11/3/2003 - GlobespanVirata, Inc. (NASDAQ: GSPN), a leading provider of integrated circuits and software for broadband communications solutions, announced its results for the third quarter ended September 28, 2003. Results for the third quarter of 2003 include the operating results of the Wireless Networking Products Group from the acquisition closing date of August 28, 2003.
A summary of results for the third quarter of 2003 follows:
Key business highlights in the third quarter of 2003 include:
"We delivered solid financial results in the third quarter and we continue to execute on our growth plans," stated Armando Geday, President and CEO. “Our shareholders will benefit from future growth of our WLAN business, which was acquired in the third quarter and has already begun making a strong contribution to our company and our near and long term financial results. We are well-positioned to become the leading supplier of wireline and wireless communications solutions for service providers, enterprises and consumers – markets that will grow to the multi-billion dollar level over the next few years,” added Geday.
GlobespanVirata reported net revenues of $98,792,000 for the third quarter of 2003, a 109% increase from net revenues of $47,391,000 in the third quarter 2002, and a 33% sequential increase from net revenues of $74,375,000 in the second quarter of 2003. Contributing to the increase in net revenues was the impact of the acquisition of the Wireless Networking Products Group which generated $21,646,000 net revenues in the third quarter of 2003.
Net loss and basic and diluted loss per share were ($31,256,000) and ($0.23), respectively, for the third quarter of 2003, compared to a net loss and basic loss per share of ($31,216,000) and ($0.23), respectively, for the third quarter of 2002 and a net loss and basic loss per share of ($12,055,000) and ($0.09), respectively, for the second quarter of 2003.
GlobespanVirata also reports net income (loss) and diluted earnings (loss) per share on a pro forma non-GAAP basis, which excludes the effects of non-cash acquisition charges, restructuring and other charges, discontinued operations, payroll taxes associated with stock options exercised by employees, IP litigation support costs and recognition of credits for investments in research in a foreign jurisdiction, and assumes the conversion of the $130,000,000 of convertible subordinated notes. GlobespanVirata uses pro forma non-GAAP reporting to evaluate its operating performance and believes this presentation provides its investors with additional insights into its underlying operating results. A reconciliation of the GAAP unaudited statement of operations net loss to the pro forma non-GAAP net income is included in the tables attached to this press release.
Pro forma non-GAAP net income and pro forma non-GAAP diluted earnings per share were $8,740,000 and $0.06, respectively, during the quarter, compared to a pro forma non-GAAP net loss and pro forma non-GAAP diluted loss per share of ($12,287,000) and ($0.09), respectively, for the third quarter of 2002 and pro forma non-GAAP net income and pro forma non-GAAP diluted earnings per share of $6,510,000 and $0.05, respectively, for the second quarter of 2003.
Gross margin was 45.8% during the third quarter of 2003. This compares to a gross margin of 45.9% in the third quarter of 2002 and 46.7% in the second quarter of 2003. Gross margin for the third quarter of 2003 and 2002, and the second quarter of 2003 include the sale of inventory previously written off of $3,215,000, $10,601,000 and $3,649,000, respectively. Excluding these sales, gross margin during the third quarter and the second quarter of 2003 were 44.0% and 43.9%, respectively.
Total cash, including cash and equivalents, marketable securities and long-term marketable securities totaled $263,730,000 on September 28, 2003, compared with $528,657,000 at June 29, 2002, reflecting the use of $250,000,000 paid for the purchase of the assets of the Wireless Networking Products Group.
GlobespanVirata Teleconference for Investors
GlobespanVirata will hold a conference call for investors at 5:00 PM Eastern Time on October 30, 2003 to discuss its business and third quarter results. GlobespanVirata will also provide a live Web cast of the conference call through its Web site at http://www.globespanvirata.com by following the links to GlobespanVirata’s quarterly conference call.
GlobespanVirata will also provide a re-broadcast of the conference call through the above Web site links beginning at 8:00 PM Eastern Time on October 30, 2003.
GlobespanVirata is a leading provider of integrated circuits and software for broadband communications solutions for consumer, enterprise, personal computer and service provider markets. GlobespanVirata delivers complete system-level high-speed, cost-effective and flexible DSL and wireless networking chip sets, software and reference designs to leading global manufacturers of broadband access and wireless networking equipment. The company’s products include broadband system-level solutions for modems, routers, residential gateways, and DSLAMs, as well as a wide variety of wireless networking chip sets and reference designs that are enabling a new generation of wireless connectivity in notebooks, PDAs, digital cameras, MP3 players and other handheld networking appliances.
GlobespanVirata applies the industry’s longest history in DSL and wireless networking development and deployment to offer unparalleled support to its more than 400 customers in bringing its proven broadband and wireless networking solutions to market. GlobespanVirata is headquartered at 100 Schulz Drive, Red Bank, New Jersey 07701 and can be reached at +1-732-345-7500.
Safe Harbor Statement for GlobespanVirata under the Private Securities Litigation Reform Act of 1995:
Except for historical information contained herein, this press release contains forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934 that involves significant risks and uncertainties, and is subject to the safe harbors created by this section. Actual events may differ materially from those projected in these forward-looking statements. Factors that might cause a difference include, but are not limited to, risks related to GlobespanVirata’s ability to successfully integrate the Wireless Networking Products Group into its existing business, whether the anticipated synergies between the Wireless Networking Products Group and GlobespanVirata can be achieved, GlobespanVirata’s ability to sell and support the acquired WLAN products, customer implementation plans, risks of price competition among DSL and WLAN chip set suppliers, risks of customer loss or decreases in purchases by significant customers, risks of dependence upon third-party suppliers, risks of integrating other acquisitions, risks due to rapid changes in the market for DSL chip sets, market acceptance of new products, ability of leading equipment manufacturers to incorporate our products into successful products, ability of telecommunication service providers to market and sell DSL services, uncertainties concerning the continued impact of competitive products, risks due to limited protection of our intellectual property and uncertainties concerning on-going intellectual property ligition, uncertainties concerning continued service of our key employees, risks of operating in international markets and general market, economic, regulatory and business conditions. We refer you to the documents GlobespanVirata files from time to time with the Securities and Exchange Commission, in particular the most recent quarterly reports on Form 10-Q and annual reports on Form 10-K of GlobespanVirata.
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