Natural MicroSystems posts 6th quarter of sequential growth

Revenues (in thousands) for the third quarter of 2000 for NMS Communications (Formerly Natural MicroSystems) Corp. (Framingham, MA) ended Sept. 30, 2000, were $40,536 versus $20,276 for the corresponding quarter in 1999, an increase of 100%. Pro forma net income (in thousands), which excludes the effects of acquisition-related and purchased intangibles amortization charges and other non-recurring items, for the quarter, was $5,810 versus a net loss of $2,597 reported for the third quarter of 1999. Pro forma income per diluted share for the quarter was $0.15 compared to a net loss of $0.11 for the comparable period in 1999 based on 37.8 million and 22.9 million weighted average shares outstanding, respectively.

During the third quarter of 2000, Natural MicroSystems completed the acquisition of InnoMediaLogic Inc. for a total purchase price, including assumed liabilities, of approximately $189.6 million, and it took one-time charges of $3.3 million, or approximately $0.09 per share on an after-tax basis, as write-offs of purchased in-process R&D. The company generated $7.2 million in cash flow from operations and invested $2.8 million in capital expenditures during the quarter.

Revenues (in thousands) for the first nine months of 2000 were $100,384 versus $54,462 for the corresponding period in 1999, an increase of 84%. Pro forma net income (in thousands) for the first nine months was $10,660 versus a net loss of $9,779 reported for the first nine months of 1999. Pro forma income per diluted share for the first nine months was $0.32 compared to a net loss of $0.43 for the comparable period in 1999 based on 33.6 million and 22.6 million weighted average shares outstanding, respectively.

The pro forma net income per share and number of shares used in the per-share calculation for all periods presented reflect the two-for-one stock split that was effective August 7, 2000.

Edited by Ellen Jensen
Managing Editor, Wireless Networks Online