Welcome!

News Feed Item

Ikanos Communications Announces Results for the First Quarter 2014

FREMONT, CA -- (Marketwired) -- 04/29/14 -- Ikanos Communications, Inc. (NASDAQ: IKAN)

First Quarter Highlights

  • Revenue of $14.5 million
  • GAAP net loss of $(10.3) million, or $(0.10) per share
  • Ending cash, cash equivalents and short-term investments of $33.7 million

Ikanos Communications, Inc. (NASDAQ: IKAN), a leading provider of advanced broadband semiconductor and software products for the digital home, today announced its financial results for the first quarter of 2014, ended March 30, 2014.

"We achieved first-quarter revenue and gross profits within our guidance, with revenue of $14.5 million and a GAAP gross profit of 49%, while recording operating expenses of $17.5 million, near the mid-point of our guidance," said Dennis Bencala, CFO of Ikanos. "During the quarter, we continued to effectively manage our business and cash position, with cash totaling $33.7 million and inventory of $1.3 million at quarter end."

Omid Tahernia, president and CEO of Ikanos, said, "Our design win pipeline and new product revenue continued with positive momentum into 2014. We ended the first quarter with several new design wins for both access and gateway processors. For the first time, we have a Velocity™-3 based OEM system in a large carrier lab being qualified for deployment. We are also seeing very positive progress with our diversification strategy, winning new tenders in South America for 2014 revenue. The demand for our Vx500 gateway processor family is also on the rise. We announced our first LTE gateway design win with this new family at Mobile World Congress in February, and anticipate more OEM and ODM design activities in the second quarter."

Financial Details
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), non-GAAP gross profits and non-GAAP operating expenses, where applicable, exclude the income statement effects of stock-based compensation and the amortization of intangible assets. Ikanos has provided these measures because its 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 reporting. For a reconciliation of GAAP versus non-GAAP financial information, please see the attached schedules.

First Quarter 2014 Results

Revenue for the first quarter of 2014 was $14.5 million, compared to revenue of $26.2 million for the first quarter of 2013 and revenue of $17.6 million for the fourth quarter of 2013. GAAP gross profit for the first quarter of 2014 was 49%, compared to a GAAP gross profit of 53% for the first quarter of 2013 and GAAP gross profit of 50% for the fourth quarter of 2013.

Non-GAAP gross profit for the first quarter of 2014 was 50%, compared to a non-GAAP gross profit of 54% for the first quarter of 2013 and 51% for the fourth quarter of 2013.

GAAP operating expenses for the first quarter of 2014 were $17.5 million, compared to operating expenses of $18.3 million for the first quarter of 2013 and operating expenses of $17.1 million for the fourth quarter of 2013.

Non-GAAP operating expenses for the first quarter of 2014 were $16.5 million, compared to non-GAAP operating expenses of $17.3 million for the first quarter of 2013 and non-GAAP operating expenses of $16.2 million for the fourth quarter of 2013.

GAAP net loss for the first quarter of 2014 was $(10.3) million, or a loss of $(0.10) per share on 98.7 million weighted average shares outstanding, compared to a GAAP net loss of $(4.4) million, or $(0.06) per share on 70.4 million weighted average shares outstanding, for the first quarter of 2013 and a GAAP net loss of $(8.6) million, or $(0.10) per share on 85.6 million weighted shares outstanding, for the fourth quarter of 2013.

Non-GAAP net loss for the first quarter of 2014 was $(9.2) million, or a loss of $(0.09) per share on 98.7 million weighted average shares outstanding, compared to a non-GAAP net loss of $(3.3) million, or $(0.05) per share on 70.4 million weighted average shares outstanding, for the first quarter of 2013 and a non-GAAP loss of $(7.6) million, or $(0.09) per share on 85.6 million weighted average shares outstanding, for the fourth quarter of 2013.

Cash and cash equivalents and short-term investments at the end of the first quarter of 2014 were $33.7 million, compared to $39.5 million at the end of the fourth quarter of 2013. Additionally, at the end of the first quarter of 2014, inventory was $1.3 million, compared to $2.0 million at the end of the fourth quarter of 2013. Current liabilities at the end of the first quarter of 2014 were $22.5 million, compared to $24.9 million at the end of the fourth quarter of 2013. For both the first quarter of 2014 and fourth quarter of 2013, current liabilities include an accounts receivable backed, revolving line of credit advance of $8.5 million and $12.0 million, respectively.

