EX-99.1 2 a05-2262_1ex99d1.htm EX-99.1

EXHIBIT 99.1

 

 

Press Release

 

TUT SYSTEMS, INC. REPORTS FOURTH QUARTER AND YEAR END 2004 RESULTS

 

Lake Oswego, Oregon, January 25, 2005 — Tut Systems, Inc. (Nasdaq: TUTS), today announced its fourth quarter and year-end results for 2004. Revenue for the quarter ended December 31, 2004 was $7.0 million compared with revenue of $9.2 million for the quarter ended December 31, 2003.  This represents a decrease in revenue of 24% when compared with the fourth quarter of 2003 and a 5% increase when compared with third quarter 2004 revenue of $6.7 million.  Revenue for the year ended December 31, 2004 was $25.0 million compared with revenue of $32.2 million for the year ended December 31, 2003.  This represents a year-over-year decrease in revenue of 22%.

 

Revenue relating to the broadband transport and service management products was $2.1 million and $1.1 million for the quarters ended December 31, 2003 and 2004, respectively and $8.3 million and $6.9 million for the years ended December 31, 2003 and 2004 respectively.  Revenue related to video processing systems was $7.1 million and $5.9 million for the quarters ended December 31, 2003 and 2004, respectively and $23.9 million and $18.1 million for the years ended December 31, 2003 and 2004 respectively.  International sales represented 19.4% and 28.2% of total sales for the quarters ended December 31, 2003 and 2004, respectively.  For the years ended December 31, 2003 and 2004, international sales represented 18.4% and 23.3% of total sales.

 

Net loss for the three months ended December 31, 2004 was $(2.6) million or $(0.11) per basic and diluted share.  This compares with the net loss for the three months ended December 31, 2003 of $(0.5) million or $(0.03) per basic and diluted share.  Net loss for the year ended December 31, 2004 was $(13.5) million or $(0.63) per basic and diluted share compared with a net loss of $(5.5) million or $(0.28) per basic and diluted share for the year ended December 31, 2003.

 

“As we enter 2005, we are very excited about the level of customer activity in which we are engaged in the Telco TV market in North America and the rest of the world,” said Sal D’Auria, Chairman, President and CEO of Tut Systems, Inc.  “Over the course of the next several quarters we anticipate that many of the tier one and other large carriers will begin deploying IPTV.  We believe that our industry leadership position and leading edge technology, uniquely positions us to benefit from these opportunities.”

 


 

Fourth Quarter Conference Call Information

 

Tut Systems will host a conference call to discuss fourth quarter results on January 26, 2005 beginning at 5:30 am Pacific time. For callers within the United States, please dial 877-356-8058, at least 5 minutes before start time or visit http://www.tutsystems.com.  International participants may dial 706-634-2465 or visit http://www.tutsystems.com.  Enter conference identification number 3554053.

 

For callers within the United States accessing the conference call replay, please dial 800-642-1687 or 706-645-9291, conference ID # 3554053.  The replay will be available two hours after the call ends for one week, and will be available at http://www.tutsystems.com.

 

Recent Announcements:

 

Significant announcements from Tut Systems since the third quarter earnings release include:

 

10/25/04

 

Broadband Municipal Consortium Welcomes Tut Systems, Inc.

11/8/04

 

Tut Systems Achieves Telco TV Industry Milestone With 100th Operator Delivering Digital TV

11/11/04

 

Consolidated Communications Announces ‘Telco TV’ Service Using Tut Systems Astria(R) Digital Headend Solution

11/16/04

 

Tut Systems to Demonstrate Integrated IPTV Content Security System With Widevine(R) Technologies and Thomson at Telco TV 2004

11/18/04

 

Alcatel and Tut Systems Announce Their 10th Joint IPTV Customer in the US IOC Market

1/7/05

 

Tut Systems, Inc. to Acquire Cosine Communications and Provides Preliminary 2004 Revenue Results

 

Forward Looking Statements

 

Safe Harbor Statement under the U.S. Private Securities Litigation Reform Act of 1995:

 

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Specifically, without limitation, statements relating to (1) our anticipation that many tier one and other large carriers will begin deploying IPTV over the next several quarters and (2) our leading edge technology and industry leadership position uniquely positions us to benefit from IPTV deployments.  Forward looking statements are based on management’s current expectations and beliefs, and are subject to risks and uncertainties.  As a result, actual results may differ materially from the forward-looking statements contained herein.

