For the quarter, the company posted revenue of $11.6 million, an increase of 27% over the same period last year. Pro forma gross profit for the first quarter of 2001 was $2.3 million compared to $2.0 million in the first quarter last year. Reported gross profit was $1.1 million as the Company took a $1.2 million one-time charge to cost of goods sold in the first quarter primarily related to the previously announced manufacturing outsourcing agreement with Viasystems Inc.
Metawave’s pro forma net loss for the first quarter of 2001 was $9.7 million, or $0.23 per share, compared to a net loss of $7.9 in the first quarter of 2000. In the fourth quarter of 2000, the Company generated revenues of $17.8 million and a pro forma net loss of $5.9 million or $0.14 per share. Reported net loss for the first quarter of 2001 was $21.0 million, which mainly includes amortization and intangibles related to the company’s acquisition of Adaptive Telecom, Inc. in September 2000 and the charge to cost of goods sold as stated above. The $9.7 million of pro forma net loss includes the impact of the company’s revenue recognition accounting policy change that resulted in $1.2 million of deferred revenue and margin in the first quarter of 2001.
As we mentioned in our pre-announcement earlier this month, our results were negatively impacted by the slow down in the U.S. economy and telecom spending, commented Bob Hunsberger, chairman and chief executive officer of Metawave. We continue to hear from our customers that they are pleased with the quality and performance of our products, and therefore we believe that the results in this quarter were caused by a deferral of orders and not an overall reduction in demand for our products. Despite this challenging economic environment, there were significant accomplishments during the quarter, which included an important agreement with Samsung for Metawave’s embedded adaptive smart antenna technology, an increase in demand for our GSM products in Asia and the introduction of our SpotLight® 2200 Dual-Band smart antenna system that supports both CDMA cellular and PCS services.
The company maintains a strong balance sheet and ended the quarter with cash and marketable securities totaling $30 million, said Stuart Fuhlendorf, Metawave’s chief financial officer. In addition, our manufacturing agreement with Viasystems helps ensure that we are operating the business as efficiently as possible.
SOURCE: COMPANY PRESS RELEASE
