Forward-looking statements address matters that involve risks and uncertainties. Accordingly, there are or will be important factors that could cause our actual results to differ materially from those indicated in these statements. We believe that these factors include, but are not limited to, the following: our ability to reduce or maintain operating expenses at current levels; our ability to successfully complete the public offering as described in our Registration Statement on Form S-1 filed on August 23, 2013; our ability to translate customer demand into revenue; our ability to deliver full production releases of our newer products and the acceptance of those products by our customers and telecommunications service providers; that not all design wins nor successful lab or field trials will result in revenue for us; macroeconomic conditions which may cause our customers to defer purchasing plans or cancel any purchasing plans altogether despite successful design wins; that production ramps by our customers will continue at the same rate or at all; the continued demand by telecommunications service providers for our specific xDSL semiconductor products; our ability to maintain an adequate cash and short-term investment balance; our ability to comply with the financial covenants in our credit agreement; the failure of telecommunications service providers to implement deployment plans on schedule, or at all, despite positive engagements or successful lab or field trials; our continued ability to obtain and deliver production volumes of new and current products and technologies; our ability to generate demand and close transactions for the sale of our products; our ability to develop commercially successful products as a result of our current research and development programs; our reliance on third parties to manufacture the products we sell; competition in the markets in which we operate; risks associated with doing business abroad, including foreign currency risks; the fact that the products we sell may not satisfy shifting customer demand or compete successfully with our competitors' products; that our offering of standalone software, selling directly to telecommunications service providers, will generate any revenue for us or result in significant or any operational costs savings for the telecommunications service providers; and unexpected future costs, expenses, and financing requirements. For a more detailed discussion of how these and other risks and uncertainties could cause our actual results to differ materially from those indicated in our forward-looking statements, see our reports filed with SEC (available at
www.sec.gov), including our Annual Report on Form 10-K for the fiscal year ended December 30, 2012, our Quarterly Report on Form 10-Q for the second quarter ended June 30, 2013, and our Registration Statement on Form S-1 filed on August 23, 2013. Ikanos undertakes no obligation to update or revise these forward-looking statements to reflect events or circumstances subsequent to date of this press release.
IKANOS COMMUNICATIONS, INC.
Unaudited Condensed Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Ended Nine Months Ended
-------------------------- --------------------------
September September September September
29, 2013 30, 2012 29, 2013 30, 2012
------------ ------------ ------------ ------------
Revenue $ 16,900 $ 31,375 $ 62,167 $ 94,190
Cost of revenue 8,263 16,620 30,272 48,274
------------ ------------ ------------ ------------
Gross profit 8,637 14,755 31,895 45,916
------------ ------------ ------------ ------------
Operating expenses:
Research and
development 12,455 16,581 38,572 43,423
Selling, general
and
administrative 4,589 4,507 14,227 13,835
Restructuring - - - 1,062
------------ ------------ ------------ ------------
Total operating
expenses 17,044 21,088 52,799 58,320
------------ ------------ ------------ ------------
Loss from operations (8,407) (6,333) (20,904) (12,404)
Interest income and
other, net (147) 61 (507) (251)
------------ ------------ ------------ ------------
Loss before income
taxes (8,554) (6,272) (21,411) (12,655)
Provision for income
taxes 111 85 343 406
------------ ------------ ------------ ------------
Net loss $ (8,665) $ (6,357) $ (21,754) $ (13,061)
============ ============ ============ ============
Net loss per share
Basic and diluted $ (0.12) $ (0.09) $ (0.31) $ (0.19)
============ ============ ============ ============
Weighted average
number of shares
Basic and diluted 71,662 69,788 71,086 69,555
============ ============ ============ ============
IKANOS COMMUNICATIONS, INC.
Unaudited Condensed Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Ended
-------------------------------------------
September 29, June 30, September 30,
2013 2013 2012
------------- ------------- -------------
Revenue $ 16,900 $ 19,115 $ 31,375
Cost of revenue 8,263 9,813 16,620
------------- ------------- -------------
Gross profit 8,637 9,302 14,755
------------- ------------- -------------
Operating expenses:
Research and development 12,455 12,599 16,581
Selling, general and
administrative 4,589 4,866 4,507
Restructuring - - -
------------- ------------- -------------
Total operating expenses 17,044 17,465 21,088
------------- ------------- -------------
Loss from operations (8,407) (8,163) (6,333)
Interest income and other,
net (147) (442) 61
------------- ------------- -------------
Loss before income taxes (8,554) (8,605) (6,272)
Provision for income taxes 111 68 85
------------- ------------- -------------
Net loss $ (8,665) $ (8,673) $ (6,357)
============= ============= =============
Basic and diluted net loss per
share $ (0.12) $ (0.12) $ (0.09)
============= ============= =============
Weighted average outstanding
shares:
Basic and diluted 71,662 71,182 69,788
============= ============= =============
IKANOS COMMUNICATIONS, INC.
Unaudited Reconciliation of GAAP to Non-GAAP Condensed Consolidated
Statements of Operations
(In thousands, except per share data)
