EX-99.1 2 ex99-1.htm PRESS RELEASE Press Release
 
Exhibit 99.1

 
For Further Information Contact:
David Renauld
Vice President, Corporate Affairs
(413) 584-1425


FOR IMMEDIATE RELEASE


TERABEAM ANNOUNCES FIRST QUARTER 2006 FINANCIAL RESULTS

San Jose, CA, May 3, 2006 - Terabeam, Inc. (NASDAQ:TRBM), a leading developer and supplier of broadband wireless solutions, today announced its financial results for the first quarter ended March 31, 2006.

Revenue for the quarter ended March 31, 2006 was $18.5 million, a decrease of approximately 32% from the revenue of $27.1 million for the quarter ended December 31, 2005 and an increase of approximately 181% from the revenue of $6.6 million for the quarter ended March 31, 2005.

The net loss for the quarter ended March 31, 2006 was $4.5 million ($0.21 per share-diluted) compared to net income of $811,000 ($0.04 per share-diluted) for the quarter ended December 31, 2005 and net loss of $970,000 ($0.04 per share-diluted) for the quarter ended March 31, 2005.

Robert Fitzgerald, Terabeam’s Chief Executive Officer, stated, “Our first quarter was a challenging quarter. We experienced a greater decline in revenue than we had anticipated while at the same time incurring expenses to launch our WiMAX and municipal access network products. We look for those new products to contribute to our sales in the rest of 2006.”

Conference Call Information

Terabeam will host a conference call to discuss this release, financial results, developments at the company, and other matters of interest to investors and others today, May 3, 2006 starting at 5:00 p.m. Eastern Time. The discussion may include forward-looking information.

To participate in this conference call, please dial 800-210-9006 (or 719-457-2621 for international callers), confirmation code 5711242 for all callers, at least ten minutes before start time. The conference call will also be broadcast live over the Internet. Investors and others are invited to visit Terabeam’s website at http://www.terabeam.com to access this broadcast. Replays will be available telephonically for approximately one week by dialing 888-203-1112 for domestic callers and 719-457-0820 for international callers, confirmation code 5711242 for all callers, and over the Internet for approximately 90 days at Terabeam’s website at http://www.terabeam.com.

Terabeam Announces First Quarter 2006 Financial Results
May 3, 2006
Page 2



About Terabeam
Terabeam, Inc. has two primary subsidiaries Proxim Wireless Corporation and Ricochet Networks, Inc. Proxim Wireless Corporation is a global leader in providing WiMAX, Wi-Fi, and other broadband wireless solutions to meet the performance, scalability, and security requirements of enterprises, government, and service providers. Ricochet Networks, Inc. is a leading portable Wireless Internet Service Provider (WISP) with operational markets in Denver, Colorado and San Diego, California. Additional information about the company can be found at the company's website located at http://www.terabeam.com or by contacting the company by telephone at 413-584-1425 or by email at IR@terabeam.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. Terabeam’s actual results may differ materially from the results anticipated in these forward-looking statements. The forward-looking statements involve risks and uncertainties that could contribute to such differences including those relating to and arising from the ongoing uncertainty in the telecommunications industry and larger economy; the intense competition in our industries and resulting impacts on our pricing, gross margins, and general financial performance; time and costs associated with developing and launching new products; uncertainty about market acceptance of products we introduce; potential long sales cycles for new products such that there may be extended periods of time before new products contribute positively to our financial results; time, costs, political considerations, typical multitude of constituencies, and other factors involved in evaluating, equipping, installing, and operating municipal networks; difficulties or delays in developing and supplying new products with the contemplated or desired features, performance, compliances, certifications, cost, price, and other characteristics and at the times and in the quantities contemplated or desired; the difficulties in predicting Terabeam’s future financial performance; Terabeam’s recent acquisition of Proxim Corporation’s operations, assets, and relationships; and the impacts and effects of any other strategic transactions Terabeam may evaluate or consummate. Further information on these and other factors that could affect Terabeam’s actual results is and will be included in filings made by Terabeam from time to time with the Securities and Exchange Commission and in its other public statements.

