BOULDER, Colo.—Equipment manufacturer Carrier Access Corp. reported second-quarter net losses of $903,000 from revenues of $24.9 million, vastly improving on the company’s year-ago net loss of $1.44 million based on revenues of $18.9 million.
The company’s stock remained relatively unchanged after the news at about $7.43 per share.
Roger Koenig, president and chief executive officer of Carrier Access, pointed out that the company has increased its development expenses by $3.3 million to $7.6 million quarter over quarter. He also pointed out that the company is cash-flow positive for the fifth consecutive quarter.
“We continue to believe that our major investments in research and development in 2006 to develop and accelerate development programs for next-generation wireless and converged business access products will favorably position us to enable the continued expansion of multimedia communication services for our customers,” stated Koenig.
In conjunction with its earnings, Carrier Access also announced a three-year supply deal with Cingular Wireless L.L.C. for next-generation network equipment. The agreement calls for Carrier Access to provide its Access MASTERseries platform, which the company said incorporates Internet Protocol management, voice and data prioritization, dynamic bandwidth re-use and transport data convergence.
Carrier Access said its MASTERseries nodes are currently installed on more than 17,000 of Cingular’s estimated 47,000 cell sites, and the new contract enables the vendor to place new nodes in the remaining 30,000 sites and to upgrade the existing sites with additional hardware and software capabilities.
Financial details of the agreement were not disclosed.
