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Vodavi Announces 2005 First Quarter Financial Results
28 April 2005
Vodavi Technology Inc., (Nasdaq: VTEK - News), a provider of business telecommunications solutions, today announced results for its first quarter ended March 31, 2005.
For the first quarter of 2005, the company reported revenue of $9.9 million compared with revenue of $9.8 million in the first quarter of 2004. Net income totaled $195,000, or $0.05 per share, in the most recent quarter compared with net income of $216,000, or $0.05 per share, in the comparable period of 2004.
Gregory K. Roeper, chief executive officer, stated, "Despite the overall softness in our sector, the first quarter had some very positive factors for our company. First of all, the market acceptance of recently introduced products has enabled us to continue to increase our unit shipments of both systems and voice messaging products.
"Next, we were able to increase our investments into our sales force, including dedicated IP personnel, and our Direct Office operation without significantly impacting our earnings.
"And finally, we continue to see increasing demand for our IP product offerings. Revenue associated with specific IP product SKUs increased 100% over the first quarter of 2004. Clearly the market acceptance of IP is having an impact on our industry. Our focus moving forward is to manage the shift from traditional to IP equipment. With the investments made in product development over the last several quarters, combined with the investments we made in the first quarter of 2005 into sales and marketing, we are well positioned to meet the demands of this shift in technology."
The company also announced that it has renewed its stock repurchase program. Under the terms of the old program, which expired March 31, 2005, the company repurchased 40,902 shares of its common stock, including 8,500 shares in the first quarter of 2005. The new program authorizes the company to purchase up to $1,000,000 of its common stock through March 31, 2006. The company will fund the repurchase program with existing cash on hand.
The company ended the 2005 first quarter with a cash balance of $4.1 million and working capital of $10.5 million compared with a cash balance of $4.0 million and working capital of $10.2 million at Dec. 31, 2004.
For a more detailed discussion of the company's financial results, please refer to the company's Form 10-Q for the quarterly period ended March 31, 2005, filed with the Securities and Exchange Commission.
Teleconference Information
The company has scheduled a teleconference to discuss its results on Wednesday, April 27, 2005, at 5 p.m. Eastern time. To participate in the teleconference, please dial 888-425-9978 at least 10 minutes prior to the start of the call. International participants should dial 210-839-8501. Please refer to Conference ID: "VODAVI."
A replay of the teleconference will be available beginning April 27 at approximately 7 p.m. Eastern time through May 27, 2005. To listen to the replay by phone, dial 800-834-5622. If calling internationally, please call 402-280-1650.
About Vodavi
Vodavi Technology Inc. is headquartered in Phoenix. The company designs, develops, markets and supports a broad range of business telecommunications solutions. Vodavi products include digital and IP-based telecommunications systems, computer telephony products, and voice-processing systems including voice mail, fax mail and Internet messaging for a wide variety of commercial applications.
For more information on Vodavi, visit www.vodavi.com.
This press release contains forward-looking statements, including statements regarding the company's business strategies, the company's business, and the industry in which the company operates as well as expectations regarding revenue and income levels, and the market acceptance of new product introductions. These forward-looking statements are based primarily on the company's current expectations and are subject to a number of risks and uncertainties, some of which are out of the company's control.
Actual results could differ materially from the forward-looking statements as a result of numerous factors, including those set forth in the company's Form 10-K filed with the Securities and Exchange Commission.
VODAVI TECHNOLOGY INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
In thousands except per share amounts
Three Months Ended
March 31,
------------------
2005 2004
------- -------
REVENUE, net $9,866 $9,787
COST OF GOODS SOLD 6,392 6,407
------- -------
GROSS MARGIN 3,474 3,380
------- -------
OPERATING EXPENSES:
Engineering and product development 518 521
Selling, general and administrative 2,654 2,499
------- -------
3,172 3,020
------- -------
OPERATING INCOME 302 360
INTEREST (INCOME) EXPENSE (12) 10
------- -------
INCOME BEFORE INCOME TAXES 314 350
INCOME TAX PROVISION 119 134
------- -------
NET INCOME $195 $216
======= =======
EARNINGS PER COMMON SHARE:
Diluted $0.05 $0.05
======= =======
WEIGHTED AVERAGE SHARES OUTSTANDING:
Diluted 4,144 4,154
======= =======
VODAVI TECHNOLOGY INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
In thousands
March 31, Dec. 31,
2005 2004
--------- --------
CURRENT ASSETS:
Cash $4,061 $4,000
Accounts receivable, net 6,450 7,145
Inventory 3,781 4,569
Deferred income taxes 454 454
Prepaid and other current assets 601 519
------- -------
Total current assets 15,347 16,687
PROPERTY AND EQUIPMENT, net 1,346 1,363
GOODWILL 725 725
DEFERRED INCOME TAXES - -
OTHER LONG-TERM ASSETS 45 50
------- -------
$17,463 $18,825
======= =======
CURRENT LIABILITIES:
Accounts payable $791 $497
Accrued liabilities 893 1,352
Accrued rebates 342 641
Trade accounts payable to stockholder 2,864 3,990
------- -------
Total current liabilities 4,890 6,480
DEFERRED INCOME TAXES 24 24
LONG-TERM DEBT - -
STOCKHOLDERS' EQUITY 12,549 12,321
------- -------
$17,463 $18,825
======= =======
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Contact:
Vodavi Technology Inc., Phoenix
David A. Husband, 480-443-6000
www.vodavi.com
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Source: Vodavi Technology Inc.
Source: Business Wire
All trademarks and copyrighted information contained herein are the property of their respective owners.
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