Message #19 From:
NewsBot Date: August 17, 2006 01:10:00 PM
CALL News CallWave Announces Financial Results for Fourth Quarter and Year End of Fiscal 2006
SANTA BARBARA, Calif.--(BUSINESS WIRE)--Aug. 17, 2006--CallWave, Inc. (Nasdaq:CALL), a leading provider of On-Demand communications services to service providers and consumers, today reported financial results for the fourth quarter and fiscal year ended June 30, 2006.
Total revenue for the fourth quarter of 2006 was $7.7 million compared to $11.6 million reported in the fourth quarter of 2005, primarily due to the expected churn in the dial-up subscriber base. Net loss for the fourth quarter 2006 was $1.1 million, or $(0.05) per share, compared to a net income of $2.1 million, or $0.10 per diluted share reported in the fourth quarter of 2005.
Total revenue for fiscal year 2006, was $36.6 million compared to $45.5 million reported in fiscal year 2005. Net loss for fiscal year 2006 was $2.0 million, compared to net income of $11.6 million in the previous year.
CallWave ended fiscal year 2006 with $61 million in cash, cash equivalents, and marketable securities compared with $57.2 million in the prior year. In 2006 CallWave recorded a tax provision of $3.1 million compared to a tax benefit of $2.1 million in 2005.
Dave Hofstatter, President and CEO of CallWave, said, "2006 was an important time for CallWave, highlighted by positive cash flow even as we invested in new convergence opportunities. We are encouraged by the growing convergence of fixed, mobile and internet communications. Our strategy and technology are well aligned with that trend, and we are seeing early market acceptance of our On-Demand technology as a scalable, more flexible deployment option."
Conference Call Details
The CallWave Fourth Quarter 2006 teleconference and Webcast is scheduled to begin at 5:00 p.m. Eastern Time, on Thursday, August 17, 2006. To access the live Webcast, please visit the investor relations section of the Company's website http://www.callwave.com at least 30 minutes prior to the scheduled time to download any necessary audio or plug-in software. An audio replay of the call will also be available to investors beginning at 8:00 p.m. ET on August 17, 2006, through August 31, 2006, by dialing 800-405-2236, or 303-590-3000, and entering the passcode 11067582#.
About CallWave
CallWave (Nasdaq:CALL) is an On-Demand communications services company, helping service providers reduce customer churn and drive revenues by enabling new landline, Internet and mobile convergence applications. Founded in 1998, CallWave is headquartered in Santa Barbara, California. For further information, please visit www.callwave.com.
Safe Harbor Statement
Except for the historical statements contained herein, the foregoing release contains forward-looking statements, including statements regarding, among other matters, our future financial performance. These forward-looking statements are subject to risks and uncertainties, and actual results could differ materially due to several factors, including but not limited to the ability to forecast consumer behavior and recognize or respond to emerging trends, changing preferences or competitive factors, the market acceptance of our new products and product enhancements, claims regarding alleged infringement of third parties' intellectual property rights, the ability to maintain or expand our customer and partner relationships and other risks and uncertainties. Please consult the various reports and documents filed by CallWave with the U.S. Securities and Exchange Commission, including but not limited to CallWave's quarterly report for the fiscal quarter ended March 31, 2006, for factors potentially affecting the Company's future financial results. All forward-looking statements are made as of the date hereof and CallWave disclaims any responsibility to update or revise any forward-looking statement provided in this news release. The results for the fourth quarter of fiscal 2006 are not necessarily indicative of CallWave's operating results for any future periods.
CallWave is a registered trademark of CallWave, Inc. All other trademarks are the property of their respective holders.
