SOURCE: Ulticom, Inc.

March 14, 2005 16:05 ET

Ulticom Announces Fourth Quarter Fiscal 2004 Results: Sales of $17,126,000, Up 69% Year-Over Year; Record Net Income of $4,925,000, Up 303% Year-Over-Year; Earnings per Diluted Share of $0.11

MOUNT LAUREL, NJ -- (MARKET WIRE) -- March 14, 2005 -- Ulticom, Inc. (NASDAQ: ULCM), a leading provider of service-enabling signaling software for wireless, wireline, and Internet communications, today announced financial results for the fourth quarter of fiscal year 2004, ended January 31, 2005.

For the quarter, Ulticom had sales of $17,126,000, an increase of 69% over sales of $10,124,000 in the fourth quarter of fiscal year 2003. Sales increased 1% sequentially, compared with $17,034,000 for the third quarter of fiscal year 2004. Net income more than quadrupled to $4,925,000 ($0.11 per diluted share) when compared with net income of $1,222,000 ($0.03 per diluted share) for the fourth quarter of fiscal year 2003 and increased slightly when compared with net income of $4,867,000 ($0.11 per diluted share) for the third quarter of fiscal year 2004.

"During the fourth quarter, Ulticom benefited from Signalware deployments for payment solutions in the world's emerging markets where rapid wireless subscriber growth and strong demand for enhanced services has fueled the investment in prepaid calling and data charging applications," said Shawn Osborne, President and CEO of Ulticom. "For fiscal year 2004, Ulticom achieved record sales, operating and net income as we saw increased installations of our products in our major market segments of payment, switching, messaging, and mobility. Looking forward, we plan to leverage our OEM relationships, efficient operations, and strong balance sheet to expand our position in enabling wireless and broadband services."

The Company ended the quarter with cash, cash equivalents, and short-term investments of $246,672,000, working capital of $246,150,000, total assets of $271,992,000, and shareholders' equity of $255,564,000, all of which are at record levels.

Financial highlights at and for the twelve-month and three-month periods ended January 31, 2005 and prior year comparisons are as follows:


                           Financial Highlights
                  (In thousands, except per share data)

                         Twelve months ended      Three months ended
                                                     (Unaudited)
                       January 31, January 31,  January 31,  January 31,
                          2004        2005         2004          2005
                       ---------   ---------    ---------     ---------
Sales                  $  38,378   $  63,436    $  10,124     $  17,126
Cost of sales             11,158      14,627        2,855         3,841
                       ---------   ---------    ---------     ---------
Gross profit              27,220      48,809        7,269        13,285

Operating expenses:
Research and development   9,461      10,636        2,384         2,718
Selling, general and
 administrative           15,168      17,607        3,954         4,361
Workforce reduction and
 restructuring credit       (233)          -            -             -
                       ---------   ---------    ---------     ---------
Income from operations     2,824      20,566          931         6,206
Interest and other
 income, net               3,493       3,275          754         1,145
                       ---------   ---------    ---------     ---------
Income before income
 tax provision             6,317      23,841        1,685         7,351
Income tax provision       1,737       7,870          463         2,426
                       ---------   ---------    ---------     ---------
Net income             $   4,580   $  15,971    $   1,222     $   4,925
                       =========   =========    =========     =========

Earnings per share:
Basic                  $    0.11   $    0.37    $    0.03     $    0.11
                       =========   =========    =========     =========
Diluted                $    0.11   $    0.36    $    0.03     $    0.11
                       =========   =========    =========     =========

Weighted average shares:
Basic                     41,860      42,602       42,090        43,098
                       =========   =========    =========     =========
Diluted                   43,261      44,009       43,503        44,682
                       =========   =========    =========     =========


                         Financial Highlights
                            (In thousands)

Balance Sheet Data:                             January 31,    January 31,
                                                   2004           2005

ASSETS

CURRENT ASSETS:
   Cash, cash equivalents and short-term
    investments                               $    224,382   $    246,672
   Accounts receivable, net                          6,417         11,062
   Inventories                                         762          1,286
   Prepaid expenses and other current assets         3,448          3,558
                                              ------------   ------------
TOTAL CURRENT ASSETS                               235,009        262,578

