SBE, Inc. Announces Third Quarter 2006 Results
August 24 2006 - 9:00AM
Business Wire
SBE, Inc. (Nasdaq:SBEI), a leading provider of high-performance IP
storage solutions serving remote back-up and disaster recovery
applications, today reported results for the three-month and
nine-month periods ended July 31, 2006. "We are pleased that our
cash conservation efforts are beginning to have positive results.
During the quarter just ended we used less than $280,000 of cash
compared to $1.1 million in the prior quarter," said Greg Yamamoto,
President and Chief Executive Officer of SBE. "We eliminated all
non-essential expenses and our employees and Board members continue
to be paid a portion of their compensation in our stock. We remain
focused on enhancing and expanding our portfolio of IP storage
solutions designed to enable highly reliable remote storage,
back-up, and disaster recovery for small-to-medium business and
large enterprises while continuing to support our customers for our
embedded hardware products. We will be demonstrating our new
Storage Software Solutions at the upcoming Storage Networking show
in Orlando, Florida." "We are also encouraged by the continued
increase in customer evaluations of our storage software;
especially our soon to be released back-up and disaster recovery
products," continued Yamamoto. "We expect to see increased customer
adoption as we release these new storage products to market.
Currently our customers are in various stages of releasing products
that incorporate our storage software and because of revenue
delays, we felt it prudent to record a non-cash impairment charge
related to our software asset. As the IPSAN market adopts, we have
limited visibility into our customer's actual sales and product
release dates and this hampers our ability to accurately forecast
future storage solutions sales." Net sales for the third quarter
ended July 31, 2006 were $1.6 million, compared with $1.7 million
for the third quarter of fiscal 2005. Net loss for the third
quarter of fiscal 2006 was $7.8 million, or $0.76 per share, basic
and diluted, compared to a net loss for the third quarter of fiscal
2005 of $945,000, or $0.17 per share, basic and diluted. The loss
for the quarter ended July 31, 2006 includes $7.0 million of
non-cash expenses detailed below: -- $5.5 million of non-cash
expense related to an asset impairment write-down of software
acquired from PyX Technologies; -- $1.0 million of non-cash expense
primarily related to the quarterly recurring amortization of
software acquired from PyX Technologies; -- $231,000 of stock-based
compensation expense resulting from stock issued to employees in
lieu of cash salary; and -- $301,000 of stock-based compensation
expense resulting from the company's required adoption of Statement
of Financial Accounting Standards No. 123 (revised 2004),
"Share-Based Payments," ("SFAS 123R") at the beginning of the year.
Net sales for the nine months ended July 31, 2006 were $4.8
million, compared with $6.2 million for the same period in 2005.
Net loss was $13.6 million, or $1.34 per share, basic and diluted,
for the nine months ended July 31, 2006 compared to a net loss of
$1.7 million, or $0.32 per share, basic and diluted, for the same
period in 2005. The loss for the nine months ended July 31, 2006
includes $10.8 million of non-cash expenses detailed below: -- $5.5
million of non-cash expense related to an asset impairment
write-down of software acquired from PyX Technologies; -- $3.0
million of non-cash expense primarily related to the recurring
amortization of software acquired from PyX Technologies and; --
$636,000 resulting from the write-off of capitalized development
and inventory related to the discontinuance of SBE's VoIP/DSP
product line; -- $630,000 of stock-based compensation expense
resulting from stock issued to employees in lieu of cash salary;
and -- $998,000 of stock-based compensation expense resulting from
the company's required adoption of SFAS 123R at the beginning of
the year. SBE ended the third quarter of fiscal 2006 with a sales
backlog for our embedded hardware products of $1.4 million compared
to $1.2 million at October 31, 2005 and working capital (current
assets less current liabilities) of $2.4 million, compared to $5.5
million at the end of fiscal 2005. No debt existed at either date.
Conference Call Information SBE will not host a third quarter
conference call. About SBE SBE designs and provides IP-based
storage networking solutions for an extensive range of business
critical applications, including back-up and disaster recovery. SBE
delivers a portfolio of scalable, standards-based hardware and
software products designed to enable optimal performance and rapid
deployment across a wide range of next-generation storage systems.
