Asante Announces First Quarter Results
2/1/00 1:44:00 PM
Source: Business Wire
Business Editors/High-Tech Writers SAN JOSE, Calif.--(BUSINESS WIRE)--Feb. 1, 2000--Asante Technologies, Inc. (Nasdaq: ASNT.OB) today announced results for the first quarter of fiscal 2000. The Company announced that net sales for the first quarter ended January 1, 2000 were $9.1 million compared to $9.1 million in the fourth quarter of fiscal 1999. The first quarter of fiscal 1999, net sales were down 22% from $11.6 million. Management also reported that gross margins increased to 39% in the first quarter of fiscal 2000, from 34% in the fourth quarter of fiscal 1999 and 13% in the first quarter of fiscal 1999. Operating expenses declined by 5% to $3.4 million in the first quarter ended January 1, 2000, from $3.6 million in the fourth quarter of fiscal 1999, as a result of the Company's continued cost reduction efforts. Compared to the first quarter of fiscal 1999, operating expenses decreased 39% from $5.5 million. The Company also reported a net income of $0.2 million, or $0.02 per basic and diluted share, for the first quarter ended January 1, 2000, compared with a net loss of $0.4 million for the fourth quarter of fiscal 1999, and a net loss of $4.4 million for the first quarter of fiscal 1999. "I am pleased with the continued financial progress we are making at Asante, especially with the fact that the Company has recorded its first quarterly net income since the last quarter of fiscal 1998," said Wilson Wong, Chairman, President and CEO of Asante. "Although revenues for the first quarter of the fiscal year have been historically lower than those of our immediately preceding fourth quarter, the Company was able to achieve comparable revenues. The Company also experienced strong demand for several of its higher margin product lines, resulting in better than expected gross margins for the current quarter. Furthermore, our lower operating costs for the third consecutive quarter are indicative of the efforts of everyone in the Company to participate in cost reduction programs initiated a year ago." "Looking forward, near term revenue will continue to be affected by the erosion of the Company's Apple adapter card business and the slowing in the growth of the unmanaged hub and switch business," continued Wong. "However, the Company has been developing many key new products in the past year to bring the Company back to consistent revenue growth. Some of these products are close to completion. In order to fund the pending shipment of the advanced Gigabit Ethernet switch products and the introduction of the new copper Gigabit Ethernet products, the Company is evaluating the possibility of raising additional capital from business partners and other sources." About Asante Founded in 1988, Asante Technologies is a leading provider of high-performance networking solutions for the SOHO (small office/home office), education (including K-12 and higher education) and enterprise communications markets. The Company's SOHO products provide hardware and software solutions to simplify networking and Internet access for mobile, small and home office professionals. The Advanced Systems products target multi-service applications in education and large enterprises. For additional information, call 800/662-9686 for SOHO products, 800/303-9121 for Advanced Systems Division products, or 408/435-8388 or visit www.asante.com. This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or anticipated results, including those risks set forth under the caption "Factors Affecting Future Operating Results" in "Management's Discussion and Analysis of Financial Condition and Results of Operations" of the Company's Annual Report on Form 10-K for the year ended October 2, 1999, as amended, and in the Company's subsequent Quarterly Reports on Form 10-Q and other reports filed from time to time with the Securities and Exchange Commission. Such risks include uncertainties associated with the Company's ability to attract and retain qualified personnel, competition, and technological change. Readers should carefully review the risk factors described in such reports and other filings made by the Company from time to time with the Securities and Exchange Commission. Certain prior period balances were reclassified to conform with current period presentation. |