 

Risks that relate to these forward looking statements include the risks inherent in new and developing technologies and markets, the risk that competitors will introduce rival technologies and products, and the risk that the expected financial benefits of the IPTV deployment will not be achieved as a result of unforeseen costs or events.  Further detailed information about risk factors that may impact our business is set forth in our periodic filings with the Securities and Exchange Commission.  We expressly disclaim any obligation to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise.

 

About Tut Systems, Inc.

 

Tut Systems, Inc. (NASDAQ: TUTS) delivers content processing and distribution products for deploying next-generation data and video services over broadband networks. Service providers, content providers and government agencies in the United States and internationally use Tut Systems solutions to deliver broadcast-quality video over broadband networks.

 

Tut Systems is headquartered in Lake Oswego, OR with regional offices across North America, Europe and Asia.  For more information visit www.tutsys.com or call 971-217-0400.

 

- FINANCIAL TABLES FOLLOW -

 

Contact:

 

Randy Gausman

 

Jeff Schline

Chief Financial  Officer

 

Manager, Corporate Communications

Tut Systems

 

Tut Systems

(971) 217-0400

 

(971) 217-0364

RandallG@TutSys.com

 

jschline@TutSys.com

 


 

TUT SYSTEMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(unaudited)

 

 

 

Three months ended
December 31,

 

Year ended
December 31,

 

 

 

2003

 

2004

 

2003

 

2004

 

Revenue:

 

 

 

 

 

 

 

 

 

Product

 

$

9,090

 

$

7,010

 

$

31,474

 

$

24,942

 

License and royalty

 

114

 

10

 

718

 

50

 

Total revenue

 

9,204

 

7,020

 

32,192

 

24,992

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold

 

4,621

 

4,302

 

15,646

 

16,980

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

4,583

 

2,718

 

16,546

 

8,012

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Sales and marketing

 

1,777

 

2,258

 

7,479

 

8,096

 

Research and development

 

1,688

 

1,752

 

7,909

 

7,278

 

General and administrative

 

1,151

 

1,076

 

4,476

 

4,336

 

Restructuring costs

 

¾

 

¾

 

292

 

¾

 

Impairment of intangible assets

 

¾

 

¾

 

128

 

202

 

Amortization of intangible assets

 

449

 

376

 

1,809

 

1,524

 

Total operating expenses

 

5,065

 

5,462

 

22,093

 

21,436

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

(482

)

(2,744

)

(5,547

)

(13,424

)

Gain on sale of investments

 

¾

 

125

 

¾

 

125

 

Interest and other (expense) income, net

 

(37

)

(11

)

30

 

(161

)

Net loss

 

$

(519

)

$

(2,630

)

$

(5,517

)

$

(13,460

)

 

 

 

 

 

 

 

 

 

 

Net loss per share, basic and diluted

 

$

(0.03

)

$

(0.11

)

$

(0.28

)

$

(0.63

)

 

 

 

 

 

 

 

 

 

 

Shares used in computing net loss, basic and diluted

 

20,202

 

24,499

 

19,996

 

21,392

 

 


 

TUT SYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)

 

 

 

December 31,
2003

 

December 31,
2004

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

14,370

 

$

12,440

 

Accounts receivable, net

 

7,062

 

6,585

 

Inventories, net

 

4,181

 

3,994

 

Prepaid expenses and other

 

1,026

 

1,137

 

Insurance receivable

 

10,725

 

¾

 

Total current assets

 

37,364

 

24,156

 

Property and equipment, net

 

1,722

 

1,874

 

Intangibles and other assets

 

3,685

 

1,935

 

Total assets

 

$

42,771

 

$

27,965

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

4,571

 

$

4,545

 

Deferred revenue

 

253

 

226

 

Legal settlement liability

 

10,725

 

¾

 

Total current liabilities

 

15,549

 

4,771

 

Note payable and other liabilities

 

3,567

 

3,816

 

Total liabilities

 

19,116

 

8,587

 

 

 

 

 

 

 

Stockholders’ equity

 

23,655

 

19,378

 

Total liabilities and stockholders’ equity

 

$

42,771

 

$

27,965