Ulticom Files First and Q2 Fiscal 2009 10-Qs with the SEC
Provides Preliminary Third Quarter Financial Results
MT. LAUREL, N.J., October 30, 2009 -- Ulticom, Inc. (the "Company") (Pink Sheets: ULCM.PK - News) today announced its financial results for the first half of fiscal 2009 as reported in Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission ("SEC") covering the first and second quarters of fiscal year 2009. With these filings, the Company has complied with the requirement that it become current in its reporting obligations under the Securities Exchange Act of 1934 by November 9, 2009, which was set forth in the Final Judgment entered on July 22, 2009 in connection with the Company's settlement of the civil injunctive action that was filed against it by the SEC.
Revenues for the first half of fiscal 2009 (six months ended July 31, 2009) were $23.4 million, down 26% as compared to $31.6 million for the first half of fiscal 2008. The Company reported a net loss of $1.4 million, or ($0.03) per diluted share for the first half of fiscal 2009, as compared to a net loss of $0.7 million, or ($0.02) per diluted share, for the first half of fiscal 2008. Results for the first six months of 2009 and 2008 include $4.1 million and $8.1 million, respectively, of pre-tax costs associated with investigation and restatement activities, corporate development initiatives, payments for expired options, workforce reduction, employee retention and non-cash share-based payment expense.
First and second quarter of fiscal 2009 revenues were $11.6 and $11.9 million, respectively, down 27% and 25% as compared to first and second quarter of fiscal 2008 revenues of $15.9 and 15.8 million, respectively. At July 31, 2009, the Company had $82.9 million in cash, cash equivalents and short-term investments, $89.4 million of working capital, and $95.5 million of shareholders' equity. The Company's financial position at such date reflected the special cash dividend of approximately $200 million, or $4.58 per share, paid in April, 2009.
Shawn Osborne, President and Chief Executive Officer, said, "Continued global economic weakness and the decline in wireless infrastructure capital spending has slowed the deployment of Ulticom products by our customers. We have acted quickly to align our operations to sustain gross margins, optimize bottom line performance and to preserve our financial strength. Consequently, we believe we are well positioned to weather current market conditions and capitalize on the growing needs to support an increasingly wireless world." Osborne continued, "The rising demand for a converged mobile voice, data and video network is creating a growing need for innovative solutions that can effectively manage the growth and complexity in wireless traffic. With the pace of wireless adoption accelerating, the leading communications infrastructure providers are increasingly relying on trusted vendors, such as Ulticom, with proven, dependable technology and expertise. To capitalize on our competitive advantages in the growing segments of these evolving markets, we are developing new Signalware component and system solutions targeting applications such as next generation broadband mobile access, multimedia transport control, subscriber data management, and enhanced communication services. These solutions will enable us to not only broaden and strengthen our customer relationships, but also to expand into new markets by offering Ulticom products based on emerging Internet protocol technologies. With a strong balance sheet, market leading portfolio of high-quality products, and outstanding customer service, we believe we are well-positioned to build value for our shareholders over the long term."
Preliminary Unaudited Results for the Third Quarter of Fiscal Year 2009
Subject to completion of its financial review process in connection with the filing of its Quarterly Report on Form 10-Q, the Company expects to report third quarter of fiscal 2009 revenue of approximately $10.5 million up 2% year-over-year as compared to third quarter of fiscal 2008 revenue of $10.3 million. This is down 12% sequentially as compared to second quarter of fiscal 2009 revenue of $11.9 million. The Company estimates that its results of operations for the third quarter of fiscal 2009 will include costs associated with restatement activities, payments for expired options, workforce reduction, employee retention and share-based payment expense totaling approximately $2 million.
The Company currently intends to file its Quarterly Report on Form 10-Q for the fiscal third quarter and conduct a conference call to discuss third quarter financial results on December 10, 2009.
About Ulticom, Inc.
Ulticom provides service essential signaling component and system solutions for wireless, wireline, and Internet communications. Ulticom's products are used by leading telecommunication equipment and service providers worldwide to deploy broadband mobile access, multimedia transport control, subscriber data management and enhanced communication services. Ulticom is headquartered in Mount Laurel, NJ with additional offices in the United States, Europe, and Asia.
Financial Highlights
Financial highlights at and for the three-month periods ended April 30, 2008 and 2009 and at and for the three and six-month periods ended July 31, 2008 and 2009 appear below. Readers are encouraged to review the Quarterly Reports on Form 10-Q filed today for the first and second quarter of fiscal 2009, in particular the Explanatory Note immediately preceding Item 1; the Condensed Consolidated Financial Statements and notes thereto included in Item 1; and Management's Discussion and Analysis of Financial Condition and Results of Operations in Item 2.