-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, E4QWIwOVTGOF5cmXRLB6VP77HzYNnAkmjWctyHlG8KehF4db8iLoJxtT/2uoqBIW haLqu87QnSUz88ikcTHUGg== 0000914317-03-002246.txt : 20030801 0000914317-03-002246.hdr.sgml : 20030801 20030801143657 ACCESSION NUMBER: 0000914317-03-002246 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030731 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030801 FILER: COMPANY DATA: COMPANY CONFORMED NAME: YDI WIRELESS INC CENTRAL INDEX KEY: 0000712511 STANDARD INDUSTRIAL CLASSIFICATION: RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT [3663] IRS NUMBER: 042751645 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-29053 FILM NUMBER: 03817666 BUSINESS ADDRESS: STREET 1: 20 INDUSTRIAL DRIVE EAST CITY: SOUTH DEERFIELD STATE: MA ZIP: 01373 BUSINESS PHONE: 4136658551 MAIL ADDRESS: STREET 1: 20 INDUSTRIAL DRIVE EAST STREET 2: INDUSTRIAL PARK CITY: SOUTH DEERFIELD STATE: MA ZIP: 01373 FORMER COMPANY: FORMER CONFORMED NAME: TELAXIS COMMUNICATIONS CORP DATE OF NAME CHANGE: 19991015 FORMER COMPANY: FORMER CONFORMED NAME: MILLITECH CORP DATE OF NAME CHANGE: 19990913 8-K 1 form8k-53538_ydi.txt 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): July 31, 2003 ------------------------------ YDI WIRELESS, INC. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware 000-29053 04-2751645 - -------------------------------------------------------------------------------- (State or other jurisdiction of (Commission file number) (IRS employer incorporation) identification no.) 8000 Lee Highway, Falls Church, VA 22042 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Registrant's telephone number, including area code: (703) 205-0600 ---------------------------- Not Applicable - -------------------------------------------------------------------------------- (Former Name or Former Address, if Changed Since Last Report) Item 7. Financial Statements and Exhibits. --------------------------------- (c) Exhibits Number Title ------ ----- 99.1 Press release dated July 31, 2003. Item 9. Regulation FD Disclosure. ------------------------ Information provided under Item 12 of Form 8-K On July 31, 2003, YDI Wireless, Inc. (the "Company") issued a press release announcing financial results for its second quarter ended June 30, 2003. A copy of the Company's press release is attached hereto as Exhibit 99.1. SIGNATURE 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 hereunto duly authorized. YDI WIRELESS, INC. Dated: August 1, 2003 By: /s/ Patrick L. Milton ----------------------------------- Patrick L. Milton Chief Financial Officer 2 EXHIBIT INDEX Number Title - ------ ----- 99.1 Press release dated July 31, 2003. EX-99.I 3 exhibit99-1.txt For Further Information Contact: - -------------------------------- David L. Renauld Vice President, Corporate Affairs (413) 665-8551 FOR IMMEDIATE RELEASE - --------------------- July 31, 2003 YDI WIRELESS ANNOUNCES RECORD REVENUES AND SECOND QUARTER 2003 FINANCIAL RESULTS FALLS CHURCH, VA, July 31, 2003 - YDI Wireless, Inc. (OTCBB:YDIW), a leading developer and supplier of broadband wireless solutions, today reported its financial results for the second quarter ended June 30, 2003. Introduction - ------------ There was significant activity for the company in the second quarter of 2003. On April 1, 2003, Young Design, Inc. and Telaxis Communications Corporation combined to form YDI Wireless. At the annual stockholders meeting on June 24, 2003, the company's stockholders approved a reverse/forward stock split, the reincorporation of the company from Massachusetts to Delaware, and the formal change of the company's name to "YDI Wireless, Inc." These changes became effective July 9, 2003. As a result of the acquisition, the recently completed quarter was the first quarter of combined operations of Young Design and Telaxis. Given the extent of the ownership of Young Design's stockholders in the combined company upon completion of the transaction, Young Design is considered to be the acquiror for accounting purposes and the transaction is accounted for in the financial statements of the company as a reverse acquisition of Telaxis by Young Design. The results of operations of Telaxis are included in the consolidated financial statements from April 1, 2003, the closing date of the acquisition. The acquisition was accounted for as a purchase and the excess of net assets over the purchase price was recorded as negative goodwill and immediately recognized into income as required by generally accepted accounting principals. Financial Results - ----------------- Revenue for the quarter ended June 30, 2003 was $7.2 million, an increase of 13% over the revenue of $6.4 million for the quarter ended March 31, 2003 and an increase of 47% over the revenue of $4.9 million for the quarter ended June 30, 2002. YDI Wireless Announces Record Revenues and Second Quarter 2003 Financial Results July 31, 2003 Page 2 Gross profit for the quarter was $2.3 million, an increase of 15% over the gross profit of $2.0 million for the quarter ended March 31, 2003 and an increase of 35% over the gross profit of $1.7 million for the quarter ended June 30, 2002. The net income for the second quarter of 2003 was $3.6 million or $0.06 per share, dilutive, compared to net income of $0.1 million or $0.01 per share, dilutive, for the first quarter of 2003 and net income of $0.4 