SOURCE: Catapult Communications Corporation

Catapult Communications Corporation

April 23, 2009 16:01 ET

Catapult Communications Reports Second Quarter Fiscal Year 2009 Results

MOUNTAIN VIEW, CA--(Marketwire - April 23, 2009) - Catapult Communications Corporation (NASDAQ: CATT) today reported that revenues for its second fiscal quarter ended March 31, 2009 were $12.1 million, an increase of 22% over revenues of $9.9 million for the second quarter of fiscal 2008. After non-cash, pre-tax stock option expenses of $417,000, the Company reported net income for the quarter of $1.1 million or $0.10 per diluted share, compared to a net loss of $3.35 million or $0.26 per diluted share for the second quarter of fiscal 2008. The results for the fiscal 2008 second quarter included the impact of a pre-tax restructuring charge of $2.2 million related to a reduction in the Company's workforce and the closure of its Australian office.

During the second fiscal quarter of 2009, Catapult generated approximately $3.9 million in cash flow from operations, invested $1.8 million in capitalized software development expenses, and repurchased approximately 85,000 shares at a cost of $565,000. As a result, the Company's combined cash, cash equivalent and investment position increased by $1.3 million to $42.3 million. This total includes $4.6 million in currently illiquid auction rate securities classified as long-term investments. This value is net of a non-cash temporary unrealized holding loss of $309,000 that was recorded against these securities on the Company's balance sheet in the first fiscal quarter.

In the second fiscal quarter of 2009, the Company recorded a $930,000 non-cash temporary unrealized holding loss against the value of its 2.64% ownership position in the shares of a Finnish competitor, NetHawk Oyj. The Company originally received these shares two years ago in settlement of a legal action. The amount of the loss is based on an updated valuation at March 31, 2009 that reflects NetHawk's recently released operating results for fiscal 2008 and the currently depressed level of market comparables.

"Overall, Catapult is now extremely well-positioned as a result of our focus on the LTE test system market," said Dr. Richard A. Karp, Catapult's Chairman and CEO.

Catapult Communications will be discussing its second quarter results on a conference call today, beginning at 5:15 p.m. Eastern/2:15 p.m. Pacific. Please dial (866) 730-5771 or (857) 350-1595 and provide conference ID# 23723383 to access the call. The conference call will also be broadcast from www.catapult.com.

A replay of this teleconference will be available on the Company's website for one year following the conference call. A digital recording will be provided by telephone two hours after the completion of the conference call through midnight on April 30, 2009. To access the replay, please dial (888) 286-8010 or (617) 801-6888 and enter conference ID# 39658510.

About Catapult Communications

Catapult Communications is a leading supplier of advanced digital telecom test systems to global equipment manufacturers and service providers, including Alcatel-Lucent, Motorola, NEC, NTT DoCoMo, Nortel and Nokia Siemens Networks. The Catapult DCT2000® and MGTS® systems deliver superior high-end test solutions for hundreds of protocols and variants -- spanning LTE, IMS, WiMAX, mobile telephony, VoIP, GPRS, SS7, Intelligent Network, ATM and ISDN. The Company is committed to providing testing tools that are at the forefront of the telecom technology curve.

Catapult is headquartered at 160 South Whisman Road, Mountain View, CA 94041. Tel: 650-960-1025. International offices are located in the U.K., Ireland, Germany, France, Finland, Sweden, Canada, Japan, China, India and the Philippines. Information about Catapult Communications can be found on the Web at www.catapult.com.

Forward-Looking Statements

The statement in this press release regarding the Company's position as a result of its focus on the LTE test system market is a forward-looking statement. This statement is subject to various risks and uncertainties that could cause actual results to differ from those forecasted. Such risks include delays in the rate of adoption of new technologies, the Company's inability to develop products to address those technologies, competitive product offerings, including those developed by the Company's customers, and the Company's dependence on a limited number of customers. For other factors that may cause actual results to differ from those projected, please refer to the Company's Form 10-K, Forms 10-Q and other filings with the Securities and Exchange Commission.

