FREMONT, CA — (Marketwire) — 07/28/11 — Ikanos Communications, Inc. (NASDAQ: IKAN)
Revenue of $34.1 million
Non-GAAP Net Loss of $(2.5) million, or $(0.04) Per Share
Cash, Cash Equivalents, and Short-Term Investments Remain Steady at $34.9 Million
Ikanos NodeScale Vectoring Shortlisted for Broadband World Forum InfoVision Award
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 second quarter of 2011, ended July 3, 2011.
“Ikanos beat guidance for the second quarter of 2011 with revenue of $34.1 million. Non-GAAP operating expenses were $19.4 million, within our guidance. And we continued to effectively manage the business and maintain our cash position of approximately $34.9 million,” said Dennis Bencala, chief financial officer of Ikanos. “Revenue in the quarter was driven by sales of Ikanos- existing broadband DSL and communications processor products. In addition, our next-generation platforms like the Fusiv® Vx185 and NodeScale Vectoring delivered favorable test results in numerous service provider trials.”
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), where applicable, excludes the income statement effects of stock-based compensation, restructuring charges, impairments and gains on sales of impaired securities, one time severance expenses, certain expenses resulting from acquisitions such as transaction-related expenses, amortization of intangible assets, asset impairments, fair value adjustment of the acquired inventory and in-process research and development charges. 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.
Revenue for the second quarter of 2011 was $34.1 million compared to revenue of $31.7 million for the first quarter of 2011 and revenue of $55.6 million for the second quarter of 2010.
GAAP operating expenses for the second quarter of 2011 were $20.2 million compared to operating expenses of $19.8 million for the first quarter of 2011 and operating expenses of $23.8 million for the second quarter of 2010.
Non-GAAP operating expenses for the second quarter of 2011 were $19.4 million compared to operating expenses of $18.8 million for the first quarter of 2011 and operating expenses of $21.0 million for the second quarter of 2010.
GAAP net loss for the second quarter of 2011 was $(3.8) million, or a loss of $(0.06) per share on 68.5 million weighted average shares compared to a net loss of $(2.1) million or $(0.03) per share, on 68.2 million weighted average shares for the first quarter of 2011 and a net loss for the second quarter of 2010 of $(10.7) million, or $(0.20) per share on 54.5 million weighted average shares for the second quarter of 2010.
Non-GAAP net loss for the second quarter of 2011 was $(2.5) million, or a loss of $(0.04) per share on 68.5 million weighted average shares compared to a non-GAAP net loss of $(1.8) million, or $(0.03) per share, on 68.2 million weighted average shares for the first quarter of 2011 and to a non-GAAP net loss of $(6.8) million, or $(0.12) per share, on 54.5 million weighted average shares in the second quarter of 2010.
Cash and cash equivalents at the end of the second quarter of 2011 were $34.9 million compared to $34.9 million at the end of the first quarter of 2011. Additionally, at the end of the second quarter of 2011 inventory was $11.4 million compared to $15.1 million at the end of the first quarter of 2011. Current liabilities at the end of the second quarter of 2011 were $21.4 million compared to $22.6 million at the end of the first quarter of 2011.
Ikanos GAAP gross profit for the second quarter of 2011 was 48.2% compared to a GAAP gross profit of 52.2% for the first quarter of 2011 and to a GAAP gross profit of 23.7% for the second quarter of 2010.
Non-GAAP gross profit for the second quarter of 2011 was 49.7% compared to a non-GAAP gross profit of 53.9% for the first quarter of 2011 and to a non-GAAP gross profit of 25.7% for the second quarter of 2010.
Revenue is expected to be between $34 million and $36 million for the third quarter of 2011.
GAAP gross profit for the third quarter of 2011 is expected to be between 46% and 48%. Non-GAAP gross profit is expected to be between 48% and 50% for the third quarter of 2011.
GAAP operating expenses for the third quarter of 2011 are expected to be in the range of $21 million to $22 million. Non-GAAP operating expenses are expected to be in the range of $20 million to $21 million for the third quarter of 2011.
Management will review the second quarter financial results and its expectations for subsequent periods at a conference call on July 28, 2011 at 1:30 p.m. Pacific Time. To listen to the call, please visit and click on the link provided for the webcast or dial (877) 277-3221 and enter conference ID 77424427. The webcast will be archived and available for 90 days at . A replay of the conference call will be accessible until October 28, 2011 by dialing (800) 642-1687 and entering conference ID 77424427.
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 .
© 2011 Ikanos Communications, Inc. All Rights Reserved. Ikanos Communications, Ikanos, the Ikanos logo, the Bandwidth without boundaries tagline, Fusiv, Fx, FxS, iQV, Ikanos Velocity and NodeScale Vectoring are among the trademarks or registered trademarks of Ikanos Communications. All other trademarks mentioned herein are properties of their respective holders.
This press release contains forward-looking statements that are subject to risks and uncertainties concerning Ikanos Communications, including statements regarding demand for and acceptance of our products, our outlook, such as our expected revenue, gross profits, operating expenses, including the Company-s product offerings, benefits of non-GAAP measures, our ability to manage our business, and statements regarding Ikanos NodeScale Vectoring. Actual events or results may differ materially from those described in this document due to a number of risks and uncertainties. These potential risks and uncertainties include, but are not limited to, macroeconomic conditions which may cause our customers to defer purchasing plans, our ability to deliver full production releases of our newer products and the acceptance of those products by our customers, the continued demand by telecommunications service providers for specific xDSL semiconductor products, the failure of service providers to implement deployment plans on schedule or at all, our continued ability to obtain and deliver production volumes of new and current products and technologies, our ability to generate demand and close transactions for the sale of our products, our ability to develop commercially successful products as a result of our current research and development programs, our ability to successfully execute our restructuring plan, and unexpected future costs, expenses and financing requirements. In addition, for a more extensive discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see the section entitled “Risk Factors” in Ikanos- most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, as well as other reports that Ikanos files from time to time with the Securities and Exchange Commission. Ikanos is under no obligation to update these forward-looking statements to reflect events or circumstances subsequent to date of this press release.
Gwen Dille
510-406-2006
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