VTEL hits 4Q estimates, restates previous three quarters

VTEL Corp. (Nasdaq: VTEL) met analysts' estimates in its fourth quarter Tuesday, earning $392,000, or 2 cents a share, on sales of $40.8 million. Its shares closed up 7/16, or 11 percent, to 4 1/4 ahead of the earnings report.

First Call consensus expected the maker of visual communications products and services to earn 2 cents a share in the quarter.

Despite meeting the Street number, VTEL's total sales and earnings were significantly lower than the year-ago period when it made $1.4 million, or 6 cents a share, on sales of $47.7 million.

For the year, the Austin, Texas company posted a loss of $15.6 million, or 66 cents a share, on sales of $151.6 million compared to a profit of $2.8 million, or 12 cents a share, on sales of $179.7 million.

"Our top-line performance in the fourth quarter grew 13 percent over third quarter, indicating that there is renewed strength in VTEL's core vertical markets," said CEO Stephen Von Rump in a prepared release. "We continued to reduce operating expenses, which were down $1.3 million, or seven percent, from the third quarter."

Company officials also said the company has restated previously issued financial statements for first, second and third quarters of the fiscal year. The restatements are attributed to non-cash adjustments made to certain depreciation and amortization accounts, inventory accounts, and to the reversal of previously recorded final acceptance revenues for certain Chinese orders in which final cash payment has not yet been received.

VTEL shares hit a 52-week high of 9 1/4 in April after falling to a low of 2 in March.

Two of the four analysts following the stock rate it a "hold" while the other two analysts are calling it a "strong buy.">