Ditech Communications Provides Increased Revenue Outlook For Second Quarter FY2004
28 October 2003 - 8:05AM
PR Newswire (US)
Ditech Communications Provides Increased Revenue Outlook For Second
Quarter FY2004 New Outlook Predicts Quarter over Quarter Revenue
Growth of 25-30% MOUNTAIN VIEW, Calif., Oct. 27
/PRNewswire-FirstCall/ -- Ditech Communications Corporation, a
leader in the development of voice quality assurance solutions for
communications networks, today revised upwards its outlook for
revenues for the current fiscal quarter. The Company anticipates
revenues for its second fiscal quarter ending October 31, 2003 will
be in the range of $13.4 to $13.9 million, an increase of 25-30%
from the previous quarter, compared to its earlier estimates of a
10% increase. "We believe that our improved outlook reflects a rise
in key account deployments and an increase in end-of-budget-year
spending," said Tim Montgomery, chairman, president and CEO.
"Although the overall market climate continues to be challenging,
we believe that these factors, our continued focus on customers'
requirements, and crisp execution will drive Ditech's growth in the
third quarter as well." The Company further believes that gross
margins and operating expenses will be in line with its operating
model and that second quarter EPS from continuing operations should
be in the range of $0.06 to $0.08. Ditech plans to hold a
conference call on November 20th to discuss its Q2 fiscal 2004
results for the quarter ended October 31, 2003, as well as its
future outlook. President and CEO Tim Montgomery and Chief
Financial Officer Bill Tamblyn will conduct the briefing. The
conference call will begin at 4:20 pm Eastern Time/1:20 pm Pacific
Time. Any member of the public can listen to the conference call by
calling the following number: 706-634-5581. The conference call
will also be broadcast live over the Internet and can be accessed
by going to the Investors section of the Ditech Communications web
site at http://www.ditechcom.com/ . A replay of the Q2 conference
call will be available via Ditech's website and can be accessed by
going to the Investors section of the Ditech Communications web
site at http://www.ditechcom.com/ and selecting 'Events.' A replay
of the call can also be accessed by calling the Encore replay
number at 706-645-9291. The conference call ID is: 3588600. The
replay of this call will be available two hours after the call is
completed until the next earnings announcement. Ditech
Communications Corporation Ditech Communications Corporation is a
global telecommunications equipment supplier for voice networks.
Ditech's voice products are high-capacity echo canceller and voice
enhancement products that utilize advanced software and digital
signal processor (DSP) technology. This combination of software and
hardware allows Ditech to deliver Voice Quality Assurance(TM)
(VQA(TM)), a robust and cost-effective solution for voice
enhancement (including noise reduction) and echo cancellation.
Ditech (DITC) is listed on the Nasdaq National Market and is
headquartered in Mountain View, California (web site:
http://www.ditechcom.com/ ). Forward-Looking Statements The
statements in this press release regarding Ditech's expected
financial results for the second quarter of fiscal 2004, and
Ditech's growth in the third quarter of fiscal 2004, are
forward-looking statements. Actual results could differ materially
as a result of numerous risks and uncertainties, including: the
quarter is not completed, and unanticipated events may occur prior
to the end of the quarter, or unknown facts may be discovered, that
may cause the second quarter financial results to differ from
Ditech's current expectations; the risk that shipment of products
Ditech expects to ship before the end of the third quarter may be
delayed or cancelled due to unexpected factors and events affecting
Ditech's customers; Ditech may experience weakening in demand for
its voice and echo cancellation products; component supply problems
may occur as a result of factors beyond its control; infrastructure
demand could continue to weaken or remain flat due to the weakness
in the economy or for other unanticipated reasons; Ditech's
competitors will develop products that compete favorably with
Ditech's new products; Ditech has a limited number of customers,
the loss of any one which could cause its revenues to decrease
materially; as well as those detailed in the "Future Growth and
Operating Results Subject to Risk" section of Ditech's Form 10-Q
for the quarter ended July 31, 2003 (filed September 15, 2003 with
the Securities and Exchange Commission). DATASOURCE: Ditech
Communications Corporation CONTACT: Janine Fogal, +1-650-623-1469,
or investors, Bill Tamblyn, +1-650-623-1309, both of Ditech
Communications Corporation Web site: http://www.ditechcom.com/
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