Based in San Ramon, California, SBE is a publicly traded company
(NASDAQ: SBEI) with products sold worldwide through direct sales,
OEMs and system integration partners. More information is available
at www.sbei.com. This news release contains certain forward-looking
statements that involve risks and uncertainties, including
statements about market opportunity for new products and the demand
for services that may be offered by SBE's customers. Such
statements are only predictions and the company's actual results
may differ materially from those anticipated in these
forward-looking statements. Factors that may cause such differences
include, but are not limited to, risks related to the company's
reliance on a small number of OEM customers, rapidly changing
product requirements, the introduction of new products, market
acceptance of the company's products, and reliance on strategic
partners. These factors and others are more fully discussed in the
documents the company files from time to time with the Securities
and Exchange Commission, particularly, the company's most recent
Form 10-K and Form 10-Q. SBE and the SBE logo are registered
trademarks of SBE, Inc. All other brand or product names are
trademarks or registered trademarks of their respective holders.
-0- *T - Tables Follow - SBE, INC. CONDENSED STATEMENTS OF
OPERATIONS for the three and nine months ended July 31, 2006 and
2005 (In thousands, except per share amounts) (Unaudited) Three
months ended Nine months ended July 31, July 31, 2006 2005 2006
2005 ---------- ---------- ---------- ---------- Net sales $ 1,552
$ 1,720 $ 4,768 $ 6,241 ---------- ---------- ---------- ----------
Operating expenses: Amortization of acquired software 6,518 5 8,564
25 Cost of hardware and other revenue 1,044 1,067 3,123 3,353
Product research and development 815 626 3,164 1,672 Sales and
marketing 473 520 1,747 1,646 General and administrative 552 446
1,801 1,241 ---------- ---------- ---------- ---------- Total
operating expenses 9,402 2,664 18,399 7,937 Operating loss (7,850)
(944) (13,631) (1,696) Interest and other income (expense) 9 (1) 38
(3) ---------- ---------- ---------- ---------- Loss before income
taxes (7,641) (945) (13,593) (1,699) Income tax provision 1 - 7 5
---------- ---------- ---------- ---------- Net loss $ (7,842) $
(945) $ (13,600) $ (1,704) ========== ========== ==========
========== Basic and diluted loss per share $ (0.76) $ (0.17) $
(1.34) $ (0.32) ========== ========== ========== ========== Basic
and diluted -- shares used in per share computations 10,386 5,477
10,135 5,276 ========== ========== ========== ========== SBE, INC.
BALANCE SHEETS (In thousands) (Unaudited) July 31, October 31, 2006
2005 ----------- ----------- Current assets: Cash and cash
equivalents $ 1,362 $ 3,632 Trade accounts receivable, net 1,055
1,555 Inventories 973 1,283 Other 304 293 ----------- -----------
Total current assets 3,694 6,763 Property, plant and equipment, net
560 563 Capitalized software costs, net 2,645 11,425 Other 54 82
----------- ----------- Total assets $ 6,953 $ 18,833 ===========
=========== LIABILITIES AND STOCKHOLDERS' EQUITY Current
liabilities: Trade accounts payable $ 560 $ 743 Deferred revenue
376 138 Other accrued expenses 315 362 ----------- -----------
Total current liabilities 1,251 1,243 Other long-term liabilities
277 241 ----------- ----------- Total liabilities 1,528 1,484
----------- ----------- Stockholders' equity: Common stock 34,705
35,432 Deferred compensation - (2,402) Accumulated deficit (29,280)
(15,681) ----------- ----------- Total stockholders' equity 5,425
17,349 ----------- ----------- Total liabilities and stockholders'
equity $ 6,953 $ 18,833 =========== =========== *T
Sbe (NASDAQ:SBEI)
Historical Stock Chart
From Apr 2024 to May 2024
Sbe (NASDAQ:SBEI)
Historical Stock Chart
From May 2023 to May 2024