million or $0.02 per share, dilutive, for the second quarter of 2002. The net income for the second quarter 2003 resulted from the immediate recognition of the negative goodwill from the Young Design-Telaxis transaction. This recognition resulted in a one-time gain of $4.7 million. "We are extremely happy with our top line growth in the second quarter and with the speed of the integration of YDI and Telaxis." states Robert Fitzgerald, Chief Executive Officer, who adds, "Although we are not surprised by the operating loss, we are not happy about it. YDI's heritage is that of a profitable company and we fully intend to get back in that position sooner rather than later. Our second quarter results include significant expenses related to the merger of YDI and Telaxis and the subsequent restructuring. Through additional top line growth and a continuous re-examination of operating expenses and opportunities for margin improvement, we are firmly committed to being profitable and cash flow positive. Going forward, we see the license free wireless industry to be sufficiently healthy and robust to support YDI's expansion plans and one that holds real promise of significant improvement. We believe that further consolidation in the license free wireless equipment manufacturer segment is inevitable and we are actively looking at opportunities that will complement our efforts. We hold to our basic beliefs that we must offer our customers the best price/performance package and the best service on a daily basis and that we must maintain sufficient financial strength to be able to honor this commitment. We believe that we are well positioned for the future." About YDI Wireless - ------------------ YDI Wireless, Inc. is a world leader in providing extended range, license free wireless data equipment and is the result of the recent combination of Young Design, Inc. and Telaxis. This combination brought together Young Design's license-free products that extend the range of IEEE 802.11 wireless local area network systems, point-to-point wireless backhaul products, diverse and broad customer base, and deep market and industry experience with Telaxis' high-frequency millimeter-wave expertise and FiberLeap(TM) and EtherLeap(TM) products. In addition, YDI Wireless is a leading designer of turn-key long distance wireless systems ranging from 19.9 kbps to 1 Gbps for applications such as wireless Internet, wireless video, wireless LANs, wireless WANs, wireless MANs and wireless virtual private networks. Additional information about YDI Wireless as well as its complete product line can be found at the Company's website located at http://www.ydi.com or by contacting the company by telephone ------------------- at 413-665-8551 or by email at IR@ydi.com. ---------- Safe Harbor Statement - --------------------- Statements in this press release that are not statements of historical facts are forward-looking statements that involve risks, uncertainties, and assumptions. Our actual results may differ materially from the results anticipated YDI Wireless Announces Record Revenues and Second Quarter 2003 Financial Results July 31, 2003 Page 3 in these forward-looking statements due to risks arising from and relating to the recent combination of Telaxis Communications and Young Design and our ability to achieve the contemplated benefits of that combination; the downturn and ongoing uncertainty in the telecommunications industry and larger economy; the intense competition in our industry and resulting impacts on our pricing, gross margins, and general financial performance; and the other factors discussed in our filings made from time to time with the Securities and Exchange Commission and in our other public statements. - Financial Tables follow - YDI Wireless Announces Record Revenues and Second Quarter 2003 Financial Results July 31, 2003 Page 4 YDI WIRELESS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except share data)
YDI Wireless, Young Design, Inc. and Inc. and Subsidiaries Subsidiaries (Consolidated) (Consolidated) June 30, December 31, 2003 2002 -------------- -------------- (unaudited) -------------- Assets Current assets: Cash and cash equivalents........................................................ $ 4,937 $ 939 Restricted cash ................................................................. 353 - Marketable securities ........................................................... 1,611 - Accounts receivable, net......................................................... 2,607 1,686 Refundable income taxes.......................................................... 275 - Other receivables................................................................ 439 - Inventory........................................................................ 2,291 2,386 Investment securities - trading.................................................. 8 4 Deferred tax asset............................................................... 142 142 Deposit.......................................................................... 1 1 Prepaid expenses................................................................. 200 451 -------------- -------------- Total current assets......................................................... 