Copper Mountain Reports Q1 Loss

Net loss was $5.7M, or $0.99 per share, compared to a net loss of $5.4 million, or $0.93 per share, in 4Q03

April 21, 2004

3 Min Read

PALO ALTO, Calif. -- Copper Mountain Networks, Inc. (Nasdaq:CMTN - News), a leading provider of intelligent broadband access solutions, today announced financial results for the first quarter of 2004 and provided an update regarding pending federal securities litigation.

Net revenue for the first quarter of 2004 was $2.0 million, compared with $3.1 million in the fourth quarter of 2003. Net loss on a generally accepted accounting principles (GAAP) basis for the first quarter of 2004 was $5.7 million, or $0.99 per share, compared to a net loss of $5.4 million, or $0.93 per share in the fourth quarter of 2003.

The net loss for the first quarter of 2004 includes a non-cash stock-based compensation charge of $0.6 million. The net loss for the fourth quarter of 2003 includes a non-cash stock-based compensation charge of $0.7 million.

Net cash and short-term investments utilized during the first quarter of 2004 was $5.7 million, versus $4.6 million during the fourth quarter of 2003. Cash and short-term investments totaled $17.3 million at the end of the first quarter of 2004.

Key recent accomplishments include:

  • Announced a strategic agreement with Ericsson to create and market value-added solutions that address key issues in the architectural evolution of large carrier broadband access networks. The agreement includes a multi-year OEM contract, under which Ericsson can integrate Copper Mountain's VantEdge Access BRAS with its IP Service Engine and System Support. The initial focus of the alliance will be on large service providers in North America; Announced the shipment of VantEdge equipment for our first Asian PTT lab trial;

  • Announced four strategic distribution agreements for the Asia-Pacific region, primarily focused on China, Singapore, Malaysia and Taiwan; submitted responses to Requests for Proposals (RFPs) from one carrier in China and another in Southeast Asia;

  • Announced that the VantEdge has completed the China Telecommunications Technology Labs (CTTL) product acceptance and lab testing phases, and has entered the lab trial phase. CTTL is the organization responsible for certifying products for deployment into China's telecommunications infrastructure via the Network Access License process commonly referred to as "Type Approval";

  • The VantEdge was selected by a National Local Exchange Carrier (NLEC) with operations in several states nationwide; this NLEC has completed its first commercial deployment of VantEdge, and a second deployment is planned in the coming weeks;

  • Announced commercial deployment of VantEdge by two additional Independent Operating Companies (IOCs), OTELCO Telephone and DTC Communications.

"Our first quarter results are consistent with our guidance and reflect our ongoing transition to the rapidly-emerging BRAS market. This transition has accelerated in recent months, as evidenced by our strategic agreement with Ericsson, our entry into the Asia-Pacific market, and our first PTT lab trial in the Asia-Pacific region," said Rick Gilbert, Chairman and CEO of Copper Mountain Networks. "In parallel, our RFP response team has been extremely busy since the beginning of the year. The BRAS market has continued to gain momentum, with several large carrier BRAS RFPs reaching the proposal submission stage within the past three months. Our product maturity, price/performance, and unique suite of networking and management capabilities are very well-suited to these projects, and we are optimistic about our ability to compete for this business."

Copper Mountain Networks Inc.

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