7/26/2002 - Datum Inc. (Nasdaq: DATM), a leading designer and global supplier of synchronization, timing and frequency solutions, today announced results for the second quarter ended June 30, 2002. Net revenue for the period was $15.8 million and the net loss for the period was $1.6 million, or $0.26 per share. For the second quarter ended June 30, 2001, Datum reported net revenue of $28.6 million and a net loss of $1.2 million, or $0.19 per share.
The operating loss improved sequentially from $4.7 million in the first quarter to $3.1 million in the second quarter due to both improved gross margins, and $800,000 lower operating expenses. Based on a more conservative estimate of Datum's full year effective tax rate, the rate was adjusted from 64% in the first quarter, to 58% through the first six months of 2002, causing reported after tax loss per share of $0.26 for the second quarter to be approximately equal to the $0.27 loss per share reported in the March quarter.
Revenue for the first six months of 2002 was $31.6 million, compared to $60.8 million for the same six month period in 2001. Net loss for this six month period was $3.3 million or $0.53 per share, compared to net income of $582,000 or $0.09 per diluted share in the same period for the previous year.
Bob Krist, Datum's CFO commented, "We delivered the final payment on our bank term loan during the quarter and currently have virtually no debt service obligations. During the quarter, cash flow from operations improved sequentially due to an improved operating loss, and reductions in both inventory and accounts receivable. With an improved balance sheet and continued control of our cost structure, we are focused on conserving our cash position to ensure the Company is in sound financial condition going forward."
"During the second quarter, we finally witnessed a modest increase in purchasing activity from our customers, and most of our divisions tracked to our expectations," stated Erik van der Kaay, Chairman and CEO of Datum. "In particular, our Trusted Time division continues on course, achieving each of its milestones and delivering a significant increase in revenues over the previous quarter. I am also pleased to report that orders and quote activity appear to be picking up with the U.S. Government and Department of Defense, now Datum's largest customer. At this time, we believe that third quarter revenue will be similar to second quarter revenue or better, and that operating losses, excluding charges for employee severance, will again improve. We also continue to work towards returning to profitability by early next year.
"With respect to our proposed merger with Symmetricom, we are in the process of responding to the Department of Justice's second request. We continue to anticipate closing the merger transaction in the fourth quarter," Mr. van der Kaay concluded.
Datum will host a conference call to discuss second quarter results today at 2:00 p.m. Pacific Time/5:00 p.m. Eastern Time. The call can be accessed via the Internet at www.datum.com
Chief Financial Officer
Jason Golz/Quynh Nguyen
Ron Heckmann/Ashley Dyer
About Datum Inc.
Datum designs, manufactures and markets a wide variety of high-performance time and frequency products used to synchronize the flow of information in telecommunications networks. The Company is also a leading supplier of precise timing products for computing networks, satellite systems, electronic commerce, and test and measurement applications. Additional information about Datum is available at www.datum.com
This press release contains forward-looking statements. The forward-looking statements, which reflect management's best judgment based on factors currently known, involve a number of risks and uncertainties, including the following: customer concentration, competition, availability of supplies and components, fluctuations in demand for wireless and wireline communication services and products, and acceptance of the Company's products and technology. These factors and other risks inherent in the Company's business are described from time to time in the Company's SEC filings, including its Annual Report on Form 10-K for the year ended December 31, 2000 and its quarterly report on form 10Q for the quarter ended September 30, 2001. Actual results may vary materially. The Company undertakes no obligation to revise the forward-looking statements contained herein to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. By making this release, the Company does not affirmatively undertake any obligation to make additional releases of a same or similar nature.
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