Ikanos Communications Announces Results for the Fourth Quarter and Fiscal Year 2012

Ikanos Communications Announces Results for the Fourth Quarter and Fiscal Year 
2012 
FREMONT, CA -- (Marketwire) -- 01/31/13 --  Ikanos Communications,
Inc. (NASDAQ: IKAN) 
Recent Highlights 


 
--  Began lab trials with Velocity(TM)-3 system
--  Q4 revenue of $31.8 million
--  FY 2012 revenue of $125.9 million
--  Q4 GAAP net loss of $(4.5) million, or $(0.06) per share
--  Q4 ending cash, cash equivalents and short-term investments of $31.2
    million

  
Ikanos Communications, Inc. (NASDAQ: IKAN), a leading provider of
advanced broadband semiconductor and software products for the
digital home, today announced its financial results for the fourth
quarter and fiscal year of 2012, ended December 30, 2012. 
"For the fourth quarter, we met the high-end of our revenue guidance
with revenue of $31.8 million while recording GAAP operating expenses
of $19.3 million, within our guidance range of $19 to 20 million,"
said Dennis Bencala, CFO of Ikanos. "We continued to effectively
manage our business and our cash position with cash totaling
approximately $31.2 million at year end."  
Omid Tahernia, president and CEO, said, "Fiscal 2012 was a pivotal
year for Ikanos in which we established a solid baseline of business
while reducing portfolio complexity and managing operating expenses
and gross margins. We completed the development of our Velocity-3
chipset and launched this industry-first NodeScale vectoring chipset
at the October Broadband World Forum. We are pleased with the
positive carrier reception we received as well as a number of service
providers who have announced their intent to invest Capex on vectored
VDSL2."  
"We also began the ramp of our Fusiv(R) family of CPE products early
in the year which by Q4 2012 represented 37% of the company's
revenue. This family of CPE products brings to market a number of
leadership features such as NodeScale vectoring and VDSL2 bonding.
Additionally we announced the newest member of this family, our
Vx185-HP, at the 2013 CES show." 
Financial Details 
 Ikanos reports its financial results in
accordance with U.S. generally accepted accounting principles (GAAP)
and additionally on a non-GAAP basis. Non-GAAP net income (loss),
where applicable, excludes the income statement effects of
stock-based compensation, restructuring charges, the amortization of
intangible assets and gains on the sale of impaired assets. Ikanos
has provided these measures because its management believes these
additional non-GAAP measures are useful to investors for performing
financial analysis as these additional measures highlight Ikanos'
recurring operating results. Ikanos' management uses these non-GAAP
measures internally to evaluate its operating performance and to plan
for its future. However, non-GAAP measures are not a substitute for
GAAP reporting. For a reconciliation of GAAP versus non-GAAP
financial information, please see the attached schedules. 
Fourth Quarter 2012 Results
 Revenue for the fourth quarter of 2012
was $31.8 million, compared to revenue of $35.4 million for the
fourth quarter of 2011 and revenue of $31.4 million for the third
quarter of 2012. GAAP gross profit for the fourth quarter of 2012 was
48%, compared to a GAAP gross profit of 56% for the fourth quarter of
2011 and GAAP gross profit of 47% for the third quarter of 2012.  
Non-GAAP gross profit for the fourth quarter of 2012 was 49%,
compared to a non-GAAP gross profit of 57% for the fourth quarter of
2011 and non-GAAP gross profit of 48% for the third quarter of 2012. 
GAAP operating expenses for the fourth quarter of 2012, which
included forecasted product tape-out expenses, were $19.3 million,
compared to GAAP operating expenses of $18.0 million for the fourth
quarter of 2011 and $21.1 million for the third quarter of 2012. 
Non-GAAP operating expenses for the fourth quarter of 2012 were $18.4
million, compared to non-GAAP operating expenses of $17.4 million for
the fourth quarter of 2011 and non-GAAP operating expenses of $20.2
million for the third quarter of 2012. 
GAAP net loss for the fourth quarter of 2012 was $(4.5) million, or a
loss of $(0.06) per share on 70.1 million weighted average shares
outstanding, compared to a GAAP net income for the fourth quarter of
2011 of $0.5 million, or $0.01 per share on 69.7 million weighted
average shares, and a GAAP net loss of $(6.4) million, or $(0.09) per
share on 69.8 million weighted average shares, for the third quarter
of 2012. 
Non-GAAP net loss for the fourth quarter of 2012 was $(3.4) million,
or a loss of $(0.05) per share on 70.1 million weighted average
shares outstanding, compared to a non-GAAP net income of $1.6
million, or $0.02 per share on 69.7 million weighted average shares,
for the fourth quarter of 2011 and a non-GAAP net loss of $(5.1)
million, or $(0.07) per share on 69.8 million weighted average
shares, for the third quarter of 2012.  
Cash, cash equivalents and short-term investments at the end of the
fourth quarter of 2012 were $31.2 million, compared to $33.4 million
at the end of the third quarter of 2012. Additionally, at the end of
the fourth quarter of 2012, inventory was $8.1 million, compared to
$6.4 million at the end of the third quarter of 2012. Current
liabilities at the end of the fourth quarter of 2012 were $24.4
million, compared to $28.1 million at the end of the third quarter of
2012. During both the third and fourth quarters of 2012, current
liabilities include an accounts receivable backed, revolving line of
credit advance of $5.0 million.  
Fiscal 2012 Results
 Revenue for fiscal year 2012 was $125.9 million,
compared with $136.6 million reported for fiscal year 2011.  
