Issue #2003 - 28
OUTLOOK & TRENDS
Financial News From Wireless Companies
1. Motorola Announced Better than Expected Profit this quarter.
As compared to the second quarter of 2003, all six segments of
Motorola's business had higher sales and five had higher operating
earnings, excluding special items. "We are now seeing early
results from the decisive actions taken in a very difficult telecom
and semiconductor global environment over the last three
years." The company said.
2. Ericsson back in black but sees flat 2004 market
"The industry is recovering," it said in a statement. "We expect the mobile systems market in 2004 to be in line with 2003," it added, reiterating the market this year would decline more than 10 percent in dollar terms.
Ericsson's competitors, including Finnish arch-rival Nokia (NOK1V.HE: Quote, Profile, Research) , U.S. telecoms equipment maker Lucent Technologies (LU.N: Quote, Profile, Research) and Motorola (MOT.N: Quote, Profile, Research) , have also said the market is stabilising, although they have not provided specific forecasts for next year.
Alcatel, which on Thursday disappointed investors with a sales decline, said it was too early to call for a rebound in the market.
Ericsson's order book showed a slight decline to 28.1 billion crowns from 28.3 billion in the second quarter, but well above the 20.5 billion in the same period of last year.
Svanberg said order growth in the fourth quarter may not match the expected growth in sales.
Ericsson's adjusted gross margin, the broadest measure of how it manages costs in relation to revenues, rose to 35.9 percent in the third quarter from 35.1 percent in the second and Svanberg said it was likely to rise further towards 36.5 percent in the fourth quarter. Previous 1| 2| 3
3. Telelogic Announces Pre-Tax Profit for Third Quarter 2003 Telelogic, the leading global provider of solutions for advanced systems and software development for carriers, today announced financial results for the third quarter 2003, ending September 30.
Pre-tax profit amounted to US$0.6 million (SEK 5.1 million) compared to US$-2.5
million (SEK -23.3 million) for the same quarter last year. Total costs, excluding
taxes, continued to decline during the quarter and decreased 7 percent compared to
the previous quarter. Revenue for Q303 amounted to US$28.2 million (SEK 228.2
million) a 2 percent sequential growth over Q203 and 6 percent over Q103
at constant exchange rates.
New licenses and maintenance revenues totaled to US$23.2 million (SEK 188.2 million) during the third quarter. Compared with the previous quarter, this figure
represented a 4 percent increase at constant exchange rates and was identical to the
same quarter in 2002. Sales of new licenses and maintenance accounted for 82 percent
of total revenues, which was a slight increase over the previous quarter. Services
revenues amounted to US$4.9 million (SEK 40.0 million) which was 31 percent lower than Q302 at
constant exchange rates. This can be attributed to a refocusing of the company's services
operations on high margin product-related business.
4. Novatel Wireless Announces Third Quarter Results
Revenues Increase 36% Year-Over-Year and Gross Margins Improve to 27.2%
SAN DIEGO, CA.--October 27, 2003--Novatel Wireless, Inc. (Nasdaq: NVTL), a leading provider of wireless data communications access solutions, today reported financial results for the third quarter ended September 30, 2003.
Net revenues for the third quarter were approximately $8.1 million, a 36% increase from $5.9 million in the same period last year. During the quarter, gross margins significantly improved to 27.2% and the Company cut operating expenses by 50% from the prior year period. These improvements resulted in an EBITDA loss of only $169,000 for the third quarter, a $2.2 million improvement from the prior quarter, as the Company made steady progress toward cash flow break even. The net loss under GAAP was $1.8 million, a $3.2 million improvement from $4.9 million reported in the same period last year.
5. PCTEL Wireless and Licensing Revenues Grow 38 Percent Over Second Quarter; 200 Percent Over Third Quarter Last Year
HSP Product Line Divestiture
Chicago, IL October 28, 2003 PCTEL, Inc., a leading provider of wireless solutions and access technology, today announced financial results for the third quarter ended September 30, 2003. This was the first full quarter of operating results following the Companys sale of its legacy HSP modem product line to Conexant
in May 2003 as part of PCTELs previously announced wireless transition plan.
Total revenue was $4.0 million for the third quarter of 2003 compared to $12.5 million reported in the third quarter of 2002. Net loss for the third quarter of 2003 was $(2.3) million, or $(0.12) per diluted share, compared to net income of $3.2 million, or $0.16 per diluted share reported in the third quarter of 2002.
All of the revenue in the recently completed quarter was related to wireless and licensing products. For the quarter ended September 30, 2002, the company had $1.3 million of wireless and licensing revenue and $11.2 million in HSP modem product revenue. The third quarter last year was also positively impacted by a $3.8 million inventory reserve recovery in cost of goods sold that related to HSP products.
We are on track with our wireless transition plan, said Marty Singer, PCTELs Chairman and CEO. We introduced four new wireless products during the third quarter and we continued to grow revenues from our new products. DTI continues to expand, with stronger sales into both government and commercial cellular markets. Our publicly announced relationships with carriers and chipset manufacturers indicate that we are achieving real traction for Segue and DTI products.
During the third quarter, PCTEL introduced four new products: the Segue Analyzer; a highly secure version of its Segue Roaming Client; the Segue SAM or Soft Access Point, and claRiFy, a sophisticated test and measurement tool for enhancing the performance of cellular networks. The Segue Analyzer was the first product resulting from the cooperation between the Segue and DTI development teams, which was acquired in March 2003.
Cash and short-term investments ended the quarter at $108.9 million, a decrease of $2.9 million from the second quarter of 2003. The company anticipates receiving an additional $4 million in cash from the HSP modem product line divestiture in the fourth quarter ending December 31, 2003. As of September 30, 2003, the company has repurchased 1.54 million out of the 2.0 million shares authorized by the board of Directors under its two share buyback programs. During the third quarter, 257,400 shares were repurchased under these programs.
Source: Several- FierceWireless, company Press Releases
MobileInfo Comments and Advisory: Motorola
turned corner and announced a small profit after several quarters of
losses. This is a good sign. Is it because of the change at the top
of the house, with Christopher Galvin resignation. We do not think
so. In fact, the improvement in its financial picture is because of
the measures Galvin took. But the board wants Motorola to start
selling assets and faster reorganization. To that, Galvin resisted.
So he had to go. May be the stock market could rejoice. Its large
customers should not.
The general P&L outlook is
improving all across. We have a long way to go. But this upward
revenue and income trend is good for the industry and its customers.
Let the enduser organizations start deploying wireless
infrastructure and business applications.
Note: This news release may contain
forward-looking statements within the meaning of section 27A of the
Securities Act of 1933 and section 21E of Securities Exchange act of
1934 in USA. Similar provisions exist in other countries. There is no
assurance that the stipulated plans of vendors will be implemented.
MobileInfo does not warrant the authenticity of the information.
Readers should take appropriate caution in developing plans utilizing
these products, services and technology architectures. All
trademarks used in this summary are the property of their respective