Sunrise Telecom stock holder information

Sunrise Telecom Announces Distribution of 2013 Annual Meeting of Stockholders Proxy Statement and other Financial Information

SAN JOSE, Calif.-June 13, 2013- 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.  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

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.

Use of 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.

Media Contact:
Ken Hagihara
Integrity Public Relations, Inc. for Sunrise Telecom     
949.768.4423 ext. 801

Ken@integritypr.net

 

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