SAN JOSE, Calif., April 24, 2013 /PRNewswire/ -- Symmetricom,
Inc. (NASDAQ:SYMM), a worldwide leader in precision time and
frequency technologies, today reported financial results for its
third quarter of fiscal year 2013 ended March 31, 2013.
(Logo: http://photos.prnewswire.com/prnh/20110829/AQ59077LOGO)
Net revenue for the third quarter of fiscal 2013 was
$53.3 million, compared to the
$60.4 million reported for the third
quarter of fiscal 2012. Symmetricom reported net income of
$0.8 million, or $0.02 per share, for the third quarter of fiscal
2013, compared to net income of $2.2
million, or $0.05 per share in
the third quarter of fiscal 2012. On a sequential basis, revenue,
net income and earnings per share increased from the second quarter
of fiscal 2013.
Non-GAAP net income for the third quarter of fiscal 2013 was
$2.8 million, or $0.07 per share, compared to $3.3 million, or $0.08 per share, reported for the third quarter
of fiscal 2012. Non-GAAP net income increased sequentially by
$2.5 million, or $0.06 per share, from the second quarter of
fiscal 2013.
Cash, cash equivalents and short-term investments totaled
$69.7 million as of March 31, 2013 compared to $70.8 million reported as of December 30, 2012. Net cash provided by operating
activities in the third quarter was $1.3
million, and property, plant and equipment purchases were
approximately $2.1 million, resulting
in free cash outflow of ($0.8)
million.
"Symmetricom delivered improved results compared to last
quarter, with revenue at the high end of our expectations.
Profitability also improved sequentially, reflecting higher
revenue, improved CSAC margins and the benefits from our ongoing
savings efforts," said Dave Cote,
president and chief executive officer of Symmetricom. "We continue
to focus on driving our key growth initiatives, including the
Quantum Chip Scale Atomic Clock, PackeTime and Government Programs.
With our solid competitive position, a suite of leading solutions,
and a healthy balance sheet, we remain well-positioned for the
future."
Business Segment Revenue Results
Revenue in the
Communications Business in the third quarter of fiscal 2013 was
$30.0 million, compared to
$32.6 million reported in the third
quarter of fiscal 2012. Revenue in the Government and
Enterprise Business in the third quarter of fiscal 2013 was
$23.3 million, compared to
$27.8 million reported in the third
quarter of fiscal 2012. Revenue in both segments increased
from the second quarter of fiscal 2013, with the larger increase in
the Communications segment.
Fourth Quarter 2013 Guidance
Symmetricom's guidance
for the fourth quarter of fiscal 2013 is as follows:
- Net revenue is expected to be in the range of $51 million to $57 million
- GAAP earnings (loss) per share is expected to be in the range
of $0.00 to $0.05
- Non-GAAP earnings per share is expected to be in the range of
$0.05 to $0.10
A reconciliation of GAAP and non-GAAP guidance is provided at
the end of this press release.
Investor Conference Call
As previously announced,
management will hold a conference call to discuss these results
today, at 1:30 p.m. Pacific
Time. Investors are invited to join the conference
call by dialing +1-212-547-0198 and referencing
"Symmetricom." A live webcast will also be available on the
investor relations section of the Company's website at
www.symmetricom.com. An audio replay will be available for
one week and can be accessed by dialing +1-203-369-2034.
About Symmetricom, Inc.
Symmetricom (NASDAQ:SYMM), a
world leader in precise time solutions, sets the world's standard
for time. The Company generates, distributes and applies precise
time for the communications, aerospace/defense, IT infrastructure,
power and metrology industries. Symmetricom's customers, from
communications service providers and network equipment
manufacturers to governments and their suppliers worldwide, are
able to build more reliable networks and systems by using the
Company's advanced timing technologies, atomic clocks, services and
solutions. All products support today's precise timing
standards, including GPS-based timing, IEEE 1588 (PTP), Network
Time Protocol (NTP), Synchronous Ethernet and DOCSISĀ® timing.
Symmetricom is based in San Jose,
California, with offices worldwide. For more
information, visit: http://www.symmetricom.com or join the dialogue
at http://www.twitter.com/symmetricom.
