Reported net income for the first quarter of 2001 was $3.1 million compared to $12.8 million for the first quarter of 2000.
Net income on a pro-forma basis was $0.6 million in the first quarter compared to $0.5 million in the first quarter of last year an increase of 20 percent. Pro-forma results exclude gains attributed to the sale of the Company’s tower portfolio in 2000 and 2001. In addition, 2001 pro-forma earnings were also reduced to reflect a $2.5 million recovery of a Malaysian client’s account receivable balance that the Company took a charge for in 1997.
Earnings per share in the first quarter were $0.15 per basic and fully diluted share on 20.5 and 21.2 million shares respectively compared to basic earnings per share of $0.64 (on 20.2 million shares) and fully diluted earnings per share of $0.57 (on 22.6 million shares) for the first quarter of last year.
Earnings per share on a pro-forma basis in the first quarter of 2001, were $0.03 basic (on 20.5 million shares) and $0.03 fully diluted (on 21.2 million shares) compared to earnings per share of $0.03 per basic share and $0.02 per fully diluted share (on 20.2 and 22.6 million shares respectively) for the same period in the prior year.
Our results are in line with the guidance we provided with some additional earnings upside on the one-time gains we recorded, commented C. Thomas Faulders III, chairman and chief executive officer of LCC. The wireless landscape has continued to evolve and despite what has become a difficult period for the wireless industry, LCC is prepared to leverage the current market opportunity. It is ironic that we have the greatest advances and innovations in the wireless world coming to market at a time when the capital markets are shutting down for smaller carriers and some new licensees. Despite these constraining factors, we are aggressively targeting areas of the market that are growing, such as world wide mobile voice, 2.5G data design and deployment activities, and 3G design in Europe and parts of Asia. Together with appropriate cost cutting measures, a very robust balance sheet and a strong base of established, well financed customers, LCC is remarkably well positioned to weather this storm and emerge stronger and ready to aggressively grow its business.
First quarter revenue decreased 5 percent over 2000 fourth quarter revenue as a result of tight capital markets and delays in the availability of equipment for European 3G markets. Pro-forma net income from operations decreased from $2.2 million to $0.6 million and pro-forma earnings per share decreased from $0.11 to $0.03 over fourth quarter 2000. The 2001 reductions were largely attributed to one-time costs associated with bringing the Company’s expenses in line with new revenue estimates.
As previously stated, the Company anticipates revenues for the year 2001 will be between $125 and $130 million with earnings per share between $0.09 and $0.11 excluding one-time gains. The Company expects that revenue in the second and third quarters will decline compared to the first quarter as a result of the soft fixed wireless and 3G market delays but anticipates that the fourth quarter will begin to show growth resulting from technology advancements and equipment availability.
Mr. Faulders concluded, We are optimistic that the wireless services business around the world will once again begin to expand rapidly as we exit 2001. For the time being however, we have shifted our sales and operational strategies to be in line with current capital expenditure trends and are using this temporary slow down to ensure that we are well prepared to be the leading wireless infrastructure services provider to the 2002 and 2003 wireless marketplace.
