SAN JOSE, Calif., Aug. 7, 2013 /PRNewswire/ -- Symmetricom, Inc.
(NASDAQ:SYMM), a worldwide leader in precision time and frequency
technologies, today reported financial results for its fourth
quarter and fiscal year ended June 30,
2013.
(Logo:
http://photos.prnewswire.com/prnh/20110829/AQ59077LOGO)
Net revenue for the fourth quarter of fiscal 2013 was
$52.1 million, compared to
$62.6 million reported for the fourth
quarter of fiscal 2012. Symmetricom reported a net loss of
$1.5 million, or $0.04 per share, for the fourth quarter of fiscal
2013, compared to net income of $4.0
million, or $0.09 per share,
in the fourth quarter of fiscal 2012.
Non-GAAP net income for the fourth quarter of fiscal 2013 was
$3.0 million, or $0.07 per share, compared to $5.2 million, or $0.12 per share, reported for the fourth quarter
of fiscal 2012.
Net revenue for fiscal 2013 was $211.0
million, compared to $237.7
million for fiscal 2012. Symmetricom reported a net
loss of $2.7 million, or $0.07 per share, in fiscal 2013, compared to net
income of $11.4 million, or
$0.27 per share, in fiscal
2012. Non-GAAP net income for fiscal 2013 was $7.7 million, or $0.19 per share, compared to $16.8 million, or $0.39 per share, reported for the prior year.
Cash, cash equivalents and short-term investments totaled
$75.5 million as of June 30, 2013 compared to $69.7 million reported as of March 31, 2013. Net cash provided by operating
activities in the fourth quarter was $7.8
million, and property, plant and equipment purchases were
approximately $2.0 million, resulting
in free cash flow of $5.8
million. Free cash flow for fiscal 2013 was
$12.8 million.
The Company is executing on its strategic restructuring plan,
announced on June 18, 2013, to
improve operational and financial efficiency while maximizing
resources to support its growth initiatives. The plan is expected
to be fully implemented by December
2013 and will reduce the workforce by approximately 12%. The
Company will also further reduce the size of its facilities
presence. The Company expects to incur total restructuring
charges in the range of $7.5 million to
$8.0 million in connection with the plan, and recorded
$3.2 million of such charges in the
fourth quarter of fiscal 2013. Upon completion, the Company expects
these restructuring actions to reduce annual costs by approximately
$13 million.
"Symmetricom is a great company with best-in-class technology
and products, a blue-chip customer base and talented employees,"
said Liz Fetter, recently appointed
chief executive officer of Symmetricom. "My focus is to drive
the business to sustainable and profitable growth. We took
significant action in June to restructure the Company which we
believe will position us to deliver higher profitability in fiscal
2014. We are intensely focused on the execution of our
business plan and the key initiatives for enhancing our competitive
position and driving growth."
Business Segment Revenue Results
Revenue in the
Communications Business in the fourth quarter of fiscal 2013 was
$28.5 million, compared to
$32.8 million reported in the fourth
quarter of fiscal 2012. Revenue in the Government and
Enterprise Business in the fourth quarter of fiscal 2013 was
$23.6 million, compared to
$29.8 million reported in the fourth
quarter of fiscal 2012.
First Quarter 2014 Guidance
Symmetricom's guidance for
the first quarter of fiscal 2014 is as follows:
- Net revenue is expected to be in the range of $44 million to $49 million
- GAAP loss per share is expected to be in the range of
$0.02 to $0.07
- Non-GAAP earnings per share is expected to be in the range of
$0.00 to $0.04
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 +1-203-369-0139.
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 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, executive transition costs 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 estimates of restructuring
charges and annual cost savings, first quarter fiscal 2014 guidance
and future performance and growth 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 risk that the costs associated with the
restructuring plan exceeds current estimates or that the Company is
unable to recognize anticipated cost savings associated with the
plan, 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.
