C-Cor Reports Q2 Loss

C-COR reports second-quarter financials

January 20, 2005

3 Min Read

STATE COLLEGE, Pa. -- C-COR Incorporated (Nasdaq:CCBL - News), a global provider of interoperable network solutions for the Internet Protocol (IP) era that include access and transport products, software systems, and technical services, today reported its financial results for the second quarter of fiscal year 2005, ended December 24, 2004. Net sales for the second quarter were $58.5 million compared to $61.5 million for the same period last year.

Bookings for the Broadband Communications Products segment were $40.4 million, and net sales were $41.6 million for a book-to-bill ratio of .97. Bookings for the Broadband Management Solutions segment were $5.6 million, and net sales were $4.0 million for a book-to-bill ratio of 1.4. Bookings for the Broadband Network Services segment were $(8.5) million, and net sales were $12.9 million for a book-to-bill ratio of (.66). A change in the methodology in calculating backlog in the Broadband Network Services segment resulted in a reduction in the amount that the Company recognizes as backlog and a corresponding book-to-bill ratio in this segment. C-COR defines backlog as net sales anticipated over a 12-month period from customer commitments. In the second quarter, C-COR adopted more stringent criteria for recognizing customer commitments as backlog and for quantifying the amount to be included. As a result, certain less formal customer commitments in the Broadband Network Services segment are no longer included in the calculation of backlog.

The net loss for the second quarter of fiscal year 2005 was $1.7 million, compared to net income of $29.7 million for the same period last year. The loss per share for the second quarter of fiscal year 2005 was $.04 compared to earnings per diluted share of $.78 for the same period last year. Last year's second quarter results include $21.1 million received on the sale of the Company's trade claims against Adelphia Communications and affiliates that were previously written off, and the collection of approximately $1.6 million in delinquent accounts receivable that had previously been fully reserved. The gain on the sale of the trade claims is reflected on a separate line in the Statement of Operations, whereas the collection of the delinquent accounts receivable reduced selling and administrative expense for the quarter.

C-COR's results for the second quarter of fiscal year 2005 included $1.2 million of amortization related to intangible assets and $619,000 of restructuring charges. These items, which equate to $.04 on a per share basis, are included in results reported under generally accepted accounting principles (GAAP), but are typically excluded from the analyst estimates comprising the First Call consensus number. C-COR is breaking out these numbers to improve comparability of the reported GAAP results and the non-GAAP First Call number.

C-COR anticipates that net sales for the third quarter of fiscal year 2005, ending March 25, 2005, will be between $70 and $75 million with earnings (loss) per diluted share of between $(.04) and $.02. These projections include $1.2 million related to amortization of intangible assets and $85,000 of restructuring charges, or $.03 per diluted share, which are typically excluded from the First Call analyst projections. C-COR is breaking out these numbers to improve comparability of the projected GAAP results and the non-GAAP First Call number. The Company's earnings projections for the third quarter do not include any charges for a potential IPR&D (in-process research and development) charge related to the recently completed acquisition of nCUBE Corporation or amortization of intangible assets acquired from nCUBE, because the Company cannot reliably estimate these charges at this time. The valuation of intangible assets and any IPR&D charge will be determined by a third party appraisal.

C-COR Corp.

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