For a more complete review of our 2014 results and year-over-year comparisons please see the attached financial schedules.

Outlook

Revenue is expected to be between $11 million and $13 million for the second quarter of 2014.

"The key factor contributing to the short-term decline in overall revenue was the lower demand in certain maturing markets, namely Japan and Korea, which have had a significant impact on our legacy product revenue," said Tahernia. "Revenue in Korea in particular dropped to historic lows. This is a trend we expect to continue to see in those regions. However, we anticipate great demand for G.fast in both regions, which should present the next cycle of growth for Ikanos."

GAAP gross profit for the second quarter of 2014 is expected to be between 46% and 48%. Non-GAAP gross profit is expected to be between 47% and 49% for second quarter of 2014. GAAP operating expenses for second quarter of 2014 are expected to be in the range of $17.5 million to $18.5 million. Non-GAAP operating expenses are expected to be in the range of $16.5 million to $17.5 million for second quarter of 2014. GAAP net loss for second quarter of 2014 is expected to be in the range of approximately $(11.6) million to $(13.7) million, or a GAAP loss per share of $(0.12) to $(0.14). Non-GAAP net loss is expected to be in the range of approximately $(10.4) million to $(12.6) million, or a non-GAAP loss per share of $(0.11) to $(0.13).

First Quarter Conference Call
Management will review the first quarter financial results and its expectations for subsequent periods at a conference call on April 29, 2014 at 1:30 p.m. Pacific Time. To listen to the call, please visit http://www.ikanos.com/investor/irevents/ and click on the link provided for the webcast or dial (888) 438-5525 and enter conference ID 2023583. The webcast will be archived and available for 90 days at http://www.ikanos.com/investor/irevents/. A replay of the conference call will be accessible until July 28, 2014 by dialing (888) 203-1112 and entering conference ID 2023583.

About Ikanos Communications, Inc.
Ikanos Communications, Inc. (NASDAQ: IKAN) is a leading provider of advanced broadband semiconductor and software products for the digital home. The company's broadband DSL, communications processors and other offerings power access infrastructure and customer premises equipment for many of the world's leading network equipment manufacturers and telecommunications service providers. For more information, visit www.ikanos.com.

© 2014 Ikanos Communications, Inc. All Rights Reserved. Ikanos Communications, Ikanos and the Ikanos logo, the Bandwidth without boundaries tagline, Fusiv, inSIGHT, Neos, Ikanos Velocity, and Ikanos NodeScale are among the trademarks or registered trademarks of Ikanos Communications. All other trademarks mentioned herein are properties of their respective holders.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Some of the statements included in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You should not place undue reliance on these statements. These forward-looking statements include statements that reflect the current views of our senior management with respect to future events with respect to our business and our industry in general. Statements that include the words "expect," "intend," "plan," "believe," "anticipate," "estimate," and similar statements of a future or forward-looking nature identify forward-looking statements.

Forward-looking statements address matters that involve risks and uncertainties. Accordingly, there are or will be important factors that could cause our actual results to differ materially from those indicated in these statements. We believe that these factors include, but are not limited to, the following: design win pipeline and new product revenue momentum may not continue as anticipated or at all; that new designs and design wins will result in sales of our products at the levels anticipated, or at all; that our lab trials will be successful and, if successful, will eventually result in field trials or market deployments; that the delays in new customer product ramps will continue longer than anticipated; that the rate of acceptance of our new and future products, including our G.fast products, by our customers and telecommunications service providers may be lower than anticipated; our ability to complete future products, including our G.fast products, when anticipated or at all; that the unfavorable trends in certain maturing markets, such as Japan and Korea, will continue longer than anticipated; that our design win pipeline will continue to expand as anticipated; macroeconomic or other conditions which may cause our customers to defer purchasing plans or cancel any purchasing plans altogether despite successful design wins or successful field trials; the continued demand by telecommunications service providers for our specific xDSL semiconductor products; our ability to continue to effectively manage our business and cash position; the failure of telecommunications service providers to implement deployment plans on schedule, or at all, despite increased performance results; our ability to generate demand and close transactions for the sale of our products; competition in the markets in which we operate; and the fact that the products we sell may not satisfy shifting customer demand or compete successfully with our competitors' products. For a more detailed discussion of how these and other risks and uncertainties could cause our actual results to differ materially from those indicated in our forward-looking statements, see our reports filed with SEC (available at www.sec.gov), including our Annual Report on Form 10-K filed on February 28, 2014.


