This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
Zhone Technologies, Inc. (NASDAQ: ZHNE), a global leader in FTTx network access solutions, today reported its financial results for the third quarter ended September 30, 2012.
Revenue for the third quarter of 2012 was $29.2 million compared to $30.8 million for the second quarter of 2012 and $30.2 million for the third quarter of 2011. Net loss for the third quarter of 2012, calculated in accordance with generally accepted accounting principles (“GAAP”), was $4.2 million or $0.14 per share compared with a net loss of $2.1 million or $0.07 per share for the second quarter of 2012 and a net loss of $2.7 million or $0.09 per share for the third quarter of 2011. Adjusted earnings before stock-based compensation, interest, taxes, and depreciation (“adjusted EBITDA”) was an adjusted EBITDA loss of $3.2 million for the third quarter of 2012, compared to an adjusted EBITDA loss of $1.7 million for the second quarter of 2012 and an adjusted EBITDA loss of $1.3 million for the third quarter of 2011.
“During the quarter, we restructured our business to focus on our core copper and fiber based product lines with a major emphasis on FiberLAN and next generation broadband products,” stated Mory Ejabat, Zhone’s chief executive officer. “As a result of that restructuring, we believe that we can return to profitability in the fourth quarter through better gross margins and substantially lower operating expenses.”
Cash, cash equivalents and short-term investments at September 30, 2012 was $10.3 million compared to $18.2 million at December 31, 2011.
Zhone will conduct a conference call and audio webcast today, October 17, 2012, at approximately 2:00 p.m. PT / 5:00 p.m. ET to review its third 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
international callers and then entering passcode 36366758. The audio webcast will be simultaneously available on the Investor Relations section of Zhone's website at
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 17842684. 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.