Eicon Technology Reports Strong Second Quarter Sales:
Expects Lower Earnings
JANUARY 13, 2000
MONTREAL, QUEBEC, CANADA--Eicon Technology announced today that
its sales for the second quarter ended December 31, 1999 increased
by 27 % year-over-year to $55 million as a result of the
continuing strength of its DIVA ISDN products and stronger than
anticipated sales in Europe. The Company expects that its net
income for the quarter will be approximately $0.02 per share,
which is below analysts' consensus of $0.08 per share.
Sales of Eicon's flagship DIVA ISDN products remain strong, with
60 % growth year-over- year and 43 % sequential growth. ISDN
remote access products currently represent 69 % of total sales.
Sales of WAN products continued at the level of the previous
quarter as Y2K customer concerns and deferments of projects
involving corporate networks made it difficult for the Company to
grow this product segment. These same factors have affected other
major companies in our industry and have resulted in a temporary
disruption in the purchasing patterns of end-users.
"We are pleased that sales continue to grow strongly, but the Y2K
concern was a factor which contributed to lower than anticipated
second-quarter earnings," said Peter Brojde, President and CEO of
Eicon Technology. "We are confident that our order flow will
increase and that the WAN segment performance will improve as the
year progresses. Historically, Eicon reports stronger results in
the second half of its fiscal year."
"A major milestone in the current third quarter will be the market
launch of our DIVA ADSL plus V.90 PCI card, the first of seven
ADSL products to form part of our new DIVA ADSL product family,
which addresses the fast-growing, high-speed Internet access
market," added Mr. Brojde.
The Company will be holding a conference call with financial
analysts at 11:00 AM (EST) today and this call will be simulcast
on the Internet at www.vcall.com. The Company intends to comment
on the analysts' current consensus regarding its net income for
this fiscal year.
Eicon will report its second quarter results on Thursday, February3rd, 2000.
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 Toronto Stock Exchange under the symbol
"EIC." Information about Eicon and its products is available at
eicon.com. |
