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Airspan
Networks Announces Results for the
First Quarter of 2005 79% increase in revenue versus year ago, WiMAX portfolio unveiled and
WiMAX partnerships announced BOCA RATON, Fla.—May 11, 2005 – Airspan
Networks Inc. (Nasdaq: AIRN) today announced first quarter financial
results for the period ending April 3, 2005. The Company reported
revenues for the first quarter of $22.2 million, up 79% versus the
first quarter of 2004. The net loss attributable to common
stockholders for the first quarter was $(0.08) per share versus a loss
of $(0.15) per share in the first quarter 2004.
Business Highlights
• WiMAX
o The AS.MAX product family unveiled in March at CeBIT
o First live demonstration of self installable WiMAX customer premises
equipment
o New OEM partnerships announced – with Marconi and Fujitsu
o Announced first commercial WiMAX contract to deploy Tokyo-wide
network for Yozan, Inc
• VoIP over WiMAX Leadership
o Purchase agreement signed to acquire ArelNet, a pioneer in VoIP
network infrastructure
equipment and solutions, including soft switches and gateways
supporting all major VoIP
standards. Closing expected in the second quarter
• Proximity
o Continued growth of Axtel’s network in Mexico, as Axtel nears its
500,000th subscriber
• WipLL
o Sales, both direct and through our network of value-added resellers,
continued to grow as
new deals were signed in all geographic regions. U.S., Latin America
and Eastern Europe
markets very robust
o Added Dynavar, mmwave Technologies and CHR Solutions as system
integrators in North
America
o WipLL at 700MHz became eligible for funding from the US Department
of Agriculture,
opening a new market with operators funded by the US Government
Financial Results
First quarter revenue of $22.2 million was 79% higher than the $12.4
million in the first quarter of 2004, and in line with the guidance
provided earlier in the year. The Company recorded a gross profit of
$6.9 million in the quarter, and gross profit as a percentage of
revenue (the “gross profit margin”) was 31%. This compared to a gross
profit of $10.5 million and a gross profit margin 28%, for the fourth
quarter of 2004, and a gross profit of $3.7 million, and a gross
profit margin of 30% recorded for the first quarter of 2004.
The Company’s first quarter 2005 operating expenses of $10.4 million
were up $0.5 million from the first quarter 2004 and unchanged from
the prior quarter’s operating expenses. Net loss for the first quarter
of 2005 was $(2.9) million, or $(0.08) per share, compared to a net
loss of ($5.4) million, or $(0.15) per share, in the first quarter of
2004. The Company’s cash balance, including restricted cash, at the
end of the first quarter stood at $53.3 million. Cash fell in the
quarter from $68.0 million at the end of December 2004, due primarily
to a reduction of the accounts payable associated with the very large
volume of inventory shipments made in the fourth quarter of 2004.
“We are pleased to have exceeded our stated earnings objectives and
forecasts,” said Eric Stonestrom, Airspan’s president and chief
executive officer. “While one of our primary objectives at this time
is to finalize the development and interoperability testing of our
WiMAX products and to complete the infrastructure to support them, we
continue to show good progress with sales of our existing product and
services. Buying remains robust despite the impending arrival of our
new 802.16-based technologies. The quarter’s results reflect a solid
performance that provides a good base for the rest of the year.”
“The drop in revenue from the prior quarter was built into our
guidance, reflecting the large volumes delivered at the end of last
year to meet unusually high demand,” said Peter Aronstam, chief
financial officer. “However, the revenues for the first quarter of
2005 are still significantly higher than the same period a year ago.
Margin levels are holding up and the net loss was a little better than
anticipated due to savings in operational costs and a continued focus
on cost of goods sold. It should also be noted that our recent
restatement of our 2004 results did not affect our cash position. We
feel comfortable that our strong balance sheet and cash reserves are
sufficient to fund our foreseeable operational expenditures.”
Outlook
Mr. Stonestrom also re-iterated previous guidance that the Company
expects revenues for the first half of 2005 to be approximately 50%
higher than revenue from the similar period in 2004. “We now expect a
smaller than anticipated contribution from the Arelnet product line in
the second quarter due to a late closing date. However, an improved
outlook in the other product lines should enable us to meet our goals,
particularly as we are sitting today on a healthy order backlog for
Proximity deliveries through the rest of 2005. Our operating loss for
the second quarter of 2005 is expected to be similar to the one
recorded in the first quarter of 2005. At this time, we are waiting
until the second half of 2005 to see the full impact of WiMAX on our
business, as we are working on several sales and partnership
opportunities that need further development before we know their exact
revenue timing. It is therefore still premature to give precise
guidance for the full year, but we are encouraged by early WiMAX
market acceptance.” Investor Conference |
