Welcome!

News Feed Item

Zhone Technologies Reports Fourth Quarter 2013 Financial Results

Zhone Technologies, Inc. (NASDAQ: ZHNE), a global leader in FTTx network access solutions, today reported its financial results for the fourth quarter of 2013, ended December 31, 2013.

Revenue for the fourth quarter of 2013 was $32.3 million, compared to $31.5 million for the third quarter of 2013 and $28.3 million for the fourth quarter of 2012. Net income for the fourth quarter of 2013, calculated in accordance with generally accepted accounting principles (“GAAP”), was $1.4 million or $0.04 per share compared with net income of $1.6 million or $0.05 per share for the third quarter of 2013 and net income of $0.7 million or $0.02 per share for the fourth quarter of 2012. Adjusted earnings before stock-based compensation, interest, taxes, and depreciation (“adjusted EBITDA”) was an adjusted EBITDA profit of $1.6 million for the fourth quarter of 2013, compared to an adjusted EBITDA profit of $1.8 million for the third quarter of 2013 and an adjusted EBITDA profit of $0.9 million for the fourth quarter of 2012.

"When we entered 2013, our primary financial goal was to generate profitability for the year as a whole,” stated Mory Ejabat, Zhone Technologies' chief executive officer. “Having achieved both top line growth and profitability, we enter 2014 with two primary financial objectives: generating continued revenue growth and improving profitability. Our industry leading MxK and new FiberLAN Optical LAN Solution make us optimistic that we can continue toward that path adding momentum as we move forward."

Cash and cash equivalents at December 31, 2013 was $15.7 million compared to $11.1 million at December 31, 2012.

Zhone will conduct a conference call and audio webcast today, January 22, 2014, at approximately 2:00 p.m. PT / 5:00 p.m. ET to review its fourth quarter 2013 results. This call is open to the public by dialing +1 (877) 415-3183 for U.S. callers and +1 (857) 244-7326 for international callers and then entering passcode 67293561. The audio webcast will be simultaneously available on the Investor Relations section of Zhone's website at http://www.zhone.com/investors/.

A replay of the conference call will be available after the original call by dialing +1 (888) 286-8010 for U.S. callers and +1 (617) 801-6888 for international callers and then entering passcode 89416110. An audio webcast replay will also be available online at http://www.zhone.com/investors/ for approximately one week following the original call.

Non-GAAP Financial Measures

To supplement Zhone's consolidated financial statements presented in accordance with GAAP, Zhone uses adjusted EBITDA, a non-GAAP measure Zhone believes is appropriate to enhance an overall understanding of Zhone's past financial performance and prospects for the future. These adjustments to GAAP results are made with the intent of providing greater transparency to supplemental information used by management in its financial and operational decision-making. These non-GAAP results are among the primary indicators that management uses as a basis for making operating decisions because they provide meaningful supplemental information regarding the Company's operational performance, including the Company's ability to provide cash flows to invest in research and development, and to fund capital expenditures. In addition, these non-GAAP financial measures facilitate management's internal comparisons to the Company's historical operating results and comparisons to competitors' operating results. The presentation of this additional information is not meant to be considered in isolation or as a substitute for measures of financial performance prepared in accordance with GAAP. A reconciliation between net loss calculated on a GAAP basis and adjusted EBITDA on a non-GAAP basis is provided in a table immediately following the Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss).

About Zhone Technologies

Zhone Technologies, Inc. (NASDAQ: ZHNE) is a global leader in all IP multi-service access solutions, serving more than 750 of the world's most innovative network operators. The IP Zhone is the only solution that enables service providers to build the network of the future…today, supporting end-to-end Voice, Data, Entertainment Social Media, Business, Mobile Backhaul and Mobility service. Zhone is committed to building the fastest and highest quality All IP Multi-Service solution for its customers. Zhone is headquartered in California and its products are manufactured in the USA in a facility that is emission, waste-water and CFC free.

Zhone, the Zhone logo, and all Zhone product names are trademarks of Zhone Technologies, Inc. Other brand and product names are trademarks of their respective holders. Specifications, products, and/or products names are all subject to change without notice.

