-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, BPj7I/xfuMRYBKYCjC5Du40L4wjTxcil0h/joiwct2m8oRk/74e/EBjJCGh8mYUE S5Klnhw0Orf0TfjM0dkusA== 0001157523-05-000693.txt : 20050127 0001157523-05-000693.hdr.sgml : 20050127 20050127074542 ACCESSION NUMBER: 0001157523-05-000693 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050127 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050127 DATE AS OF CHANGE: 20050127 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TELULAR CORP CENTRAL INDEX KEY: 0000915324 STANDARD INDUSTRIAL CLASSIFICATION: RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT [3663] IRS NUMBER: 363885440 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-23212 FILM NUMBER: 05551639 BUSINESS ADDRESS: STREET 1: 647 N LAKEVIEW PKWAY STREET 2: 920 DEERFIELD PKWY CITY: VERNON HILLS STATE: IL ZIP: 60061 BUSINESS PHONE: 8474654500 MAIL ADDRESS: STREET 1: 647 NORTH LAKEVIEW PARKWAY CITY: VERNON HILLS STATE: IL ZIP: 60061 8-K 1 a4808589.txt TELULAR CORP. 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ____________________ FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of report (date of earliest event reported): January 27, 2005 TELULAR CORPORATION (Exact Name of Registrant as Specified in Its Charter) Delaware 0-23212 36-3885440 (State or Other Jurisdiction of (Commission (I.R.S. Employer Incorporation) File Number) Identification Number) 647 North Lakeview Parkway, Vernon Hills, Illinois 60061 (Address of Principal Executive Offices) (Zip Code) (847) 247-9400 (Registrant's Telephone Number, Including Area Code) ____________________ Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [_] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [_] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [_] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [_] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02. Results of Operations and Financial Condition. - ---------- ---------------------------------------------- On January 27, 2005, Telular Corporation issued a press release reporting its fiscal year 2005 first quarter results. This press release is attached hereto as Exhibit 99.1 and is being furnished, not filed, under item 7.01 to this Report on Form 8-K. Item 9.01. Financial Statements and Exhibits. - ---------- ---------------------------------- (c) Exhibits 99.1 Press Release issued by Telular Corporation dated January 27, 2005. SIGNATURES ---------- Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: January 27, 2005 TELULAR CORPORATION /s/ JEFFREY L. HERRMANN ----------------------- Jeffrey L. Herrmann Executive Vice President, Chief Operating Officer and Chief Financial Officer TELULAR CORPORATION Exhibit Index to Current Report on Form 8-K Dated January 27, 2005 Exhibit Number Document Name - ------- ------------- 99.1 Press Release dated January 27, 2005. EX-99.1 2 a4808589ex991.txt PRESS RELEASE EXHIBIT 99.1 Telular Corporation Announces Quarterly Results for First Quarter of Fiscal Year 2005 VERNON HILLS, Ill.--(BUSINESS WIRE)--Jan. 27, 2005--Telular Corporation (Nasdaq: WRLS) reported revenue of $13.7 million for its first quarter ended December 31, 2004, compared to $16.3 million for the same period last year. The Company reported a first-quarter net loss of $931 thousand, or $0.07 per share, compared to a net loss of $1.5 million, or $0.11 per share, for the first quarter of fiscal year 2004. "We experienced a slow period for orders and shipments during our first quarter. We do not believe this is a trend, rather it is the result of temporary market conditions, including high inventory levels at two of our largest customers," said Kenneth E. Millard, chairman and chief executive officer. Operating Details Fixed Wireless sales of $9.8 million decreased $3.1 million or 24% during the first quarter compared to the same period last year due to lower shipments to El Salvador and Venezuela, while Wireless Alarm revenues of $3.9 million increased $0.4 million or 12% over the same period last year. "A significant part of this quarter's results is the performance of the Wireless Alarm business, where higher sales, improved margins and lower operating expenses resulted in net income of $562 thousand, compared to a net loss of $226 thousand during the same period last year," added Millard. The Company's gross margin in the first quarter of 29% is 4 percentage points more than the same period last year. The increase resulted from the recovery from lower margins last year that was the result of forward pricing of CDMA products during the first quarter of last year. Operating