Non-GAAP Information
Certain non-GAAP financial
information is included in this press release. In the
reconciliation of GAAP to non-GAAP results, Symmetricom excludes
certain items related to non-cash equity-based compensation,
acquisition-related costs, amortization of intangible assets,
restructuring charges and off-shore development transition costs
that the Company does not consider indicative of its ongoing
performance. The income tax effect after these non-GAAP adjustments
is determined based upon Symmetricom's estimate of its annual
non-GAAP effective tax rate excluding these non-GAAP
adjustments. Symmetricom believes that excluding such items
provides investors, analysts and management with a representation
of the Company's core operating performance and with information
useful in assessing, in conjunction with GAAP results, underlying
trends in operating performance. Management uses such
non-GAAP information to evaluate financial results and to establish
operational goals. Non-GAAP information should not be
considered superior to or as a substitute for data prepared in
accordance with GAAP. A reconciliation of the non-GAAP
results to the GAAP results is provided in the financial schedules
portion of this press release.
Free cash flow is defined as net cash provided by or used in
operating activities minus purchases of property, plant and
equipment. Symmetricom believes this metric provides useful
information to its investors, analysts, and management about the
level of cash generated by or used in normal business operations,
including the use of cash for the purchase of property, plant and
equipment. Management also views it as a measure of cash
available to pay debt and return cash to stockholders. Free
cash flow is not a GAAP financial measure and should not be
considered superior to or a substitute for operating cash flow or
other cash flow data prepared in accordance with GAAP.
Safe Harbor
This press release contains
forward-looking information within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, and is subject to the
safe harbor created by those sections. These forward-looking
statements include statements concerning fourth quarter fiscal 2013
guidance and future performance as well as the information
regarding the usefulness of the non-GAAP financial
information. The statements in this press release are made as
of the date of this press release, even if subsequently made
available by Symmetricom on its website or otherwise.
Symmetricom expressly disclaims any obligation to update or revise
any forward-looking statement contained herein, whether as a result
of a change in its expectations, a change in any events, conditions
or circumstances on which a forward-looking statement is based, or
otherwise. Symmetricom's actual results could differ
materially from those projected or suggested in these
forward-looking statements. Factors that could cause future
actual results to differ materially from the results projected in
or suggested by such forward-looking statements include, but are
not limited to, the extent and magnitude of customer orders
received and shipped within the same quarter, risks relating to
general economic conditions in the markets we address and the
telecommunications and government markets in general, risks related
to the development of our new products and services, reliance on
our contract manufacturer, the effects of increasing competition
and competitive pricing pressure, uncertainties associated with
changing intellectual property laws or misappropriation of
intellectual property, developments in and expenses related to
litigation, the inability to obtain sufficient amounts of key
components, the rescheduling or cancellation of key customer
orders, the loss of a key customer, the effects of new and emerging
technologies, the risk that excess inventory may result in
write-offs, price erosion and decreased demand, fluctuations in the
rate of exchange of foreign currency, changes in our effective tax
rate, market acceptance of our new products and services,
technological advancements, undetected errors, design flaws,
defects in our products or start-up manufacturing difficulties, the
risks associated with our international sales, potential short-term
investment losses and other risks due to credit market dislocation,
geopolitical risks and risk of terrorist activities, the risks
associated with attempting to integrate other companies and
businesses we acquire, and the risk factors listed from time to
time in Symmetricom's reports filed with the Securities and
Exchange Commission, including the annual report on Form 10-K for
the fiscal year ended July 1, 2012
and subsequent Forms 10-Q and 8-K.