                        IKANOS COMMUNICATIONS, INC.
         Unaudited Condensed Consolidated Statements of Operations
                   (In thousands, except per share data)

                                             Three Months Ended
                                -------------------------------------------
                                  March 30,     December 29,    March 31,
                                     2014           2013           2013
                                -------------  -------------  -------------

Revenue                         $      14,513  $      17,582  $      26,152
Cost of revenue                         7,436          8,806         12,196
                                -------------  -------------  -------------
    Gross profit                        7,077          8,776         13,956
                                -------------  -------------  -------------
Operating expenses:
  Research and development             12,676         12,503         13,518
  Selling, general and
   administrative                       4,821          4,589          4,772
                                -------------  -------------  -------------
    Total operating expenses           17,497         17,092         18,290
                                -------------  -------------  -------------
Loss from operations                  (10,420)        (8,316)        (4,334)

  Interest income and other,
   net                                    242            (71)            82
                                -------------  -------------  -------------
Loss before income taxes              (10,178)        (8,387)        (4,252)
  Provision for income taxes              127            246            164
                                -------------  -------------  -------------
Net loss                        $     (10,305) $      (8,633) $      (4,416)
                                =============  =============  =============

Basic and diluted net loss per
 share                          $       (0.10) $       (0.10) $       (0.06)
                                =============  =============  =============
Weighted average outstanding
 shares:
  Basic and diluted                    98,749         85,648         70,413
                                =============  =============  =============



                         IKANOS COMMUNICATIONS, INC.
     Unaudited Reconciliation of GAAP to Non-GAAP Condensed Consolidated
                           Statements of Operations
                    (In thousands, except per share data)

                                        Three Months Ended March 30, 2014
                                     --------------------------------------
                                         As       Non-GAAP
                                      Reported   Adjustments       Non-GAAP
                                     ---------  ------------      ---------
Revenue                              $  14,513  $          -      $  14,513
Cost of revenue                          7,436            (2) (a)     7,314
                                                        (120) (b)

                                     ---------  ------------      ---------
    Gross profit                         7,077          (122)         7,199
                                     ---------  ------------      ---------

Operating expenses:
  Research and development              12,676          (640) (a)    12,036

  Selling, general and
   administrative                        4,821          (347) (a)     4,474

                                     ---------  ------------      ---------
    Total operating expenses            17,497          (987)        16,510
                                     ---------  ------------      ---------
Loss from operations                   (10,420)        1,109         (9,311)
  Interest income and other, net           242             -            242
                                     ---------  ------------      ---------
Loss before income taxes               (10,178)        1,109         (9,069)
Provision for income taxes                 127             -            127
                                     ---------  ------------      ---------
Net loss                             $ (10,305) $      1,109      $  (9,196)
                                     =========  ============      =========

Net loss per share:
  Basic and diluted                  $   (0.10)                   $   (0.09)
                                     =========                    =========

Weighted average outstanding shares:
  Basic and diluted                     98,749                       98,749
                                     =========                    =========



                        IKANOS COMMUNICATIONS, INC.
    Unaudited Reconciliation of GAAP to Non-GAAP Condensed Consolidated
                          Statements of Operations
                   (In thousands, except per share data)

                                        Three Months Ended March 31, 2013
                                     --------------------------------------
                                         As       Non-GAAP
                                      Reported   Adjustments       Non-GAAP
                                     ---------  ------------      ---------
Revenue                              $  26,152  $          -      $  26,152
Cost of revenue                         12,196            (1) (a)    12,075
                                                        (120) (b)

                                     ---------  ------------      ---------
    Gross profit                        13,956          (121)        14,077
                                     ---------  ------------      ---------

Operating expenses:
  Research and development              13,518          (571) (a)    12,947

