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EXHIBIT 99.1
EFFICIENT NETWORKS, INC. REPORTS REVENUES OF
$102.5 MILLION FOR THE SECOND QUARTER OF FISCAL 2001
Results represent 3rd consecutive quarter of revenue above $100 million
and an increase of 246% from year-ago quarter
DALLAS--January 18, 2001--Efficient Networks, Inc. (NASDAQ: EFNT), a global
leader in broadband digital subscriber line (DSL) solutions, today reported
second quarter revenue of $102.5 million, the third consecutive quarter of
revenues above $100 million.
Revenues for the quarter ending December 31, 2000 were $102.5 million, compared
to revenues of $127.2 million for the quarter ended September 30, 2000 and an
increase of 246% over revenues of $29.6 million achieved in the comparable
quarter a year ago. The company's sequential revenue growth rate over the past
12 months is more than 36% per quarter.
Reviewing the second quarter, Efficient Networks' Chairman Mark Floyd said:
"Revenue increased dramatically from a year ago, and demand for our products
remains strong worldwide. With only approximately 1% of copper phone loops
penetrated by DSL, the market potential for DSL continues to be tremendous.
DSL is a fundamental technology that is in demand by a variety of users for a
wide range of applications." Floyd further stated "the company's balance sheet
is strong with $436 million in cash and short-term investments, and we are well-
positioned to leverage our strengths to capitalize on this opportunity."
The operating loss for the quarter ended December 31, 2000, excluding
amortization of deferred stock option compensation and goodwill, was
approximately $7.3 million, or $0.12 per share based on 58.9 million weighted
average shares outstanding. This compares to an operating profit of $6.1
million or $0.10 per share based on 58.5 million weighted average shares
outstanding for the quarter ended September 30, 2000, excluding amortization of
deferred stock option compensation, goodwill and merger costs, and to an
operating loss of $3.8 million or $0.09 per share based on 41.1 million weighted
average shares outstanding
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for the corresponding quarter one year ago, excluding amortization of deferred
stock option compensation and acquisition related charges.
Gross margins in the second quarter were 33.1%, compared to 32.7% for the
quarter ended September 30, 2000.
Operating expenses, excluding acquisition related charges and deferred stock
option compensation, were $42.5 million or 41% of net revenues for the quarter
ended December 31, 2000, compared to $36.7 million or 29% of net revenues for
the quarter ended September 30, 2000 and $12.9 million or 43% in the comparable
quarter one year ago. The increase in operating expenses in absolute amount
resulted primarily from an increase in the company's research and development
and sales and marketing organizations.
The net loss for the December quarter was $56.3 million, or $0.96 per share.
Net loss for the December quarter included amortization of deferred stock option
compensation of $1.1 million, and amortization of $47.9 million of intangible
assets relating to the December 1999 acquisition of FlowPoint Corporation and
the May 2000 acquisition of Network TeleSystems, Inc. This compared with a
net loss of $45.2 million, or $0.77 per share (including amortization of
deferred stock option compensation of $1.2 million, amortization of intangible
assets of $47.2 million and $3.0 million of merger costs relating to the
September 2000 acquisition of MultiMedia Development Corporation) for the
quarter ended September 30, 2000 and a loss of $17.3 million (including
amortization of deferred stock option compensation of $1.2 million and
amortization of intangible assets and acquisition charges of $12.3 million
relating to the December 1999 acquisition of FlowPoint Corporation) for the
corresponding quarter one year ago.
Note: The Efficient Networks conference call will be broadcast live over the
Internet on Thursday, January 18, 2001 at 7:30 a.m. CT. Log on to
www.efficient.com, click on "Investor Relations," then "Conference Calls."
-----------------
RealPlayer software is required and is downloadable at no cost from
www.real.com/products/player/index.html.
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About Efficient Networks
Efficient Networks, Inc., is a leading provider of broadband access products
that employ digital subscriber line (DSL) technology. The company's voice and
data access solutions enable high-performance network services for small to mid-
sized businesses and consumers. As part of its complete broadband solution,
Efficient also provides network management systems that extend from the core of
carriers' networks to the subscribers' desktops. Efficient works closely with
network equipment vendors, incumbent and competitive carriers, and Internet
service providers around the world. The company's goal is to accelerate the
adoption of broadband networks and services. Efficient Networks is based in
Dallas, Texas, with sales and support offices worldwide. For more information,
visit our web site at www.efficient.com or contact us at +1 (972) 852-1000.
