Centigram Communications Reports First Quarter 2000 Results

Business Wire, Feb 17, 2000

Business Editors and High Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--Feb. 16, 2000

Centigram Communications Corporation (NASDAQ:CGRM) reported net revenues of $19.0 million for the first quarter ended January 29, 2000, compared to net revenues of $20.2 million for the first quarter ended January 30, 1999, and $21.2 million for the fourth quarter ended October 30, 1999.

Net income for the quarter was $1.2 million, or $0.18 per share, compared with a net loss of $679,000, or $0.10 per share, in the first quarter ended January 30, 1999, and net income of $1.4 million, or $0.24 per share, for the fourth quarter ended October 30, 1999.

&uot;The first quarter of 2000 was another successful quarter for Centigram, driven by strong earnings and a gross margin of 68.7%,&uot; said Bob Puette, president and chief executive officer of Centigram. &uot;These positive results reflect an increase of high-margin software products in our mix of offerings.&uot;

Centigram Communications Corporation

Centigram Communications Corporation (NASDAQ:CGRM) is a leading global provider of Internet-enabled call management, WAP-based messaging and unified communications services to mobile and landline telecom service providers. Leveraging its expertise in voice messaging, call processing and IP-enabled multimedia messaging, the company is delivering next-generation communications services that enable the transmission of voice, text, and multimedia content to wireless and wireline phones, PCs and WAP-enabled devices. The Company delivers these services on the highly integrated Series 6 platform and the Centigram Short Messaging Service Center. Centigram is headquartered at 91 East Tasman Drive, San Jose, Calif., 95134. Phone 408-944-0250, fax 408-428-3732, or Web http://www.centigram.com. Centigram has sales and support offices in North America, Europe, Asia, Latin America, and Australia.

This press release contains forward-looking statements regarding the industry and the Company. Actual results could differ materially from those projected in any forward-looking statements. The statements could be affected by the Company's &uot;Sales and Distribution&uot; and other risks as reflected in the 10-K document for fiscal year ended October 30, 1999, filed with the Securities and Exchange Commission. In addition, the Company's future success will depend in part upon the ability of the Company to continue to introduce new features and products as the Company's markets evolve, new technologies become available, and customers demand additional functionality. All trademarks and registered trademarks are the property of their respective owners.

Centigram is a registered trademark of Centigram Communications Corporation. All other trademarks and registered trademarks are the property of their respective owners.

                 CENTIGRAM COMMUNICATIONS CORPORATION
            Consolidated Condensed Statements of Operations
         (In thousands, except per share amounts - unaudited)

                                               Quarter Ended
                                        January 29,       January 30,
                                            2000             1999

Net revenue                               $19,014          $20,233
Costs and expenses:
  Cost of goods sold                        5,943            8,934
  Research and development                  3,620            4,153
  Selling, general and administrative       8,666            8,320
   Total costs and expenses                18,229           21,407
Operating income (loss)                       785           (1,174)
Other income and expense, net                 709              590
Income (loss) before income taxes           1,494             (584)
Provision for income taxes                    302               95
Net income (loss)                          $1,192            $(679)
Basic income (loss) per share               $0.20           $(0.10)
Diluted income (loss) per share             $0.18           $(0.10)
Weighted average shares - basic             6,009            6,572
Adjusted weighted average shares - diluted  6,608            6,572


                 Consolidated Condensed Balance Sheets
                      (In thousands - unaudited)

                                        January 29,      October 30,
                                           2000              1999

 Cash, cash equivalents and
  short-term investments                  $55,282          $44,698
  Accounts receivable, net                 11,328           16,829
  Inventories                               2,491            2,342
  Other assets                             13,978           14,885
  Current liabilities                      17,601           19,925
  Stockholders' equity                     65,478           58,829