Ikanos Communications, Inc. News
Ikanos Communications Reports Results for First Quarter 2008
"I'm very pleased that Ikanos achieved non-GAAP profitability for the second consecutive quarter. Our quarterly revenues increased 20% from the year ago period driven primarily by increased demand in
The Company's Board of Directors has authorized a new program to repurchase, as opportunities arise, shares of Ikanos' outstanding common stock having an aggregate value of up to
"We believe that this is an appropriate use of cash at this time as well as a benefit to our stockholders. Our strong balance sheet, coupled with operations that are not currently heavily dependent on cash, enables us to initiate this program if our stock remains at recent trading levels," said Mr. Ricci.
Repurchases under the new program may be made in open market or privately negotiated transactions in compliance with applicable legal requirements. The timing, amount and nature of the stock repurchases will be at the discretion of management, dependent upon market conditions, stock price, other priorities for cash investment, applicable securities laws and other factors. The plan does not obligate Ikanos to acquire any particular amount of common stock, and may be modified, suspended or discontinued at any time at the Company's discretion.
Financial Highlights:
Revenue in the first quarter of 2008 was
Ikanos reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP) and additionally on a non-GAAP basis. Non-GAAP net income (loss), where applicable, excludes the income statement effects of stock-based compensation, and certain expenses resulting from acquisitions such as amortization of intangible assets, fair value adjustment of the acquired inventory and in-process research and development charges. Ikanos has provided these measures because management believes these additional non-GAAP measures are useful to investors for performing financial analysis as these additional measures highlight Ikanos' recurring operating results. Ikanos' management uses these non-GAAP measures internally to evaluate its operating performance and to plan for its future. However, non-GAAP measures are not a substitute for GAAP measures. For a reconciliation of GAAP versus non-GAAP financial information, please see the attached schedule.
GAAP net loss for the first quarter of 2008 was
Non-GAAP net income for the first quarter of 2008 was
Recent Highlights: — Ikanos Communications announced its latest product, the IFE-6. This is the industry's first single chip integrated front end that enables cost effective, low power, multi-mode triple play residential gateways. — Ikanos Communications Fusiv( R ) Vx180 VDSL2 and Vx170 FTTH gateway processors were awarded \"2007 Product of the Year - Best LAN Product\" by EN-Genius Network. — Ikanos Communications participated in the latest GPON interoperability event sponsored by ETSI, the European Telecommunications Standards Institute, and FSAN, the Full Service Access Network group. During this event Ikanos successfully interoperated its GPON ONT technology with major OLT vendors. Outlook: — Revenue is expected to be between $29 million and $31 million in the second quarter of 2008. — Non-GAAP gross margins are expected to be between 46% and 48% in the second quarter of 2008. GAAP gross margins in the second quarter of 2008 will be lower than non-GAAP gross margins, as they will include amortization of acquisition-related intangibles of approximately $0.8 million and charges related to stock-based compensation expense in accordance with FAS 123( R ) of approximately $0.1 million. — Non-GAAP operating expenses are expected to be in the range of $14 to $15 million in the second quarter of 2008. GAAP operating expenses in the second quarter of 2008 will be higher, as they will include amortization of acquisition-related intangibles of $0.9 million and charges related to stock-based compensation expense in accordance with FAS 123( R ) of $2.8 to $3.3 million.
First Quarter Fiscal Year 2008 Conference Call:
Management will review the first quarter of 2008 financial results and its expectations for subsequent periods at a conference call on
About Ikanos Communications, Inc.
Ikanos Communications, Inc. (Nasdaq: IKAN) is a leading provider of advanced broadband solutions for the digital home. The company's multi-mode VDSL2/ADSLx, network processor and other products power the access infrastructure and customer premises equipment for many of the world's leading network equipment manufacturers and telecommunications service providers. For more information, visit http://www.ikanos.com.
(C) 2008 Ikanos Communications, Inc. All Rights Reserved. Ikanos Communications, Ikanos, the Ikanos logo, Ikanos Programmable Operating System, Arion, CleverConnect, Eagle, Fiber Fast, Fusiv, Fx, FxS, LoopNostics, Maximus, Palladia, RRA, SmartLeap and VLR are among the trademarks or registered trademarks of Ikanos.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This document contains forward-looking statements that involve risks and uncertainties concerning Ikanos, including statements regarding a possible repurchase of Ikanos common stock, the demand for its products, customers' expected deployment plans, expected revenue for the second quarter of 2008, expected gross margins for the second quarter of 2008, and expected operating expenses for the second quarter of 2008. Actual events or results may differ materially from those described in this document due to a number of risks and uncertainties. These potential risks and uncertainties include, among others, a lack of interest by possible sellers of Ikanos common stock in the terms of any repurchase offer made by the Company, the ability of the Company to deliver full production releases of our newer products that are accepted by our customers, the continued demand by telecommunications service providers for ADSL and VDSL semiconductor products, the failure of service providers to implement deployment plans on schedule or at all, Ikanos' continued ability to deliver production volumes of new products and technologies, our ability to generate demand and close transactions for the sale of our products, and unexpected future costs, expenses and financing requirements. In addition, for a more extensive discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see the section entitled "Risk Factors" in Ikanos' Annual Report on Form 10-K and Quarterly Report on Form 10-Q, as well as other reports that Ikanos files from time to time with the Securities and Exchange Commission. Ikanos is under no obligation to update these forward-looking statements to reflect events or circumstances subsequent to date of this press release.
