EX-99.1 2 dex991.htm FINANCIAL RESULTS Financial Results

Exhibit 99.1

October 25, 2007

 

Sally O. Thiel, Director

  Jo Ann Lehtihet

Investor Relations

  Corporate Public Relations

C-COR

  C-COR

(814) 231-4402, email: sthiel@c-cor.com

  (814) 231-4438, email: jlehtihet@c-cor.com

C-COR REPORTS FINANCIAL RESULTS FOR FIRST QUARTER OF

FISCAL YEAR 2008

State College, PA (October 25, 2007) - C-COR Incorporated (NASDAQ: CCBL) today reported its financial results for the first quarter of fiscal year 2008, ended September 28, 2007.

Net sales from continuing operations for the first quarter were $71.9 million compared to $60.4 million in the same period last year, for an increase of 19%. Bookings in the first quarter of fiscal year 2008 were $61.8 million for a book-to-bill ratio of .86.

Income from continuing operations for the first quarter of fiscal year 2008 was $5.4 million compared to $2.2 million for the same period last year. Income per share from continuing operations on a basic and diluted basis for the first quarter of fiscal year 2008 was $.11 compared to $.04 for the same period last year. C-COR’s results for the first quarter of fiscal year 2008 included $2.8 million of stock compensation expense, $1.2 million of transaction costs related to the proposed merger with ARRIS Group Inc., $633,000 of amortization related to intangible assets, and $205,000 of restructuring charges. These items, which equate to $.09 on a diluted per share basis, are included in results reported under generally accepted accounting principles (GAAP), but are typically excluded from the analysts’ estimates comprising the First Call consensus number. C-COR is breaking out these numbers to improve comparability of the reported GAAP results and the non-GAAP First Call number.

-MORE-


C-COR REPORTS FINANCIAL RESULTS FOR FIRST QUARTER OF

FISCAL YEAR 2008 – ADD 1

C-COR anticipates that net sales for the second quarter of fiscal year 2008, ending December 28, 2007, will be between $72.0 and $76.0 million with income per share from continuing operations of between $.15 and $.19. These projections include $1.1 million of stock compensation expense, $579,000 of amortization related to intangible assets, and approximately $150,000 of restructuring charges. These items, which are projected to equate to $.03 per diluted share, are typically excluded from the First Call analysts’ projections. C-COR is breaking out these numbers to improve comparability of the projected GAAP results and the non-GAAP First Call number.

C-COR’s management will discuss C-COR’s financial results on a conference call at 9:45 AM (ET) on Thursday, October 25, 2007. To participate in the October 25th call, dial 800-926-7748. International callers should use +1 212-231-2917. The live audio of the conference call will also be available via the Internet at C-COR’s web site (www.c-cor.com). For information on how to access the live audio and replay of the conference call, refer to C-COR’s news release dated October 5, 2007 (posted on the C-COR web site), or contact Investor Relations at 814-231-4402 or 814-231-4438.

About C-COR

C-COR technology and know-how are at the heart of today’s personalized, multi-screen communications and entertainment. The largest cable operators and other private and public network operators around the world look to C-COR for broadband access equipment to expand bandwidth, unified video platforms for delivery of on demand content, and integrated back-office OSS for a 360 degree view of the network, subscribers and workforce. C-COR’s common stock is listed on the NASDAQ Global Market (Symbol: CCBL) and is a component of the Russell 2000 Stock Index. For additional information regarding C-COR, visit www.c-cor.com.

-MORE-


C-COR REPORTS FINANCIAL RESULTS FOR FIRST QUARTER OF

FISCAL YEAR 2008 – ADD 2

 


Some of the information presented in this announcement constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent the Company’s judgment regarding future events, and are based on currently available information. Although the Company believes it has a reasonable basis for these forward-looking statements, the Company cannot guarantee their accuracy and actual results may differ materially from those the Company anticipated due to a number of known and unknown uncertainties. Factors which could cause actual results to differ from expectations include, among others, the possibility that the proposed merger with ARRIS Group Inc. will not be consummated, capital spending patterns of the communications industry, changes in regard to significant customers, the demand for network integrity, the trend toward more fiber in the network, the Company’s ability to develop new and enhanced products, the Company’s ability to provide complete network solutions, continued industry consolidation, the development of competing technology, the global demand for the Company’s products and services, the Company’s ability to implement its restructuring and cost reduction measures, and the Company’s ability to achieve its strategic objectives. For additional information concerning these and other important factors that may cause the Company’s actual results to differ materially from expectations and underlying assumptions, please refer to the reports filed by the Company with the Securities and Exchange Commission.

