Zhone Technologies, Inc. (NASDAQ:ZHNE), a global pioneer in FTTx network access solutions, today reported its financial results for the second quarter ended June 30, 2012.
Revenue for the second quarter of 2012 was $30.8 million compared to $27.1 million for the first quarter of 2012 and $31.3 million for the second quarter of 2011. Net loss for the second quarter of 2012, calculated in accordance with generally accepted accounting principles (“GAAP”), was $2.1 million or $0.07 per share compared with a net loss of $3.4 million or $0.11 per share for the first quarter of 2012 and a net loss of $1.9 million or $0.06 per share for the second quarter of 2011. Adjusted earnings before stock-based compensation, interest, taxes, and depreciation (“adjusted EBITDA”) was an adjusted EBITDA loss of $1.7 million for the second quarter of 2012, compared to an adjusted EBITDA loss of $3.1 million for the first quarter of 2012 and an adjusted EBITDA loss of $1.1 million for the second quarter of 2011.
"Revenue for the second quarter of 2012 grew by 14% over last quarter from broad based demand for our products both domestically and abroad," stated Mory Ejabat, Zhone's chief executive officer. "With moderate growth in revenue and improving gross margins, we’re still hopeful that we can generate positive adjusted EBITDA for the second half of 2012 which remains our primary financial goal."
Cash, cash equivalents and short-term investments at June 30, 2012 was $13.1 million compared to $18.2 million at December 31, 2011.Zhone will conduct a conference call and audio webcast today, July 18, 2012, at approximately 2:00 p.m. PT / 5:00 p.m. ET to review its second quarter 2012 results. This call is open to the public by dialing +1 (866) 713-8564 for U.S. callers and +1 (617) 597-5312 for international callers and then entering passcode 36366758. The audio webcast will be simultaneously available on the Investor Relations section of Zhone's website at http://www.zhone.com/investors/. A replay of the conference call will be available after the original call by dialing +1 (888) 286-8010 for U.S. callers and +1 (617) 801-6888 for international callers and then entering passcode 99567695. An audio webcast replay will also be available online at http://www.zhone.com/investors/ for approximately one week following the original call. Non-GAAP Financial Measures To supplement Zhone’s consolidated financial statements presented in accordance with GAAP, Zhone uses adjusted EBITDA, a non-GAAP measure Zhone believes is appropriate to enhance an overall understanding of Zhone’s past financial performance and prospects for the future. These adjustments to GAAP results are made with the intent of providing greater transparency to supplemental information used by management in its financial and operational decision-making. These non-GAAP results are among the primary indicators that management uses as a basis for making operating decisions because they provide meaningful supplemental information regarding the Company’s operational performance, including the Company’s ability to provide cash flows to invest in research and development, and to fund capital expenditures. In addition, these non-GAAP financial measures facilitate management's internal comparisons to the Company's historical operating results and comparisons to competitors' operating results. The presentation of this additional information is not meant to be considered in isolation or as a substitute for measures of financial performance prepared in accordance with GAAP. A reconciliation between net loss calculated on a GAAP basis and adjusted EBITDA on a non-GAAP basis is provided in a table immediately following the Unaudited Condensed Consolidated Statements of Comprehensive Loss.
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