SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): April 15, 1998
YURIE SYSTEMS, INCORPORATED
(Exact name of Registrant as specified in its charter)
State or other jurisdiction of incorporation: Delaware
Commission File No.: 0-36413
I.R.S. Employer Identification No.: 52-1778987
Address of principal executive offices: 8301 Professional Place
Landover, Maryland 20785-2237
Registrant's telephone number, including area code: (301) 352-4600
Former name or former address, if changed since last report: Not applicable
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ITEM 5. OTHER EVENTS.
On April 15, 1998, Yurie Systems, Inc. issued a press release announcing
earnings for the three months ended March 31, 1998. A copy of the press
release is attached hereto as Exhibit 99.1.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
99.1 Press Release dated April 15, 1998.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
YURIE SYSTEMS, INC.
By: /s/ Harry D'Andrea
-----------------------
Harry D'Andrea
Chief Financial Officer
and Treasurer
Dated: April 16, 1998
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EXHIBIT INDEX
Exhibit Description
99.1 Press Release dated April 15, 1998.
<PAGE>
Exhibit 99.1
FOR RELEASE AT MARKET CLOSE
YURIE SYSTEMS CONTACT:
Catherine Graham
Director, Investor Relations
(301) 352-4609
[email protected]
YURIE SYSTEMS, INC. REPORTS RECORD FIRST
QUARTER FINANCIAL RESULTS
Landover, Md.-April 15, 1998--Yurie Systems, Inc. (NASDAQ: YURI)
announced today record financial results for the first quarter
ended March 31, 1998.
The Company's revenue for the first quarter was $19.1 million,
representing a 127% increase over the $8.4 million reported in the first
quarter of 1997 and a 8.4 % sequential increase over the $17.6 million
reported in fourth quarter of 1997.
Net income for the first quarter of 1998 was $3.8 million, or $0.14 per
share diluted ($0.15 per share basic), a 456% increase over the $677,000
in net income, or $0.03 per share both diluted and basic, reported in the
first quarter of 1997, and a 59% sequential increase over the $2.4 million
in net income, or $0.09 per share both diluted and basic, reported in the
fourth quarter of 1997. For the fourth quarter of 1997, net income included
one-time expenses associated with the acquisition of Data Labs. Excluding
such expenses from the fourth quarter would have resulted in a sequential
increase in net income of 26%.
All earnings per share amounts reported in this release represent diluted or
basic earnings per share as defined within Statement of Financial
Accounting Standards No. 128 (FAS 128).
The Company's continued strong revenue growth during the first quarter
resulted largely from increased sales of its LDR products to both
government and commercial customers. During the first quarter of 1998,
product revenue was $18.4 million, a 146% increase over the first quarter
of 1997 and an 11% sequential increase over the fourth quarter of 1997.
Sales to strategic partners accounted for 44% of total product sales and
direct sales channels accounted for the balance.
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Sales to Splitrock Services, Inc. were $571,000 (3% of total sales) of
which product sales were $84,000 (0.5% of product sales).
The Company's net income growth during the first quarter was attributable
to revenue growth, increased manufacturing efficiencies,
and improved productivity for operating expenses.
During the first quarter, the Company continued to build on the strategic
relationships it established in 1997 with its OEM partners, Bay Networks
and Lucent Technologies. In addition, during the first quarter, the
company signed an OEM agreement with Ericsson, Inc. thereby furthering
its distribution strategy.
"The first quarter was a challenging and rewarding one for Yurie,"
according to Harry Carr, Yurie's President and Chief Operating Officer.
"Our revenue, operating income, and earnings grew to new levels as we
heightened our focus on product sales, our core strength. We continued to
see positive effects of our relationships with strategic partners and
increased our direct sales in both the commercial and government
segments. We added significant new capabilities on our multi-service
access products while completing the integration of personnel from Data
Labs. Finally, we continued to enhance the fundamentals of our business
to ensure the development and delivery of quality products in a cost-
effective manner. In short, this was a strong quarter that sets a strong
foundation for the rest of the year."
