NICE REPORT FROM COMPETITOR, ATON:
ALTEON WEBSYSTEMS (NASDAQ)
Alteon WebSystems Reports Record Revenues for Fiscal Third Quarter
SAN JOSE, Calif., April 19 /PRNewswire/ -- Alteon WebSystems, Inc. (Nasdaq: ATON) today announced financial results for its fiscal third quarter ended March 31, 2000.
Net sales for the third quarter of fiscal 2000 were $28.2 million, up 65 percent from the $17.1 million reported in the second quarter of fiscal 2000, and up 321 percent from the $6.7 million in net sales reported in the third quarter of fiscal 1999.
Net loss for the quarter was $1.0 million, or a loss of $0.03 per share based on 37.6 million shares. This compares with a net loss of $3.9 million, or a loss of $0.11 per share based on 35.5 million shares in the second quarter of fiscal 2000, and a net loss of $2.7 million, or a loss of $0.35 per share on 7.9 million shares for the third quarter of fiscal 1999.
"We are excited about the progress we continue to make on all fronts in Q3," said Dominic Orr, president and CEO of Alteon WebSystems. "Not only did we report record revenue again this quarter, we saw a strong increase in demand for Alteon products across all our targeted customer segments: Web hosters, ISPs, content providers, large and small ebusiness, and even large traditional enterprises that are opening up their data centers for Web access.
"In the March quarter we won over 350 new customers, bringing the total number of customers to over 1,400. At the end of March we had shipped more than 8,500 Web Switches worldwide," he said.
On January 31, 2000, Alteon completed a follow-on public offering of five million shares of common stock at $103.50 per share. Of the shares sold, 1,250,000 were sold by the company and 3,750,000 were sold by stockholders. The related over-allotment option was exercised on February 25, 2000 at which time the company sold an additional 285,506 shares. The managing underwriters for the offering were Lehman Brothers, Robertson Stephens, Thomas Weisel Partners LLC and Dain Rauscher Wessels.
Fiscal Third Quarter Highlights
-- March 27, 2000: Alteon introduced its Virtual Matrix Architecture, a new approach to scaling the performance of Web switching services.
-- March 20, 2000: PC Magazine named Alteon as its Editors' Choice in one of the most comprehensive and independent server load balancing reviews.
-- March 20, 2000: Loudcloud selects Alteon Web switches to deliver Web speed and content-intelligent Web switching to its customers.
-- March 6, 2000: PC Magazine UK awarded Alteon the prestigious Editors' Choice in the industry's first Web switch shoot-out.
-- Feb. 14, 2000: Alteon implemented key mechanisms to help companies thwart some malicious Web site attacks that can potentially bring down Web sites.
-- Feb. 7, 2000: iWon.com selected Alteon as strategic Web switch supplier within its data center operations to support the growth of its popular new portal service.
-- Jan. 24, 2000: Alteon selected by myplay.com to provide high-performance Web switching products to support its fast growing online digital music service.
-- Jan. 3, 2000: Alteon announced the commercial availability of the industry's first Gigabit Ethernet adapters which can operate over common copper wiring found in the vast majority of today's building infrastructures.
Conference Call/Webcast
Alteon management will hold a conference call to discuss these results today, April 19, at 1:30 p.m. Pacific Time. Those wishing to join should dial 415-228-4564 at approximately 1:15 p.m. A replay will be available for one week after today by calling 402-220-0357. There will be a Webcast available at videonewswire.com .
This release may contain forward-looking statements that are subject to risks and uncertainties. Factors that could cause actual results to differ materially include, but are not limited to, risks related to market acceptance of our products and product enhancements, changes in the fundamental technology underlying computer networking, the interoperability of our products with our customers' networks or with the products of other vendors, the release of competitive products and other actions by competitors, need to maintain and expand our sales channels and our relationships with key participants in the Internet marketplace, economic downturns in either domestic or foreign markets. Please see the risks set forth in our Securities and Exchange Commission filings, including the Form 10Q filed on February 10, 2000.
About Alteon WebSystems
Alteon WebSystems pioneered the concept of Web switching and is a leading provider of next generation Internet infrastructure solutions designed to enable eBusinesses to meet the demands resulting from the rapid growth of the Internet. Alteon Web data center products including Web switches, server adapters and traffic management software are optimized to meet the specific challenges of managing Web traffic and provide the high performance and availability of leading networking infrastructure solutions. These Web systems are now deployed in Internet data centers around the world by premiere portals, online destinations, Web hosters and ISPs such as Yahoo!, Buy.com, iWon.com, Concentric Network, DLJdirect, DIGEX, WebTV, Global Crossing and many others. Founded in May of 1996, Alteon WebSystems employs a staff of over 300 around the world and is publicly traded on The Nasdaq Stock Market(R) under the symbol "ATON." Visit Alteon WebSystems on the World Wide Web at alteonwebsystems.com . |
