MultiMedia Access Announces Strong Second Quarter 1998 Results
INTERNET Video, Codec & VBX� Shipments Fuel 428% Revenue Growth
Dallas, TX (July 28, 1998) – MultiMedia Access Corporation (Nasdaq: MMAC) today reported its financial results for the quarter ended June 30, 1998. Net revenues for the second quarter of 1998 were $2.6 million, an increase of 347% from $0.6 million for the second quarter of 1997, and an increase of 40% from $1.8 million for the first quarter of 1998. The Company reported a net loss for the quarter of $1.7 million or ($0.20) per share, down from the net loss of $1.8 million or ($0.21) per share reported for the previous quarter (1Q98). As revenues continue to grow, expenses are forecast to decline as a percent of revenue and the company's quarterly results are expected to move toward profitability over the next few quarters.
Net revenues for the first six months of 1998 were $4.4 million, an increase of 428%, from $0.8 million for the first six months of 1997. MMAC's systems and products are now available from over 70 Resellers worldwide.
"We're pleased with our second quarter sales results which reflect the efforts of our Resellers", said Glenn A. Norem, CEO of MultiMedia Access Corporation. "The continued growth of our Reseller channel, our marketing alliances, and the acceptance of our systems… as evidenced by our broadband video initiative with Tektronix, Inc., our OEM relationship with Digital Equipment Corporation (recently acquired by Compaq), and our expanding Internet video business with RealNetworks, Inc.… will continue to build momentum for both our products and the company."
MultiMedia Access Corporation
Summary Statement of Income
(Unaudited)
($ in thousands except per share data)
| Three Months Ended June 30, |
Six Months Ended June 30, |
||||
| 1998 | 1997 | 1998 | 1997 | ||
| Sales | $2,566 | $574 | $4,400 | $834 | |
| Cost of sales | 1,341 | 294 | 2,241 | 411 | |
| Gross profit | 1,225 | 280 | 2,159 | 423 | |
| Operating expenses | 2,744 | 1,887 | 5,334 | 3,240 | |
| Operating loss | (1,519) | (1,607) | (3,175) | (2,817) | |
| Other expense | (226) | 35 | (361) | (161) | |
| Net loss | $(1,745) | $(1,572) | $(3,536) | $(2,978) | |
| Net loss per share - basic & diluted |
$(0.20) | $(0.20) | $(0.40) | $(0.41) | |
| Weighted average number of common shares - basic & diluted |
8,743,556 | 7,907,434 | 8,739,303 | 7,268,660 | |
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect the Company's current judgment on certain issues. Because such statements apply to future events, they are subject to risks and uncertainties that could cause the actual results to differ materially. Important factors which could cause actual results to differ materially are described in the Company's reports on Form 10-KSB and 10-QSB on file with the Securities and Exchange Commission.
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