Message #23 From:
NewsBot Date: November 14, 2006 02:00:00 AM
GGBM News GigaBeam Announces Third Quarter 2006 Results
HERNDON, Va.--(BUSINESS WIRE)--GigaBeam Corporation (NASDAQ: GGBM), a world leader in providing upper
millimeter wave, ultra high speed wireless communications technologies,
announces today results for the third quarter ended September 30, 2006.
The Company’s family of products, marketed
under the WiFiber®
brand name, enable exceptionally high speed communications for transport
and access, including backhaul applications. WiFiber’s
enabling technology substantially broadens the opportunity for
ubiquitous availability of WiMax, WiFi and “triple
play” services, including voice, data and IPTV.
Revenues for the third quarter of 2006 were $2,045,941, compared to
$371,238 for the third quarter of 2005. The net loss allocated to common
shareholders for the third quarter of 2006 was $6,689,954, compared to
$3,458,679 for the comparable quarter in 2005. Net loss allocated to
common shareholders for the third quarter of 2006 includes a charge for
a beneficial conversion feature related to the issuance of our Series C
convertible preferred stock of $2,252,398; preferred stock dividends of
$319,067; and a share-based compensation expense of $725,481 reflecting
the adoption of SFAS 123R.
Lou Slaughter, GigaBeam’s Chairman and CEO,
said, “We are very excited with the results
for our third quarter. We achieved record revenues in the quarter and
recorded significantly higher margins than in the year earlier period.
We are enthusiastic about the growing market acceptance of our WiFiber
products in both domestic and international markets.”
Revenues for the nine months ended September 30, 2006 were $4,401,140,
compared to $479,438 for the comparable 2005 period. The net loss
allocated to common shareholders for the nine months ended September 30,
2006 was $17,416,101, compared to $10,327,624 for the prior year
comparable period. Net loss allocated to common shareholders for the
nine months ended September 30, 2006 includes a charge for a beneficial
conversion feature related to the issuance of our Series C convertible
preferred stock of $2,252,398; preferred stock dividends of $921,412;
and a share-based compensation expense of $1,824,028 reflecting the
adoption of SFAS 123R.
GigaBeam WiFiber products operate in the 71-76 GHz and 81-86 GHz upper
millimeter wave spectrum bands. This portion of the spectrum has been
authorized by the Federal Communications Commission and the European
Conference of Postal and Telecommunications Administrations (CEPT) for
wireless licensed wireless commercial use. Use of these frequency bands
for commercial use was pioneered by GigaBeam’s
founders.
GigaBeam’s technology, utilizing these large
blocks of contiguous spectrum, enables multi-Gigabit-per-second
communications through use of Gigabit Ethernet and other standard
protocols. The current speed achieved by GigaBeam’s
WiFiber G-1.25 product series is full duplex at one Gigabit-per-second
(equivalent to 647 T1 lines or 1,000 DSL connections) which supports
GigE protocol. GigaBeam previously announced its WiFiber G-2.7 series,
to be released in Q4, 2006 and generally available in Q1, 2007, which
will operate at 2.7 Gbps. The protocols to be supported by the G-2.7
product series include 2 x GigE (2 x 1 Gbps); OC-48 / STM-16 (2.488
Gbps); SMPTE 292M (1.485 Gbps) and both 1 and 2 Gbps fiber channel.
GigaBeam also plans deployment of future products capable of 10
Gigabits-per-second utilizing either the 10 Gigabit Ethernet or OC-192
protocol standards.
GigaBeam’s WiFiber technology is similar to
terrestrial fiber in terms of speed and reliability. WiFiber has a
substantial advantage over terrestrial fiber because WiFiber can be
deployed in a day and costs less to deploy than terrestrial fiber.
Terrestrial fiber can take months to deploy and also require significant
regulatory and environmental approvals prior to installation.
About GigaBeam Corporation
GigaBeam is a provider of high-performance wireless point-to-point
communications access solutions that operate in the licensed 71-76 GHz
and 81-86 GHz radio spectrum bands. GigaBeam equipment operates at
multi-gigabit-per-second speeds. GigaBeam Corporation headquarters is
located at 470 Springpark Place, Suite 900, Herndon, VA 20170. For more
information, visit www.gigabeam.com.
