Vyyo Reports First Quarter 2007 Financial Results
Vyyo Reports First Quarter 2007 Financial Results
NORCROSS, Ga., May 14 /PRNewswire-FirstCall/ -- Vyyo Inc. (NASDAQ:VYYO) , a supplier of broadband access equipment for cable system operators, today reported financial results for the first quarter ended March 31, 2007.
For the first quarter of 2007, Vyyo reported sales of $0.6 million, compared to $1.8 million in the fourth quarter of 2006 and $2.4 million in the first quarter of the previous year. Loss for the first quarter of 2007 was $11.0 million, or $0.61 per share, compared to a loss of $6.5 million, or $0.36 per share, in the fourth quarter of 2006 and a loss of $8.0 million, or $0.50 per share, in the first quarter of the previous year. The loss for the first quarter of 2007 included a one-time non-cash charge of $3.3 million in financial expenses from extinguishment of debt, which resulted from expensing the unamortized debt issuance costs and accretion related to the financing with Goldman, Sachs & Co. in March of 2006.
Vyyo ended the first quarter of 2007 with $31.2 million of cash and cash equivalents and short-term investments, up from $18.7 million at the end of the fourth quarter of 2006.
"Cable system operators are recognizing the ability of our UltraBand(TM) spectrum overlay platform to provide an unparalleled increase in upstream capacity and to enable the delivery to subscribers of 100 channels of HDTV, HDTV on-demand, and T1, high-bandwidth DOCSIS 3.0 and Ethernet services," said Wayne Davis, CEO of Vyyo. "Through our announced relationships with Cox Communications and StarHub and our new funding from Goldman, Sachs & Co. we are showing that we are making progress with cable and that we have the resources necessary to execute on our strategy."
Investor Conference Call
The company will host an investor conference call to discuss the first quarter results on Monday, May 14, 2007 at 9:00 AM EST after which management will host a question and answer session. To participate, domestic participants should dial 800-218-0204 and international participants should dial 303-262-2140 at least 10 minutes prior to the call and ask to be connected to the Vyyo conference call. The call can be accessed at the Events & News section on the homepage of Vyyo's website at http://www.vyyo.com/. A telephone replay will be available through May 21, 2007 by dialing 800-405- 2236 (domestic) or 303-590-3000 (international) and entering access code 11089363#.
About Vyyo Inc.
Cable operators get more from their networks with Vyyo. Vyyo products designed for use by cable television operators include spectrum overlay solutions designed to expand cable operators' typical HFC (hybrid-fiber coax) network capacity in the "last mile" and business services solutions that can help operators meet the needs of small/medium-sized enterprises using existing cable plant. Spectrum overlay increases bandwidth by up to 2x in the downstream and 4x or more in the upstream, addressing requirements for advanced residential and business services. For more information, please visit http://www.vyyo.com/.
Safe Harbor Statement
Statements made in this press release relating to the future, including those related to the opportunities created for our customers given our ability to provide spectrum overlay solutions and dramatically increase upstream and downstream bandwidth, are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties, as well as assumptions that, if they do not fully materialize or prove incorrect, could cause our business and results of operations to differ materially from those expressed or implied by such forward-looking statements. Risks that may cause these forward-looking statements to be inaccurate include among others: our ability to close the transaction as contemplated or at all; whether we will be able to accelerate the movement from development stage to deployment and establish meaningful commercial relationships with cable system operators; the current limited visibility available in the telecommunications and broadband access equipment markets; the willingness and ability of operators to adopt our new technology and apply it in a manner that meets customer demands; our ability to produce and distribute our spectrum overlay and T1 solutions in the quantities, and with the quality control, desired by the market; and other risks set forth in our annual report on Form 10-K for the year ended December 31, 2006, our quarterly reports on Form 10-Q and other reports filed by us with the Securities and Exchange Commission from time to time. We assume no duty to update these statements.
Vyyo Inc. Condensed Consolidated Statements of Operations In Thousands, except per common share data Three months ended March 31, December 31, March 31, 2007 2006 2006 Unaudited Unaudited Unaudited Revenues: Revenues $462 $413 $569 Revenues from related party (Arcadian Networks, Inc.) 161 1,343 1,800 Total revenues 623 1,756 2,369 Cost of revenues (1): Cost of products sold 618 354 318 Cost of products sold to related party (Arcadian Networks, Inc.) 80 1,085 1,492 Write-down of inventory and purchase commitments - 255 - Insurance reimbursement for damaged inventory - (710) - Total cost of revenues 698 984 1,810 Gross profit (loss) (75) 772 559 Operating expenses (income) (2): Research and development 2,868 2,872 2,461 Sales and marketing 1,881 1,967 2,643 General and administrative 2,047 1,998 3,009 Other income - insurance reimbursement - (209) - Total operating expenses 6,796 6,628 8,113 Operating loss (6,871) (5,856) (7,554) Financial income 244 320 155 Financial expenses (4,162)(3) (908) (424) Loss before income taxes (10,789) (6,444) (7,823) Income taxes (250) (89) (157) Loss for the period $(11,039) $(6,533) $(7,980) Loss per share of common stock $(0.61) $(0.36) $(0.50) Weighted average number of shares of common stock outstanding, basic and diluted 18,095 18,035 15,859 (1) Includes stock-based compensation $18 $23 $14 (2) Includes stock-based compensation: Research and development $130 $153 $217 Sales and marketing $291 $343 $469 General and administrative $447 $635 $1,281 (3) Includes $3,263 as a result of extinguishment of debt Vyyo Inc. Condensed Consolidated Balance Sheet In Thousands March 31, December 31, 2007 2006 Unaudited Current Assets: Cash, cash equivalents and short- term investments $31,154 $18,688 Accounts receivable, net: Related party (Arcadian Networks, Inc.) - 991 Other 468 194 468 1,185 Inventory, net 2,320 2,362 Other current assets 923 996 Total Current Assets 34,865 23,231 Long-Term Assets: Restricted cash 5,000 5,000 Property and equipment, net 1,662 1,676 Employee rights upon retirement funded 1,221 1,168 Debt issuance cost, net 150 1,074 Total Assets $42,898 $32,149 Liabilities and Capital Deficiency Current Liabilities: Accounts payable $1,349 $1,719 Accrued liabilities 8,140 7,877 Deferred revenues - related party (Arcadian Networks, Inc.) 3,679 3,795 Total Current Liabilities 13,168 13,391 Long-Term Liabilities Promissory note 5,401 5,078 Senior secured note - 5,085 Convertible note 35,000 10,097 Liability for employee rights upon retirement 2,345 2,111 Total Liabilities 55,914 35,762 Total Capital Deficiency (13,016) (3,613) Total Liabilities and Capital Deficiency $42,898 $32,149
NOTE: All trademarks mentioned herein are the property of their respective owners. DOCSIS is a trademark of Cable Television Laboratories, Inc.
First Call Analyst:
FCMN Contact:
Source: Vyyo Inc.
CONTACT: Press, Paul Schneider, Paul Schneider Public Relations,
+1-215-702-9784, or +1-215-817-4384, pspr@att.net; or Investors, Walt Ungerer,
VP, Corporate Communications, Vyyo Inc., +1-678-488-0468, ir@vyyo.com
Web site: http://www.vyyo.com/
Profile: International Entertainment
posted by EntertainmentNews @ 5:37 AM
0 comments
0 Comments:
Post a Comment
<< Home