P-Com Reports Third Quarter Results - P-Com raises $11 million in
capital CAMPBELL, Calif., Oct. 30 /PRNewswire-FirstCall/ -- P-Com,
Inc. (BULLETIN BOARD: PCOM) , a worldwide provider of wireless
telecommunications equipment, reported today that net sales
increased to $5.6 million for the quarter ended September 30, 2003,
compared to $5.0 million for the second quarter of 2003 and $6.4
million for the third quarter in 2002. Operating loss for the third
quarter was $2.4 million, compared to $6.0 million in the second
quarter of 2003 and $5.8 million in the third quarter of 2002. Due
to non-cash, non-recurring items, P-Com reported a net profit for
the third quarter of 2003 of $9.4 million, or $0.22 per share,
compared to a net loss of $6 million in the second quarter of 2003,
and a net loss of $9 million in the third quarter of 2002.
Operating expenses, excluding restructuring charges of $350,000 for
the quarter, were $3.2 million, compared to $4.1 million for the
second quarter of 2003, and $6.6 million for the same period in
2002. Operating expenses, including restructuring charges, amounted
to $3.6 million for the quarterly period ended September 30, 2003,
compared to $6.9 million for the quarterly period ended June 30,
2003, and $6.6 million for the quarter ended September 30, 2002.
Gross profit margins were 20% in the quarter, which is 3% higher
than the second quarter of 2003. The higher gross margins in the
third quarter were due to non-recurrence of certain inventory
related charges incurred in the second quarter. "P-Com made
substantial improvements to its balance sheet in the third quarter
and has now essentially completed its restructuring," said P-Com
CEO Sam Smookler. "P-Com is now better positioned to face the
ongoing challenges in the marketplace and re-emerge as a leading
provider of wireless telecom equipment." Conference Call Management
will discuss P-Com's results and hold a question-and-answer session
for investors today, Oct. 30, 2003, at 2:00 p.m. Pacific / 5:00
p.m. Eastern time. To listen to the conference call by phone, dial
877-356-7051 for U.S. calls or 706-643-7695 for international
calls. Reference Conference ID #3398865. To listen to a live
broadcast over the Internet, go to http://www.p-com.com/ and click
on the Investor Relations page. A replay of the call will be
available for 90 days at http://www.p-com.com/. About P-Com, Inc.
P-Com, Inc. develops, manufactures, and markets point-to-point,
spread spectrum and point-to-multipoint, wireless access systems to
the worldwide telecommunications market. P-Com broadband wireless
access systems are designed to satisfy the high-speed, integrated
network requirements of Internet access associated with Business to
Business and E-Commerce business processes. Cellular and personal
communications service (PCS) providers utilize P-Com point-to-point
systems to provide backhaul between base stations and mobile
switching centers. Government, utility, and business entities use
P-Com systems in public and private network applications. For more
information visit http://www.p-com.com/ or call 408-866-3666. Safe
Harbor Statement Statements in this release that are forward
looking involve known and unknown risks and uncertainties, which
may cause P-Com's actual results in future periods to be materially
different from any future performance that may be suggested in this
conference call. Such factors may include, but are not limited to:
the ability to achieve positive cash flow given the Company's
existing and anticipated operating and other costs, and current
sales trends; the possible need to raise additional equity capital,
and whether that capital is available on acceptable terms, if at
all; the Company's ability to negotiate repayment terms with many
of its creditors, and settle outstanding litigation; a continued
severe worldwide slowdown in the telecommunications equipment and
services sector; fluctuations in customer demand, pricing and
competition; reliance upon subcontractors; the ability of P-Com's
customers to finance their purchases; the timing of new technology
and product introductions; and the risk of early obsolescence. Many
of these risks and uncertainties are beyond P-Com's control.
