7/16/2003 - NMS Communications (Nasdaq: NMSS), trusted supplier of communications products and services, announced results for the second quarter ended June 30, 2003.
Total revenues for the second quarter of 2003 were $21.1 million compared to $29.2 million for the second quarter of 2002, a decrease of 28 percent. The net loss for the second quarter was $36.7 million or $1.01 per share, compared to a net loss of $41.0 million or $1.14 per share for the second quarter of 2002. Included in these net loss amounts, the Company recorded charges of $28.8 million and $39.3 million, in the second quarter of 2003 and 2002, respectively, for asset impairments and restructuring activities. These charges included costs for headcount reductions, rationalizing facilities and write-offs of certain fixed assets, goodwill and intangibles. As of June 30, 2003, there is no remaining goodwill or intangible assets on the Company's balance sheet.
Total revenues for the first six months of 2003 were $41.9 million compared to $57.4 million for the first six months of 2002. The net loss for the first six months of 2003 was $48.2 million or $1.33 per share compared to a net loss of $54.6 million or $1.51 per share for the first six months of 2002.
NMS Communications' cash, cash equivalents and marketable securities balance on June 30, 2003 was $70.4 million compared to $78.1 million at the close of the previous quarter. Finally, there was no change to convertible debt during the second quarter, with the balance remaining at $67.3 million on June 30, 2003.
Pro Forma Results
With the elimination of all intangibles as of June 30, 2003, the Company will report its financial results, beginning in the third quarter, exclusively in accordance with generally accepted accounting principles (GAAP).
Pro forma net loss for the second quarter of 2003 was $4.1 million compared to $6.3 million for the second quarter of 2002. Pro forma loss per share for the quarter was $0.11 compared to a pro forma loss of $0.17 for the comparable period in 2002.
Pro forma net loss for the first six months of 2003 was $10.5 million compared to $12.5 million for the first six months of 2002. Pro forma loss per share for the first six months of 2003 was $0.29 compared to a pro forma loss of $0.35 for the comparable period in 2002.
All of the pro forma numbers provided above exclude the effects of amortization charges related to acquisitions and purchased intangibles, restructuring charges, impairment charges, and other non-recurring items, each of which are explained in more detail in the footnotes to the accompanying pro forma statement of operations. NMS Communications has excluded these amounts, which management believes are not representative of results from ongoing operations, and assumed a tax rate of 35 percent, to provide our shareholders supplemental information on performance and a consistent basis for financial comparisons. Results including these charges in accordance with GAAP are also set forth in the accompanying statement of operations. NMS Communications has used this pro forma financial measure for investor communications only.
"We made important progress on a number of fronts in the past quarter. Revenues were in line with our expectations, and on the strength of our Platforms business, we achieved our second quarter of modest sequential growth. We also met major milestones for our newer initiatives, including launching and completing the first customer lab trial of AccessGate 500, our access gateway product aimed at significantly reducing wireless network operating costs," said Bob Schechter, NMS Communications' chairman and CEO. "All of these activities, along with the continuing benefits of cost reductions implemented earlier this quarter, place us in a stronger position entering the third quarter of 2003."
NMS Communications and AccessGate are trademarks of NMS Communications Corporation
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