News | May 2, 2000

Adaptive Broadband Records Q3 Increased Revenue

Source: Adaptive Broadband Corporation
Sunnyvale, CA-based Adaptive Broadband Corporation reported revenue of $8.3 million for its fiscal year 2000 third quarter, ended March 31, 2000. This is up 278% from the $2.2 million reported for the second quarter. New orders booked for AB-Access during the quarter increased 39% from the second quarter and totaled a record $27.3 million; backlog at March 31 was $47.9 million. On a sequential basis, orders were $12.5 million and $19.7 million for the first and second quarters, respectively.

The company reported a loss from continuing operations, which reflects solely the results of the AB-Access wireless broadband business, of $8.0 million, or $.23 per share. The loss per share includes $2.2 million of pre-tax nonrecurring charges relating to realignment of the company's resources driven by the divestiture of the company's legacy businesses.

Excluding the nonrecurring charges in connection with changes in certain compensation plans and relocation/recruiting costs for a number of AB-Access employees, necessary due to the reduced total employment levels in the company and expected transfer of certain facilities in the divestiture process, the results were a loss of $.19 per share. The loss is attributable to the company's investments in research and development, as well as sales and marketing of the AB-Access technology and product offerings. The company intends to continue its investments in AB-Access in order to maintain its market leadership position.

For the nine-month period ended March 31, 2000, Adaptive Broadband reported a loss from continuing operations of $19.0 million, or $.59 per share, on revenue of $11.6 million. Per-share numbers for the first two quarters of fiscal year 2000 have been restated to reflect a 2-for-1 stock split in the form of a stock dividend distributed March 30, 2000. New orders booked for the period totaled $59.5 million. AB-Access has generated $1.2 billion of contracted five-year demand since inception.

AB-Access commenced shipping during Adaptive Broadband's first quarter of fiscal year 2000 ended Sept. 30, 1999, and as such reported no revenue for comparison purposes during the third quarter of last year. The company incurred a loss from continuing operations of $4.0 million, or $.13 per share, for last year's third quarter.

Adaptive Broadband announced on Jan. 27, 2000, its intent to divest its legacy businesses to focus on the high-growth wireless broadband access market. The satellite communications, video broadcast and data radio businesses are included in discontinued operations in the company's financial statements.

Edited by Ellen Jensen