Hifn, Inc. News
Hifn, Inc. Reports Q2 FY2008 Results and Announces Stock Repurchase Program
Revenues for the second quarter of fiscal 2008 were
Net loss for the second quarter ended
Net loss for the six months ended
"This was a challenging quarter for the company, and our results underscore the combined execution and business environment issues we are addressing as we simultaneously expand our product line while diversifying out of our legacy dependence upon a relatively narrow customer set for top line growth. In the most recent quarter, revenue from two of our largest OEM customers came in below our expectations, while the new volume-production revenue streams driving our diversification strategy are now beginning to grow," said
Hifn management will hold a conference call to discuss these results today,
Hifn also announced today that its Board of Directors has approved a stock repurchase program under which Hifn may repurchase up to
"We are pleased that our Board of Directors has approved this repurchase program," commented Mr. Sisto. "This repurchase program is consistent with our commitment to enhance shareholder value."
Hifn is not obligated to purchase any shares under this stock repurchase program. Subject to applicable corporate securities laws, repurchases under this stock repurchase program may be made at such times and in such amounts as Hifn's management deems appropriate. Purchases under this stock repurchase program can be discontinued at any time management feels additional purchases are not warranted. Hifn intends on funding the repurchases under this stock repurchase program with existing cash resources.
About Hifn
Hifn (Nasdaq: HIFN) delivers the key channel and OEM ingredients for 21st century storage and networking environments. Leveraging over a decade of leadership and expertise in the development of purpose-built Applied Services Processors (ASPs), Hifn is a trusted partner to industry leaders for whom infrastructure innovation in storage and networking is critical to success. With the majority of secure networked communications flowing through Hifn technology, the 21st century convergence of storage and networking drives our product roadmap forward. For more information, please visit: http://www.hifn.com.
Non-GAAP Measures
Management uses non-GAAP measures internally for evaluating current financial performance, strategic decision making and forecasting. These non-GAAP measures are a derivative of our GAAP results adjusted for stock-based compensation expense and amortization of intangible assets. Given the importance of non-GAAP measures to management, Hifn believes these non-GAAP measures will help analysts and investors better understand management assessment of the company's operational financial performance as compared to prior periods. These non-GAAP measures are not in accordance with or an alternative for GAAP financial data. Non-GAAP measures used by Hifn may be different from those used by other companies.
This press release contains forward-looking statements, such as statements about future events, such as Hifn's future financial performance, including statements related to increasing acceptance of our storage segment solutions, continued strong shipments of our network security processors, our ability to generate cash from our core business and Hifn's intention to repurchase shares of its common stock under the stock repurchase program. Readers are cautioned that Hifn's forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors, such as: our dependence on a small number of customers; changes in customer demand and customer ordering patterns; stimulation of revenue growth through sales force expansion and product acceptance; continuous decline of expenses from prior year; our ability to successfully integrate and operate the business and technology of Siafu Software; and unexpected economic slowdown in the technology sector. In addition, Hifn's intention to repurchase shares of its common stock under the stock repurchase program may be affected by a number of factors, including, but not limited to: fluctuations in Hifn's stock price; Hifn's liquidity needs; management's assessment of general business or market conditions; and management's determination of alternative uses of Hifn's cash resources. Additional risks are detailed from time to time in Hifn's filings with the Securities and Exchange Commission. Hifn expressly disclaims any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes thereto included in Hifn's most recent reports on Form 10-K and Form 10-Q. Hifn's results of operations for the three months ended
Hi/fn(R) is a registered trademark of hi/fn, inc. Hifn is a trademark of hi/fn, inc. HIFN, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) Three Months Ended Six Months Ended March 31, March 31, 2008 2007 2008 2007 Net revenues $9,265 $11,029 $20,194 $20,298 Costs and operating expenses: Cost of revenues 3,122 3,596 6,594 6,800 Research and development 3,496 3,101 7,098 7,420 Sales and marketing 2,930 2,117 5,324 3,939 General and administrative 1,275 2,658 2,997 5,100 Amortization of intangibles 749 738 1,498 1,475 11,572 12,210 23,511 24,734 Loss from operations (2,307) (1,181) (3,317) (4,436) Interest and other income, net 284 490 629 980 Loss before income taxes (2,023) (691) (2,688) (3,456) Provision for (benefit from) income taxes 11 16 26 (47) Net loss $(2,034) $(707) $(2,714) $(3,409) Net loss per share, basic and diluted $(0.14) $(0.05) $(0.18) $(0.24) Weighted average shares outstanding, basic and diluted 14,859 13,973 14,818 13,960 HIFN, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) March 31, September 30, 2008 2007 ASSETS Current assets: Cash & short-term investments $38,504 $35,322 Accounts receivable, net 6,981 7,450 Inventories 2,817 2,784 Prepaid expenses and other current assets 1,143 1,428 Total current assets 49,445 46,984 Other receivables 164 189 Property and equipment, net 2,132 1,982 Goodwill, intangibles and other assets, net 7,987 9,811 $59,728 $58,966 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $2,191 $1,467 Accrued expenses and other current liabilities 4,343 4,051 Total current liabilities 6,534 5,518 Stockholders' equity: Common stock 15 15 Paid-in capital 174,042 171,573 Accumulated other comprehensive loss (6) 3 Accumulated deficit (116,430) (113,716) Treasury stock, at cost (4,427) (4,427) Total stockholders' equity 53,194 53,448 $59,728 $58,966 HIFN, INC. RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES (in thousands, except per share data) (unaudited) Three Months Ended Six Months Ended March 31, March 31, 2008 2007 2008 2007 GAAP net loss $(2,034) $(707) $(2,714) $(3,409) Reconciling items: Stock-based compensation expense 537 544 970 987 Amortization of intangibles 749 738 1,498 1,475 Non-GAAP net income (loss) $(748) $575 $(246) $(947) GAAP basic net loss per share $(0.14) $(0.05) $(0.18) $(0.24) Reconciling items: Stock-based compensation expense 0.04 0.04 0.06 0.07 Amortization of intangibles 0.05 0.05 0.10 0.10 Non-GAAP basic net income (loss) per share $(0.05) $0.04 $(0.02) $(0.07) GAAP diluted net loss per share $(0.14) $(0.05) $(0.18) $(0.24) Reconciling items: Stock-based compensation expense 0.04 0.04 0.06 0.07 Amortization of intangibles 0.05 0.05 0.10 0.10 Non-GAAP diluted net income (loss) per share $(0.05) $0.04 $(0.02) $(0.07) Shares used to calculate GAAP net loss per share: Basic 14,859 13,973 14,818 13,960 Diluted 14,859 13,973 14,818 13,960 Shares used to calculate non-GAAP net income (loss) per share: Basic 14,859 13,973 14,818 13,960 Diluted 14,859 14,182 14,818 13,960
SOURCE Hifn, Inc.
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