P-Com Reports First Quarter 2004 Results - First quarter sales
increase to $6.8 million CAMPBELL, Calif., April 29
/PRNewswire-FirstCall/ -- P-Com, Inc. (OTC Bulletin Board: PCOM), a
worldwide provider of wireless telecom products and services, today
reported net sales of $6.8 million in the first quarter of 2004,
compared to $5.7 million for the fourth quarter of 2003 and $4.6
million in the first quarter of 2003. Gross profit margin was 25
percent in the first quarter of 2004, compared to 22 percent in the
fourth quarter of 2003. Operating expenses for the first quarter
ended March 31, 2004 were $3.9 million, compared to $3.5 million in
the fourth quarter of 2003 and $4.5 million in the first quarter of
2003. Net loss for the quarter ended March 31, 2004 was $2.4
million, compared to $5.9 million in the fourth quarter of 2003 and
$10.4 million in the first quarter of 2003. The decreased losses
were due to higher revenue and continuing cost control measures
undertaken in the quarter. Including a non- cash accretion of
$776,000 for preferred stock, the net loss attributable to common
stockholders for the quarter ended March 31, 2004 was $0.01 cents
per common share, compared to $0.08 per common share for the fourth
quarter of 2003 and $0.28 cents per share in the first quarter of
2003. "Our first quarter gains in revenue and margin are solid
indicators of our ability to execute on our plan to grow revenue
and ultimately return P-Com to profitability," said Sam Smookler,
President and Chief Executive Office of P- Com. "This is our fourth
sequential quarter of revenue growth, up 19% from the prior
quarter, and it is a positive reflection of our focus on sales and
marketing in our telecom and enterprise markets." Conference Call
Management will discuss P-Com's results and hold a
question-and-answer session for investors today, Thursday, April
29, 2004, at 2:00 p.m. Pacific / 5:00 p.m. Eastern time. To listen
to the conference call by phone, dial 877- 356-7051 for U.S. calls
or 706-643-7695 for international calls. The reference conference
ID is 6908936. To listen to a live broadcast over the Internet, go
to http://www.p-com.com/ and click on the Investor Relations page.
A replay of the conference call will be available for 90 days at
http://www.p-com.com/. About P-Com, Inc. P-Com, Inc. develops,
manufactures, and markets point-to-point, spread spectrum and
point-to-multipoint, wireless access systems to the worldwide
telecommunications market. P-Com broadband wireless access systems
are designed to satisfy the high-speed, integrated network
requirements of Internet access associated with Business to
Business and E-Commerce business processes. Cellular and personal
communications service (PCS) providers utilize P-Com point-to-point
systems to provide backhaul between base stations and mobile
switching centers. Government, utility, and business entities use
P-Com systems in public and private network applications. For more
information visit http://www.p-com.com/ or call 408-866-3666. Safe
Harbor Statement Statements in this release that are forward
looking involve known and unknown risks and uncertainties, which
may cause P-Com's actual results in future periods to be materially
different from any future performance that may be suggested in this
conference call. Such factors may include, but are not limited to:
the ability to achieve positive cash flow given the Company's
existing and anticipated operating and other costs, and current
sales trends; the Company's cash position and its need to raise
additional capital, and whether that capital is available on
acceptable terms, if at all; the Company's ability to negotiate
repayment terms with many of its creditors, and settle outstanding
litigation; a continued severe worldwide slowdown in the
telecommunications equipment and services sector; fluctuations in
customer demand, pricing and competition; reliance upon
subcontractors; the ability of P-Com's customers to finance their
purchases; the timing of new technology and product introductions;
and the risk of early obsolescence. Many of these risks and
uncertainties are beyond P-Com's control. Reference is made to the
discussion of risk factors detailed in P-Com's filings with the
Securities and Exchange Commission, including its reports on Form
10-K and 10-Q. Media Contact: Investor Contact: Greg Berardi Daniel
W. Rumsey, 415-239-7826 Acting CFO & General Counsel
408-866-3666 P-COM, INC. CONDENSED CONSOLIDATED STATEMENT OF
OPERATIONS (In thousands, except per share data, unaudited) Three
months Three months ended ended March 31, March 31, 2004 2003 Sales
$6,837 $4,617 Cost of sales 5,099 4,765 Inventory and related
charges -- 3,460 Gross profit (loss) 1,738 (3,608) Gross margin 25%
-78% Operating expenses: Research and development/engineering 1,257
1,919 Selling and marketing 1,451 935 General and administrative
1,183 1,635 Total operating expenses 3,891 4,489 Operating expense
as a percentage of sales 57% 97% Operating loss (2,153) (8,097)
Interest expense (75) (517) Other income (expense), net (113) 98
Loss from continuing operations (2,341) (8,516) Discontinued
operations (40) (1,858) Net loss (2,381) (10,374) Accretion to
increase preferred stock to redemption values (776) -- Loss
applicable to common stockholders $(3,157) $(10,374) Basic and
diluted loss per common share: Loss from continuing operations
$(0.01) $(0.23) Loss from discontinued operations (0.00) (0.05)
Basic and diluted loss per share applicable to common stockholders
$(0.01) $(0.28) Shares used in basic and diluted per share
computation 244,607 36,538 P-COM, INC. CONDENSED CONSOLIDATED
BALANCE SHEETS (In thousands, unaudited) Mar 31, Dec 31, ASSETS
2004 2003 Current assets: Cash and cash equivalents $4,063 $6,185
Accounts receivable, net 6,059 4,801 Inventory 3,889 5,258 Prepaid
expenses and other assets 2,982 2,216 Assets of discontinued
operations -- 40 Total current assets 16,993 18,500 Property and
equipment, net 3,405 3,807 Goodwill 11,968 11,981 Others assets 277
277 Total assets $32,643 $34,565 LIABILITIES AND STOCKHOLDERS'
EQUITY Current liabilities: Accounts payable $4,188 $4,035 Other
accrued liabilities 8,639 8,227 Deferred contract obligations 8,000
8,000 Liabilities of discontinued operations 298 313 Total current
liabilities 21,125 20,575 Others long term liability -- 6 Total
liabilities 21,125 20,581 Series B Preferred Stock 1,413 1,361
Series C Preferred Stock 1,594 870 Series D Preferred Stock 2,000
2,000 Total Preferred Stock 5,007 4,231 Stockholders' equity:
Common stock 20 20 Additional paid-in capital 373,188 373,186
Accumulated deficit (366,330) (363,173) Accumulated other
comprehensive loss (293) (206) Common stock held in treasury, at
cost (74) (74) Total stockholders ' equity 6,511 9,753 Total
liabilities and stockholders' equity $32,643 $34,565 DATASOURCE:
P-Com, Inc. CONTACT: media, Greg Berardi, +1-415-239-7826, or , for
P-Com, Inc.; or investors, Daniel W. Rumsey, Acting CFO &
General Counsel of P-Com, Inc., +1-408-866-3666, or Web site:
http://www.p-com.com/
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