EXHIBIT 99.1
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COMMUNICATIONS CORPORATION
Press Contact: Investor Contact:
Jim Burke Ed Bisno/Michele Loguidice
Edelman Worldwide Edelman Worldwide
407-251-1883 212-768-0550
[email protected] [email protected]
Company Contact:
Gary Pacilio
321-953-6609
[email protected]
FOR IMMEDIATE RELEASE
July 26, 2000
AirNet Announces Record Second Quarter Results
Revenues Increase by 270% to $8.2 million
MELBOURNE, FL - AirNet Communications Corporation (NASDAQ: ANCC) today
reported record revenues for the second quarter and six-month period ending June
30, 2000.
Net revenues for the quarter grew to $8.2 million, representing a 270%
increase over the $2.2 million of revenue recorded in the second quarter of
fiscal 1999. As expected, the company reported an operating loss due to
continued investments in product development, sales, and marketing efforts for
penetration into new markets. The company reported a $7.3 million operating loss
versus $4.2 million in last year's second quarter.
The second quarter net loss attributable to common shareholders was
$6.2 million, or $0.26 per fully diluted share. The net loss to common
shareholders in the second quarter of 1999 was $5.9 million, or $14.48 per fully
diluted share. Per share amounts were based on 23.6 million weighted average
shares in this year's second quarter, compared to 0.4 million weighted average
shares in the 1999 second quarter.
Net revenues for the six-month period ending June 30, 2000 grew 249% to
$15.3 million from $4.4 million during the first six months of fiscal 1999. The
operating loss for the six-month period was $14.7 million, compared to an
operating loss of $8.8 million for the same period last year. The net loss
attributable to common shareholders for the six-month period was $12.2 million,
or $0.52 per fully diluted share, versus $12.1 million, or $31.97 per fully
diluted share for the same period last year. Per share amounts were based on
23.5 million weighted average shares for the six month period ending June 30,
2000, compared to 0.4 million weighted average shares in the same period last
year.
Commenting on the results, Lee Hamilton, president and chief executive
officer, stated, "We are pleased with the increased acceptance of AirNet's
products and our growing customer base, both domestically and internationally.
We added five new customers this quarter, and continue to build significant
momentum from quarter to quarter.
"We are also pleased with our substantial progress in executing our
international growth strategy. The company shipped products to its first
international customers in the second quarter, and these customers will serve as
key reference accounts as we target new opportunities," added Mr. Hamilton.
During the quarter, AirNet significantly enhanced its distribution
capability and strengthened its management team.
On June 28, 2000, AirNet announced that the company's first
non-exclusive original equipment manufacturer (OEM) marketing and distribution
agreement, establishing a relationship with Marconi Communications SpA of Italy
-- a major global player in wireless telecommunications. This OEM agreement
significantly expands AirNet's international reach and adds to the commercial
credibility of its products.
Also, on July 7, 2000, AirNet announced John Berens joined the company
as chief financial officer, and Richard Beckley as vice president of
international sales. Both are experienced executives from the communications
industry and bring extensive wireless and international expertise to the
management team.
Mr. Hamilton concluded, "Market conditions signal a strong demand for
next generation wireless Internet applications, which will continue to drive an
increased need for our products. AirNet's GSM products are uniquely positioned
to meet the growing need for next-generation wireless applications."
AirNet Communications Corporation's award winning wireless base station
products, based on over 65 patents either issued or filed, provide a
cost-effective, future proof solution for wireless operators as they deploy and
expand their networks. AirNet's patented broadband, software-defined
AdaptaCell(TM) Base Station provides a high capacity base station with a
software upgrade path to the wireless Internet.
The AdaptaCell's patented technology means no more time consuming and
expensive hardware upgrades - the wireless Internet is only a software upgrade
away. And, with software control, AirNet lets service providers support multiple
protocols simultaneously avoiding costly overlays. The AirSite(R) Backhaul Free
Base Station(TM)'s award winning architecture eliminates the need for a physical
backhaul link, thus reducing operating costs. AirNet base station products won
the prestigious "GSM World Award" for technical innovation for AdaptaCell's
software upgrade to the wireless Internet and for AirSite's revolutionary
wireless backhaul capability. AirNet is a wireless base station technology
leader. AirNet can be contacted at +1 321.984.1990 or visit us at
www.aircom.com.
