PICK: INPH @ 22 1/2
INPH = Interphase
#2 in fiber channel host bus adapters to JNIC
6.28 mm shs / 2.40 mm shs float
$11.00 million cash
REVS = 70 million
MCAP = 140 million
3rd Quarter 9/30/99
Revs = 20.5 million
Net Income = 1.3 million
3rd quarter fiber channel revenues +368%
+78% sequentially
Compare this to JNIC @ 100
which reported on 9/30/99
Revs = 25.8 million
Net Income = 2.2 million
21.8 mm shs / 4.9 mm shs float
MCAP = 2.18 Billion
or 15X the MCAP of INPH
Either INPH gets big price appreciation
or INPH gets taken out !! Win .. Win ..
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Interphase Corporation Reports Record Revenues and Earnings for Third Quarter of 1999
Fibre Channel Revenues Grow 368 Percent
DALLAS--(BUSINESS WIRE)--Oct. 21, 1999--Interphase Corporation (Nasdaq: INPH) today reported operating results for the third quarter of 1999, which included a 20-percent increase in revenues and a 77-percent increase in net income compared with the third quarter of 1998.
For the quarter ended Sept. 30, 1999, Interphase reported revenues of $20.5 million, compared with revenues of $17.0 million for the third quarter of 1998, representing a 20-percent increase. The company recorded net income of $1.3 million, or $.20 per share, during the third quarter of 1999, compared with net income of $723,000, or $.13 per share, for the quarter ended Sept. 30, 1998. Net income for the quarter increased 77 percent, and per-share earnings increased 54 percent.
For the nine months ended Sept. 30, 1999, Interphase recorded revenues of $55.3 million, compared with revenues of $50.7 million during the first nine months of 1998. The company reported net income of $2.2 million, or $.37 per share, for the nine-month period during 1999, a nine percent increase compared with net income of $1.9 million, or $.34 per share, for the first nine months of 1998.
According to Gregory B. Kalush, president and chief executive officer of Interphase, results for the third quarter set company records for quarterly revenues and earnings. He said the company continues to perform well, with particularly strong performance from the Fibre Channel product line. Third-quarter Fibre Channel revenues increased 368 percent compared with the third quarter of 1998, grew 78 percent sequentially from the second quarter of this year, and have moved Interphase into the number-two spot in Fibre Channel revenues among companies specializing in Fibre Channel host bus adapters.
"I am pleased to announce that Interphase achieved historic levels of performance during the third quarter in virtually every measure of operating success," Kalush said. "Our results during the quarter demonstrate that Interphase is extremely well positioned within some of the fastest growing markets of the computer networking industry today."
During the third quarter, Interphase also announced the divestiture of Zirca Corporation, a wholly owned subsidiary of Interphase involved in the voice-over-IP telephony services market. This transaction was finalized on Sept. 27, 1999, completing Interphase's planned exit from the voice-over-IP market. Earlier in the year, Interphase announced that it had completed the divestiture of QuesCom, a second subsidiary in the voice-over-IP market. Kalush said Interphase has intensified its management focus, engineering and financial resources on the high-growth product categories represented by Fibre Channel, high-performance networking for telecommunications servers, and targeted segments of the wide area networking market. "I am particularly enthusiastic about the future opportunities we see within the Fibre Channel market, which is growing exponentially and has emerged as a significant revenue and earnings generator for our company," Kalush said.
"Interphase holds a strong competitive advantage in the market for high-performance network connectivity solutions. As we enter the year 2000, we're confident that our high-performance product portfolio and focused business plan will enable Interphase to create an even stronger position in these markets."
Interphase Corporation designs and delivers high-performance connectivity adapters for enterprise server network environments and demanding embedded systems applications. The company is a respected leader in designing robust and reliable interfaces for local area network (LAN), storage area network (SAN) and wide area network (WAN) environments, utilizing technologies that are laying the foundation for networks in the 21st century, including ATM, Fibre Channel, remote access and virtual private networking (VPN) protocols. Headquartered in Dallas, Texas, the company markets its products to original equipment manufacturers (OEMs), distributors, systems integrators, value-added resellers (VARs) and large end-users through a worldwide direct sale force, global channels and an extensive service and support network.
Interphase is a publicly traded company and has been listed on Nasdaq (INPH) since 1984. Additional information about Interphase and its products is available through the company's Web site at www.iphase.com.
This press release contains forward-looking statements with respect to financial results and certain other matters. These statements are made under the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such risks and uncertainties include, without limitation, fluctuations in demand, the quality and price of similar or comparable networking products, access to sources of capital, general economic conditions in the company's market areas, and that future sales and growth rates for the industry and the company could be lower than anticipated.
INTERPHASE CORPORATION
Condensed Consolidated Statements of Operations
(amounts are presented in thousands, except per-share amounts)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1999 1998 1999 1998
Revenues $20,511 $17,042 $55,337 $50,718
Pre-tax income from 2,387 1,760 4,983 3,817
continuing operations
Net income 1,278 723 2,222 1,941
Net income per common & $.20 $.13 $.37 $.34
common equivalent
share
(diluted)
Weighted average common 6,288 5,580 5,984 5,640
& common equivalent
shares outstanding
Selected Condensed Balance Sheet Information
(amounts are presented in thousands)
Sept. 30, 1999 Dec. 31, 1998
Cash and marketable securities $ 11,012 $ 7,961
Accounts receivable 14,456 13,716
Inventory 14,988 13,488
Net property, plant & equipment 2,429 3,220
Total assets 53,486 50,288
Total liabilities 17,048 18,463
Redeemable stock 3,050 3,813
Total stockholders' equity 33,388 28,012
EOM-------------------------------------------------------
Some info on JNIC with INPH mention
Business and Technology: JNIC is a leading developer and manufacturer of
Fibre Channel hardware and software products that form critical elements
of SANs (storage area networks). Within the SAN architecture, JNI makes
the primary component that goes into making one of these host bus
adapters, ASICs (application specific integrated circuits) along with
software to help manage and monitor the SAN. JNI's product strategy is
to continue to develop products exclusively for SANs in order to provide
its customers with a comprehensive, one-stop-shop for their SAN product
needs.
Client Base: Compaq, EMC, LSI, Logic, Silicon Graphics (NYSE:SGI)
Amazon.com, British Airways, GTE, etc; strong client base
Top Competitors: Emulex, Hewlett Packard, Interphase, Qlogic - very
strong sector
Market potential: IDC projects that the annual market for Fibre Channel
host bus adapters will grow from $269 million in 1999 to over $1.6
billion by 2002. More importantly, since JNI expects to leverage its
technical experience and develop other SAN products, it can take part in
the expanding market for SAN products as a whole. IDC forecasts that
the market for products based on Fibre Channel technology will exceed
$23.0 billion within three years.
EOM ------------------------------------------------------- |
