INRANGE Q4 Open Storage Networking Revenues Up 268%
/FROM PR NEWSWIRE 800-682-9599/
TO BUSINESS AND TECHNOLOGY EDITORS:
INRANGE Q4 Open Storage Networking Revenues Up 268%
Record Revenues Hit $71.1 Million
LUMBERTON, N.J., Feb. 13 /PRNewswire/ --
INRANGE Technologies Corporation (Nasdaq: INRG), a leading provider of
networking products and services for storage area networks (SANs), and data
and telecommunications networks, today reported record revenues of
$71.1 million, net income of $7.4 million and earnings per share of $.09 for
the quarter ended December 31, 2000.
Fourth Quarter Net Income Up 148%
The company reported record revenues for the fourth quarter of
$71.1 million, a 48% increase over fourth quarter 1999, and up 11%
sequentially over the third quarter 2000.
Revenues in the open storage networking business (which includes fibre
channel directors and optical networking equipment and services) for the
fourth quarter 2000 totaled $17.7 million, a 268% increase over fourth quarter
1999, and up 24% sequentially over the third quarter 2000.
The company reported net income of $7.4 million, a 148% increase over
fourth quarter 1999. Reported fourth quarter earnings per share of $.09 is a
125% increase over fourth quarter 1999.
Results for Fiscal Year 2000
Revenues for the year ended December 31, 2000, were $233.6 million, a
16.5% increase over 1999. In the open storage networking business, revenues
increased 179% to $49.1 million compared with 1999.
For the year, net income was $20.3 million, or $0.26 per share, excluding
the effects of the technology write-off associated with the acquisition of
Varcom. Including the write-off, net income was $14.3 million, or $0.18 per
share. Full year 1999 reported net income was $22.3 million, or $0.29 per
share, including the effects of investment gains, a gain on the sale of real
estate, and a special restructuring charge. Excluding the unusual items in
1999, net income was $18.6 million or $0.25 per share.
The company ended the year with 926 employees. This included an increase
of 213 sales, service and engineering professionals added primarily to support
the open storage networking initiative, anchored by the new FC/9000 fibre
channel director, and to expand its professional / consulting services.
"We are delighted with our record fourth quarter revenues and our
36th consecutive quarter of profits, excluding unusual or non-recurring items.
In particular, customer demand for our FC/9000 and open storage networking
offerings reached unprecedented levels," said Greg R. Grodhaus, President &
CEO of INRANGE Technologies.
"Our business is about large, complex networks -- and how 'large scale,'
which exponentially increases network complexity, changes the 'rules of the
game.' Customers are interested in solutions. INRANGE provides these
solutions by combining leading technology and the expert resources to help
customers use this technology to solve their complex business problems. We do
this through:
* Over 450 field-based professionals working directly with our customers
and business partners to deliver solutions tailored to each customer's
specific application and environment. There are no 'one-size-fits-all'
large-scale networking solutions.
* Innovative, powerful technologies such as our unique 'any-to-any,
non-blocking' XCA(TM) architecture in our FC/9000. This design is
based on years of proven performance in environments across multiple
protocols such as fibre channel, ESCON, GbE, and ATM networks, where we
provide scalable switches and directors of up to 24,000 ports.
However, scalability is about much more than 'size' -- it is also about
performance and availability. Our XCA architecture allows performance
to remain constant as the customer grows its FC/9000 from 24 to
256 ports.
* Our ability to deliver in rapidly changing technological environments.
Our systems expertise and switching software are not limited to any
niche server, storage, or operating system platform or communications
protocol.
For these reasons we are confident that our storage networking solutions
give our customers the right choice for today and the future -- regardless of
scale, protocol, or the continuously changing technology landscape," added
Grodhaus.
Fourth Quarter Highlights
* IBM to resell the IN-VSN(TM) FC/9000 fibre channel director for the IBM
eServer z900 FICON networks and Open Systems Fibre Channel Storage
Networks (SANs).
* Strategic relationships initiated with Tivoli and Veritas.
* Fibre channel and FICON support for the 256 port, CD/9000 ESCON Storage
Director was announced. INRANGE is the only company to provide all
three enterprise storage networking protocols in a single director.
* Expanded the distance capabilities of SANs past the traditional 10 km
barrier by introducing technology that allows INRANGE directors to
reach 100 km on every FC/9000 port.
* Record service business revenues of $12.2 million -- 42% growth compared
to Q4 1999 ($8.6 million) and 20% growth sequentially compared to
Q3 2000 ($10.2 million).
2000 Year Highlights
* Successful launch of the FC/9000 fibre channel director on February 28,
with general availability in July.
* INRANGE IN-VSN FC/9000 fibre channel director voted "most innovative
product of the year" at Forum STOCKAGE 2000, one of Europe's largest
exhibitions for storage networking vendors.
* Successful acquisition and integration of Varcom Corporation, TCS/STI
and Computerm Corporation.
* Successful initial public offering of 8.85 million INRANGE shares.
* Signed 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.
* Invested more than $16 million in the INRANGE Interoperability
Initiative (I3) interoperability and testing laboratory in Shelton,
Connecticut, providing testing, training, problem solving and
integration support for SANs incorporating INRANGE and other vendors'
products and software, to mirror customer environments.
Subsequent Developments
* Worldwide reseller agreement with Hitachi Data Systems. HDS will resell
the entire IN-VSN Storage Networking family, including the FC/9000
fibre channel directors, CD/9000 ESCON/Fibre Channel/FICON Directors,
Spectrum-II DWDM optical networking products, and the 9801SNS channel
extension offerings.
* Acquisition of Prevail Technology, a professional services company with
expertise in designing and implementing high availability solutions for
IT infrastructure and E-business environments.
Grodhaus concluded, "2000 was an important milestone year for INRANGE. We
literally 'kick-started our growth engine'. Today, in addition to our large
customers, we find that even small and medium sized companies are deploying
large-scale storage applications. Previously their only storage networking
choice was a fabric of small switches. With our FC/9000 director and the
IN-VSN family of storage solutions, we now give customers the right solution
for what they have always needed to support large-scale storage applications."
"In just the first five months of general availability of our FC/9000
fibre channel director, we estimate that we have taken between 10% to 15%
market share, illustrating our strong growth potential. This strong growth,
coupled with our worldwide field organization and proven long-term history of
consistently generating positive cash flow and profits, will greatly benefit
our customers, investors and employees going forward. For all of these
reasons, I am confirming our previous guidance of expected open storage
networking growth of 175% and top line revenue growth of 35% for 2001."
About INRANGE Technologies ( www.inrange.com )
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 global 2000 businesses and
other enterprises that operate large-scale and heterogeneous systems where
open connectivity, reliability and continuous availability are critical. Our
products are designed to be compatible with various vendors' products and
multiple communication standards and protocols.
INRANGE and the INRANGE logo are registered trademarks of INRANGE
Technologies Corporation. IN-VSN, FC/9000, XCA and CD/9000 are trademarks of
INRANGE Technologies Corporation. All other trademarks and product names are
the property of their respective owners. |
