Eicon Technology Reports Record First Quarter Revenues
NOVEMBER 4, 1999
MONTREAL, QUEBEC, CANADA--Eicon Technology today reported revenue
of $42.8 million for the first quarter ended September 30, 1999, a
29 % increase from the same period last year. Net earnings
amounted to $55.0 thousand compared to $1.0 million, or $0.03 per
share, a year ago.
The European region fueled sales with a 51 % increase year over
year delivering 77 % of total sales. Revenue growth is attributed
to solid gains in the ISDN telco and OEM market segments, which
accounted for 45 % of total sales, generating $19.5 million in
revenue, a 71 % increase over the same period last year. Total
DIVA ISDN sales were $26.4 million, up 74 % from last year's first
quarter, contributing 62 % of total sales.
"We are pleased with our first quarter," said Peter Brojde,
Eicon's President and Chief Executive Officer. "Our continued
success in penetrating the OEM and telco markets is driving strong
and sustainable revenue growth in our DIVA ISDN product family.
While earnings were lower than the same period last year, our
results are in line with our expectations for this quarter.
Historically, Eicon delivers the bulk of its earnings in the
second half of the year, and we expect fiscal 2000 to be no
exception. We continue to project year-over-year revenue and
earnings growth following our strong financial results in 1999."
In the first quarter, Eicon further strengthened its presence in
the embedded system market. World leading videogame company SEGA
of America is now incorporating Eicon's V.90 modem technology in
its Dreamcast(R) product. Eicon also made progress in expanding
its market channels by entering into an agreement with Merisel, a
leading North-American computer hardware and software products
distributor. Merisel will distribute Eicon's product lines
throughout North America.
Eicon continues to position itself for growth by increasing its
investments in R&D resources to develop a new generation of
high-speed Internet access products for the emerging DSL market.
The Company anticipates that revenues will be generated from these
new products starting in the second half of the present fiscal
year and will ramp up in the following year.
Said Brojde: "Eicon is very well positioned in the fastest-growing
markets of the computer remote access industry. The Company has a
proven strong presence in the ISDN and WAN product segments,
notably in Europe. Our strategic partnerships in DSL technology
with Motorola, Jetstream Communications and other companies
further strengthen our capabilities in this market sector,
particularly in the United States, the world's largest connectivity market."
Eicon Technology Corporation
Eicon Technology Corporation is a worldwide provider of remote
access products for personal computers. The Company develops,
markets and supports hardware and software products for connecting
network servers and desktop and notebook PCs to corporate
networks, host computers and the Internet. Its products are sold
in more than 80 countries through a network of certified channel
partners and Original Equipment Manufacturers. Eicon Technology
shares are traded on the Montreal Exchange and Toronto Stock
Exchange under the symbol "EIC" Information about Eicon and its
products is available at eicon.com. |
