,985  
 
   
     
 
Stockholders’ equity
    103,963       112,800  
 
   
     
 
Total liabilities and stockholders’ equity
  $ 167,155     $ 184,785  
 
   
     
 

 


 

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STRATEX NETWORKS, INC. REPORTS SECOND QUARTER
FISCAL YEAR 2004 FINANCIAL RESULTS

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)
(Unaudited)

                                   
      Three Months Ended   Six Months Ended
      September 30,   September 30,
     
 
      2003   2002   2003   2002
     
 
 
 
Net sales
  $ 36,882     $ 52,560     $ 72,849     $ 101,879  
 
Cost of sales
    29,819       39,826       58,440       78,595  
 
   
     
     
     
 
Gross profit
    7,063       12,734       14,409       23,284  
 
   
     
     
     
 
Operating expenses:
                               
 
Research and development
    3,982       3,460       7,868       7,082  
 
Selling, general and administrative
    9,939       13,179       20,445       27,776  
 
Restructuring and other charges (credit)
                (3,550 )     14,173  
 
   
     
     
     
 
Total operating expenses
    13,921       16,639       24,763       49,031  
 
   
     
     
     
 
Operating loss
    (6,858 )     (3,905 )     (10,354 )     (25,747 )
 
Other income (expense)
    136       (118 )     188       (196 )
 
Permanent impairment of investments
          (246 )           (392 )
 
   
     
     
     
 
Loss before income taxes
    (6,722 )     (4,269 )     (10,166 )     (26,335 )
 
Provision for income taxes
    280       146       211       943  
 
   
     
     
     
 
Net loss
  $ (7,002 )   $ (4,415 )   $ (10,377 )   $ (27,278 )
 
   
     
     
     
 
Basic and diluted net loss per share
    ($0.08 )     ($0.05 )     ($0.13 )     ($0.33 )
Basic and diluted weighted average shares outstanding
    82,922       82,500       82,877       82,438  

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