IKANOS COMMUNICATIONS, INC. Unaudited Condensed Consolidated Statements of Operations (In thousands, except per share data) Three Months Ended March 30, April 1, 2008 2007 Revenue $29,697 $24,668 Cost and operating expenses: Cost of revenue 17,633 15,256 Research and development 11,663 12,611 Selling, general and administrative 5,870 7,114 Total cost and operating expenses 35,166 34,981 Loss from operations (5,469) (10,313) Interest income, net 776 1,281 Loss before income taxes (4,693) (9,032) Provision for income taxes 91 52 Net loss $(4,784) $(9,084) Basic and diluted net loss per share $(0.16) $(0.32) Weighted average number of shares 29,545 28,014 IKANOS COMMUNICATIONS, INC. Reconciliation of GAAP to Non-GAAP Condensed Consolidated Statements of Operations (In thousands, except per share data) Three Months Ended March 30, 2008 Non-GAAP As Reported Adjustments Non-GAAP Revenue $29,697 $- $29,697 Cost and operating expenses: Cost of revenue 17,633 (119)(a) 15,902 (1,220)(b) (392)(c) Research and development 11,663 (1,571)(a) 9,657 (125)(b) (310)(d) Selling, general and administrative 5,870 (1,125)(a) 4,245 (500)(b) Total cost and operating expenses 35,166 (5,362) 29,804 Income (loss) from operations (5,469) 5,362 (107) Interest income and other, net 776 - 776 Income (loss) before income taxes (4,693) 5,362 669 Provision for income taxes 91 - 91 Net income (loss) $(4,784) $5,362 $578 Net income (loss) per shares: Basic $(0.16) $0.02 Diluted $(0.16) $0.02 Weighted average number of shares: Basic 29,545 29,545 Diluted 29,545 30,770 Three Months Ended April 1, 2007 Non-GAAP As Reported Adjustments Non-GAAP Revenue $24,668 $- $24,668 Cost and operating expenses: Cost of revenue 15,256 (25)(a) 14,405 (826)(b) Research and development 12,611 (1,825)(a) 10,661 (125)(b) Selling, general and administrative 7,114 (1,477)(a) 5,408 (229)(b) Total cost and operating expenses 34,981 (4,507) 30,474 Income (loss) from operations (10,313) 4,507 (5,806) Interest income and other, net 1,281 - 1,281 Income (loss) before income taxes (9,032) 4,507 (4,525) Provision for income taxes 52 - 52 Net income (loss) $(9,084) $4,507 $(4,577) Net income (loss) per shares: Basic $(0.32) $(0.16) Diluted $(0.32) $(0.16) Weighted average number of shares: Basic 28,014 28,014 Diluted 28,014 28,014 Notes: Three Months Ended March 30, April 1, 2008 2007 (a) Stock-based compensation $2,815 $3,327 (b) Amortization of acquired intangible assets 1,845 1,180 (c) Fair value adjustment of acquired inventory 392 - (d) In-process research and development 310 - Total non-GAAP adjustments $5,362 $4,507 IKANOS COMMUNICATIONS, INC. Unaudited Condensed Consolidated Balance Sheets (In thousands) March 30, December 30, 2008 2007 Assets Current assets: Cash, cash equivalents and short-term investments $75,098 $83,972 Accounts receivable, net 14,464 17,081 Inventory 11,878 13,025 Prepaid expenses and other current assets 2,973 3,192 Total current assets 104,413 117,270 Long-term investments 6,606 7,001 Property and equipment, net 13,400 13,916 Intangible assets, net 11,739 6,564 Goodwill 6,520 6,247 Other assets 2,614 2,158 $145,292 $153,156 Liabilities and Stockholders' Equity Current liabilities: Accounts payable and accrued liabilities $22,732 $28,223 Other current liabilities - - Total current liabilities 22,732 28,223 Long-term liabilities - - Total liabilities 22,732 28,223 Stockholders' equity 122,560 124,933 $145,292 $153,156
SOURCE Ikanos Communications, Inc.
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