-MORE-


C-COR REPORTS FINANCIAL RESULTS FOR FIRST QUARTER OF

FISCAL YEAR 2008 – ADD 3

C-COR Incorporated

Condensed Consolidated Statements of Operations

(Unaudited, in thousands except per share amounts)

 

    

Thirteen Weeks

Ended
September 28,
2007

    Thirteen Weeks
Ended
September 29,
2006
 

Net sales

   $ 71,927     $ 60,366  

Cost of sales (1)

     40,805       34,793  
                

Gross margin

     31,122       25,573  

Operating expenses (1)

    

Selling and administrative

     17,039       14,397  

Research and product development

     8,681       7,200  

Amortization of other intangibles

     633       829  

Loss on sale of product lines

     0       245  

Restructuring costs

     205       400  
                

Total operating expenses

     26,558       23,071  

Income from operations

     4,564       2,502  

Interest expense

     (341 )     (360 )

Investment income

     1,506       695  

Foreign exchange gain

     527       30  

Other income, net

     102       71  
                

Income before income taxes

     6,358       2,938  

Income tax expense

     911       764  

Income from continuing operations

     5,447       2,174  

Discontinued operations, net of tax

    

Loss from discontinued operations

     (536 )     (591 )
                

Net income

   $ 4,911     $ 1,583  
                

Net income (loss) per share: basic

    

Continuing operations

   $ 0.11     $ 0.04  

Discontinued operations

     (0.01 )     (0.01 )
                

Net income

   $ 0.10     $ 0.03  
                

Net income (loss) per share: diluted

    

Continuing operations

   $ 0.11     $ 0.04  

Discontinued operations

     (0.01 )     (0.01 )
                

Net income

   $ 0.10     $ 0.03  
                

Weighted average common shares and common share equivalents

    

Basic

     50,229       48,048  

Diluted

     53,916       48,529  

(1)    Stock-based compensation is included as follows:

 

    

Cost of sales

   $ 218     $ 100  

Selling and administrative

     2,287       659  

Research and product development

     306       140  
                

Total stock-based compensation

   $ 2,811     $ 899  
                

-MORE-


C-COR REPORTS FINANCIAL RESULTS FOR FIRST QUARTER OF

FISCAL YEAR 2008 – ADD 4

C-COR Incorporated

Consolidated Balance Sheets

(in thousands of dollars)

 

     September 28,
2007
   June 29,
2007
     (unaudited)     

ASSETS

     

Current assets

     

Cash and cash equivalents

   $ 60,968    $ 54,913

Restricted cash

     4,404      2,563

Marketable securities

     71,508      53,453

Accounts receivable, net

     42,021      63,375

Unbilled receivables

     1,890      2,268

Inventories

     23,753      28,150

Deferred costs

     9,116      8,476

Other current assets

     4,440      4,935
             

Total current assets

     218,100      218,133
             

Property, plant and equipment, net

     19,594      19,381

Goodwill

     128,610      128,825

Other intangible assets, net

     1,215      1,849

Deferred taxes

     702      778

Other long-term assets

     6,507      7,754
             

Total

   $ 374,728    $ 376,720
             

LIABILITIES AND SHAREHOLDERS’ EQUITY

     

Current liabilities

     

Accounts payable

   $ 18,553    $ 20,699

Accrued liabilities

     23,662      31,291

Deferred revenue

     28,074      32,534

Deferred taxes

     219      219

Current portion of long-term debt

     391      384
             

Total current liabilities

     70,899      85,127

Long-term debt, less current portion

     35,870      35,968

Deferred revenue

     3,393      3,892

Deferred taxes

     5,414      5,234

Other long-term liabilities

     6,777      5,587

Shareholders’ equity

     252,375      240,912
             

Total

   $ 374,728    $ 376,720
             

-MORE-


C-COR REPORTS FINANCIAL RESULTS FOR FIRST QUARTER OF

FISCAL YEAR 2008 – ADD 5

C-COR Incorporated

Financial Data Table

(Unaudited, in thousands except percentages)

 

Product Category:    Access     Solutions     Total  
Thirteen Weeks ended September 28, 2007:       

Bookings (1)

   $ 45,189     $ 16,591     $ 61,780  

Net sales

     52,921       19,006       71,927  

Gross margin

     19,986       11,136       31,122  

Gross margin percentage

     37.8 %     58.6 %     43.3 %

Backlog at September 28, 2007 (1):

      

Less than 12 months

     22,433       42,966       65,399  

Greater than 12 months

     0       15,959       15,959  
                        

Total Backlog

     22,433       58,925       81,358  
                        
Thirteen Weeks ended September 29, 2006:       

Bookings (1)

   $ 44,138     $ 17,024     $ 61,162  

Net sales

     47,622       12,744       60,366  

Gross margin

     17,447       8,126       25,573  

Gross margin percentage

     36.6 %     63.8 %     42.4 %

Backlog at September 29, 2006 (1):

      

Less than 12 months

     27,379       40,287       67,666  

Greater than 12 months

     0       10,610       10,610  
                        

Total Backlog

     27,379       50,897       78,276  
                        

(1) Amounts derived from our internal operating records.

#####