Contact:
Justin Spencer
Chief Financial Officer
+1-408-428-7801
jspencer@symmetricom.com
SYMM-F
SYMMETRICOM, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In
thousands, except per share amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended
|
|
Nine
months ended
|
|
|
March
31,
|
|
December
30,
|
|
April
1,
|
|
March
31,
|
|
April
1,
|
|
|
2013
|
|
2012
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenue
|
|
$
53,349
|
|
$
49,151
|
|
$
60,438
|
|
$
158,891
|
|
$
175,110
|
Cost of
sales:
|
|
|
|
|
|
|
|
|
|
|
Cost of products and
services
|
|
28,654
|
|
27,861
|
|
35,638
|
|
88,415
|
|
97,693
|
Acquisition-related
costs
|
|
237
|
|
248
|
|
74
|
|
719
|
|
445
|
Restructuring
charges
|
|
375
|
|
41
|
|
65
|
|
371
|
|
1,156
|
Total cost of sales
|
|
29,266
|
|
28,150
|
|
35,777
|
|
89,505
|
|
99,294
|
Gross profit
|
|
24,083
|
|
21,001
|
|
24,661
|
|
69,386
|
|
75,816
|
Gross margin
|
|
45.1%
|
|
42.7%
|
|
40.8%
|
|
43.7%
|
|
43.3%
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
8,291
|
|
7,805
|
|
7,129
|
|
24,409
|
|
20,575
|
Selling, general and
administrative
|
|
14,593
|
|
14,778
|
|
14,281
|
|
45,598
|
|
43,955
|
Amortization of intangible
assets
|
|
87
|
|
86
|
|
52
|
|
259
|
|
156
|
Restructuring
charges
|
|
947
|
|
1,146
|
|
(76)
|
|
2,148
|
|
123
|
Total operating expenses
|
|
23,918
|
|
23,815
|
|
21,386
|
|
72,414
|
|
64,809
|
Operating income (loss)
|
|
165
|
|
(2,814)
|
|
3,275
|
|
(3,028)
|
|
11,007
|
Interest
income, net of amortization (accretion) of premium (discount) on
investments
|
|
98
|
|
178
|
|
225
|
|
240
|
|
(5)
|
Income (loss) before
taxes
|
|
263
|
|
(2,636)
|
|
3,500
|
|
(2,788)
|
|
11,002
|
Income tax
provision (benefit)
|
|
(556)
|
|
(861)
|
|
1,296
|
|
(1,629)
|
|
3,604
|
Net income (loss)
|
|
$
819
|
|
$
(1,775)
|
|
$
2,204
|
|
$
(1,159)
|
|
$
7,398
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
(loss) per share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.02
|
|
$
(0.04)
|
|
$
0.05
|
|
$
(0.03)
|
|
$
0.18
|
Diluted
|
|
$
0.02
|
|
$
(0.04)
|
|
$
0.05
|
|
$
(0.03)
|
|
$
0.17
|
|
|
|
|
|
|
|
|
|
|
|
Shares
used in computing earnings (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding -
basic
|
|
40,502
|
|
40,356
|
|
41,795
|
|
40,456
|
|
42,258
|
Weighted average shares outstanding -
diluted
|
|
40,956
|
|
40,356
|
|
42,615
|
|
40,456
|
|
42,937
|
SYMMETRICOM, INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
July
1,
|
|
|
|
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and
cash equivalents
|
|
$
22,371
|
|
$
27,659
|
|
|
Short-term
investments
|
|
|
47,351
|
|
39,280
|
|
|
Accounts
receivable, net
|
|
38,870
|
|
45,952
|
|
|
Inventories
|
|
|
47,195
|
|
47,618
|
|
|
Prepaids
and other current assets
|
|
17,379
|
|
16,943
|
|
|
Total current
assets
|
|
|
173,166
|
|
177,452
|
|
Property,
plant and equipment, net
|
|
23,148
|
|
22,702
|
|
Intangible
assets, net
|
|
|
3,519
|
|
3,458
|
|
Deferred
taxes and other assets
|
|
28,898
|
|
27,413
|
|
|
Total assets
|
|
|
$228,731
|
|
$231,025
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
$
10,343
|
|
$
9,300
|
|
|
Accrued
compensation
|
|
|
11,923
|
|
14,574
|
|
|
Accrued
warranty
|
|
|
1,455
|
|
1,722
|
|
|
Other
accrued liabilities
|
|
|
10,748
|
|
11,841
|
|
|
Total current
liabilities
|
|
34,469
|
|
37,437
|
|
Long-term
obligations
|
|
|
4,938
|
|
5,472
|
|
Deferred
income taxes
|
|
|
334
|
|
334
|
|
|
Total liabilities
|
|
|
39,741
|
|
43,243
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
Common
stock
|
|
|
195,821
|
|
193,478
|
|
|
Accumulated other comprehensive loss
|
|
(208)
|
|
(232)
|
|
|
Accumulated deficit
|
|
|
(6,623)
|
|
(5,464)
|
|
|
Total stockholders'
equity
|
|
188,990
|
|
187,782
|
|
|
Total liabilities and stockholders' equity
|
$228,731
|
|
$231,025
|
|
SYMMETRICOM, INC.