SYMM-F
Contact:
Justin Spencer
Chief Financial Officer
+1-408-428-7801
jspencer@symmetricom.com
SYMMETRICOM,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands, except
per share amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
|
June 30,
|
|
March 31,
|
|
July 1,
|
|
June 30,
|
|
July 1,
|
|
|
2013
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenue
|
|
$
52,099
|
|
$
53,349
|
|
$
62,606
|
|
$
210,990
|
|
$
237,716
|
Cost of
sales:
|
|
|
|
|
|
|
|
|
|
|
Cost of products and
services
|
|
27,538
|
|
28,654
|
|
34,214
|
|
115,953
|
|
131,907
|
Amortization of purchased
technology and related costs
|
|
475
|
|
237
|
|
174
|
|
1,194
|
|
619
|
Restructuring
charges
|
|
572
|
|
375
|
|
22
|
|
943
|
|
1,178
|
Total cost of sales
|
|
28,585
|
|
29,266
|
|
34,410
|
|
118,090
|
|
133,704
|
Gross profit
|
|
23,514
|
|
24,083
|
|
28,196
|
|
92,900
|
|
104,012
|
Gross margin
|
|
45.1%
|
|
45.1%
|
|
45.0%
|
|
44.0%
|
|
43.8%
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
7,975
|
|
8,291
|
|
7,385
|
|
32,384
|
|
27,960
|
Selling, general and
administrative
|
|
15,119
|
|
14,593
|
|
14,966
|
|
60,717
|
|
58,921
|
Amortization of intangible
assets
|
|
87
|
|
87
|
|
86
|
|
346
|
|
242
|
Restructuring
charges
|
|
2,650
|
|
947
|
|
(78)
|
|
4,798
|
|
45
|
Total operating expenses
|
|
25,831
|
|
23,918
|
|
22,359
|
|
98,245
|
|
87,168
|
Operating income (loss)
|
|
(2,317)
|
|
165
|
|
5,837
|
|
(5,345)
|
|
16,844
|
Interest income, net
of amortization (accretion) of premium (discount) on
investments
|
|
204
|
|
98
|
|
287
|
|
444
|
|
282
|
Income (loss) before income
taxes
|
|
(2,113)
|
|
263
|
|
6,124
|
|
(4,901)
|
|
17,126
|
Income tax provision
(benefit)
|
|
(567)
|
|
(556)
|
|
2,167
|
|
(2,196)
|
|
5,771
|
Net income
(loss)
|
|
$
(1,546)
|
|
$
819
|
|
$
3,957
|
|
$
(2,705)
|
|
$
11,355
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
(0.04)
|
|
$
0.02
|
|
$
0.10
|
|
$
(0.07)
|
|
$
0.27
|
Diluted
|
|
$
(0.04)
|
|
$
0.02
|
|
$
0.09
|
|
$
(0.07)
|
|
$
0.27
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing earnings (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding - basic
|
|
40,661
|
|
40,502
|
|
41,152
|
|
40,509
|
|
41,981
|
Weighted average shares
outstanding - diluted
|
|
40,661
|
|
40,956
|
|
41,927
|
|
40,509
|
|
42,697
|
SYMMETRICOM,
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
July 1,
|
|
|
|
2013
|
|
2012
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
29,358
|
|
$
27,659
|
|
Short-term
investments
|
|
46,131
|
|
39,280
|
|
Accounts receivable,
net
|
|
38,756
|
|
45,952
|
|
Inventories,
net
|
|
44,516
|
|
47,618
|
|
Prepaids and other
current assets
|
18,389
|
|
16,943
|
|
Total current
assets
|
|
177,150
|
|
177,452
|
Property, plant and
equipment, net
|
23,869
|
|
22,702
|
Intangible assets,
net
|
|
2,958
|
|
3,458
|
Deferred taxes and
other assets
|
|
26,951
|
|
27,413
|
|
Total assets
|
|
$ 230,928
|
|
$ 231,025
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
|
$
7,813
|
|
$
9,300
|
|
Accrued
compensation
|
|
13,702
|
|
14,574
|
|
Accrued
warranty
|
|
1,550
|
|
1,722
|
|
Other accrued
liabilities
|
|
12,483
|
|
11,841
|
|
Total current
liabilities
|
|
35,548
|
|
37,437
|
Long-term
obligations
|
|
5,264
|
|
5,472
|
Deferred income
taxes
|
|
334
|
|
334
|
|
Total liabilities
|
|
41,146
|
|
43,243
|
Stockholders'
equity:
|
|
|
|
|
|
Common
stock
|
|
198,227
|
|
193,478
|
|
Accumulated other
comprehensive loss
|
(276)
|
|
(232)
|
|
Accumulated
deficit
|
|
(8,169)
|
|
(5,464)
|
|
Total stockholders'
equity
|
|
189,782
|
|
187,782
|
|
Total liabilities and stockholders' equity
|
$ 230,928
|
|
$ 231,025
|
|
SYMMETRICOM,
INC.