Based in Landover, Maryland, Yurie Systems, Inc. designs, manufactures,
markets, and services multi-service ATM WAN access equipment for
telecommunications service providers and corporate and government end
users. Dataquest and the Vertical Systems Group have identified Yurie as
the market share leader in the ATM WAN access equipment market for
1996 and 1997, respectively. For more information on Yurie Systems, call
(301) 352-4600 or visit the Company's Web site at http://www.yurie.com.
This release may contain forward-looking statements regarding the
Company's business, growth, or customer prospects and other factors that
may affect future earnings or financialresults. Such statements involve
risks and uncertainties which could cause actual results to vary materially
from those expressed in or indicated by the forward-looking statements,
and should be understood in light of the risk factors detailed in the
Company's recent prospectus, 10-K and 10-Q filings.
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<TABLE>
<CAPTION>
YURIE SYSTEMS, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS
OF INCOME
(unaudited)
(in thousands, except per share data)
Quarter Ended March Year Ended December
31, 31,
1998 1997 1997 1996
------- ------- -------- --------
<S> <C> <C> <C> <C>
Revenue:
Product revenue $18,366 $7,480 $47,064 $18,737
Service revenue 741 923 4,005 2,528
------- ------
-----------------
Total revenue 19,107 8,403 51,069 21,265
Cost of revenue:
Cost of product revenue 5,984 2,785 16,670 6,806
Cost of service revenue 631 622 3,026 1,666
-------- ------- ----------------
Total cost of revenue 6,615 3,407 19,696 8,472
-------- -------- ---------------
Gross profit 12,492 4,996 31,373 12,793
Operating expenses:
Research and development 3,006 1,759 8,691 4,428
Sales and marketing 2,332 1,288 6,787 1,880
General and
administrative 1,548 1,104 7,373 2,980
------- ------- -----------------
Total operating expenses 6,886 4,151 22,851 9,288
Income from operations 5,606 845 8,522 3,505
Other income 409 282 1,544 90
-------- ------- -----------------
Income before income
taxes 6,015 1,127 10,066 3,595
Provision for income
taxes 2,250 450 3,930 1,563
--------- -------- ------------------
Net income $3,765 $677 $6,136 $2,032
========== ========= ==================
Basic earnings per share $0.15 $0.03 $0.25 $0.12
========== ========= ==================
Basic weighted average 25,385 23,400 24,714 20,606
shares outstanding
========== ========= ==================
Diluted earnings per $0.14 $0.03 $0.23 $0.11
share
========== ========== ==================
Diluted weighted average 27,529 25,077 26,660 22,158
shares outstanding
========== ========== ==================
</TABLE>
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<TABLE>
<CAPTION>
YURIE SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(unaudited)
(in thousands)
March 31, December 31,
ASSETS 1998 1997
----------- ------------
<S> <C> <C>
Current assets:
Cash and cash equivalents $9,925 $8,142
Restricted cash 750 1,000
Short-term investments 32,130 35,917
Accounts receivable 20,192 13,314
Tax receivable 533 993
Interest receivable 248 402
Inventory 5,015 5,467
Deferred tax asset - st 2,365 1,246
Other current assets 1,280 228
---------- -----------
Total current assets 72,438 66,709
Net property and equipment 7,564 6,990
Long-term deferred tax asset - 1,028
Other assets 691 675
---------- -----------
Total Assets $80,693 $75,402
========== ============
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $2,237 $2,137
Accrued liabilities 6,938 7,471
Short-term notes payable 17 17
Unearned revenue - 38
------- -------
Total current liabilities 9,192 9,663
======= ========
Accrued rent 581 585
Deferred income taxes 392 -
Capital lease obligations 17 20
Stockholders' equity:
Common stock 255 253
Treasury stock (450) (23)
Additional paid-in capital 58,779 56,701
Translation adjustment (620) (648)
Retained earnings 12,547 8,851
--------- ---------
Total stockholders' equity 70,511 65,134
--------- ---------
Total Liabilities and $80,693 $75,402
Stockholders' Equity
========= =========
</TABLE>