- Financial Tables Follow -

Terabeam Announces First Quarter 2006 Financial Results
May 3, 2006
Page 3





TERABEAM, INC.
  
CONSOLIDATED BALANCE SHEETS
  
(in thousands)
  
   
   
March 31,
  
December 31,
  
   
2006
  
2005
  
Assets
  
(unaudited)
      
Current assets:
              
Cash and cash equivalents
 
$
12,507
  
$
14,133
  
Investment securities - available-for-sale
   
273
    
260
  
Accounts receivable, net
   
6,358
    
8,378
  
Inventory
   
10,825
    
10,070
  
Prepaid expenses
   
1,675
   
1,045
 
Total current assets
   
31,638
    
33,886
  
               
Property and equipment, net
   
3,713
    
3,924
  
Other Assets:
              
Restricted cash
   
5,076
    
5,076
  
Goodwill
   
7,467
    
7,380
  
Intangible assets, net
   
22,841
    
23,817
  
Deposits and prepaid expenses
    
468
    
675
  
Total other assets
   
35,852
    
36,948
  
Total assets
 
$
71,203
  
$
74,758
  
Liabilities and Stockholders’ Equity
              
Current liabilities:
              
Accounts payable and accrued expenses
 
$
13,687
  
$
15,600
  
Deferred revenue
   
5,622
    
2,503
  
License agreement payable - current maturities
    
597
    
981
  
Total current liabilities
   
19,906
    
19,084
  
License agreement payable, net of current maturities
    
2,743
    
2,956
  
Total liabilities
   
22,649
    
22,040
  
Commitments and contingencies
              
Stockholders’ Equity
    
-
    
-
  
Preferred stock, $0.01 par value; authorized 4,500,000, none issued at March 31, 2006 and December 31, 2005
   
-
    
-
  
Common stock, $0.01 par value, 100,000,000 shares authorized, 21,540,865 issued and outstanding at March 31, 2006 and 21,446,217 issued and outstanding at December 31, 2005
   
215
   
214
 
Additional paid-in capital
   
56,944
   
56,638
 
Retained earnings (accumulated deficit)
    
(8,605
)
  
(4,122
)
Treasury stock
   
-
    
-
  
Accumulated other comprehensive income:
              
Net unrealized gain (loss) on available-for-sale securities
   
-
    
(12
)
Total stockholders’ equity
   
48,554
    
52,718
  
Total liabilities and stockholders’ equity
 
$
71,203
  
$
74,758
  

Terabeam Announces First Quarter 2006 Financial Results
May 3, 2006
Page 4





TERABEAM, INC.
  
CONSOLIDATED STATEMENTS OF OPERATIONS
  
(in thousands, except per share data)
  
(unaudited)
  
   
Three Months Ended
 
   
March 31,
  
   
2006
  
2005
  
Revenues
 
$
18,536
  
$
6,597
  
Cost of goods sold
   
10,895
    
3,319
  
Gross profit
   
7,641
   
3,278
 
Operating expenses:
              
Selling costs
   
4,269
   
997
 
General and administrative
   
3,334
   
2,508
 
Research and development
   
4,886
   
771
 
Total operating expenses
   
12,489
   
4,276
 
Operating loss
   
(4,848
)
  
(998
)
Other income (expenses):
              
Interest income
   
88
   
221
 
Interest expense
   
(33
)
  
(66
)
Other income (loss)
   
331
   
(118
)
Total other income (expenses)
   
386
   
37
 
Loss before income taxes
   
(4,462
)
  
(961
)
Benefit (provision) for income taxes
   
(21
)
  
(9
)
Net loss
   
($4,483
)
  
($970
)
           
Weighted average shares - basic and diluted
    
21,462
    
22,401
  
Loss per share, basic and diluted
    
($0.21
)
  
($0.04
)