CALLWAVE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
For the Three For the Year
Months Ended Ended
June 30, June 30,
----------------- -----------------
2006 2005 2006 2005
-------- -------- -------- --------
Revenues $7,684 $11,610 $36,594 $45,518
Cost of sales 2,813 3,865 13,088 13,026
-------- -------- -------- --------
Gross profit 4,871 7,745 23,506 32,492
Operating expenses:
Sales and marketing 1,491 1,812 6,293 9,533
Research and development 1,773 1,814 6,805 6,868
General and administrative 3,387 2,470 11,508 7,622
Loss on disposal of fixed
assets 33 4 23 4
-------- -------- -------- --------
Total operating expenses 6,684 6,100 24,629 24,027
-------- -------- -------- --------
Operating income (loss) (1,813) 1,645 (1,123) 8,465
Other gains and losses
Impairment loss - - (253) -
Interest income (expense), net 737 370 2,479 1,032
-------- -------- -------- --------
Income before income taxes (1,076) 2,015 1,103 9,497
Income tax provision (benefit) - (49) 3,086 (2,105)
-------- -------- -------- --------
Net income (loss) $(1,076) $2,064 $(1,983) $11,602
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Net income (loss) per share:
Basic $(0.05) $0.10 $(0.10) $0.72
Diluted $(0.05) $0.10 $(0.10) $0.57
Weighted-average common
shares outstanding:
Basic 20,733 19,691 20,615 16,171
Diluted 20,733 21,076 20,615 20,295
CALLWAVE, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
As of As of
June 30, 2006 June 30, 2005
-------------- --------------
ASSETS
Current assets:
Cash and cash equivalents $24,040 $16,828
Marketable securities 36,907 39,996
Restricted cash - 335
Accounts receivable; net of allowance
for doubtful accounts of $370 and
$601 2,834 5,676
Inventory - 454
Stockholder receivable 52 -
Prepaid income tax 88 113
Other current assets 921 476
-------------- --------------
Total current assets 64,842 63,878
Property and equipment, net 2,014 2,024
Deferred tax asset - 2,929
Intangibles, net 533 -
Other assets 66 414
-------------- --------------
Total assets $67,455 $69,245
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $451 $801
Accrued payroll 735 1,014
Deferred revenues 92 1,587
Other current liabilities 1,515 1,447
-------------- --------------
Total current liabilities 2,793 4,849
-------------- --------------
Stockholders' equity:
Common stock 72,119 70,296
Deferred compensation - (545)
Other comprehensive loss (143) (24)
Accumulated deficit (7,314) (5,331)
-------------- --------------
Total stockholders' equity 64,662 64,396
-------------- --------------
Total liabilities and stockholders'
equity $67,455 $69,245
============== ==============
CALLWAVE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
For the Year Ended
June 30,
---------------------
2006 2005
---------- ----------
Cash flows from operating activities:
Net income (loss) $(1,983) $11,602
Operating activity adjustments
Depreciation and amortization 826 801
Stock based compensation expense 543 188
Deferred income taxes 2,929 (1,265)
Bad debt expense 2,445 1,487
Inventory write off 314 -
Impairment of long lived assets 253 -
Loss on disposal of fixed assets 23 4
Changes in operating assets & liabilities:
Restricted cash 335 -
Accounts receivable, net of bad debt
expense 397 (3,473)
Inventory 140 (454)
Prepaid income tax 25 (113)
Other assets (349) 116
Accounts payable (350) (444)
Accrued payroll and other liabilities (220) 1,160
Income tax payable 10 (1,158)
Deferred revenue (1,495) (814)
---------- ----------
Net cash provided by operating activities 3,843 7,637
Cash flows from investing activities:
Purchase of intangible assets (550) -
Net (increase) decrease in marketable
securities 2,968 (33,017)
Purchases of property and equipment (822) (1,086)
---------- ----------
Net cash used in investing activities 1,596 (34,103)
---------- ----------
Cash flows from financing activities:
Exercises of stock options and warrants 1,773 1,882
Proceeds from initial public offering - 37,200
Costs incurred in initial public offering - (1,975)
---------- ----------
Net cash provided by financing activities 1,773 37,107
---------- ----------
Net increase in cash and cash equivalents 7,212 10,641
Cash and cash equivalents at beginning of the
period 16,828 6,187
---------- ----------
Cash and cash equivalents at end of the period $24,040 $16,828
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