12,864 5,609 Property and equipment, net...................................................... 3,210 1,823 Other Assets: Investment in unconsolidated subsidiaries......................................... - 36 Investment securities - available-for-sale........................................ 1,013 841 Intangible assets, net............................................................ 606 9 Deferred tax asset................................................................ 245 245 Deposits.......................................................................... 48 9 Other assets...................................................................... 3 - -------------- -------------- 1,915 1,140 Total other assets........................................................... -------------- -------------- Total assets................................................................. $ 17,989 $ 8,572 ============== ============== Liabilities and Stockholders' Equity Current liabilities: Accounts payable and accrued expenses............................................ $ 3,772 $ 2,158 Current maturities of notes payable.............................................. 851 495 Current deposit - non-refundable................................................. - 9 -------------- -------------- Total current liabilities.................................................... 4,623 2,662 Notes payable, net of current maturities............................................ 1,291 1,402 -------------- -------------- Total liabilities............................................................ 5,914 4,064 Stockholders' Equity Preferred stock, $0.01 par value; authorized 4,500,000 shares at June 30, 2003 and December 31, 2002, none issued ............................................ - - Common stock, $0.01 par value, authorized 100,000,000, issued 54,208,313 at June 30, 2003; $0.0001 par value, 30,000,000 shares authorized, issued 15,000,000 at December 31, 2002........................................................... 544 2 Additional paid-in capital....................................................... 3,684 449 Treasury stock .................................................................. (37) - Retained earnings................................................................ 7,747 4,066 Accumulated other comprehensive income: Net unrealized gain/(loss) on available-for-sale securities.................... 137 (9) -------------- -------------- Total stockholders' equity................................................... 12,075 4,508 -------------- -------------- Total liabilities and stockholders' equity................................... $ 17,989 $ 8,572 ============== ==============
YDI Wireless Announces Record Revenues and Second Quarter 2003 Financial Results July 31, 2003 Page 5 YDI WIRELESS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data)
YDI Wireless, Young Design, YDI Wireless, Young Design, Inc. and Inc. and Inc. and Inc. and Subsidiaries Subsidiaries Subsidiaries Subsidiaries (Consolidated) (Consolidated) (Consolidated) (Consolidated) ------------- -------------- -------------- -------------- For the Three Months For the Six Months Ended June 30, Ended June 30, -------------------------------- -------------------------------- 2003 2002 2003 2002 -------------- -------------- ----------- -------------- (unaudited) (unaudited) (unaudited) (unaudited) -------------- -------------- ----------- -------------- Revenues........................................................ $ 7,229 $ 4,870 $ 13,665 $ 9,880 Cost of goods sold.............................................. 4,961 3,176 9,399 6,463 ----------- ------------ ----------- ----------- Gross profit................................................ 2,268 1,694 4,266 3,417 Operating expenses: Selling costs............................................... 536 289 1,003 574 General and administrative.................................. 2,781 942 3,939 2,091 Research and development.................................... 454 94 575 195 ----------- ------------ ----------- ----------- Total operating expenses................................. 3,771 1,325 5,517 2,860 ----------- ------------ ----------- ------------ Operating income (loss)......................................... (1,503) 369 (1,251) 557 Other income (expenses): Interest income............................................. 146 14 111 22 Interest expense............................................ (34) (24) (63) (62) Excess of acquired net assets over cost..................... 4,747 - 4,747 - ----------- ------------ ----------- ------------ Total other income....................................... 4,859 (10) 4,795 (40) Income before income taxes, extraordinary gain, cumulative effect of accounting change and minority interests.......... 3,356 359 3,544 517 Provision (benefit) for income taxes........................ (259) - (177) - ----------- ------------ ----------- ----------- Net income...................................................... $ 3,615 $ 359 $ 3,721 $ 517 =========== ============ =========== =========== Shares outstanding as of 6/30/03: 54,208,313 15,000,000 23,664,355 15,000,000 EPS, basic.................................................. $ 0.07 $ 0.02 $ 0.16 $ 0.03 =========== ============ =========== =========== EPS, diluted................................................ $ 0.06 $ 0.02 0.14 $ 0.03 =========== ============ =========== ===========
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