|
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
|
(In
thousands, except per share amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended
|
|
Nine
months ended
|
|
March
31,
|
|
December
30,
|
|
April
1,
|
|
March
31,
|
|
April
1,
|
|
2013
|
|
2012
|
|
2012
|
|
2013
|
|
2012
|
Reconciliation from GAAP to Non-GAAP
|
|
|
|
|
|
|
|
|
|
GAAP Net
income (loss)
|
$
819
|
|
$
(1,775)
|
|
$2,204
|
|
$
(1,159)
|
|
$
7,398
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
Equity-based compensation expense:
|
|
|
|
|
|
|
|
|
|
Cost of products and
services
|
274
|
|
250
|
|
272
|
|
815
|
|
606
|
Research and
development
|
304
|
|
316
|
|
312
|
|
981
|
|
896
|
Selling, general and
administrative
|
1,212
|
|
1,121
|
|
1,154
|
|
3,453
|
|
3,079
|
Total
equity-based compensation expense
|
1,790
|
|
1,687
|
|
1,738
|
|
5,249
|
|
4,581
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related costs and amortization of
intangible assets:
|
|
|
|
|
|
|
|
|
|
Cost of products and
services
|
237
|
|
248
|
|
74
|
|
719
|
|
445
|
Operating
expenses
|
87
|
|
86
|
|
52
|
|
259
|
|
156
|
Total
acquisition-related costs and amortization of intangible
assets
|
324
|
|
334
|
|
126
|
|
978
|
|
601
|
|
|
|
|
|
|
|
|
|
|
Restructuring charges
|
$
1,322
|
|
$
1,187
|
|
$
(11)
|
|
$
2,519
|
|
$
1,279
|
Off-shore
development transition costs
|
-
|
|
-
|
|
-
|
|
729
|
|
-
|
Income tax
effect of Non-GAAP adjustments
|
(1,429)
|
|
(1,154)
|
|
(793)
|
|
(3,653)
|
|
(2,263)
|
Non-GAAP
Net income
|
$
2,826
|
|
$
279
|
|
$3,264
|
|
$
4,663
|
|
$11,596
|
|
|
|
|
|
|
|
|
|
|
Earnings
(loss) per share - diluted:
|
|
|
|
|
|
|
|
|
|
GAAP Net income
(loss)
|
$
0.02
|
|
$
(0.04)
|
|
$
0.05
|
|
$
(0.03)
|
|
$
0.17
|
Non-GAAP Net
income
|
$
0.07
|
|
$
0.01
|
|
$
0.08
|
|
$
0.11
|
|
$
0.27
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding - diluted
|
40,956
|
|
41,464
|
|
42,615
|
|
41,396
|
|
42,937
|
|
SYMMETRICOM, INC.
