10/16/2003 - NMS Communications (Nasdaq: NMSS), trusted supplier of communications products and services, announced results for the third quarter ended September 30, 2003.
Total revenues for the third quarter of 2003 were $21.8 million compared to $21.1 million in the second quarter of 2003, an increase of 3%, and compared to $25.9 million for the corresponding quarter in 2002, a decrease of 16%. Net loss for the third quarter was $6.0 million or $0.16 per share, compared to a net loss of $6.6 million or $0.18 per share reported for the third quarter of 2002. Included in third quarter losses were restructuring charges of $3.0 million and $2.5 million in 2003 and 2002, respectively.
Revenues for the first nine months of 2003 were $63.7 million compared to $83.3 million for the corresponding period in 2002. Net loss for the first nine months of 2003 was $54.2 million or $1.50 per share, versus a net loss of $61.2 million or $1.70 per share reported for the first nine months of 2002. Included in the nine months losses were restructuring and impairment charges of $31.8 million and $41.8 million in 2003 and 2002, respectively.
During the third quarter the Company repurchased $7.5 million of convertible debt, bringing the remaining balance to $59.8 million on September 30, 2003. Cash, cash equivalents, and marketable securities balance on September 30, 2003 was $61.9 million compared to $70.4 million at the close of the previous quarter.
"We grew our top line modestly for the third consecutive quarter. This growth combined with significant cost reductions, including an approximately 17% work force reduction effected today, are important steps toward achieving operating profit break-even by the first quarter of 2004," said Bob Schechter, NMS Communications' chairman and CEO.
"Our new business initiatives also moved forward. The third quarter included the successful completion of the first customer field trial of AccessGateTM, our recently announced product that significantly reduces the cost of operating wireless networks. The response to this product has been positive and we are now preparing for additional customer trials," Schechter said.
Expanding Market Reach, Supporting Telecom Innovation
Also during the third quarter, NMS announced several channel partner initiatives that expanded the company's market reach in several geographic areas. GANYMED Computer was signed to sell NMS platforms and services to network equipment providers and solution developers in Central Europe and Italy. Nekotec and ITIntegration are combining local expertise with NMS platforms for their customers in Latin America and South America, respectively. Meanwhile in Asia, NMS expanded its partnership with Hagemeyer Asia Pacific to capture new opportunities generated by the rapid adoption of personalized communications services in the South Asian, Australian, and New Zealand telecom markets.
Customers around the world continued to deploy innovative applications and services with NMS products. ChungHwa Telecom Global, the overseas arm of national carrier ChungHwa Telecom, is using NMS' voice quality system for its Los Angeles-Taiwan long distance gateway. NY-based Vapps chose an NMS platform for the first IP audio conferencing system for service providers and large enterprises.
In Asia, longtime NMS customer WiseSpot deployed its commercial music ringback tones for China Mobile, with 16,000 subscribers signing up in the first week. And together with application and content provider partner Cellus USA, the company launched MyCaller for US operators. A new personalized entertainment service that is expected to drive operator revenue, MyCaller lets subscribers replace the common, non-distinctive "ring ring" sound for their callers to hear with music selections, celebrity voices, amusing sounds, and other types of premium, for-fee content.
NMS Communications, AccessGate, and MyCaller are a trademarks of NMS Communications Corporation.
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