Revenues for the full year were $416,850,000, compared with $296,611,000 for 1999, an increase of 41%.
Net income for the fourth quarter was $26,907,000 or $.32 per share (diluted). This includes a $10,136,000 million payment due from Marconi Communications Inc. based on their failure to meet distribution revenue goals during 2000. Without this gain and the associated tax effect, net income would have been $20,217,000 or $.24 per share (diluted). In the fourth quarter of 1999, the Company recorded net income of $237,140,000 or $2.83 per share (diluted) which included a significant gain on the Company’s Cisco investment. Without the gain on the Cisco investment and the associated tax effect, net income in the fourth quarter of 1999 would have been $7,635,000 or $.09 per share (diluted).
Net income for the full year 2000 was $77,568,000 or $.91 per share (diluted). This includes $42,886,000 from Marconi Communications Inc. recorded during the first and fourth quarters pursuant to the settlement of outstanding litigation and the subsequent distribution payment. Without these non-recurring items and the associated tax effect, net income would have been $49,264,000 or $.58 per share (diluted). Net income for 1999 was $249,070,000 or $3.05 per share (diluted). Without the gain on the Cisco investment and the associated tax effect, net income would have been $19,565,000 or $.24 per share (diluted).
We made real progress in 2000, particularly in the area of penetrating large service providers, said president and chief executive officer, John Schofield. We have now signed new or extended contracts with a number of important customers, including SBC, Sprint, Verizon, XO Communications, and others. I believe this provides a solid foundation for growing our business in 2001.
Also during the year, we expanded our product portfolio by introducing DMAX, EMAX+ and PremMAX. In the fourth quarter we recorded the first significant sale of Panorama, our Element Management System, which enables customers to provide network management and provisioning through our product platform. I believe our product platform is ideally positioned to help service providers grow their revenues and eliminate the bottleneck between the capacity of their network backbone and the burgeoning requirements of the end user.
As our record results for the fourth quarter indicate, AFC finished the year in good financial condition with robust sales and a strong balance sheet with approximately $875M in cash and securities. At a time when many telecommunications equipment vendors in the broadband access market have struggled to meet their financial goals, AFC finished the year on a strong note. Although the winter months are typically a time for slower deployment of outside plant products such as ours, and certain carriers have slowed spending and are conserving capital, we look forward to growth in 2001.