GAAP net loss for the year ended December 30, 2012 was $(17.6)
million, or $(0.25) per share on 69.7 million weighted average
shares. This compares with a net loss of $(7.5) million, or $(0.11)
per share on 68.7 million weighted average shares for fiscal year
2011. 
Non-GAAP net loss for the year ended December 30, 2012 was $(11.6)
million, or $(0.17) per share on 69.7 million weighted average shares
outstanding. This compares with a net loss of $(3.2) million, or
$(0.05) per share on 68.7 million weighted average shares outstanding
for fiscal year 2011. 
Outlook 
 Revenue is expected to be between $26 million and $28
million for the first quarter of 2013. GAAP gross profit for the
first quarter of 2013 is expected to be between 53% and 55%. Non-GAAP
gross profit is expected to improve to between 54% and 56% for first
quarter of 2013. GAAP operating expenses for first quarter of 2013
are expected to be in the range of $19 million to $20 million.
Non-GAAP operating expenses are expected to be in the range of $18
million to $19 million for first quarter of 2013. GAAP net loss for
first quarter of 2013 is expected to be in the range of approximately
$(3.7) million to $(6.3) million, or a GAAP loss per share of $(0.05)
to $(0.09). Non-GAAP net loss is expected to be in the range of
approximately $(2.4) million to $(5.0) million, or a non-GAAP loss
per share of $(0.03) to $(0.07).  
Fourth Quarter Conference Call
 Management will review the fourth
quarter and fiscal year 2012 financial results and its expectations
for subsequent periods at a conference call on January 31, 2013 at
1:30 p.m. Pacific Time. To listen to the call, please visit
http://www.ikanos.com/investor/irevents/ and click on the link
provided for the webcast or dial (888) 254-2798 and enter conference
ID 4474158. The webcast will be archived and available for 90 days at
http://www.ika
nos.com/investor/irevents/. A replay of the conference
call will be accessible until May 1, 2013 by dialing (888) 203-1112
and entering conference ID 4474158. 
About Ikanos Communications, Inc.
 Ikanos Communications, Inc.
(NASDAQ: IKAN) is a leading provider of advanced broadband
semiconductor and software products for the digital home. The
company's broadband DSL, communications processors and other
offerings power access infrastructure and customer premises equipment
for many of the world's leading network equipment manufacturers and
telecommunications service providers. For more information, visit
www.ikanos.com.  
Copyright 2013 Ikanos Communications, Inc. All Rights Reserved.
Ikanos Communications, Ikanos, the Ikanos logo, the Bandwidth without
boundaries tagline, Fusiv, Ikanos Velocity and NodeScale Vectoring
are among the trademarks or registered trademarks of Ikanos
Communications. All other trademarks mentioned herein are properties
of their respective holders. 
Safe Harbor Statement under the Private Securities Litigation Reform
Act of 1995 
 This press release contains forward-looking statements
that are subject to risks and uncertainties concerning Ikanos
Communications, including statements regarding our outlook such as
our expected revenue, gross profits, operating expenses, earnings per
share, and the anticipated benefits of non-GAAP measures, our product
testing and shipment, and anticipated benefits and acceptance of our
products. Actual events or results may differ materially from those
described in this document due to a number of risks and
uncertainties. These potential risks and uncertainties include, but
are not limited to, macroeconomic conditions which may cause our
customers to defer purchasing plans, our ability to deliver full
production releases of our newer products and the acceptance of those
products by our customers, the continued demand by telecommunications
service providers for specific xDSL semiconductor products, the
failure of service providers to implement deployment plans on
schedule or at all, our continued ability to obtain and deliver
production volumes of new and current products and technologies, our
ability to generate demand and close transactions for the sale of our
products, our ability to develop commercially successful products as
a result of our current research and development programs, our
ability to successfully execute our restructuring plan, and
unexpected future costs, expenses and financing requirements. In
addition, for a more extensive discussion of such risks and
uncertainties, which could cause actual results to differ from those
contained in the forward-looking statements, see the section entitled
"Risk Factors" in our Annual Report on Form 10-K for the fiscal year
ended January 1, 2012 filed with the Securities and Exchange
Commission (SEC) on February 23, 2012 and our Quarterly Report on
Form 10-Q for the fiscal quarter ended September 30, 2012 filed with
the SEC on November 1, 2012, as well as other reports that Ikanos
files from time to time with the SEC. Ikanos is under no obligation
to update these forward-looking statements to reflect events or
circumstances subsequent to the date of this press release. 
Image Available: http://www2.marketwire.com/mw/frame_mw?attachid=2217190 
Image Available: http://www2.marketwire.com/mw/frame_mw?attachid=2217183 
Image Available: http://www2.marketwire.com/mw/frame_mw?attachid=2217193 
Image Available: http://www2.marketwire.com/mw/frame_mw?attachid=2217201 
Image Available: http://www2.marketwire.com/mw/frame_mw?attachid=2217212 
Image Available: http://www2.marketwire.com/mw/frame_mw?attachid=2217207 
Contact information:  
Gary Good 
Trainer Communications 
(707) 837-1718
ikanos@trainercomm.com  
MKR Group
Todd Kehrli
323-468-2300