Symmetricom Updates Guidance for the Second Quarter of Fiscal 2013
SAN JOSE, Calif., Dec. 18, 2012 /PRNewswire/ — Symmetricom(®), Inc. (NASDAQ: SYMM) updated revenue and earnings per share guidance today for the second quarter of fiscal 2013, ending December 30, 2012.
Second quarter revenue is expected to range from $46.0 to $49.0 million, a revision from previous revenue guidance of $55.0 to $62.0 million. This decrease is due primarily to lower than expected revenue in two areas: U.S. government and domestic communications service provider spending. Purchases of Symmetricom products by U.S. government customers declined further in the second quarter. In addition, wireline-related purchases by communications service providers have been soft, most notably in the United States. Partially offsetting this weakness in the quarter is continued strength in shipments of the company’s Quantum(TM) SA.45s Chip Scale Atomic Clock (CSAC), a key growth initiative for the company.
“Despite the unexpected financial results this quarter, we continue to see strong long-term demand in our key growth areas such as Quantum(TM) CSAC, PackeTime® and Government Programs,” said Dave Cote, president and chief executive officer of Symmetricom. “We have focused, and will continue to focus, on controlling our expenses to effectively manage our business through this period of uncertainty.”
As a result of this updated revenue information, the company expects a GAAP loss for the second quarter of fiscal 2013 in the range of $(0.11) to $(0.05) per share and non-GAAP loss in the range of $(0.05) to $(0.01) per share. A reconciliation of GAAP and non-GAAP guidance is provided at the end of this press release.
The company expects to report second quarter financial results during the week of January 21, 2013, at which time it will provide more detailed commentary on the company’s performance and outlook.
About Symmetricom, Inc.
Symmetricom (NASDAQ:SYMM), a world leader in precise time solutions, sets the world’s standard for time. The company generates, distributes and applies precise time for the communications, aerospace/defense, IT infrastructure and metrology industries. Symmetricom’s customers, from communications service providers and network equipment manufacturers to governments and their suppliers worldwide, are able to build more reliable networks and systems by using the company’s advanced timing technologies, atomic clocks, services and solutions. All products support today’s precise timing standards, including GPS-based timing, IEEE 1588 (PTP), Network Time Protocol (NTP), Synchronous Ethernet and DOCSIS(®) timing. Symmetricom is the recipient of the following 2012 awards: Frost & Sullivan Global Technology Innovation Award, Best Carrier Ethernet Core Product at Carrier Ethernet World Congress and GNSS Leadership Product Award. Symmetricom is based in San Jose, Calif., with offices worldwide. For more information, visit: http://www.symmetricom.com or join the dialogue at http://www.twitter.com/symmetricom.
Certain non-GAAP financial information is included in this press release. In the reconciliation of GAAP to non-GAAP results, Symmetricom excludes certain items related to non-cash equity-based compensation, acquisition related costs, amortization of intangible assets, restructuring charges, and off-shore development transition costs that the company does not consider indicative of its ongoing performance. The income tax effect after these non-GAAP adjustments is determined based upon Symmetricom’s estimate of its annual non-GAAP effective tax rate excluding these non-GAAP adjustments. Symmetricom believes that excluding such items provides investors, analysts and management with a representation of the Company’s core operating performance and with information useful in assessing, in conjunction with GAAP results, underlying trends in operating performance. Management uses such non-GAAP information to evaluate financial results and to establish operational goals. Non-GAAP information should not be considered superior to or as a substitute for data prepared in accordance with GAAP. A reconciliation of the non-GAAP results to the GAAP results is provided in the financial schedules portion of this press release.
This press release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and is subject to the safe harbor created by those sections. These forward-looking statements include statements concerning second quarter fiscal 2013 guidance and future performance, expectations regarding demand for Symmetricom’s products, Symmetricom’s ability to control expenses as well as the information regarding the usefulness of the non-GAAP financial information. The statements in this press release are made as of the date of this press release, even if subsequently made available by Symmetricom on its website or otherwise. Symmetricom expressly disclaims any obligation to update or revise any forward-looking statement contained herein, whether as a result of a change in its expectations, a change in any events, conditions or circumstances on which a forward-looking statement is based, or otherwise. Symmetricom’s actual results could differ materially from those projected or suggested in these forward-looking statements. Factors that could cause future actual results to differ materially from the results projected in or suggested by such forward-looking statements include: but are not limited to, risks relating to general economic conditions in the markets we address and the telecommunications market in general, risks related to the development of our new products and services, reliance on our contract manufacturer, the effects of increasing competition and competitive pricing pressure, uncertainties associated with changing intellectual property laws, developments in and expenses related to litigation, the inability to obtain sufficient amounts of key components, the rescheduling or cancellation of key customer orders, the loss of a key customer, the effects of new and emerging technologies, the risk that excess inventory may result in write-offs, price erosion and decreased demand, fluctuations in the rate of exchange of foreign currency, changes in our effective tax rate, market acceptance of our new products and services, technological advancements, undetected errors or defects in our products, the risks associated with our international sales, potential short-term investment losses and other risks due to credit market dislocation, geopolitical risks and risk of terrorist activities, the risks associated with attempting to integrate other companies and businesses we acquire, and the risk factors listed from time to time in Symmetricom’s reports filed with the Securities and Exchange Commission, including the annual report on Form 10-K for the fiscal year ended July 1, 2012 and subsequent Forms 10-Q and 8-K.
Chief Financial Officer
SYMMETRICOM, INC. RECONCILIATION OF FORWARD-LOOKING GUIDANCE FOR NON-GAAP FINANCIAL MEASURES TO PROJECTED GAAP REVENUE AND EPS (In thousands, except per share amounts) (Unaudited) Three Months Ending December 30, 2012 ------------------------------------- Revenue Earnings /(Loss) Per Share from Continuing Operations ---------- From To From To GAAP Guidance $46,000 $49,000 ($0.11) ($0.05) Estimated Non-GAAP Adjustments Equity-based compensation expense $0.05 $0.04 Amortization of intangible assets $0.01 $0.01 Integration and restructuring charges $0.03 $0.03 Income tax effect of non-GAAP adjustments ($0.03) ($0.04) ------ Total Non-GAAP Adjustments $0.06 $0.04 Non-GAAP Guidance $46,000 $49,000 ($0.05) ($0.01) ======= ======= ====== ======
SOURCE Symmetricom, Inc.