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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)
OCTOBER 21, 1999
INTERSPEED, INC.
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(Exact name of registrant as specified in charter)
DELAWARE 0-27401 04-3333365
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(State or other jurisdiction (Commission file number) (IRS employer
of incorporation) identification no.)
39 HIGH STREET, NORTH ANDOVER, MASSACHUSETTS 01845
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(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (978) 688-6164
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ITEM 5 - OTHER EVENTS
Interspeed, Inc. (the "Company") issued a press release on October 21,
1999 announcing its results for the fourth quarter and for the fiscal year 1999.
A copy of the Company's press release is attached hereto and incorporated herein
in its entirety.
ITEM 7 - FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(c) Exhibits
Exhibit 99.1 - Press Release of Interspeed, Inc., dated October 21,
1999.
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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 thereunto duly authorized.
INTERSPEED, INC.
Date: November 30, 1999 By: /s/ William J. Burke
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Name: William J. Burke
Title: Chief Financial Officer
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EXHIBIT INDEX
Exhibit No. Description
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Exhibit 99.1 - Press Release of Interspeed, Inc., dated October 21, 1999.
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EXHIBIT 99.1
FOR IMMEDIATE RELEASE
CONTACT: Bill Burke
Chief Financial Officer
Interspeed, Inc.
(978) 688-6164
INTERSPEED ANNOUNCES RESULTS FOR THE FOURTH QUARTER AND FISCAL YEAR 1999
NORTH ANDOVER, MA, OCTOBER 21, 1999 -- Interspeed, Inc. (NASDAQ: ISPD) announced
that revenue for its fourth quarter and fiscal year which ended September 30,
1999 was $637,000 and $1,978,000, respectively. Prior to fiscal year 1999, the
Company was still in the development stage and its first product became
generally available for shipment to customers in February 1999. Accordingly, no
revenue was reported during fiscal year 1998.
Net loss was $3,395,000 or $0.40 per basic and diluted share for the fourth
quarter of fiscal year 1999, compared to a net loss of $1,017,000, or a loss of
$0.13 per basic and diluted share, for the fourth quarter of fiscal year 1998.
Net loss was $10,469,000 or $1.29 per basic and diluted share for fiscal year
1999, compared to a net loss of $4,313,000, or a loss of $0.54 per basic and
diluted share, for fiscal year 1998.
"Fiscal Year 1999 marked our first year of revenues and we are pleased with the
reception our products have received in the Digital Subscriber Line (DSL)
marketplace. We look forward to continued development of our business as we
intensify our marketing and product development efforts," said Stephen A. Ide,
president of Interspeed, Inc. "In September, we introduced the Interspeed DART,
the industry's first complete, low-density DSL solution that enables service
providers to deliver high-speed Internet access and other advanced Internet
Protocol applications to the stand-alone professional office market. In
addition, the $20.8 million in net proceeds from the
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INTERSPEED ANNOUNCES FOURTH QUARTER AND FISCAL YEAR RESULTS 2-2-2-2
Company's recently completed initial public offering has given us improved
financial strength to more effectively compete in the DSL marketplace."
INTERSPEED'S PRODUCT FAMILY
Interspeed's products are advanced high-speed data communications solutions
based on digital subscriber line (DSL) technology. The Company targets the new
and emerging DSL access multiplexer market opportunity with its new DSL Access
Routers: the product family includes the Interspeed 1000 (designed for large
carrier-class central office applications), the Interspeed 500 (suited for small
central office applications and large Multi-Tenant Unit, hospitality or campus
environment deployments) and the Interspeed DART (for low density applications).
Each solution includes complete DSL aggregation, layer 2 switching, layer 3
routing and virtual private network functions in a single device, thus
eliminating the need for service providers to purchase these components
separately, and saving significant cost. Also included is Speedview; an embedded
HyperText Transport Protocol management interface for device administration and
configuration.
ABOUT INTERSPEED, INC.
Interspeed (NASDAQ: ISPD) is headquartered in North Andover, Massachusetts. The
Company develops high speed Internet access DSL hardware solutions that enable
telephone companies, Competitive Local Exchange Carriers and Internet Service
Providers to utilize existing copper wire infrastructure to deliver higher
speeds at lower costs. Interspeed's mission is to enable its customers to offer
a range of high performance, cost-effective DSL services and Multi-Tenant Unit
applications that are easy to deploy, use and manage. For more information about
Interspeed and its products, please visit the Company's web site at
WWW.INTERSPEED.COM.
NOTE TO INVESTORS
Except for historical information contained in this release, there may be
forward-looking statements that do not give full weight to all the potential
risks including, but not limited to, risks of product development and
introduction; product demand and market acceptance, rapid changes in technology,
and the impact of competition. Actual results may differ materially. Additional
information concerning those and other factors is contained in the "Risk
Factors" section of Interspeed, Inc.'s Registration Statement filed with the
Securities and Exchange Commission on June 18, 1999, as amended.
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INTERSPEED ANNOUNCES FOURTH QUARTER AND FISCAL YEAR RESULTS 3-3-3-3
INTERSPEED, INC.
CONDENSED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
Three months ended Twelve months ended
September 30, September 30,
1999 1998 1999 1998
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Revenue $ 637 $ -- $ 1,978 $ --
Cost of revenue 539 -- 1,365 --
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Gross profit 98 -- 613 --
Operating expenses:
Research and development 1,582 731 5,329 3,204
Sales and marketing 877 70 1,673 401
General and administrative 636 202 1,738 689
Stock compensation 401 14 2,345 19
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Total operating expenses 3,496 1,017 11,085 4,313
Interest income 3 -- 3 --
Net loss $ (3,395) $ (1,017) $(10,469) $ (4,313)
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Net loss per share-basic and diluted $ (0.40) $ (0.13) $ (1.29) $ (0.54)
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Shares used to computed net loss
per share - basic and diluted 8,550 8,000 8,141 8,000
</TABLE>
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INTERSPEED ANNOUNCES FOURTH QUARTER AND FISCAL YEAR RESULTS 4-4-4-4
INTERSPEED, INC.
CONDENSED BALANCE SHEETS
(IN THOUSANDS)
<TABLE>
<CAPTION>
September 30, 1999 September 30, 1998
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<S> <C> <C>
Assets
Current assets:
Cash $21,227 $ 132
Accounts receivable 808 --
Inventory 2,445 587
Prepaid expenses and other 168 19
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Total current assets 24,648 738
Property and equipment, net 1,178 489
Other assets 54 --
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Total assets $25,880 $ 1,227
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Liabilities and stockholders' equity (deficit)
Current liabilities:
Accounts payable $ 2,789 $ 350
Accrued expenses and deferred revenue 687 175
Note due Brooktrout 130 --
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Total current liabilities 3,606 525
Long term note due Brooktrout -- 5,038
Deferred rent 104 --
Total stockholders' equity (deficit) 22,170 (4,336)
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Total liabilities and stockholders' equity (deficit) $25,880 $ 1,227
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</TABLE>
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