|
RECONCILIATION OF
GAAP TO NON-GAAP RESULTS
|
(In thousands, except
per share amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
June 30,
|
|
March 31,
|
|
July 1,
|
|
June 30,
|
|
July 1,
|
|
2013
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Reconciliation from
GAAP to Non-GAAP
|
|
|
|
|
|
|
|
|
|
GAAP Net income
(loss)
|
$ (1,546)
|
|
$
819
|
|
$ 3,957
|
|
$ (2,705)
|
|
$11,355
|
|
|
|
|
|
|
|
|
|
|
Add Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
Equity-based
compensation expense:
|
|
|
|
|
|
|
|
|
|
Cost of products and
services
|
222
|
|
274
|
|
261
|
|
1,037
|
|
867
|
Research and
development
|
219
|
|
304
|
|
287
|
|
1,200
|
|
1,183
|
Selling, general and
administrative
|
1,425
|
|
1,212
|
|
1,013
|
|
4,878
|
|
4,092
|
Total equity-based
compensation expense
|
1,866
|
|
1,790
|
|
1,561
|
|
7,115
|
|
6,142
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets:
|
|
|
|
|
|
|
|
|
|
Cost of products and
services
|
475
|
|
237
|
|
174
|
|
1,194
|
|
619
|
Operating
expenses
|
87
|
|
87
|
|
86
|
|
346
|
|
242
|
Total amortization of
intangible assets
|
562
|
|
324
|
|
260
|
|
1,540
|
|
861
|
Restructuring
charges
|
3,222
|
|
1,322
|
|
(56)
|
|
5,741
|
|
1,223
|
Executive transition
costs
|
1,376
|
|
-
|
|
-
|
|
1,376
|
|
-
|
Off-shore development
transition costs
|
-
|
|
-
|
|
-
|
|
729
|
|
-
|
Income tax effect of
Pretax Non-GAAP adjustments
|
(2,452)
|
|
(1,429)
|
|
(511)
|
|
(6,105)
|
|
(2,774)
|
Non-GAAP Net
income
|
$
3,028
|
|
$
2,826
|
|
$ 5,211
|
|
$
7,691
|
|
$16,807
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share-diluted:
|
|
|
|
|
|
|
|
|
|
GAAP income
(loss)
|
$
(0.04)
|
|
$
0.02
|
|
$
0.09
|
|
$
(0.07)
|
|
$
0.27
|
Non-GAAP income
|
$
0.07
|
|
$
0.07
|
|
$
0.12
|
|
$
0.19
|
|
$
0.39
|
Weighted average
shares outstanding - diluted
|
41,015
|
|
40,956
|
|
41,927
|
|
41,319
|
|
42,697
|
|
SYMMETRICOM,
INC.