Forward-Looking Statements

This press release contains forward-looking statements that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934. Words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “goal,” “intend,” “may,” “plan,” “project,” “seek,” “should,” “target,” “will,” “would,” variations of such words, and similar expressions are intended to identify forward-looking statements. In addition, forward-looking statements include, among others, statements that refer to financial estimates; projections of revenue, margins, expenses or other financial items. Readers are cautioned that actual results could differ materially from those expressed in or contemplated by the forward-looking statements. Factors that could cause actual results to differ include, but are not limited to, commercial acceptance of the Company's products; intense competition in the communications equipment market; the Company's ability to execute on its strategy and operating plans; and economic conditions specific to the communications, networking, internet and related industries. In addition, please refer to the risk factors contained in the Company's SEC filings available at www.sec.gov, including without limitation, the Company's annual report on Form 10-K for the year ended December 31, 2012 and the Company's quarterly report on Form 10-Q for the quarters ended March 31, 2013, June 30, 2013, and September 30, 2013. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. The Company undertakes no obligation to update or revise any forward-looking statements for any reason.

     

ZHONE TECHNOLOGIES, INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss)

(In thousands, except per share data)

 

Three Months Ended

Twelve Months Ended

December 31,
2013
  September 30,
2013
  December 31,
2012
  December 31,
2013
  December 31,
2012
   
Net revenue $ 32,306 $ 31,515 $ 28,290 $ 122,248 $ 115,385
Cost of revenue 20,197 19,608 17,890 76,116 79,038
Stock-based compensation   -       -       -       -       63  
Gross profit   12,109       11,907       10,400       46,132       36,284  
Operating expenses:
Research and product development (1) 3,812 3,934 3,707 15,326 18,542
Sales and marketing (1) 5,620 4,644 4,788 20,159 19,304
General and administrative (1)   1,283       1,702       1,100       6,199       7,218  
Total operating expenses   10,715       10,280       9,595       41,684       45,064  
Operating income (loss) 1,394 1,627 805 4,448 (8,780 )
Other income (expense), net  

2

      (25 )     (45 )     (92 )     (111 )
Income (loss) before income taxes

1,396

1,602 760 4,356 (8,891 )
Income tax provision (benefit)  

(36

)     6       61       42       124  
Net income (loss) $ 1,432     $ 1,596     $ 699     $ 4,314     $ (9,015 )
Other comprehensive income (loss)   (38 )     (30 )     3       (151 )     (21 )
Comprehensive income (loss) $ 1,394     $ 1,566     $ 702     $ 4,163     $ (9,036 )
 
Weighted average shares outstanding
Basic 31,896 31,480 31,114 31,429 31,010
Diluted 34,287 33,344 31,114 33,021 31,010
 
Earnings per common share
Basic $ 0.04 $ 0.05 $ 0.02 $ 0.14 $ (0.29 )
Diluted $ 0.04 $ 0.05 $ 0.02 $ 0.13 $ (0.29 )
 
 
(1) Amounts include stock-based compensation costs as follows:
Research and product development $ 1 $ 1 $ - $ 2 $ 297
Sales and marketing 1 1 - 2 250
General and administrative   55       53       48       420       704  
$ 57 $ 55 $ 48 $ 424 $ 1,251
 
GAAP net income (loss) $ 1,432 $ 1,596 $ 699 $ 4,314 $ (9,015 )
Stock-based compensation 57 55 48 424 1,314
Interest expense

11

25 49 85 102
Income taxes

(36

) 6 61 42 124
Depreciation   101       92       82       367       316  
Non-GAAP Adjusted EBITDA income (loss) $ 1,565     $ 1,774     $ 939     $ 5,232     $ (7,159 )
 

ZHONE TECHNOLOGIES, INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Balance Sheets

(In thousands)

   

December 31,
2013

December 31,
2012

 
Assets
Current assets:
Cash, cash equivalents and short-term investments $ 15,686 $ 11,119
Accounts receivable 33,328 25,820
Inventories 19,562 21,404
Prepaid expenses and other current assets   2,269       2,590  
Total current assets 70,845 60,933
Property and equipment, net 718 583
Other assets   254       208  
Total assets $ 71,817     $ 61,724  
 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 12,689 $ 7,229
Line of credit 10,000 10,000
Accrued and other liabilities   8,865       8,836  
Total current liabilities 31,554 26,065
Other long-term liabilities   2,704       3,719  
Total liabilities   34,258       29,784  
Stockholders’ equity:
Common stock 32 31
Additional paid-in capital 1,074,294 1,072,839
Other comprehensive income 65 216
Accumulated deficit   (1,036,832 )     (1,041,146 )
Total stockholders’ equity   37,559       31,940  
Total liabilities and stockholders' equity $ 71,817     $ 61,724  