                    Catapult Communications Corporation
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                 (In thousands, except per share amounts)
                                (Unaudited)

                                       For the three       For the six
                                       months ended        months ended
                                         March 31,           March 31,
                                      2009      2008      2009      2008
                                    --------  --------  --------  --------

Revenues:
  Products                          $  8,931  $  6,925  $ 15,388  $ 13,695
  Services                             3,161     3,010     6,516     6,541
                                    --------  --------  --------  --------
    Total revenues                    12,092     9,935    21,904    20,236
                                    --------  --------  --------  --------

Cost of revenues:
   Products                            1,656     1,225     3,108     2,473
   Services                              512       752       985     1,550
   Amortization of purchased
    technology                            12        12        24        24
                                    --------  --------  --------  --------
    Total cost of revenues             2,180     1,989     4,117     4,047
                                    --------  --------  --------  --------

Gross profit                           9,912     7,946    17,787    16,189
                                    --------  --------  --------  --------

Operating expenses:
  Research and development             1,713     3,466     3,351     7,019
  Sales and marketing                  3,908     4,241     7,879     8,586
  General and administrative           2,092     2,106     4,351     4,278
  Restructuring costs                            2,197               2,197
                                    --------  --------  --------  --------
    Total operating expenses           7,713    12,010    15,581    22,080
                                    --------  --------  --------  --------

Operating income (loss)                2,199    (4,064)    2,206    (5,891)

Interest income                          121       592       353     1,336
Other income (expense), net             (369)      235      (194)      365
                                    --------  --------  --------  --------

Income (loss) before income taxes      1,951    (3,237)    2,365    (4,190)

Provision for income taxes               844       113     1,201       331
                                    --------  --------  --------  --------
Net income (loss)                   $  1,107  $ (3,350) $  1,164  $ (4,521)
                                    ========  ========  ========  ========

Net income (loss) per share:
  Basic                             $   0.10  $  (0.26) $   0.10  $  (0.34)
                                    ========  ========  ========  ========
  Diluted                           $   0.10  $  (0.26) $   0.10  $  (0.34)
                                    ========  ========  ========  ========

Shares used in per share
 calculation:
  Basic                               11,333    13,119    11,452    13,247
                                    ========  ========  ========  ========
  Diluted                             11,350    13,119    11,455    13,247
                                    ========  ========  ========  ========




                    Catapult Communications Corporation
                  CONDENSED CONSOLIDATED BALANCE SHEETS
                              (In thousands)
                                (Unaudited)



                                                    March 31, September 30,
                                                      2009        2008
                                                   ----------- -----------

         ASSETS

Current Assets:
  Cash, cash equivalents and short-term
   investments                                     $    37,703 $    41,380
  Accounts receivable, net                               8,472       6,487
  Inventories                                            3,078       2,313
  Other current assets                                   2,000       2,431
                                                   ----------- -----------
         Total current assets                           51,253      52,611

Long-term investments                                    4,641       4,950
Property and equipment, net                                879       1,011
Goodwill and other intangibles                          49,428      49,464
Other assets                                             8,913       5,992
                                                   ----------- -----------
         Total assets                              $   115,114 $   114,028
                                                   =========== ===========


      LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
  Accounts payable and accrued liabilities         $     5,334 $     6,024
  Deferred revenue                                       9,727       6,446
                                                   ----------- -----------
         Total current liabilities                      15,061      12,470

Deferred revenue, long-term                                 74         173
Deferred taxes and other liabilities, long-term          5,321       5,057
                                                   ----------- -----------

         Total liabilities                              20,456      17,700
                                                   ----------- -----------

         Total stockholders' equity                     94,658      96,328
                                                   ----------- -----------

         Total liabilities and stockholders'
          equity                                   $   115,114 $   114,028
                                                   =========== ===========

Contact Information

  • For investor information contact:
    Leigh Salvo
    Investor Relations
    (650) 314-1000
    ir@catapult.com