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Vyyo Reports Third Quarter 2007 Financial Results
Nov 08, 2007 (08:11 AM EST)
NORCROSS, Ga., Nov. 8 /PRNewswire-FirstCall/ -- Vyyo Inc. , a supplier of broadband access equipment for cable system operators, today reported financial results for the third quarter ended September 30, 2007.
For the third quarter of 2007, Vyyo reported sales of $2.6 million, compared to $1.7 million in the second quarter of 2007 and $1.1 million in the third quarter of the previous year. Loss for the third quarter of 2007 was $8.7 million, or $0.47 per share, compared to a loss of $4.7 million, or $0.25 per share, in the second quarter of 2007 and a loss of $7.7 million, or $0.43 per share, in the third quarter of the previous year.
Vyyo ended the third quarter of 2007 with $19.2 million of cash and cash equivalents and short-term investments, down from $26.2 million at the end of the second quarter of 2007. During the third quarter, cable revenues were $1 million, up from $326,000 in the second quarter of 2007.
"While investors are expressing their concern about cable's ability to compete with bandwidth-rich competitors, it's important to note that operators have solutions -- including ours -- at hand that can dramatically expand their ability to deliver the new services that will help them compete with telco fiber," said Wayne H. Davis, CEO of Vyyo. "The operator community is recognizing the need for a long-term solution that will cost-effectively give them both the downstream and the upstream capacity that they need."
Investor Conference Call
The company will host an investor conference call to discuss the third quarter results on Thursday, November 8, 2007 at 9:00 AM EST after which management will host a question and answer session. To participate, domestic participants should dial 800-366-7417 and international participants should dial 303-262-2143 at least 10 minutes prior to the call and ask to be connected to the Vyyo conference call. The call can be accessed at the Events & News section on the homepage of Vyyo's website at http://www.vyyo.com . A telephone replay will be available through Thursday, November 15 by dialing 800-405-2236 (domestic) or 303-590-3000 (international) and entering access code 11099729#.
About Vyyo Inc.
Vyyo Inc., http://www.vyyo.com , a leading supplier of broadband access equipment, delivers to cable system operators a powerful, economic platform with fiber-like performance that extends their dominant bandwidth position over the competition and drives new revenues. Vyyo's spectrum overlay technology expands typical HFC (hybrid-fiber coax) network capacity in the "last mile," offering the only cost-effective solution that quadruples upstream and doubles downstream bandwidth to help operators deliver new, advanced residential and business services at a fraction of the cost of fiber deployments. Vyyo is based in Norcross, GA. For more information, please visit .
Safe Harbor Statement
Statements made in this press release relating to the future, including those related to the opportunities created for our customers given our ability to provide spectrum overlay solutions and dramatically increase upstream and downstream bandwidth, are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties, as well as assumptions that, if they do not fully materialize or prove incorrect, could cause our business and results of operations to differ materially from those expressed or implied by such forward-looking statements. Risks that may cause these forward-looking statements to be inaccurate include among others: our ability to close the transaction as contemplated or at all; whether we will be able to accelerate the movement from development stage to deployment and establish meaningful commercial relationships with cable system operators; the current limited visibility available in the telecommunications and broadband access equipment markets; the willingness and ability of operators to adopt our new technology and apply it in a manner that meets customer demands; our ability to produce and distribute our spectrum overlay and T1 solutions in the quantities, and with the quality control, desired by the market; and other risks set forth in our annual report on Form 10-K for the year ended December 31, 2006, our quarterly reports on Form 10-Q and other reports filed by us with the Securities and Exchange Commission from time to time. We assume no duty to update these statements.
All trademarks mentioned herein are the property of their respective owners. Vyyo Inc. Condensed Consolidated Statements of Operations In Thousands, except per common share data Three months ended September June September 30, 30, 30, 2007 2007 2006 Unaudited Unaudited Unaudited Revenues: Revenues $1,026 $354 $161 Revenues, related party 1,560 1,313 953 Total revenues 2,586 1,667 1,114 Cost of revenues (1): Cost of products sold 1,066 393 116 Cost of products sold, related party 1,492 1,040 812 Write-down of inventory 47 136 169 Insurance reimbursement for damaged inventory - (101) - Total cost of revenues 2,605 1,468 1,097 Gross profit (19) 199 17 Operating expenses (2): Research and development 3,260 2,763 2,933 Sales and marketing 2,370 2,705 2,080 General and administrative 2,375 2,274 1,962 Total operating expenses 8,005 7,742 6,975 Operating loss (8,024) (7,543) (6,958) Financial income 199 410 347 Financial expenses (822) (791) (836) Loss before income taxes (8,647) (7,924) (7,447) Income taxes (67) 3,238 (271) Loss from continuing operations (8,714) (4,686) (7,718) Discontinued operations - - 48 Loss for the period $(8,714) $(4,686) $(7,670) Loss per share of common stock Continuing operations $(0.47) $(0.25) $(0.43) $(0.47) $(0.25) $(0.43) Weighted average number of shares of common stock outstanding, basic and diluted 18,479 18,417 17,956 (1) Includes stock-based compensation $17 $15 $24 (2) Includes stock-based compensation: Research and development $162 $157 $228 Sales and marketing $523 $623 $426 General and administrative $604 $777 $504 Vyyo Inc. Condensed Consolidated Balance Sheet In Thousands September June December 30, 30, 31, 2007 2007 2006 Unaudited Unaudited Current Assets: Cash, cash equivalents and short-term investments $19,221 $26,265 $18,688 Accounts receivable trade, net: Related party 1,193 745 991 Other 623 172 194 1,816 917 1,185 Inventory, net 2,145 2,287 2,362 Other current assets 2,067 1,303 996 Total Current Assets 25,249 30,772 23,231 Long-Term Assets: Restricted cash 5,000 5,000 5,000 Property and equipment, net 1,444 1,570 1,676 Employee rights upon retirement funded 1,319 1,181 1,168 Debt issuance cost, net 135 142 1,074 Total Assets $33,147 $38,665 $32,149 Liabilities and Capital Deficiency Current Liabilities: Accounts payable $2,139 $1,795 $1,719 Accrued liabilities 5,712 5,205 7,877 Deferred revenues, related party 3,626 3,590 3,795 Total Current Liabilities 11,477 10,590 13,391 Long-Term Liabilities Promissory note 6,111 5,745 5,078 Senior secured note - - 5,085 Convertible note 35,000 35,000 10,097 Liability for employee rights upon retirement 2,776 2,339 2,111 Total Liabilities 55,364 53,674 35,762 Total Capital Deficiency (22,217) (15,009) (3,613) Total Liabilities and Capital Deficiency $33,147 $38,665 $32,149
CONTACT: public relations, Paul Schneider of Paul Schneider Public email@example.comRelations, Inc., +1-215-702-9784, or cell, +1-215-817-4384, ,for Vyyo Inc.; or investor relations, Walt Ungerer, VP, CorporateCommunications of Vyyo Inc., +1-678-488-0468,
Web site: http://www.vyyo.com/