Tioga Technologies (Nasdaq:TIGA) posted $487,000 revenue for the third quarter, and expects its fourth-quarter income to slide even further, between $250,000 to $300,000.
For the year 2000, Tioga reported revenue of $11.3 million.
President and CEO Douglas Goodyear anticipates that growth will resume only in the second half of 2002.
Tioga provides integrated circuits, software and solutions for digital subscriber line applications operating over regular phone lines.
It was spun off from Orckit Communications (Nasdaq:ORCT) a year and a half ago, but its former parent company still generates most of Tioga's revenue, in the form of royalties. Third-quarter income from Orckit was $472,000.
Royalties from Orckit will disappear altogether in the fourth quarter, Goodyear said. From then, Tioga will have to rely on itself alone to generate income.
That may be tough: contracts are rare in the shrinking telecommunications market. But Goodyear feels signs of a rally as companies use up their stocks. On the other hand, business cycles stretching out. As an equipment provider, Tioga needs a hefty cash base to survive until payments materialize.
Tioga has $19.5 million cash. It burned up $5 million in the third quarter.
Given its small size, Tioga is aiming at the growing Asian market. While American companies are already fully equipped with DSL, Asian phone companies are only now installing first- and second-generation DSL technology.
For the first quarter of 2002, Goodyear expects Tioga to achieve over $1 million revenue. New contracts will lift financials only in the second quarter, he surmises, but will really kick in only in the second half of 2002.