EX-99.1 3 d05096exv99w1.txt EX-99.1 PRESS RELEASE EXHIBIT 99.1 FOR IMMEDIATE RELEASE: CONTACT: Bob Husted Nancy Hamilton Investor Relations Manager Chief Financial Officer (303) 440-5330 ext. 350 (303) 440-5330 ext. 524 bhusted@spectralink.com nhamilton@spectralink.com SPECTRALINK GROWS QUARTERLY EARNINGS AND REVENUE YEAR-OVER-YEAR BOULDER, COLO. -- APRIL 16, 2003 -- SpectraLink Corporation (Nasdaq: SLNK) today reported earnings for the first quarter of 2003 of $1.1 million, or $0.06 per diluted share, representing a 20% increase in earnings per diluted share over the same period a year ago. For the first quarter of 2002, earnings were $915 thousand, or $0.05 per diluted share. Revenue for the first quarter of 2003 was $14.6 million compared with $13.9 million in the first quarter of 2002. "I am very pleased with such strong quarterly results considering the continued soft U.S. economy and its ongoing impact on sales growth," said Bruce Holland, SpectraLink president and CEO. "This marks our nineteenth straight quarter of positive net income and our seventeenth straight quarter of positive cash from operations. In addition, our gross margin exceeded 66% for the quarter." WEBCAST INFORMATION SpectraLink will hold an audio webcast to discuss first quarter 2003 earnings results, today, April 16th, at 4:15 p.m. Eastern Time. You can access the webcast and replay at www.spectralink.com. -more- ABOUT SPECTRALINK SpectraLink Corporation (Nasdaq: SLNK) is the leading manufacturer and provider of wireless telephone systems for the workplace in North America. Headquartered in Boulder, Colo., SpectraLink has more installed systems and accumulated more experience and application knowledge than any other provider. SpectraLink distributes its products through industry-leading service, equipment and application providers, cultivating a vast customer base among industries including retail, education, healthcare, manufacturing, finance, information systems and telecommunications. For more information, call 1-800-676-5465, or visit www.spectralink.com. SAFE HARBOR PROVISION Portions of this release contain forward-looking statements regarding future events based on current expectations. These forward-looking statements and other statements, such as statements regarding the future financial performance of SpectraLink, are subject to risks and uncertainties. SpectraLink Corporation wishes to caution you that there are some factors that could cause actual results to differ materially from the results indicated by such statements. These factors include, but are not limited to: the inability to close several large orders in the sales pipeline; continued weakness or further deterioration in the general economic conditions that may reduce demand for, or delay orders for, SpectraLink's products; adverse changes in economic and business conditions affecting SpectraLink's customers; the failure of the market for on-premises wireless telephone systems to grow or to grow as quickly as SpectraLink anticipates; the intensely competitive nature of the wireless communications industry, and a customer preference to buy all telephone communications systems from a single source provider that manufactures and sells PBX or key/hybrid systems; SpectraLink's and its resellers' ability to develop and execute effective marketing and sales strategies; SpectraLink's reliance on sole or limited sources of supply for many components and equipment used in its manufacturing process; the risk of business interruption arising from SpectraLink's dependence on a single manufacturing facility; customer concerns over security issues in the 802.11 technology; SpectraLink's ability to manage potential expansion of operations in the U.S. and internationally; SpectraLink's ability to respond to rapid technological changes within the on-premises wireless telephone industry; SpectraLink's ability to attract and retain personnel, including key technical and management personnel; changes in rules and regulations of the FCC; SpectraLink's ability to protect its intellectual property rights; and SpectraLink's reliance on its 802.11 technology partners to continue to provide the wireless local area network for SpectraLink's NetLink product, and to provide access points which support SpectraLink Voice Priority. Prospective investors are cautioned not to place undue reliance on such forward-looking statements. Further, SpectraLink undertakes no obligation to update or revise any forward-looking statements contained herein in order to reflect events or circumstances that may arise after the date of this press release. We refer you to the documents SpectraLink files from time to time with the Securities and Exchange Commission, specifically the section titled Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2002, and other reports and filings made with the Securities and Exchange Commission. ### All trademarks, trade names, registered trademarks, or registered trade names are property of their respective holders. For more information, visit the SpectraLink website at www.spectralink.com. Three pages of tables attached SPECTRALINK CORPORATION AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS (IN THOUSANDS)
