Some of the statements included in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You should not place undue reliance on these statements. These forward-looking statements include statements that reflect the current views of our senior management with respect to future events with respect to our business and our industry in general. Statements that include the words "expect," "intend," "plan," "believe," "anticipate," "estimate," and similar statements of a future or forward-looking nature identify forward-looking statements.
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 achieve the anticipated benefits of our partnership with Alcatel-Lucent, including the strengthening of our position within the access product segment, broadening our reach among global carriers, and the potential impact on our gateway and inSIGHT businesses; our ability to make second generation G.fast product samples available to alpha customers in the third quarter; the expected revenue contributions in the second half of 2015 from inSIGHT may be less than anticipated, or nothing at all; our ability to capitalize on our access to China's telecom market through the adoption of our Velocity-3; new product revenue momentum may not materialize at the rate anticipated, or at all; the transition to new products will take longer than anticipated; our ability to manage operating expenses will be less successful than anticipated and not result in the cost reductions expected; the revenue generated by our mature products will decline at a rate greater than anticipated; that new designs and design wins will result in sales of our products at the levels anticipated, or at all; that our carrier trials will be successful and, if successful, will eventually result in field trials or market deployments; that the delays in new customer product ramps will continue longer than anticipated; that the return to sequential revenue growth will not occur by the end of the year and may take longer than anticipated; that the rate of acceptance of our new and future products, including our G.fast products, by our customers and telecommunications service providers, may be lower than anticipated; our ability to complete future products, including our G.fast products, when anticipated or at all; that the unfavorable trends in certain maturing markets, will continue longer than anticipated; that our design win pipeline will continue to expand as anticipated; macroeconomic or other conditions which may cause our customers to defer purchasing plans or cancel any purchasing plans altogether despite successful design wins or successful field trials; the continued demand by telecommunications service providers for our specific xDSL semiconductor products; our ability to continue to effectively manage our business, operating expenses, and cash position; the failure of telecommunications service providers to implement deployment plans on schedule, or at all, despite increased performance results; our ability to generate demand and close transactions for the sale of our products; competition in the markets in which we operate; and the fact that the products we sell may not satisfy shifting customer demand or compete successfully with our competitors' products. 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 year ended December 28, 2014.
IKANOS COMMUNICATIONS, INC.
Unaudited Condensed Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Ended
----------------------
March 29, March 30,
2015 2014
---------- ----------
Revenue $ 10,181 $ 14,513
Cost of revenue 5,193 7,436
---------- ----------
Gross profit 4,988 7,077
---------- ----------
Operating expenses:
Research and development 11,813 12,676
Selling, general and administrative 5,006 4,821
---------- ----------
Total operating expenses 16,819 17,497
---------- ----------
Loss from operations (11,831) (10,420)
Interest and other income (expense), net (108) 242
---------- ----------
Loss before income taxes (11,939) (10,178)
Provision for income taxes 54 127
---------- ----------
Net loss $ (11,993) $ (10,305)
========== ==========
Net loss per share
Basic and diluted $ (0.77) $ (1.04)
========== ==========
Weighted average number of shares
Basic and diluted 15,575 9,875
========== ==========
IKANOS COMMUNICATIONS, INC.
Unaudited Condensed Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Ended
------------------------------------
March 29, December 28, March 30,
2015 2014 2014
---------- ------------ ----------
Revenue $ 10,181 $ 11,517 $ 14,513
Cost of revenue 5,193 5,886 7,436
---------- ------------ ----------
Gross profit 4,988 5,631 7,077
---------- ------------ ----------
Operating expenses:
Research and development 11,813 11,218 12,676
Selling, general and administrative 5,006 4,463 4,821
---------- ------------ ----------
Total operating expenses 16,819 15,681 17,497
---------- ------------ ----------
Loss from operations (11,831) (10,050) (10,420)
Interest and other income
(expense), net (108) (239) 242
---------- ------------ ----------
Loss before income taxes (11,939) (10,289) (10,178)
Provision for income taxes 54 121 127
---------- ------------ ----------
Net loss $ (11,993) $ (10,410) $ (10,305)
========== ============ ==========
Basic and diluted net loss per share $ (0.77) $ (0.75) $ (1.04)
========== ============ ==========
Weighted average outstanding shares:
Basic and diluted 15,575 13,918 9,875
========== ============ ==========