|
|
RECONCILIATION OF
GAAP TO NON-GAAP RESULTS
|
|
(In thousands, except
per share amounts)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
|
|
June 30,
|
|
March 31,
|
|
July 1,
|
|
June 30,
|
|
July 1,
|
|
|
|
2013
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
Revenue
|
|
$
52,099
|
|
$
53,349
|
|
$
62,606
|
|
$
210,990
|
|
$
237,716
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from
GAAP to Non-GAAP Gross Profit:
|
|
|
|
|
|
|
|
|
|
|
GAAP Gross
profit
|
(A)
|
$
23,514
|
|
$
24,083
|
|
$
28,196
|
|
$
92,900
|
|
$
104,012
|
|
GAAP Gross
margin
|
|
45.1%
|
|
45.1%
|
|
45.0%
|
|
44.0%
|
|
43.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Equity-based
compensation expense
|
|
222
|
|
274
|
|
261
|
|
1,037
|
|
867
|
|
Amortization of purchased
technology and related costs
|
475
|
|
237
|
|
174
|
|
1,194
|
|
619
|
|
Restructuring
charges
|
|
572
|
|
375
|
|
22
|
|
943
|
|
1,178
|
Non-GAAP Gross
profit
|
(B)
|
$
24,783
|
|
$
24,969
|
|
$
28,653
|
|
$
96,074
|
|
$
106,676
|
|
Non-GAAP Gross
margin
|
|
47.6%
|
|
46.8%
|
|
45.8%
|
|
45.5%
|
|
44.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from
GAAP to Non-GAAP Operating Expense:
|
|
|
|
|
|
|
|
|
|
GAAP Operating
expenses
|
(C)
|
$
25,831
|
|
$
23,918
|
|
$
22,359
|
|
$
98,245
|
|
$
87,168
|
|
Operating expense %
to revenue
|
|
49.6%
|
|
44.8%
|
|
35.7%
|
|
46.6%
|
|
36.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Equity-based
compensation expense
|
|
(1,644)
|
|
(1,516)
|
|
(1,300)
|
|
(6,078)
|
|
(5,275)
|
|
Amortization of
intangible assets
|
|
(87)
|
|
(87)
|
|
(86)
|
|
(346)
|
|
(242)
|
|
Restructuring
charges
|
|
(2,650)
|
|
(947)
|
|
78
|
|
(4,798)
|
|
(45)
|
|
Executive transition
costs
|
|
(1,376)
|
|
-
|
|
-
|
|
(1,376)
|
|
-
|
|
Off-shore development
transition costs
|
|
-
|
|
-
|
|
-
|
|
(729)
|
|
-
|
Non-GAAP operating
expenses
|
(D)
|
$
20,074
|
|
$
21,368
|
|
$
21,051
|
|
$
84,918
|
|
$
81,606
|
|
Non-GAAP operating
expenses % to revenue
|
|
38.5%
|
|
40.1%
|
|
33.6%
|
|
40.2%
|
|
34.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from
GAAP to Non-GAAP Operating Income:
|
|
|
|
|
|
|
|
|
|
GAAP Operating
income
|
(A) - (C)
|
$
(2,317)
|
|
$
165
|
|
$
5,837
|
|
$
(5,345)
|
|
$
16,844
|
|
Operating income % to
revenue
|
|
-4.4%
|
|
0.3%
|
|
9.3%
|
|
-2.5%
|
|
7.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Operating
income
|
(B) - (D)
|
$
4,709
|
|
$
3,601
|
|
$
7,602
|
|
$
11,156
|
|
$
25,070
|
|
Non-GAAP Operating
income % to revenue
|
|
9.0%
|
|
6.7%
|
|
12.1%
|
|
5.3%
|
|
10.5%
|
|
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 September 29, 2013
|
|
|
Revenue
|
|
Income (Loss) Per
Share from
Continuing Operations
|
|
|
From
|
To
|
|
From
|
To
|
|
|
|
|
|
|
|
GAAP
Guidance
|
$
44,000
|
$
49,000
|
|
$
(0.07)
|
$
(0.02)
|
|
|
|
|
|
|
|
Estimated Non-GAAP
Adjustments
|
|
|
|
|
|
|
Equity-based
compensation expense
|
|
|
|
0.04
|
0.04
|
|
Amortization of
intangible assets
|
|
|
|
0.01
|
0.01
|
|
Restructuring
charges
|
|
|
|
0.05
|
0.04
|
|
Income tax effect of
non-GAAP adjustments
|
|
|
|
(0.03)
|
(0.03)
|
|
Total Non-GAAP
Adjustments
|
-
|
-
|
|
0.07
|
0.06
|
|
|
|
|
|
|
|
Non-GAAP
Guidance
|
$
44,000
|
$
49,000
|
|
-
|
$
0.04
|
SOURCE Symmetricom, Inc.