Carrier Access Corporation Announces Revised Third Quarter Revenue and Earnings Estimates
6 September 2006
Carrier Access Corporation (NASDAQ: CACS) today announced revised revenue and earnings estimates for the third quarter ending September 30, 2006. Based upon information currently available, revenue for the quarter is expected to range from $16 million to $18 million. Basic and diluted GAAP loss per share for the quarter is expected to range from $(0.19) to $(0.14). Basic and diluted Non-GAAP loss per share for the quarter is expected to range from $(0.16) to $(0.11). Expected Non-GAAP loss per share for the third quarter excludes stock-based compensation expense related to the adoption of Statement of Financial Accounting Statement SFAS 123(R) and amortization of purchased intangibles, including any income tax effects. The reconciliation between expected GAAP earnings per share and expected Non-GAAP earnings per share is set forth at the end of this press release.
Carrier Access' chief executive officer Roger Koenig stated, "Our order flow and bookings in August were significantly below previous quarters and our expectations. Bookings and associated shipments in August were significantly impacted by one customer ordering less than previously anticipated. This was primarily due to the deferral of specific projects until 2007. As a result we are revising our financial guidance for the third quarter of 2006."
"Although we are disappointed in our revised third quarter revenue guidance, we continue to see increased interest in our product and technology platforms both internationally and domestically. We see a common set of requirements for improvements in network efficiency, bandwidth and service availability. As such, we are continuing to invest heavily in research and development related to our converged access and wireless product portfolios, as we believe these investments will allow us to expand both our technology and customer base to provide growth in 2007."
The Company will hold a conference call on Wednesday, September 6, 2006 at 9:00 a.m. Eastern Time. Those who wish to participate should dial (703) 639-1222, domestically or internationally, at least fifteen minutes prior to the scheduled start time for the call and reference Carrier Access Third Quarter Guidance Update. The conference call will be available live via the Internet by accessing the Carrier Access web site at http://www.carrieraccess.com under the Investor Relations section. An online replay of the earnings conference call will be available at http://www.carrieraccess.com.
About Carrier Access Corporation
Carrier Access (NASDAQ: CACS) provides consolidated access technology designed to streamline the communication network operations of carriers, enterprises and government agencies. Carrier Access products enable customers to consolidate and upgrade access capacity, and implement converged IP services while lowering costs and accelerating service revenue. Carrier Access' technologies help our customers do more with less. For more information, visit www.carrieraccess.com or call 303-218-5707.
Forward-Looking Statement Caution
This press release contains forward-looking statements about our anticipated 2006 third quarter operating results and our prospects for growth, which reflect management's best judgment based on factors currently known. However, these statements involve risks and uncertainties, including potential discrepancies between management's initial estimates and the final operating results for the third quarter of fiscal 2006, continuing uncertainty regarding general economic conditions, changes in capital spending by carriers and telecommunications companies, growth rates within our industry, the successful development and market acceptance of new products, the degree of competition in the market for such products, the product and channel mix, component costs, manufacturing efficiencies, and other risks detailed in our annual report on Form 10-K for the year ended December 31, 2005 and other documents periodically filed with the Securities and Exchange Commission. These risks and uncertainties could cause actual results to differ materially from those in the forward-looking statements included in this press release. We do not undertake any obligation to revise or update any forward-looking statements, whether as a result of new information, future events, or otherwise.
Reconciliation of Expected GAAP Loss Per Share to Expected Non-GAAP Loss Per Share Quarter ending September 30, 2006
Expected Range ---------------- Low High ------- ------- US GAAP: Expected Net (Loss) per share, basic and diluted $ (0.19) $ (0.14) Add: Expected stock-based compensation expense 0.02 0.02 Expected amortization of purchased intangibles 0.01 0.01 ------- ------- NON-GAAP: Expected Net (Loss) per share, basic and diluted $ (0.16) $ (0.11) ======= =======
To supplement our condensed consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States (GAAP), we provide investors with certain non-GAAP financial measures, including expected non-GAAP diluted net income (loss) per share. The presentation of this non-GAAP financial measure is not meant to be considered in isolation or as a substitute for expected diluted net income (loss) per share prepared in accordance with GAAP. We believe that this non-GAAP measure is used by and is useful to investors and other users of our financial statements in evaluating our operating results and comparative trends, as well as to facilitate comparisons with our historical operating results. The non-GAAP results are an indicator of our baseline performance before gains, losses or other charges that are considered by management to be outside of our core operating results and are excluded by management for purposes of evaluating performance against internal budgets and in making operational decisions. In addition, the non-GAAP results are among the primary indicators management uses as a basis for our planning and forecasting of future periods.
There are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. Non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact upon our reported financial results. Investors should review the reconciliation of the expected non-GAAP diluted net income (loss) per share to the expected GAAP diluted net income (loss) per share as provided in the table above.
Contact: Audra Burke 303-218-5455 Email Contact
SOURCE: Carrier Access
Source: marketwire
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