expenses for the first quarter decreased $567 thousand or 10% from last year as the Company reduced outside engineering expenses and incurred lower sales commissions related to the sales decrease. During the first quarter, the Company used $3.4 million of cash, compared to $4.5 million of cash used during the same period of last year. Investor Conference Call Telular's quarterly conference call will be held today, January 27, 2005 at 10:00 A.M. CST. To participate on the teleconference from the United States and Canada dial 1-800-839-6489 at least 15 minutes prior to the start of the call. International attendees wishing to participate on the call can gain access by dialing +1-706-634-2227. The conference code is 3521464, you may also monitor the call via webcast at http://audioevent.mshow.com/209290. About Telular Telular Corporation is a leader in the design and manufacturing of wireless products. Telular's proprietary telecommunications interface technology enables standard phones, fax machines, computer modems or monitored alarm systems to utilize available cellular wireless service for either primary or back-up telecommunications. Their product lines incorporate the world's leading cellular standards (CDMA, GSM, TDMA, AMPS) and are marketed worldwide. Headquartered in Vernon Hills, Illinois, Telular has regional sales offices in Atlanta, Miami, London, Singapore, Mexico City, Beijing and Johannesburg. For further company information, visit Telular at http://www.telular.com. Please be advised that some of the information in this release presents the Company's intentions, beliefs, judgments and expectations of the future and are forward-looking statements. It is important to note that the Company's actual results could differ materially from these forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company's SEC filings, including but not limited to the Company's report on Form 10-K for the fiscal year ended September 30, 2004. Copies of these filings may be obtained by contacting the Company or the SEC. Financial Tables Follow... TELULAR CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS AND STATEMENTS OF CASH FLOWS (Dollars in thousands, except share data) BALANCE SHEET Dec. 31, Sept. 30, 2004 2004 ----------- ----------- ASSETS (Unaudited) Cash and cash equivalents $ 19,272 $ 22,677 Receivables: Trade, net of allowance for doubtful accounts of $197 and $192 at December 31, 2004 and September 30, 2004, respectively 13,386 12,844 Inventories, net 12,469 10,636 Prepaid expenses and other current assets 629 222 ----------- ----------- Total current assets 45,756 46,379 Property and equipment, net 2,944 3,130 Other assets 4,707 4,857 ----------- ----------- Total assets $ 53,407 $ 54,366 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities $ 9,464 $ 9,565 Total stockholders' equity(1) 43,943 44,801 ----------- ----------- Total liabilities and stockholders' equity $ 53,407 $ 54,366 =========== =========== (1) At December 31, 2004, 13,289,628 shares were outstanding CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS Three Months Ended December 31, 2004 2003 ----------- ----------- (Unaudited) (Unaudited) Net cash used in operating activities $(3,311) $(4,314) Net cash used in investing activities (163) (266) ----------- ----------- Subtotal net cash used before financing activities $(3,474) $(4,580) ----------- ----------- Net cash provided by financing activities 69 62 ----------- ----------- Net decrease in cash and cash equivalents $(3,405) $(4,518) =========== =========== TELULAR CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except share data) (Unaudited) Three Months Ended December 31, 2004 2003 ----------- ----------- Revenue Net product sales $11,453 $14,461 Service revenue 2,200 1,887 ----------- ----------- Total revenue 13,653 16,348 Cost of sales Net product cost of sales 8,391 11,039 Service cost of sales 1,253 1,252 ----------- ----------- Total cost of sales 9,644 12,291 Gross margin 4,009 4,057 Engineering and development expenses 1,660 1,959 Selling and marketing expenses 2,136 2,401 General and administrative expenses 1,190 1,193 ----------- ----------- Loss from operations (977) (1,496) Other income, net 46 13 ----------- ----------- Net loss $(931) $(1,483) =========== =========== Net loss per common share: Basic $(0.07) $(0.11) Diluted $(0.07) $(0.11) Weighted average number of common shares outstanding 13,278,641 12,955,153 CONTACT: Telular Corporation Jeffrey L. Herrmann, 847-247-9400 Fax: 847-247-0021 jherrmann@telular.com -----END PRIVACY-ENHANCED MESSAGE-----