Thanks for your insight, Noblesse. Disappointing news, but the market is over-reacting as usual, so it would be a poor time to bail. Here's the release:
Network Peripherals reports weaker-than-expected FDDI sales Monday, March 24, 1997 8:51:00 PM EST
MILPITAS, Calif.--(BUSINESS WIRE)--March 24, 1997--Network Peripherals Inc. (NPI) (NASDAQ:NPIX) said today that it is experiencing weaker-than-expected sales of its FDDI products and is expecting net sales for the quarter ending March 31, 1997 to be below the previous quarter and lower than analysts' expectations.
The Company said that it expects net sales for the quarter ending March 31, 1997 to be in a range of $11.5 - $12.5 million, an increase of 14% - 23% over the same period a year ago. NPI said it expects to report a net loss for the quarter of up to $0.08 per share.
"Although sales of our FDDI products have slowed during the quarter, we are encouraged by the unit volume growth we are seeing in our Fast Ethernet switching products," said Pauline Lo Alker, NPI's President and Chief Executive officer. Despite weak sales in Japan and in Germany, the Company said it is seeing continued growth in its other international channels.
"There is no doubt that we are experiencing some market confusion resulting in a slowdown similar to what is happening in the rest of the networking industry," Alker said. "However, we are staying the course and continuing to make planned progress against our major corporate goals, namely, growth investments in our Fast Ethernet switching business, expansion of our international distribution channels and steadily bringing new products and technologies to market," Alker said.
The Company said that it expects to announce results for the quarter ending March 31, 1997 on Wednesday, April 23.
Statements in this release are forward-looking and have been made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The future events described in such statements involve risks and uncertainties, including:
-- the magnitude, mix, and pricing of actual orders for the Company's products, including demand by OEM customers for custom products;
-- the ability of the Company to fill such orders by March 31, 1997, including uncertainties with respect to the availability of inventory; and,
-- the level of actual spending that may be incurred by the Company in the quarter ending March 31, 1997.
About Network Peripherals
Network Peripherals Inc. designs, manufactures and markets high- performance networking solutions for workgroups. These products are designed to enhance the bandwidth and performance of client/server networks, embrace all popular high-speed technologies and preserve the end-user's current Ethernet investments. With the introduction of the NuSwitch line, Network Peripherals now offers more choices in stackable, workgroup switching hubs than any other vendor.
In addition, all NPI products are backed by Network Peripherals' unparalleled NuCare support and service policy, and are designed to provide the lowest cost of ownership of any workgroup networking solution. Network Peripherals maintains corporate headquarters, R&D, engineering and manufacturing in Milpitas, Calif. with additional R&D, engineering and manufacturing facilities in Taipei, Taiwan, and regional offices throughout the world. For more information about Network Peripherals call 1-800/NPI-8855 or go to npix.com .
c Business Wire. All rights reserved.
Additional sources of information
Company Profile - From E*TRADE: NPIX
Stock Charts - From Quote.Com: NPIX
SEC Filings - From EDGAR Online: NPIX
Tell Me More - From Infoseek
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