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that Pulzze Systems will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.
I'm a lonely sensor. I spend all day telling the world how I'm feeling, but none of the other sensors seem to care. I want to be connected. I want to build relationships with other sensors to be more useful for my human. I want my human to understand that when my friends next door are too hot for a while, I'll soon be flaming. And when all my friends go outside without me, I may be left behind. Don't just log my data; use the relationship graph. In his session at @ThingsExpo, Ryan Boyd, Engi...
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can support cloud-based workloads previously not possible for high-throughput insurance, banking, and case-based applications. In his session at 18th Cloud Expo, John Newton, CTO, Founder and Chairman of Alfresco, described how to scale cloud-based content management repositories to store, manage, and retrieve billions of documents and related information with fast and linear scalability. He addres...
From wearable activity trackers to fantasy e-sports, data and technology are transforming the way athletes train for the game and fans engage with their teams. In his session at @ThingsExpo, will present key data findings from leading sports organizations San Francisco 49ers, Orlando Magic NBA team. By utilizing data analytics these sports orgs have recognized new revenue streams, doubled its fan base and streamlined costs at its stadiums. John Paul is the CEO and Founder of VenueNext. Prior ...
SYS-CON Events announced today that Numerex Corp, a leading provider of managed enterprise solutions enabling the Internet of Things (IoT), will exhibit at the 19th International Cloud Expo | @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Numerex Corp. (NASDAQ:NMRX) is a leading provider of managed enterprise solutions enabling the Internet of Things (IoT). The Company's solutions produce new revenue streams or create operating...
WebRTC adoption has generated a wave of creative uses of communications and collaboration through websites, sales apps, customer care and business applications. As WebRTC has become more mainstream it has evolved to use cases beyond the original peer-to-peer case, which has led to a repeating requirement for interoperability with existing infrastructures. In his session at @ThingsExpo, Graham Holt, Executive Vice President of Daitan Group, will cover implementation examples that have enabled ea...
Kubernetes is a new and revolutionary open-sourced system for managing containers across multiple hosts in a cluster. Ansible is a simple IT automation tool for just about any requirement for reproducible environments. In his session at @DevOpsSummit at 18th Cloud Expo, Patrick Galbraith, a principal engineer at HPE, discussed how to build a fully functional Kubernetes cluster on a number of virtual machines or bare-metal hosts. Also included will be a brief demonstration of running a Galera M...
IoT offers a value of almost $4 trillion to the manufacturing industry through platforms that can improve margins, optimize operations & drive high performance work teams. By using IoT technologies as a foundation, manufacturing customers are integrating worker safety with manufacturing systems, driving deep collaboration and utilizing analytics to exponentially increased per-unit margins. However, as Benoit Lheureux, the VP for Research at Gartner points out, “IoT project implementers often ...
SYS-CON Events announced today that Tintri Inc., a leading producer of VM-aware storage (VAS) for virtualization and cloud environments, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Tintri VM-aware storage is the simplest for virtualized applications and cloud. Organizations including GE, Toyota, United Healthcare, NASA and 6 of the Fortune 15 have said “No to LUNs.” With Tintri they mana...
The Jevons Paradox suggests that when technological advances increase efficiency of a resource, it results in an overall increase in consumption. Writing on the increased use of coal as a result of technological improvements, 19th-century economist William Stanley Jevons found that these improvements led to the development of new ways to utilize coal. In his session at 19th Cloud Expo, Mark Thiele, Chief Strategy Officer for Apcera, will compare the Jevons Paradox to modern-day enterprise IT, e...
SYS-CON Events announced today the Enterprise IoT Bootcamp, being held November 1-2, 2016, in conjunction with 19th Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA. Combined with real-world scenarios and use cases, the Enterprise IoT Bootcamp is not just based on presentations but with hands-on demos and detailed walkthroughs. We will introduce you to a variety of real world use cases prototyped using Arduino, Raspberry Pi, BeagleBone, Spark, and Intel Edison. Y...
Complete Internet of Things (IoT) embedded device security is not just about the device but involves the entire product’s identity, data and control integrity, and services traversing the cloud. A device can no longer be looked at as an island; it is a part of a system. In fact, given the cross-domain interactions enabled by IoT it could be a part of many systems. Also, depending on where the device is deployed, for example, in the office building versus a factory floor or oil field, security ha...
Is your aging software platform suffering from technical debt while the market changes and demands new solutions at a faster clip? It’s a bold move, but you might consider walking away from your core platform and starting fresh. ReadyTalk did exactly that. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, will discuss why and how ReadyTalk diverted from healthy revenue and over a decade of audio conferencing product development to start an innovati...