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N.E.T. ANNOUNCES THIRD QUARTER FY97 RESULTS
REDWOOD CITY, Calif., January 15, 1997 -- N.E.T. (NYSE:NWK) today reported revenue of $83.3 million and net income of $6.6 million, or 31 cents per share, for the third quarter ended December 29, 1996. In the comparable period of last year, the company reported revenue of $84.6 million and net income of $8.2 million, or 39 cents per share.
For the nine month period ended December 29, 1996, N.E.T. reported revenue of $238.2 million and net income of $16.7 million, or 77 cents per share. In the comparable period of fiscal 1996, the company reported revenue of $247.1 million and net income of $22.1 million, or $1.07 per share.
"We have established a solid financial foundation for the company, built on the value and functionality of our current TDM and frame relay product platforms that continue to sell into worldwide markets. Now our focus is on rolling out new products to expand our market opportunities," said Joseph J. Francesconi, president and CEO. "We are currently preparing to launch our ATM product family in early February. At the same time, we are continuing to add new technologies to our current product platforms."
N.E.T. is in the midst of a planned series of product announcements covering new capabilities on existing platforms as well as major new platforms. The PrimeVoiceT compression module that was introduced in the second fiscal quarter has already achieved excellent market acceptance. "We are leaders in voice technology," added Joe Francesconi, "and we are already ahead of our revenue plan for our newly introduced PrimeVoice compression product."
N.E.T. introduced a number of new features for the IDNX multiservice platform in the third fiscal quarter. These are already being shipped to customers throughout the world.
The PrimeVoice product family was expanded with the introduction of the new PrimeVideoT switching system, which provides ISDN videoconference networking capabilities in a highly cost-effective manner. In North America, a PrimeVideo network was established for a healthcare provider to create a telemedicine service based on N.E.T.'s ISDN capability available from N.E.T., but not from the local carrier.
The N.E.T. PortExtenderT extends the benefits of the IDNXr multiservice platform to remote locations for a variety of capabilities such as frame relay access, multidrop services and internetwork services. This product simplifies service provisioning for digital data network (DDN) providers in Asia, Europe and Latin America. N.E.T. continued in its role as a primary provider of DDNs in the Asia-Pacific region with recent wins in China and Thailand. As a result of the success in that region, N.E.T. announced office openings in Beijing and Singapore to enhance our presence in this important market.
rame relay continues to be a growth market opportunity. N.E.T. offers a variety of solutions primarily focused on enterprise applications, including the ability to easily add frame relay to an existing IDNX network. A large, established network operated by La Poste, the French postal authority, was enhanced with N.E.T. FrameXpressT frame relay service in support of banking transactions among 14,000 offices in France.
N.E.T. intends to exhibit its new family of ATM products and its IDNX multiservice products February 4-6 at the ComNet trade show in Washington, D.C.
This press release contains forward-looking statements. These forward-looking statements are subject to risks and uncertainties. Actual results may differ materially from such forward-looking statements as a result of risks and uncertainties, including those described in the company's most recent Form 10-Q and other reports filed with the Securities and Exchange Commission.
N.E.T., headquartered in Redwood City, Calif., is a leading worldwide supplier of multiservice backbone networks used by enterprises and global carriers in more than 50 countries. N.E.T. multiservice WANs integrate voice, data, and video traffic with frame relay, LAN internetworking and ISDN capabilities for today's mission-critical applications. The company is certified to the worldwide ISO 9001 standard for design, manufacturing and servicing. Join us at our worldwide web site: net.com for further information.
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N.E.T., FrameXpress, PortExtender, PrimeVoice and PrimeVideo are trademarks, and the N.E.T. logo and IDNX are registered trademarks of Network Equipment Technologies, Inc. |