  Selling, general and
   administrative                        4,772          (262) (a)     4,385
                                                        (125) (b)
                                     ---------  ------------      ---------
    Total operating expenses            18,290          (958)        17,332
                                     ---------  ------------      ---------
Loss from operations                    (4,334)        1,079         (3,255)
  Interest income and other, net            82             -             82
                                     ---------  ------------      ---------
Loss before income taxes                (4,252)        1,079         (3,173)
Provision for income taxes                 164             -            164
                                     ---------  ------------      ---------
Net loss                             $  (4,416) $      1,079      $  (3,337)
                                     =========  ============      =========

Net loss per share:
  Basic and diluted                  $   (0.06)                   $   (0.05)
                                     =========                    =========

Weighted average outstanding shares:
  Basic and diluted                     70,413                       70,413
                                     =========                    =========


Notes:                                                   Three Months Ended
                                                       ---------------------
                                                        March 30,  March 31,
                                                          2014       2013
                                                       ---------- ----------
  (a)   Stock-based compensation                       $      989 $      834
  (b)   Amortization of acquired intangible assets            120        245
                                                       ---------- ----------
        Total non-GAAP adjustments                     $    1,109 $    1,079
                                                       ========== ==========



                        IKANOS COMMUNICATIONS, INC.
    Unaudited Reconciliation of GAAP to Non-GAAP Condensed Consolidated
                          Statements of Operations
                   (In thousands, except per share data)

                                      Three Months Ended December 29, 2013
                                     --------------------------------------
                                         As        Non-GAAP
                                      Reported   Adjustments       Non-GAAP
                                     ---------  -------------     ---------
Revenue                              $  17,582  $           -     $  17,582
Cost of revenue                          8,806             (2)(a)     8,684
                                                         (120)(b)

                                     ---------  -------------     ---------
          Gross profit                   8,776           (122)        8,898
                                     ---------  -------------     ---------

Operating expenses:
        Research and development        12,503           (640)(a)    11,863

        Selling, general and
         administrative                  4,589           (281)(a)     4,308

                                     ---------  -------------     ---------
          Total operating expenses      17,092           (921)       16,171
                                     ---------  -------------     ---------
Loss from operations                    (8,316)         1,043        (7,273)
        Interest income and other,
         net                               (71)             -           (71)
                                     ---------  -------------     ---------
Loss before income taxes                (8,387)         1,043        (7,344)
Provision for income taxes                 246              -           246
                                     ---------  -------------     ---------
Net loss                             $  (8,633) $       1,043     $  (7,590)
                                     =========  =============     =========

Net loss per share:
        Basic and diluted            $   (0.10)                   $   (0.09)
                                     =========                    =========

Weighted average outstanding shares:
        Basic and diluted               85,648                       85,648
                                     =========                    =========

Notes:                                            Three Months
                                                      Ended
                                                   December
                                                   29,2013
                                                -------------
  (a)   Stock-based compensation                $         923
  (b)   Amortization of acquired
         intangible assets                                120
                                                -------------
        Total non-GAAP adjustments              $       1,043
                                                =============



                         IKANOS COMMUNICATIONS, INC.
               Unaudited Condensed Consolidated Balance Sheets
                               (In thousands)

                                     March 30,    December 29,   March 31,
                                        2014          2013          2013
                                   ------------- ------------- -------------
              Assets
Current assets:
  Cash, cash equivalents and
   short-term investments          $      33,660 $      39,516 $      31,565
  Accounts receivable                     10,962        15,892        10,441
  Inventory                                1,314         2,017         7,375
  Prepaid expenses and other
   current assets                          3,075         3,245         3,684
                                   ------------- ------------- -------------
    Total current assets                  49,011        60,670        53,065
Property and equipment, net                8,666         8,612         8,281
Intangible assets, net                       598           718         1,285
Other assets                               1,949         1,952         2,556
                                   ------------- ------------- -------------
                                   $      60,224 $      71,952 $      65,187
                                   ============= ============= =============

