INRG 35th consecutive profitable quarter
Tuesday October 24, 6:05 am Eastern Time
Press Release
SOURCE: INRANGE Technologies Corporation
INRANGE Technologies Reports Record Revenues
MOUNT LAUREL, N.J., Oct. 24 /PRNewswire/ -- INRANGE Technologies Corporation (Nasdaq: INRG - news), a leading provider of networking and switching products for storage, data and telecommunications networks, today reported record revenues of $64.1 million for the quarter ended September 30, 2000, and net income, excluding a non-recurring charge, of $5.2 million.
THIRD QUARTER RESULTS DRIVEN BY 147% GROWTH IN ``OPEN STORAGE NETWORKING''
BUSINESS
Revenues for the third quarter were $64.1 million, a 28% increase over third quarter 1999, and a 23% improvement over the second quarter 2000.
Revenues in the open storage networking business (which includes fibre channel directors and optical networking equipment), for the third quarter 2000, totaled $14.1 million, a 147% increase over the third quarter of 1999, and a 34% improvement over the second quarter 2000. The revenue increase is primarily attributable to sales of the FC/9000(TM) Director, which was released for general availability during the quarter.
Excluding non-recurring charges, the company reported net income of $5.2 million and diluted earnings per share of $0.07 for the third quarter 2000. Excluding unusual gains, the company reported earnings of $7.9 million and diluted earnings per share of $0.10 for the third quarter 1999.
During the quarter, the company recorded a pre-tax charge of $10.0 million for the write-off of in-process technology associated with the August 2000 acquisition of Varcom Corporation. As a result, the company reported a net loss of $0.8 million or $0.01 per diluted share. During the third quarter 1999, the company's reported net income of $13.2 million, or $0.18 per diluted share, included a pre-tax gain of $9.0 million from investments and the sale of real estate.
RESULTS FOR THE FIRST NINE MONTHS
Revenues for the nine-month period ended September 30, 2000, were $162.5 million, a 7% increase over the same period in 1999. In the open storage networking business, revenues increased 145% to $30.6 million from $12.5 million in the prior year period.
For the nine-month period, the company reported net income of $12.8 million and diluted earnings per share of $0.17, excluding the effects of the technology write-off associated with the acquisition of Varcom. Including the write-off, net income was $6.9 million, or $0.09 diluted earnings per share. For the nine-month period of 1999, excluding the effects of investment gains, a gain on the sale of real estate, and a special restructuring charge, the company reported net income of $15.2 million and $0.20 diluted earnings per share. Including these unusual items, the net income was $19.3 million and $0.26 diluted earnings per share.
The company has added 211 sales, service and engineering personnel since the end of the third quarter 1999, primarily to support the company's Open Storage Networking initiative lead by the new FC/9000 fibre channel director.
``We are pleased with our record revenues and strong operating margins in the quarter. This is our thirty-fifth consecutive profitable quarter, after excluding unusual or non-recurring items,'' said Greg Grodhaus, President and Chief Executive Officer of INRANGE. ``For 32 years, INRANGE has been delivering innovative solutions to the large scale, enterprise level, mission critical marketplace. In keeping with that tradition, it is gratifying to see the enthusiastic acceptance and demand for our new fibre channel director.''
INRANGE's IN-VSN(TM) Storage Networking family includes the industry's first and only 64 port fibre channel director -- and the company's release of its new 128 port director is scheduled for the first quarter 2001 -- optical networking products (dense wavelength division multiplexing) and channel extension/storage over WAN products. The Professional Services, systems and consulting engineering, and customer service organizations provide a broad array of planning, consulting, implementation, and maintenance services. Technology partnerships and alliances with companies such as QLogic, Veritas and Tivoli will provide more resources, interoperability, and value to INRANGE customers.
``We help our customers plan, implement, maintain and grow their SANs with our products and with the expertise of our 400-person globally dispersed sales and services organization. Partners like QLogic help us create end-to-end SAN solutions from the HBA in the server itself, through the departmental or edge switches, to the data center directors, which are becoming the backbone of today's enterprise SAN. Using this enterprise SAN as a base, we then leverage our networking, storage over WAN and DWDM technologies to create a Virtual Storage Network, linking SANs around the world regardless of geographical boundaries. By combining these competencies, resources and technologies, we help our customers deploy and connect centrally managed operations such as 'virtual' SANs, disk mirroring and disaster recovery applications from the data center -- to the campus or ''Metro`` environments -- to anywhere in the world,'' added Grodhaus.
THIRD QUARTER HIGHLIGHTS
* In August, INRANGE completed the acquisitions of Varcom Corporation and
Computerm Corporation for an aggregate purchase price of approximately
$55 million. These acquisitions complement and expand the virtual
storage networks, datacom and telecom business, and service
capabilities.
* In September, INRANGE completed an initial public offering of
8.85 million shares at $16 per share, giving the company significant
liquidity and the ability to fund ongoing initiatives, expand its
product suite and broaden its market opportunities.
* INRANGE also announced in September that it had entered into a worldwide
reseller agreement with Hewlett-Packard for HP to resell INRANGE's
IN-VSN 9801 SNS storage networking systems and DWDM optical networking
products.
* INRANGE's IN-VSN FC/9000 fibre channel director was voted "most
innovative product of the year" at Forum STOCKAGE 2000, one of Europe's
largest exhibitions for storage networking vendors.
* The company achieved record level service revenues, in excess of
$10 million, in the quarter, leveraging its global service capabilities
with demand for its FC/9000 and other open storage networking products.
SUBSEQUENT DEVELOPMENTS
* In October, INRANGE announced that IBM will sell the IN-VSN FC/9000
fibre channel director for the IBM eServer z900 FICON(TM) networks, as
well as Open Systems Fibre Channel Storage Networks (SANs). The general
availability of the FC/9000 from IBM is set for December 8, 2000.
* INRANGE announced a strategic relationship with Tivoli in October and
disclosed that the IN-VSN FC/9000, the industry's largest capacity fibre
channel director, will be certified for use with the Tivoli Storage
Network Manager.
* INRANGE and Veritas announced a strategic relationship to integrate the
FC/9000 software management system with Veritas' SanPoint Control, SAN
management software.
* To support these key alliances and the anticipated growth in the SAN
marketplace, the company has significantly increased its investment in
research and development, and its global sales and service organization.
At the end of September, INRANGE had 223 engineers, a 73% year-to-date
increase, and 400 sales and service professional, a 40% year-to-date
increase.
Grodhaus added, ``These distribution and technology alliance agreements augment our sales and service organization. The Computerm and Varcom acquisitions have provided us with additional breadth in our virtual storage networking, datacom, and telecom businesses. Based on these developments, we believe that we are well positioned to take advantage of the market opportunities with our networking and switching products and services.''
About INRANGE Technologies
INRANGE Technologies designs, manufactures, markets and services networking and switching products for storage, data and telecommunications networks. Our products provide fast and reliable connections among networks of computers and related devices and are used in Fortune 1000 businesses and other large enterprises that operate large-scale systems where reliability and continuous availability are critical. Our products are designed to be compatible with various vendors' products and multiple communication standards and protocols. For more information, visit www.inrange.com... |