Safe Harbor Statement Under the Private Securities
Litigation Reform Act of 1995.
The statements contained in this press release that are not historical
information are forward-looking statements that relate to future events or our
future financial performance, including statements regarding our expectations,
beliefs, plans, estimates, intentions or strategies for the future. Forward
looking statements include statements regarding the transition and evolution to
high-speed data and wireless Internet services, future sales to customers and
customer deployment plans. All forward-looking statements included in this
release are based upon information available to AirNet Communications
Corporation as of the date hereof and we assume no obligation to update any such
forward-looking statements. Forward-looking statements involve risks and
uncertainties, which could cause our actual results to differ materially from
those projected. Potential risks and uncertainties include, but are not limited
to, our historical and future losses, our limited operating history, and
fluctuations in our quarterly revenues and operating results. These and other
risks are discussed in Company filings with the Securities and Exchange
Commission, including its Annual Report on Form 10-K for the year ended December
31, 1999.
AirNet(R) and AirSite(R) are registered with the U.S. Patent and Trademark
Office. AdaptaCell(TM), Backhaul Free Base Station(TM), and We're Ready for
Anything(TM) are trademarks of AirNet Communications Corporation. Other names
are registered trademarks or trademarks of their respective companies or
organizations.
# # #
<PAGE>
AIRNET COMMUNICATIONS CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
<TABLE>
<CAPTION>
Unaudited Unaudited Unaudited Unaudited
3 months ending 3 months ending 6 months ending 6 months ending
June 30, 2000 June 30, 1999 June 30, 2000 June 30, 1999
----------------- ------------------ ----------------- -----------------
<S> <C> <C> <C> <C>
Net Revenues 8,188 2,215 15,253 4,373
Cost of Revenues 5,253 1,455 9,881 2,912
----------------- ------------------ ----------------- -----------------
Gross Profit 2,935 760 5,372 1,461
Operating Expenses:
Research and Development 6,915 3,459 12,993 7,194
Sales and marketing 2,088 865 4,563 1,756
General and administrative 1,162 580 2,287 1,141
Stock-based compensation 109 74 218 121
----------------- ------------------ ----------------- -----------------
Total operating expenses 10,274 4,978 20,061 10,212
----------------- ------------------ ----------------- -----------------
Loss from operations (7,339) (4,218) (14,689) (8,751)
Other income, net 1,117 19 2,462 93
----------------- ------------------ ----------------- -----------------
Net loss (6,222) (4,199) (12,227) (8,658)
Preferred Dividends (1) 0 1,704 0 3,398
Net loss atrributable to common ----------------- ------------------ ----------------- -----------------
stockholders (6,222) (5,903) (12,227) (12,056)
================= ================== ================= =================
Net loss per share attributable
to common stockholders - basic
and diluted (0.26) (14.48) (0.52) (31.97)
Weighted average shares used
in calculating basic and
diluted loss per common share 23,554,966 407,788 23,454,678 377,072
</TABLE>
(1) All accumulative dividends were cancelled when the company closed on its
initial public offering in Dec. 1999. This is a non-cash item.
<PAGE>
AIRNET COMMUNICATIONS CORPORATION
CONDENSED BALANCE SHEETS
(in thousands)
<TABLE>
<CAPTION>
Unaudited Audited
06/30/00 12/31/99
----------------------------------------------
ASSETS
<S> <C> <C>
Cash and cash equivalents 70,844 100,423
Accounts receivable - net 9,533 10,122
Note receivable 9,015 0
Inventory 25,814 15,978
Other current assets 611 500
-------------------- -----------------------
Total Current Assets 115,817 127,023
Property and equipment, net 5,872 3,968
Note Receivable 1,575 0
Other long term assets 28 22
-------------------- -----------------------
Total Assets $ 123,292 $ 131,013
=================== =======================
LIABILITIES AND STOCKHOLDERS'
EQUITY
Accounts payable 6,455 6,464
Accrued expenses 3,234 2,101
Current portion of capital lease obligation 279 540
Customer deposits 2,958 5,234
Deferred revenues 13,349 8,209
-------------------- -----------------------
Total current liabilities 26,275 22,548
Capital lease obligations 421 202
Stockholders' equity 96,596 108,263
-------------------- -----------------------
Total liabilities and stockholders' equity 123,292 131,013
==============================================
</TABLE>