|
|
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
|
|
(In
thousands, except per share amounts)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended
|
|
Nine
months ended
|
|
|
|
March
31,
|
|
December
30,
|
|
April
1,
|
|
March
31,
|
|
April
1,
|
|
|
|
2013
|
|
2012
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
Revenue
|
|
$
53,349
|
|
$
49,151
|
|
$
60,438
|
|
$
158,891
|
|
$
175,110
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from GAAP to Non-GAAP Gross
Profit:
|
|
|
|
|
|
|
|
|
|
|
GAAP Gross
profit
|
(A)
|
$
24,083
|
|
$
21,001
|
|
$
24,661
|
|
$
69,386
|
|
$
75,816
|
|
GAAP Gross
margin
|
|
45.1%
|
|
42.7%
|
|
40.8%
|
|
43.7%
|
|
43.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Equity-based compensation expense
|
|
274
|
|
250
|
|
272
|
|
815
|
|
606
|
|
Acquisition-related costs
|
|
237
|
|
248
|
|
74
|
|
719
|
|
445
|
|
Restructuring charges
|
|
375
|
|
41
|
|
65
|
|
371
|
|
1,156
|
Non-GAAP
Gross profit
|
(B)
|
$
24,969
|
|
$
21,540
|
|
$
25,072
|
|
$
71,291
|
|
$
78,023
|
|
Non-GAAP
Gross margin
|
|
46.8%
|
|
43.8%
|
|
41.5%
|
|
44.9%
|
|
44.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from GAAP to Non-GAAP Operating
Expense:
|
|
|
|
|
|
|
|
|
|
|
GAAP
Operating expenses
|
(C)
|
$
23,918
|
|
$
23,815
|
|
$
21,386
|
|
$
72,414
|
|
$
64,809
|
|
Operating
expense % to revenue
|
|
44.8%
|
|
48.5%
|
|
35.4%
|
|
45.6%
|
|
37.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Equity-based compensation expense
|
|
(1,516)
|
|
(1,437)
|
|
(1,466)
|
|
(4,434)
|
|
(3,975)
|
|
Amortization of intangible assets
|
|
(87)
|
|
(86)
|
|
(52)
|
|
(259)
|
|
(156)
|
|
Restructuring charges
|
|
(947)
|
|
(1,146)
|
|
76
|
|
(2,148)
|
|
(123)
|
|
Off-shore
development transition costs
|
|
-
|
|
-
|
|
-
|
|
729
|
|
-
|
Non-GAAP
operating expenses
|
(D)
|
$
21,368
|
|
$
21,146
|
|
$
19,944
|
|
$
66,302
|
|
$
60,555
|
|
Non-GAAP
operating expenses % to revenue
|
|
40.1%
|
|
43.0%
|
|
33.0%
|
|
41.7%
|
|
34.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from GAAP to Non-GAAP Operating Income
(loss):
|
|
|
|
|
|
|
|
|
|
|
GAAP
Operating income (loss)
|
(A) -
(C)
|
$
165
|
|
$
(2,814)
|
|
$
3,275
|
|
$
(3,028)
|
|
$
11,007
|
|
Operating
income % to revenue
|
|
0.3%
|
|
-5.7%
|
|
5.4%
|
|
-1.9%
|
|
6.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Operating income
|
(B) -
(D)
|
$
3,601
|
|
$
394
|
|
$
5,128
|
|
$
4,989
|
|
$
17,468
|
|
Operating
income % to revenue
|
|
6.7%
|
|
0.8%
|
|
8.5%
|
|
3.1%
|
|
10.0%
|
|
SYMMETRICOM, INC.
|
|
RECONCILIATION OF FORWARD-LOOKING GUIDANCE FOR
NON-GAAP FINANCIAL MEASURES
|
|
TO
PROJECTED GAAP REVENUE AND EPS
|
|
(In
thousands, except per share amounts)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ending June 30, 2013
|
|
|
Revenue
|
|
Earnings /
(Loss) Per Share from Continuing Operations
|
|
|
From
|
To
|
|
From
|
To
|
|
|
|
|
|
|
|
GAAP
Guidance
|
$51,000
|
$57,000
|
|
$0.00
|
$0.05
|
|
|
|
|
|
|
|
Estimated Non-GAAP Adjustments
|
|
|
|
|
|
|
Equity-based compensation expense
|
|
|
|
$0.04
|
$0.04
|
|
Amortization of intangible assets
|
|
|
|
$0.01
|
$0.01
|
|
Integration and restructuring charges
|
|
|
|
$0.02
|
$0.02
|
|
Income tax
effect of non-GAAP adjustments
|
|
|
|
($0.02)
|
($0.02)
|
|
Total
Non-GAAP Adjustments
|
|
|
|
$0.05
|
$0.05
|
|
|
|
|
|
|
|
Non-GAAP Guidance
|
$51,000
|
$57,000
|
|
$0.05
|
$0.10
|
SOURCE Symmetricom, Inc.