###
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EFFICIENT NETWORKS, INC.
Consolidated Balance Sheets
(In thousands, except share data)
<TABLE>
<CAPTION>
Assets December 31, 2000 June 30, 2000
------------------------ ----------------------
(unaudited)
Current assets:
<S> <C> <C>
Cash and cash equivalents $ 125,608 $ 178,997
Short-term investments 310,840 326,742
Accounts receivable, net of allowance for doubtful accounts of $3,113 114,080 91,687
and $1,687 at December 31, 2000 and June 30, 2000, respectively
Inventory deposit 50,000 50,000
Inventories 93,978 29,759
Other current assets 4,938 1,665
---------- ----------
Total current assets 699,444 678,850
Furniture and equipment, net 27,859 21,022
Goodwill and other intangible assets, net of accumulated amortization 748,283 843,176
of $195,517 and $100,432 at December 31, 2000 and June 30, 2000,
respectively
Other assets, net 15,874 17,110
---------- ----------
$1,491,460 $1,560,158
========== ==========
Liabilities, Redeemable Convertible
Preferred Stock and Stockholders' Equity (Deficit)
Current liabilities:
Accounts payable $ 51,881 $ 22,640
Accrued liabilities 41,409 41,366
Current portion of capital lease obligations 782 738
Deferred revenue 7,785 9,276
---------- ----------
Total current liabilities 101,857 74,020
Convertible subordinated notes 400,000 400,000
Capital lease obligations, net of current portion 1,665 2,069
---------- ----------
Total liabilities 503,522 476,089
---------- ----------
Commitments and contingencies
Stockholders' equity:
Preferred stock, 9,993,700 shares authorized; none outstanding 59 58
Common stock, par value $.001 per share, 200,000,000 shares
authorized; 59,066,242 and 58,182,566 shares issued and outstanding
at December 31, 2000 and June 30, 2000, respectively
Additional paid-in capital 1,277,690 1,275,524
Deferred stock option compensation (7,620) (9,989)
Accumulated deficit (284,703) (182,524)
Accumulated other comprehensive income 2,512 1,000
---------- ----------
Total stockholders' equity 987,938 1,084,069
---------- ----------
$1,491,460 $1,560,158
========== ==========
</TABLE>
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EFFICIENT NETWORKS, INC.
Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share data)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
December 31, December 31,
--------------------------------- -----------------------------
2000 1999 2000 1999
--------------------------------- -----------------------------
<S> <C> <C> <C> <C>
Net revenues $102,497 $ 29,609 $ 229,724 $ 42,832
Cost of revenues 68,592 21,219 154,276 32,925
-------- -------- --------- --------
Gross profit 33,905 8,390 75,448 9,907
-------- -------- --------- --------
Operating expenses:
Sales and marketing 24,412 4,849 42,676 7,502
Research and development 13,127 6,742 26,176 11,364
General and administrative 4,944 1,284 10,284 2,330
Stock option compensation 1,109 1,219 2,282 2,608
Amortization of intangibles 47,905 7,358 95,085 7,358
In process research and development charge - 4,970 - 4,970
-------- -------- --------- --------
Total operating expenses 91,497 26,422 176,503 36,132
-------- -------- --------- --------
Loss from operations (57,592) (18,032) (101,055) (26,225)
Interest income 6,987 685 13,895 1,296
Interest expense and other, net (5,720) - (11,449) (675)
Merger costs - - (2,958) -
-------- -------- --------- --------
$(56,325) $(17,347) $(101,567) $(25,604)
Net loss ======== ======== ========= ========
Basic and diluted net loss per share of common stock $(0.96) $(0.42) $(1.73) $(0.69)
======== ======== ========= ========
Weighted-average shares of common stock outstanding 58,924 41,087 58,696 37,013
======== ======== ========= ========
</TABLE>