Reference is made to the discussion of risk factors detailed in
P-Com's filings with the Securities and Exchange Commission,
including its reports on Form 10-K and 10-Q. Media Contact:
Investor Contact: Greg Berardi Daniel W. Rumsey, General Counsel
415-239-7826 and Interim CFO 408-866-3666 P-COM, INC. CONDENSED
CONSOLIDATED BALANCE SHEETS (In thousands, except per share data,
unaudited) Sept 30, Dec. 31, 2003 2002 ASSETS Current assets: Cash
and cash equivalents $1,105 $861 Restricted cash 25 415 Accounts
receivable, net 4,918 4,797 Inventory 4,929 12,433 Prepaid expenses
and other assets 2,463 3,402 Assets of discontinued operations 48
2,923 Total current assets 13,488 24,831 Property and equipment,
net 4,135 10,511 Loan to Speedcom 1,100 -- Others Assets 280 381
$19,003 $35,723 LIABILITIES AND STOCKHOLDERS' EQUITY Current
liabilities: Accounts payable $4,441 $8,144 Other accrued
liabilities 8,417 6,774 Loan payable to bank 2,220 2,604
Convertible promissory notes 2,237 -- Deferred contract obligations
8,000 8,000 Liabilities of discontinued operations 349 1,085 Total
current liabilities 25,664 26,607 Long-Term Liabilities:
Convertible subordinated notes -- 22,390 Other long-term
liabilities 1,804 2,076 Total long term liabilities 1,804 24,466
Total liabilities 27,468 51,073 Series B Preferred Stock 11,626 --
Stockholders' equity: Common Stock 16 16 Additional paid-in capital
335,550 333,740 Accumulated deficit (355,765) (348,766) Accumulated
other comprehensive loss 182 (340) Common stock held in treasury,
at cost (74) -- Total stockholders' equity (20,091) (15,350) Total
liabilities and stockholders' equity $19,003 $35,723 P-COM, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (In thousands,
except per share data, unaudited) Three months ended Nine months
ended Sept 30, Sept 30, 2003 2002 2003 2002 Sales $5,569 $6,350
$15,152 $22,292 Cost of sales 4,431 5,545 12,447 19,263 Inventory
and related charges -- -- 3,734 -- Gross profit (loss) 1,138 805
(1,029) 3,029 Gross margin 20% 13% -7% 14% Operating expenses:
Research and development/ engineering 1,180 2,439 4,805 10,266
Selling and marketing 883 1,691 2,645 5,190 General and
administrative 1,154 2,475 4,303 8,665 Restructuring charge 350 --
3,712 -- Total operating expenses 3,567 6,605 15,465 24,121
Operating expense as a percentage of sales 64% 104% 102% 108%
Operating loss (2,429) (5,800) (16,494) (21,092) Interest expense
(501) (963) (1,625) (1,966) Gain on debt extinguishments 8,762 --
10,262 1,393 Other income (expense), net 2,200 (1,331) 3,116
(1,197) Profit (Loss) from continuing operations before profit
(loss) from discontinued operations, and cumulative effect of
change in accounting principle 8,032 (8,094) (4,741) (22,862) Gain
(Loss) from discontinued operations 1,367 (909) (2,258) (3,860)
9,399 (9,003) (6,999) (26,722) Cumulative effect of change in
accounting principle -- -- -- (5,500) Net profit (loss) $9,399
$(9,003) $(6,999) $(32,222) Basic net profit (loss) per share:
Profit (Loss) from continuing operations $0.19 $(0.26) $(0.12)
$(0.97) Gain (Loss) from discontinued operations 0.03 (0.03) (0.06)
(0.17) Cumulative effect of change in accounting principle -- -- --
(0.24) Basic net profit (loss) per share applicable to Common
Stockholders $0.22 $(0.29) $(0.18) $(1.38) Shares used in Basic per
share computation 42,384 31,104 39,884 23,323 Diluted net profit
(loss) per share: Profit (Loss) from continuing operations $0.05
$(0.26) $(0.12) $(0.97) Gain (Loss) from discontinued operations
0.01 (0.03) (0.06) (0.17) Cumulative effect of change in accounting
principle -- -- -- (0.24) Diluted net profit (loss) per share
applicable to Common Stockholders $0.06 $(0.29) $(0.18) $(1.38)
Shares used in Diluted per share computation 149,746 31,104 39,884
23,323 DATASOURCE: P-Com, Inc. CONTACT: media, Greg Berardi,
+1-415-239-7826, or , for P-Com, Inc.; or investors, Daniel W.
Rumsey, General Counsel and Interim CFO of P-Com, Inc.,
+1-408-866-3666, or Web site: http://www.p-com.com/
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