PROPERTY AND EQUIPMENT, net                          2,182          2,274
INVESTMENTS                                          5,463          5,375
OTHER ASSETS                                         1,973          1,765
                                              ------------   ------------
TOTAL ASSETS                                  $    244,627   $    271,992
                                              ============   ============


LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
   Accounts payable and accrued expenses      $      9,073   $     11,966
   Deferred revenue                                  3,707          4,462
                                              ------------   ------------
TOTAL CURRENT LIABILITIES                           12,780         16,428

SHAREHOLDERS' EQUITY                               231,847        255,564
                                              ------------   ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY    $    244,627   $    271,992
                                              ============   ============
About Ulticom:

Ulticom provides service-enabling, signaling software for wireless, wireline, and Internet communications. Ulticom's products are used by leading telecommunication equipment and service providers worldwide to deploy mobility, location, payment, switching, and messaging services. Traded on NASDAQ, as ULCM, Ulticom is headquartered in Mount Laurel, NJ with additional offices in the United States, Europe, and Asia. For more information visit, http://www.ulticom.com.

Conference Call Information:

The Company will host a conference call to discuss these results following this release on Monday, March 14, 2005 at 4:30 p.m. eastern. The dial-in number is 973-935-2100. A web cast of the call, both live and archived, will be available through the Ulticom website at www.ulticom.com. A digital replay of the call will be available until 12 Midnight eastern on March 21st. Access this replay by dialing 877-519-4471 and providing the digital PIN 5440176.

Note: This release may contain "forward-looking statements" under the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. There can be no assurances that forward-looking statements will be achieved, and actual results could differ materially from forecasts and estimates. Important factors that could cause actual results to differ materially from forecasts and estimates are: risks associated with weaknesses in certain sectors of the global economy generally, and in certain sectors of the telecommunications industry in particular; risks associated with rapid technological changes in the telecommunications industry; risks associated with making significant investments in the expansion of our business and with increased expenditures; risks associated with holding a large proportion of our assets in cash equivalents and short-term investments and the reduction of prevailing interest rates; risks associated with our products being dependent upon their ability to operate on new hardware and operating systems of other companies; risks associated with our dependence on sales of our Signalware products; risks associated with future networks not utilizing signaling systems and protocols which our products are designed to support; risks associated with the development and acceptance of new products and product features; risks associated with our dependence on a limited number of customers for a significant percentage of our revenues; risks associated with our products having long sales cycles and our limited ability to forecast the timing and amount of product sales; risks associated with the integration of our products with those of equipment manufacturers and application developers and our ability to establish and maintain channel and marketing relationships with leading equipment manufacturers and application developers; risks associated with our reliance on a limited number of independent manufacturers to manufacture boards for our products and on a limited number of suppliers for our board components; risks associated with becoming subjected to, defending and resolving allegations or claims of infringement of intellectual property rights; risks associated with others infringing on our intellectual property rights and the inappropriate use by others of our proprietary technology; risks associated with prevailing economic conditions and financial trends in the public securities markets in general, and in the decline in the stock prices of technology companies in particular, including Ulticom; risks associated with the need for the Company to attract and retain key personnel and risks associated with the increased difficulty in relying on equity incentive programs to attract and retain talented employees and with any associated increased employment costs. These risks and uncertainties, as well as others, are discussed in greater detail in the filings of Ulticom with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and subsequent reports on Form 10-Q. All documents are available through the SEC's Electronic Data Gathering Analysis and Retrieval system (EDGAR) at www.sec.gov or from Ulticom's web site at www.ulticom.com. Ulticom makes no commitment to revise or update any forward-looking statements in order to reflect events or circumstances after the date any such statement is made.

Ulticom, Signalware and Programmable Network are trademarks or registered trademarks of Ulticom, Inc.

Contact Information

  • Contact:
    Chris Tunnard
    Ulticom, Inc.
    856 787 2972