Symmetricom Reports Third Quarter Fiscal Year 2012 Financial Results

SAN JOSE, Calif., April 25, 2012 /PRNewswire/ -- Symmetricom®, Inc. (NASDAQ: SYMM), a worldwide leader in precision time and frequency technologies, today reported financial results for its third quarter of fiscal year 2012 ended April 1, 2012.

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Net revenue for the third quarter of fiscal 2012 was $60.4 million, up $2.1 million, or 3.7%, compared to the second quarter of fiscal 2012, driven by strong performance overall in its Government and Enterprise business.  Symmetricom reported net income of $2.2 million, or $0.05 per share, for the third quarter of fiscal 2012, compared to net income of $2.4 million, or $0.06 per share, in the second quarter of fiscal 2012.

Non-GAAP net income for the third quarter of fiscal 2012 was $3.3 million, or $0.08 per share, compared to $4.2 million, or $0.10 per share, reported for the second quarter of fiscal 2012.

Cash, cash equivalents and short-term investments totaled $61.5 million as of April 1, 2012, an increase of $3.4 million from the $58.1 million reported as of January 1, 2012, reflecting strong cash inflows from operations, offset by approximately $4.0 million in stock repurchases during the third quarter of fiscal 2012.  Net cash generated from operating activities in the third quarter was $8.1 million, driven substantially by a decrease in inventories.  After subtracting approximately $1.2 million of property, plant and equipment purchases, free cash flow was approximately $6.8 million.

"We continued to execute on our strategic initiatives in the third quarter, as demonstrated by solid revenue growth and by the on-going advancement of new customer and market relationships," said Dave Cote, president and chief executive officer of Symmetricom.  "In addition, we made notable progress in reducing our inventory levels as our efforts to refine our operating model are gaining traction.  These factors, combined with strong cash flow generation and increasing customer demand for our solutions make us well positioned to deliver profitable growth in 2012 and beyond."

Business Results

Revenue in the Communications Business in the third quarter of fiscal 2012 was $32.6 million, compared to $33.3 million reported in the second quarter of fiscal 2012, and $30.4 million reported in the third quarter of fiscal 2011.  Revenue in the Government and Enterprise Business in the third quarter of fiscal 2012 was $27.8 million, compared to $25.0 million reported in the second quarter of fiscal 2012, and $20.8 million reported in the third quarter of fiscal 2011.

Fourth Quarter 2012 Guidance

Symmetricom's guidance for the fourth quarter of fiscal 2012 is as follows:

• Net revenue is expected to be in the range of $56 million to $62 million
• GAAP earnings per share is expected to be in the range of $0.04 to $0.09
• Non-GAAP earnings per share is expected to be in the range of $0.07 to $0.12

A reconciliation of GAAP and non-GAAP guidance is provided at the end of this press release.

Investor Conference Call

As previously announced, management will hold a conference call to discuss these results today, at 1:30 p.m. Pacific Time.  Investors are invited to join the conference call by dialing +1-312-470-7232 and referencing "Symmetricom."  A live webcast will also be available on the investor relations section of the company's website at http://www.symmetricom.com.  An audio replay will be available for one week and can be accessed by dialing +1-203-369-3402.

About Symmetricom, Inc.

Symmetricom (NASDAQ:SYMM), a world leader in precise time solutions, sets the world's standard for time. The company generates, distributes and applies precise time for the communications, aerospace/defense, IT infrastructure and metrology industries. Symmetricom's customers, from communications service providers and network equipment manufacturers to governments and their suppliers worldwide, are able to build more reliable networks and systems by using the company's advanced timing technologies, atomic clocks, services and solutions. All products support today's precise timing standards, including GPS-based timing, IEEE 1588 (PTP), Network Time Protocol (NTP), Synchronous Ethernet and DOCSIS® timing. Symmetricom is based in San Jose, Calif., with offices worldwide. For more information, visit: http://www.symmetricom.com or join the dialogue at http://www.twitter.com/symmetricom.

Non-GAAP Information

Certain non-GAAP financial information is included in this press release.  In the reconciliation of GAAP to non-GAAP results, Symmetricom excludes certain items related to non-cash equity-based compensation, amortization of intangible assets, restructuring charges, and manufacturing transition costs that the company does not consider indicative of its ongoing performance.  The income tax effect after these non-GAAP adjustments is determined based upon Symmetricom's estimate of its annual non-GAAP effective tax rate excluding these non-GAAP adjustments.  Symmetricom believes that excluding such items provides investors, analysts and management with a representation of the Company's core operating performance and with information useful in assessing, in conjunction with GAAP results, underlying trends in operating performance.  Management uses such non-GAAP information to evaluate financial results and to establish operational goals.  Non-GAAP information should not be considered superior to or as a substitute for data prepared in accordance with GAAP.  A reconciliation of the non-GAAP results to the GAAP results is provided in the financial schedules portion of this press release.

Free cash flow is defined as net cash provided by or used in operating activities minus purchases of property, plant and equipment.  Symmetricom believes this metric provides useful information to its investors, analysts, and management about the level of cash generated by or used in normal business operations, including the use of cash for the purchase of property, plant and equipment.  Management also views it as a measure of cash available to pay debt and return cash to stockholders.  Free cash flow is not a GAAP financial measure and should not be considered superior to or a substitute for operating cash flow or other cash flow data prepared in accordance with GAAP.

Safe Harbor

This press release contains forward-looking information 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, and is subject to the safe harbor created by those sections.  These forward-looking statements include statements concerning fourth quarter fiscal 2012 guidance and future performance, expectations regarding diversification of our revenue streams, increasing customer demand, our strategic initiatives and focus on profitable growth as well as the information regarding the usefulness of the non-GAAP financial information.  The statements in this press release are made as of the date of this press release, even if subsequently made available by Symmetricom on its website or otherwise.  Symmetricom expressly disclaims any obligation to update or revise any forward-looking statement contained herein, whether as a result of a change in its expectations, a change in any events, conditions or circumstances on which a forward-looking statement is based, or otherwise.  Symmetricom's actual results could differ materially from those projected or suggested in these forward-looking statements.  Factors that could cause future actual results to differ materially from the results projected in or suggested by such forward-looking statements include: but are not limited to, risks relating to general economic conditions in the markets we address and the telecommunications market in general, risks related to the development of our new products and services, reliance on our contract manufacturer, the effects of increasing competition and competitive pricing pressure, uncertainties associated with changing intellectual property laws, developments in and expenses related to litigation, the inability to obtain sufficient amounts of key components, the rescheduling or cancellation of key customer orders, the loss of a key customer, the effects of new and emerging technologies, the risk that excess inventory may result in write-offs, price erosion and decreased demand, fluctuations in the rate of exchange of foreign currency, changes in our effective tax rate, market acceptance of our new products and services, technological advancements, undetected errors or defects in our products, the risks associated with our international sales, potential short-term investment losses and other risks due to credit market dislocation, geopolitical risks and risk of terrorist activities, the risks associated with attempting to integrate other companies and businesses we acquire, and the risk factors listed from time to time in Symmetricom's reports filed with the Securities and Exchange Commission, including the annual report on Form 10-K for the fiscal year ended July 3, 2011 and subsequent Forms 10-Q and 8-K's.

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Contact:
Dan Madden
VP Finance & Investor Relations
+1-408-428-7929
[email protected]

SOURCE Symmetricom, Inc.