TXP Announces Results for the Third Quarter of 2008
Friday November 14, 3:32 pm ET
GPON ONT Sales Gain Momentum in U.S. and Abroad
RICHARDSON, TX--(MARKET WIRE)--Nov 14, 2008 -- TXP Corporation (OTC BB:TXPO.OB - News), an Original Design Manufacturer (ODM) for the telecommunications industry, today announced financial results for the three months ended September 30, 2008.
Michael C. Shores, President and Chief Executive Officer of TXP, stated, "We are encouraged about our planned merger with Cambridge Industry Group (CIG) as our combined companies will now offer the widest and most advanced selection of optical network terminals (ONT) in the fiber-to-the-home (FTTH) industry. We believe that our collective capabilties will enable us to more readily support the increasing demand for cost-effective, interoperable ONTs, strengthening our foothold as a leading market provider. The merger remains on track and we look forward to hopefully completing the transaction by year end."
"The progress in our ONT division is best illustrated by the three-fold increase in revenue we achieved related to Gigabit Passive Optical Network (GPON) ONT product sales for the three months ended September 30, 2008. Although overall ONT revenues remain small, these sales represent a significant increase in active pilot programs and field trials underway with major global carriers. As such, we anticipate these pilot programs and field trials will convert into broad deployment of our technology."
"Overall, we believe we are well-positioned to capture a meaningful share of the FTTH market. Household broadband connections are expected to increase 43% by 2012 as the U.S. is currently the fastest growing market for FTTH worldwide. We were honored to be included in the September 2008 edition of Broadband Properties Magazine as one of the key players poised to take advantage of this acceleration in FTTH deployment."
Total revenue for the third quarter of 2008 was approximately $2.68 million, compared with approximately $2.67 million for the same period in 2007. Revenue increased within both the ONT and Retrofit Solutions businesses, offset by a small decline in the prototyping business. Operating loss for the third quarter was approximately $1.94 million, compared to operating loss of approximately $1.70 million for the same period last year. Net income for the third quarter of 2008 was approximately $3.03 million, or $0.03 per share, compared to net loss of approximately $1.32 million, or $0.01 per share, for the same period in 2007. Net income in the third quarter of 2008 included a non-cash gain of approximately $6.31 million and 2007 included a non-cash gain of $0.87 million related to change in fair value of derivative financial instruments.
Full results are available in the company's quarterly report on Form 10-Q for the three and nine months ended September 30, 2008 that was filed with the Securities and Exchange Commission on November 14, 2008.
About TXP
TXP is an Original Design Manufacturer (ODM) for the telecommunications industry. Based in Richardson, Texas, TXP has three primary business units: TXP-Prototyping Solutions, TXP-ONT Solutions and TXP-Retrofit Solutions. TXP-Prototyping Solutions provides pre-manufacturing services for the electronics industry that help Original Equipment Manufacturers (OEMs) bring products to market both faster and more cost effectively. TXP-ONT Solutions develops and markets, via an ODM model, a line of Carrier-Class CPE products including home gateways and the world's broadest independent family of ONT products to both OEMs and ILECs. ONTs are used in FTTH-based services to terminate the passive optical network at the home or business location, and enable integrated voice, video and high-speed internet access. TXP-Retrofit Solutions provides custom engineered kits that enable ILECs to upgrade their local access service delivery infrastructure at minimum cost and time, enabling a wide range of next generation telecom platforms to easily fit into the variety of remote OSP cabinets that have been broadly deployed over the last 30 years. For more information visit: www.txpcorp.com
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