ASSETS MARCH 31, DECEMBER 31, 2003 2002 --------- ------------ CURRENT ASSETS: Cash and cash equivalents $ 44,308 $ 44,211 Trade accounts receivable, net of allowance of $318 and $311, respectively 10,661 11,143 Income taxes receivable -- 105 Inventory, net of allowance of $509 and $651, respectively 7,681 7,449 Deferred income taxes - current portion 975 975 Other 1,012 798 --------- ------------ Total current assets 64,637 64,681 --------- ------------ PROPERTY AND EQUIPMENT, at cost: Furniture and fixtures 1,619 1,632 Equipment 7,610 7,240 Leasehold improvements 896 865 --------- ------------ 10,125 9,737 Less - Accumulated depreciation (7,481) (7,224) --------- ------------ Net property and equipment 2,644 2,513 DEFERRED INCOME TAXES - NON CURRENT PORTION 165 165 OTHER 281 232 --------- ------------ TOTAL ASSETS $ 67,727 $ 67,591 ========= ============ LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 1,104 $ 1,023 Taxes payable 416 -- Accrued payroll, commissions, and employee benefits 1,827 2,069 Accrued sales, use and property taxes 502 512 Accrued warranty expenses 282 274 Other accrued expenses 1,578 1,564 Deferred revenue 5,826 5,281 --------- ------------ Total current liabilities 11,535 10,723 LONG-TERM LIABILITIES 159 178 --------- ------------ TOTAL LIABILITIES 11,694 10,901 --------- ------------ COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY: Preferred stock -- -- Common stock 221 221 Additional paid-in capital 63,839 63,763 Retained earnings 19,468 18,412 Treasury stock (27,495) (25,706) --------- ------------ TOTAL STOCKHOLDERS' EQUITY 56,033 56,690 --------- ------------ TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 67,727 $ 67,591 ========= ============
SPECTRALINK CORPORATION AND SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS)
THREE MONTHS ENDED MARCH 31, ----------------------- 2003 2002 ---------- ---------- NET SALES $ 14,568 $ 13,861 COST OF SALES 4,918 4,822 ---------- ---------- Gross Profit 9,650 9,039 OPERATING EXPENSES Research and development 1,903 1,522 Marketing and selling 5,144 5,251 General and administrative 995 933 ---------- ---------- Total operating expenses 8,042 7,706 INCOME FROM OPERATIONS 1,608 1,333 INVESTMENT INCOME AND OTHER, net 95 143 ---------- ---------- INCOME BEFORE INCOME TAXES 1,703 1,476 INCOME TAX EXPENSE 647 561 ---------- ---------- NET INCOME $ 1,056 $ 915 ========== ========== BASIC EARNINGS PER SHARE $ 0.06 $ 0.05 ========== ========== BASIC WEIGHTED AVERAGE SHARES OUTSTANDING 18,590 19,190 ========== ========== DILUTED EARNINGS PER SHARE $ 0.06 $ 0.05 ========== ========== DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING 18,800 19,600 ========== ==========
SPECTRALINK CORPORATION AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS)
MARCH 31, MARCH 31, 2003 2002 --------- --------- CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 1,056 $ 915 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 257 283 Income tax benefit from the exercises of stock options 12 136 Provision for bad debts 11 69 Provision for excess and obsolete inventory 90 101 Amortization of premium on investments in securities -- 3 Changes in assets and liabilities -- Decrease in trade accounts receivable 471 1,395 Decrease (increase) in inventory (322) 257 Decrease (increase) in other assets and income taxes receivable (158) 203 Increase (decrease) in accounts payable 81 (273) Increase (decrease) in accrued liabilities, income taxes payable and deferred revenue 712 (115) --------- --------- Net cash provided by operating activities 2,210 2,974 --------- --------- CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (388) (49) --------- --------- Net cash used in investing activities (388) (49) --------- --------- CASH FLOWS FROM FINANCING ACTIVITIES: Purchases of treasury stock (1,789) (3,460) Proceeds from exercises of common stock options 64 743 --------- --------- Net cash used in financing activities (1,725) (2,717) --------- --------- INCREASE IN CASH AND CASH EQUIVALENTS 97 208 CASH AND CASH EQUIVALENTS, beginning of period 44,211 37,242 --------- --------- CASH AND CASH EQUIVALENTS, end of period $ 44,308 $ 37,450 ========= ========= SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid for income taxes $ 79 $ 28 ========= =========