EX-99.1 2 a07-28673_1ex99d1.htm EX-99.1

 

 

Exhibit 99.1

 

 Vyyo Reports Third Quarter 2007 Financial Results

 

~Cable Revenue Growth Accelerated in Quarter~

 

NORCROSS, Ga., November 8 /PRNewswire-FirstCall/ -- Vyyo Inc. (Nasdaq: VYYO), 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., (NASDAQ: VYYO), 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 http://www.vyyo.com.

 

 

 


 

 

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.

 

###

 

 

PUBLIC RELATIONS:

 

INVESTOR RELATIONS

Paul Schneider

 

Walt Ungerer

Paul Schneider Public Relations, Inc.

 

VP, Corporate Communications

(w) 215.702.9784

 

Vyyo Inc.

(m) 215.817.4384

 

678.488.0468

pspr@att.net

 

 

 

 

 


 

Vyyo Inc.

Condensed Consolidated Statements of Operations

In Thousands, except per common share data

 

 

 

Three months ended

 

 

 

September 30,

 

June 30,

 

September 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 30,

 

June 30,

 

December 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