Sunrise Telecom Announces Availability of Proxy Statement for 2013 Annual Meeting of Stockholders an
Sunrise Telecom Announces Availability of Proxy Statement for 2013 Annual Meeting of Stockholders and First Quarter 2013 Financials
SAN JOSE, Calif.--(BUSINESS WIRE)-- Sunrise Telecom Incorporated (OTC:SRTI) announced today that the proxy statement for its 2013 Annual Meeting of Stockholders will be mailed out to stockholders on Friday, June 14, 2013. The proxy statement is also available on the Company's website at www.sunrisetelecom.com/investors/. As previously announced, stockholders are being asked, among other matters, to vote on the planned sale of substantially all of the operating assets of Sunrise Telecom to VeEX Inc. The proxy statement provides additional details regarding the sale.
In addition, Sunrise also announced today that following the anticipated close of the sale of the Company's assets to VeEX, the Company intends to sell or otherwise monetize its remaining assets in an orderly manner, pay or make arrangements for payment of its liabilities and expenses, close its worldwide legal entities, and distribute the net proceeds of its asset sales to its stockholders. However, no determination has been made by the Board in regards to the means by which proceeds will be distributed to its stockholders. The final distribution values are still to be determined based on a variety of factors, including the satisfaction of lease and other facility obligations, employee severance and other employee related obligations, legal and professional services fees, wind-down costs and other related expenses. The company estimates the range of values for the distribution to stockholders will be between $0.17 and $0.23 per share in the next six to eighteen months.
The Company has also released unaudited first quarter 2013 financials as stated below:
CONSOLIDATED BALANCE SHEET | ||||||
(in thousands, except share data) | ||||||
March 31, | ||||||
2013 | ||||||
Assets | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 5,278 | ||||
Restricted Cash | 154 | |||||
Held-to-maturity investments | - | |||||
Accounts receivable, net of allowances of $34 | 3,290 | |||||
Inventories | 4,217 | |||||
Prepaid expenses and other assets | 314 | |||||
Total current assets | 13,253 | |||||
Property and equipment, net | 1,226 | |||||
Assets held and used | 5,917 | |||||
Held-to-maturity investments | - | |||||
Other assets | 590 | |||||
Total assets | $ | 20,986 | ||||
Liabilities and Stockholders' Equity | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 932 | ||||
Other accrued liabilities | 2,712 | |||||
Income taxes payable | 5 | |||||
Deferred revenue | 348 | |||||
Total current liabilities | 3,997 | |||||
Income taxes payable | 1,126 | |||||
Other non-current liabilities | 334 | |||||
Total liabilities | 5,457 | |||||
Stockholders' equity: | ||||||
Preferred stock, $0.001 par value per share; 10,000,000 shares authorized, none issued and outstanding | - | |||||
Common stock, $0.001 par value per share; 175,000,000 shares authorized; 50,377,770 shares issued and outstanding as of March 31, 2013 | 51 | |||||
Additional paid-in capital | 80,615 | |||||
Accumulated deficit | (65,287 | ) | ||||
Accumulated other comprehensive income (loss) | 150 | |||||
Total stockholders' equity | 15,529 | |||||
Total liabilities and stockholders' equity | $ | 20,986 | ||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
(in thousands) | |||||||
Three Months Ended | |||||||
March 31, | |||||||
2013 | |||||||
Net sales | $ | 4,087 | |||||
Cost of sales | 2,328 | ||||||
Gross profit | 1,759 | ||||||
Operating expenses: | |||||||
Research and development | 1,149 | ||||||
Selling and marketing | 1,785 | ||||||
General and administrative | 580 | ||||||
Impairment charges | - | ||||||
Restructuring reversals | - | ||||||
Total operating expenses | 3,514 | ||||||
Operating loss | (1,755 | ) | |||||
Other income (expense), net | (164 | ) | |||||
Loss before income taxes | (1,919 | ) | |||||
Income tax expense (benefit) | 8 | ||||||
Net income (loss) | $ | (1,927 | ) | ||||
Other comprehensive loss, net of tax | |||||||
Foreign currency translation adjustments | 47 | ||||||
Other comprehensive income (loss) | 47 | ||||||
Comprehensive income (loss) | $ | (1,880 | ) | ||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(in thousands) | |||||||
Three Months Ended | |||||||
March 31, | |||||||
2013 | |||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (1,927 | ) | ||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||
Depreciation and amortization | 236 | ||||||
Share-based compensation expense | 99 | ||||||
Restructuring Charges | - | ||||||
Impairment charges | - | ||||||
Other | 110 | ||||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 485 | ||||||
Inventories | (95 | ) | |||||
Prepaid expenses and other assets | 15 | ||||||
Accounts payable and other accrued liabilities | (90 | ) | |||||
Income taxes payable | (5 | ) | |||||
Deferred revenue | 14 | ||||||
Net cash used in operating activities | (1,158 | ) | |||||
Cash flows from investing activities: | |||||||
Restricted Cash | |||||||
Purchases of held-to-maturity investments | - | ||||||
Proceeds from held-to-maturity investments | 401 | ||||||
Capital expenditures | (6 | ) | |||||
Net cash provided by investing activities | 395 | ||||||
Cash flows from financing activities: | |||||||
Purchases of treasury stock | - | ||||||
Net cash used in financing activities | - | ||||||
Effect of exchange rate changes on cash and cash equivalents | (2 | ) | |||||
Net decrease in cash and cash equivalents | (765 | ) | |||||
Cash and cash equivalents at the beginning of the period | 6,043 | ||||||
Cash and cash equivalents at the end of the period | $ | 5,278 | |||||
Supplemental Disclosure | |||||||
Cash paid for income taxes | $ | 7 | |||||
Cash paid for interest | $ | - | |||||
About Sunrise Telecom Incorporated
Sunrise Telecom develops and delivers high-quality communications test and measurement solutions for telecom, cable and wireless networks. The Company's robust portfolio of feature-rich, easy-to-use products enables service providers to deliver premium voice, video, data, and next-generation digital multimedia services quickly, reliably, and cost-effectively. Based in San Jose, California, Sunrise Telecom distributes its products through a direct sales force and a global network of sales representatives and distributors.
Use of Non-GAAP Financial Measures
Sunrise Telecom reports financial information in accordance with generally accepted accounting principles (GAAP). Management utilizes EBITDA as a supplemental performance measure because it believes that EBITDA, while it is a non-GAAP financial measure, is a useful measure of the Company's performance because it excludes charges that may obscure the Company's operating results. Management uses EBITDA to manage and assess the profitability of the Company's business.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933, including, but not limited to, statements regarding monetization of the Company's assets and expected distributions to stockholders. Forward-looking statements often include words such as "outlook," "projected," "intends," "will," "anticipate," "believe," "target," "expect," and other statements in the future tense. These forward-looking statements are subject to many risks and uncertainties that could cause actual results to differ materially from those projected. Specific factors that may cause results to differ include the following: our announced financial results have not yet been reviewed or audited; disruptions in our business and bookings expectations as a result of the planned sale to VeEX and the planned closing of our worldwide entities; the timing and execution of our cost reduction efforts; results of employee management issues and negotiations with works councils and employee representatives; the amount of professional fees and other costs incurred in connection with monetizing our remaining assets; and the provisions we choose to make to provide for contingent liabilities. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to us on the date hereof. Sunrise Telecom assumes no obligation to update the forward-looking statements included in this press release.
Integrity Public Relations, Inc. for Sunrise Telecom
Ken Hagihara, 949.768.4423 ext. 801
Ken@integritypr.net
KEYWORDS: United States North America California
INDUSTRY KEYWORDS:
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