2/14/2003 - Spectrum Signal Processing Inc. (NASDAQ: SSPI / TSX: SSY) a leading provider of high performance wireless signal processing and packet-voice solutions, announced its financial results for the fourth quarter and fiscal year ended December 31, 2002. Spectrum reports all results in U.S. dollars and in accordance with US GAAP.
For the quarter ended December 31, 2002, Spectrum recorded total sales of $5.7 million, an increase of 22% over revenue in the preceding quarter, yet down 18% from sales in the fourth quarter of 2001. Spectrumís net loss for the fourth quarter of 2002 was $2.4 million or $0.16 per share, compared to net earnings of $391,000 or $0.03 per share for the fourth quarter of 2001. Spectrumís gross margin for the fourth quarter was 57%, below the 61% recorded for the same period in 2001.
Spectrum recorded a $1.6 million restructuring charge in the fourth quarter inclusive of a $966,000 charge related to excess office facilities and a $624,000 severance charge arising from the companyís 13% workforce reduction in December 2002.
Pro forma net loss for the fourth quarter of 2002 was $553,000 or $0.04 per share. This compares with pro forma net earnings of $536,000 or $0.04 per share in the fourth quarter of 2001. For a full reconciliation of adjustments between pro forma and GAAP financial statements, please see the schedule incorporated into this press release.
For the year ended December 31, 2002, Spectrum recorded sales of $22.8 million, up 4% over sales of $21.9 million recorded in fiscal 2001. Spectrumís net loss for 2002 totaled $3.0 million or $0.22 per share, compared to a net loss of $5.3 million or $0.43 per share for 2001. Spectrumís gross margin for 2002 was 58%, below the 60% margin recorded in 2001.
Pro forma net loss for 2002 was $605,000 or $0.04 per share. This compares with a 2001 pro forma net loss of $2.7 million or $0.22 per share.
"Despite our mid to longer term sales funnel growth in the fourth quarter of 2002, short term order delays pushed us to the lower end of our fourth quarter guidance. Our resulting restructuring activities were necessary for us to reign in our costs," stated Pascal Spothelfer, Spectrumís President and CEO. "With our cost structure well under control and with the anticipated conversion of 2001 and 2002 design wins into revenues, our expectations for 2003 are positive. We are focusing on our bottom line and are committed to making this year a profitable one for Spectrum."
Spectrum will conduct a conference call and live audio webcast on February 13 at 4:30 pm Eastern / 1:30 pm Pacific time. The call can be accessed by dialing 1.800.273.9672, or by accessing the audio webcast from Spectrumís web site at www.spectrumsignal.com. A replay of the call will be available from February 13 to February 20 and can be accessed by dialing 1.416.695.5800 followed by the access code 1358273, or by visiting www.spectrumsignal.com.
Non-GAAP Earnings Measures
Non-GAAP earnings measures, including pro forma results, do not have any standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other issuers. Spectrum has presented 2002 pro forma results to aid in the comparison with its 2001 results.
About Spectrum Signal Processing Inc.
Spectrum Signal Processing designs, develops and markets high performance wireless signal processing and packet-voice processing subsystems for use in communications infrastructure equipment. Spectrumís optimized hardware, software and chip technology work together to collect, compress and convert voice and data signals. Leveraging its 16 years of design expertise, Spectrum provides its customers with faster time to market and lower costs by delivering highly flexible, reliable and high-density solutions. Spectrum subsystems are targeted for use in government communications systems, satellite hubs, cellular base stations, media gateways and next-generation voice and data switches. More information on Spectrum and its aXsTM and flexComm product lines is available at www.spectrumsignal.com.
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