   Liabilities and Stockholders'
               Equity
Current liabilities:
  Revolving line                   $       8,480 $      12,000 $       5,000
  Accounts payable                         5,919         4,692         3,494
  Accrued liabilities                      8,093         8,232        10,828
                                   ------------- ------------- -------------
    Total current liabilities             22,492        24,924        19,322
Other liabilities                          1,541         1,637         2,561
                                   ------------- ------------- -------------
    Total liabilities                     24,033        26,561        21,883
Stockholders' equity                      36,191        45,391        43,304
                                   ------------- ------------- -------------
                                   $      60,224 $      71,952 $      65,187
                                   ============= ============= =============


Add to Digg Bookmark with del.icio.us Add to Newsvine

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
What does it look like when you have access to cloud infrastructure and platform under the same roof? Let’s talk about the different layers of Technology as a Service: who cares, what runs where, and how does it all fit together. In his session at 18th Cloud Expo, Phil Jackson, Lead Technology Evangelist at SoftLayer, an IBM company, spoke about the picture being painted by IBM Cloud and how the tools being crafted can help fill the gaps in your IT infrastructure.
CenturyLink has announced that application server solutions from GENBAND are now available as part of CenturyLink’s Networx contracts. The General Services Administration (GSA)’s Networx program includes the largest telecommunications contract vehicles ever awarded by the federal government. CenturyLink recently secured an extension through spring 2020 of its offerings available to federal government agencies via GSA’s Networx Universal and Enterprise contracts. GENBAND’s EXPERiUS™ Application...
Much of IT terminology is often misused and misapplied. Modernization and transformation are two such terms. They are often used interchangeably even though they mean different things and have very different connotations. Indeed, it is somewhat safe to assume that in IT any transformative effort is likely to also have a modernizing effect, and thus, we can see these as levels of improvement efforts. However, many businesses are being led to believe if they don’t transform now they risk becoming ...
"We provide DevOps solutions. We also partner with some key players in the DevOps space and we use the technology that we partner with to engineer custom solutions for different organizations," stated Himanshu Chhetri, CTO of Addteq, in this SYS-CON.tv interview at DevOps at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
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...
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...
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
Aspose.Total for .NET is the most complete package of all file format APIs for .NET as offered by Aspose. It empowers developers to create, edit, render, print and convert between a wide range of popular document formats within any .NET, C#, ASP.NET and VB.NET applications. Aspose compiles all .NET APIs on a daily basis to ensure that it contains the most up to date versions of each of Aspose .NET APIs. If a new .NET API or a new version of existing APIs is released during the subscription peri...
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, 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. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.
Adding public cloud resources to an existing application can be a daunting process. The tools that you currently use to manage the software and hardware outside the cloud aren’t always the best tools to efficiently grow into the cloud. All of the major configuration management tools have cloud orchestration plugins that can be leveraged, but there are also cloud-native tools that can dramatically improve the efficiency of managing your application lifecycle. In his session at 18th Cloud Expo, ...
As companies gain momentum, the need to maintain high quality products can outstrip their development team’s bandwidth for QA. Building out a large QA team (whether in-house or outsourced) can slow down development and significantly increases costs. This eBook takes QA profiles from 5 companies who successfully scaled up production without building a large QA team and includes: What to consider when choosing CI/CD tools How culture and communication can make or break implementation
The best-practices for building IoT applications with Go Code that attendees can use to build their own IoT applications. In his session at @ThingsExpo, Indraneel Mitra, Senior Solutions Architect & Technology Evangelist at Cognizant, provided valuable information and resources for both novice and experienced developers on how to get started with IoT and Golang in a day. He also provided information on how to use Intel Arduino Kit, Go Robotics API and AWS IoT stack to build an application tha...
It’s 2016: buildings are smart, connected and the IoT is fundamentally altering how control and operating systems work and speak to each other. Platforms across the enterprise are networked via inexpensive sensors to collect massive amounts of data for analytics, information management, and insights that can be used to continuously improve operations. In his session at @ThingsExpo, Brian Chemel, Co-Founder and CTO of Digital Lumens, will explore: The benefits sensor-networked systems bring to ...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
"Tintri was started in 2008 with the express purpose of building a storage appliance that is ideal for virtualized environments. We support a lot of different hypervisor platforms from VMware to OpenStack to Hyper-V," explained Dan Florea, Director of Product Management at Tintri, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.