Safe Harbor Statement
Statements in this press release regarding GigaBeam's products,
services, capabilities, performance, opportunities, development and
business outlook that are forward-looking involve and are subject to
known and unknown risks, uncertainties and other factors, some of which
are beyond GigaBeam's control and difficult to predict, and could cause
actual results to differ materially from these anticipated, expressed or
forecasted in the forward-looking statements. Such risks and
uncertainties may include, but are not limited to: lack of operating
history, transitioning from a development company to an operating
company, difficulties in distinguishing GigaBeam's products and
services, ability to manufacture and deploy GigaBeam's products, lack of
or delay in market acceptance and fluctuations in customer demand,
dependence on a limited number of significant customers, reliance on
third party vendors and strategic partners, availability of raw
materials, subassemblies and components, ability to meet future capital
requirements on acceptable terms, continuing uncertainty in the
telecommunications industry and the global economy, intense competition
in the telecommunications equipment industry and resulting impact on
pricing and general financial performance, compliance with federal and
state regulatory requirements, timing, availability and success of new
technology and product introductions and the other factors discussed in
GigaBeam's filings with the Securities and Exchange Commission.
GigaBeam Corporation
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2006
2005
2006
2005
(As Restated)
(As Restated)
Net sales
$
2,045,941
$
371,238
$
4,401,140
$
479,438
Cost of sales
1,400,538
566,474
3,153,729
727,338
Gross margin
645,403
(195,236)
1,247,411
(247,900)
Operating expenses:
Research and development
1,208,201
1,200,562
3,840,557
3,944,963
General and administrative
1,209,308
797,739
4,752,691
2,759,739
Selling and marketing
1,289,368
673,507
3,825,825
1,863,402
Service, install and link operations
849,102
290,872
2,394,498
716,688
Total operating expenses
4,555,979
2,962,680
14,813,571
9,284,792
Operating loss
(3,910,576)
(3,157,916)
(13,566,160)
(9,532,692)
Other income (expense):
Interest income
40,579
1,834
190,362
8,084
Interest expense
(248,492)
(302,597)
(866,493)
(803,016)
Loss before provision for income taxes
(4,118,489)
(3,458,679)
(14,242,291)
(10,327,624)
Provision for income taxes
-
-
-
-
Net loss
$
(4,118,489)
$
(3,458,679)
$
(14,242,291)
$
(10,327,624)
Series B convertible preferred stock dividends
(319,067)
(921,412)
Effect of beneficial conversion feature related to issuance of
Series C convertible preferred stock
(2,252,398)
-
(2,252,398)
-
Net loss allocated to common shareholders
(6,689,954)
(3,458,679)
(17,416,101)
(10,327,624)
Basic and diluted loss per share
$
(1.12)
$
(.70)
$
(3.11)
$
(2.12)
Basic and diluted weighted average shares outstanding
5,978,757
4,973,156
5,604,841
4,860,948
GigaBeam Corporation
Condensed Consolidated Balance Sheet
(Unaudited)
September 30, 2006
ASSETS
Current assets:
Cash and cash equivalents
$
5,195,810
Restricted cash
-
Accounts receivable, net of allowance of $246,843 and $139,140 at
September 30, 2006 and December 31, 2005, respectively
2,100,295
Inventories
7,928,257
Prepaid expenses and other current assets
666,308
Total current assets
15,890,670
Property and equipment, net
2,072,710
Other assets
382,664
Debt issuance costs
240,023
Deferred charges
429,000
Total assets
$
19,015,067
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
2,981,392
Accrued liabilities
1,421,039
Current portion of capital lease obligations
28,783
Total current liabilities
4,431,214
Capital lease obligations, non-current
48,572
Convertible notes payable, net of discount
1,044,332
Total liabilities
5,524,118
Stockholders’ equity:
Series A redeemable preferred stock, $.001 par value, 20,000
shares authorized; 11,277 shares issued and outstanding at
September 30, 2006 and December 31, 2005
11
Series B convertible preferred stock, $.001 par value; 20,000 shares
authorized; 15,100 and 18,900 shares issued and outstanding at
September 30, 2006 and December 31, 2005, respectively
15
Series C convertible preferred stock, $.001 par value; 10,000 shares
authorized; 10,000 shares issued and outstanding at September 30,
2006
10
Common stock, $.001 par value, 40,000,000 shares authorized;
6,008,338 and 4,999,132 issued and outstanding shares at September
30, 2006 and December 31, 2005, respectively
