Osicom Technologies Reports First Quarter Results
Revenues Up 80% and Earnings Increase By 102% Over Comparable Prior
Quarter
SANTA MONICA, Calif.--(BUSINESS WIRE)--June 11, 1997--Osicom Technologies, Inc.
(Nasdaq:FIBR) today reported that for the fiscal quarter ended April 30, 1997, revenues totaled
$32,632,000, and net income reached $917,000, or $0.07 per share fully diluted, compared to
revenues of $18,154,000, and net income of $455,000, or $0.09 per share fully diluted, for the
fiscal quarter ended April 30, 1996, restated to reflect pooling of interests.
Commenting on the Company's results, Sharon Chadha, Osicom's chairman, stated, ``We are
continuing to make excellent progress. We were ranked by the Los Angeles Times as California's
fourth fastest growing company, in terms of sales growth for firms with sales revenues of $50
million or more, and the response to the products that we unveiled at Interop was very positive.
Our Gigamux dense wave division multiplexer and our IQX-200 remote access server both
generated considerable interest. Based upon the feedback we have received, both products are
well positioned and priced properly.
``The reaction to the wireless-enabled strategy we announced at Interop has been especially
positive. According to that strategy, we will continue to compete with wire-centric network
providers while at the same time addressing what we believe is a considerable market
opportunity in wireless networking, especially in those parts of the world that lack a
well-developed wired infrastructure. We intend to be a major player in that arena.
``Our gross margins continue to increase, and we expect further cost reductions later this year as
we continue to transfer certain manufacturing responsibilities to our Far East Division's ISO-9001
plant. We are also expecting to see improved overall margins as sales of our higher margin
products begin to ship later in the year,'' she concluded.
Osicom is an innovative leader in wireless-enabled networking. The Company allows businesses
to connect through wire-line, fiber and wireless technologies, thereby expanding the reach of
conventional networking. Osicom offers wireless-enabled solutions for LAN, WAN and
broadband networks with products that include hubs and switches, routers, remote access
servers, network print servers, PC and workstation adapter cards, video switches and
multiplexers. Osicom markets and sells its products and services through a broad array of
channels including world-wide distributors, Value Added Resellers (VARs) and OEMs. The
Company has over 1000 employees worldwide and is headquartered in Santa Monica,
California.
Information about Osicom's products and services is available by calling toll-free
888-OSICOM8. For additional company, product and financial information visit the Company's
web site at www.osicom.com .
Except for historical information contained herein, the matters discussed in this news release are
forward looking statements that involve risks and uncertainties. The forward looking statements in
this release are made pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Actual results may differ materially due to a variety of factors, including
without limitation the company's ability to develop, produce and market products that incorporate
new technology on a timely basis, that are priced competitively and achieve significant market
acceptance; higher expenses associated with the development and marketing of new products;
changes in product mix; risks of dependence on third party component suppliers; inventory risks
due to shifts in market demand; the presence of competitors with broader product lines and
greater financial resources; intellectual property rights and litigation; needs for liquidity; and other
risks detailed from time to time in the company's reports filed with the Securities and Exchange
Commission.
OSICOM TECHNOLOGIES, INC.
Consolidated Balance Sheet
(In thousands)
(Unaudited)
ASSETS April 30, 1997
CURRENT ASSETS
Cash and equivalents $ 6,670
Restricted cash 1,872
Accounts receivable, net 19,428
Inventory 24,131
Other receivables 3,552
Prepaid expenses and other current assets 1,544
TOTAL CURRENT ASSETS 57,197
PROPERTY AND EQUIPMENT, NET 15,813
OTHER ASSETS
Purchased technology, net 7,357
Excess of cost over net assets acquired,
less accumulated amortization 1,443
Capitalized software, net 4,289
Other assets 10,395
TOTAL OTHER ASSETS 23,484
TOTAL ASSETS $ 96,494
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Short-term debt $ 11,295
Current maturities of long term debt 1,444
Accounts payable 22,012
Accrued liabilities 5,358
Other current liabilities 3,992
Income taxes payable 255
TOTAL CURRENT LIABILITIES 44,356
Long-term debt and capital lease obligations 3,714
Deferred income taxes 295
TOTAL LIABILITIES 48,365
COMMITMENTS AND CONTINGENCIES --
STOCKHOLDERS' EQUITY
Preferred stock, $.01 par value;
cumulative dividends; $25,013 liquidation
preference 1
Common stock, $.10 per share,
authorized 20,000,000; 11,905 shares
issued and 11,902 outstanding 1,190
Additional paid-in capital 63,495
Retained earnings (deficit) (16,380)
Treasury stock, 3 shares, at cost (177)
TOTAL STOCKHOLDERS' EQUITY 48,129
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 96,494
-0-
OSICOM TECHNOLOGIES, INC.
Consolidated Statements of Operations
(In thousands, except for per share amounts)
(Unaudited)
Quarter ended April 30,
1997 1996
NET SALES $ 32,632 $ 18,154
COST OF SALES 22,618 12,124
GROSS PROFIT 10,014 6,030
OPERATING EXPENSES
Selling and marketing 4,071 2,396
Engineering, research and development 1,490 1,267
General and administrative 3,052 1,525
Other operating expenses 467 (97)
TOTAL OPERATING EXPENSES 9,080 5,091
INCOME FROM OPERATIONS 934 939
OTHER INCOME (CHARGES)
Investment income (loss) 100 (152)
Interest expense (434) (338)
Gain on disposal of assets 426 --
Other income (charges) (93) 9
TOTAL OTHER INCOME (CHARGES) (1) (481)
INCOME BEFORE INCOME TAXES 933 458
PROVISION FOR INCOME TAXES 16 3
NET INCOME $ 917 $ 455
NET INCOME PER COMMON SHARE
PRIMARY WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING (RESTATED, IN THOUSANDS) 13,275 4,184
NET INCOME PER COMMON SHARE $ 0.08 (a) $ 0.10
FULLY DILUTED WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING (RESTATED, IN THOUSANDS) 14,405 4,421
NET INCOME PER COMMON SHARE $ 0.07 (a) $ 0.09
(a) Less accrued undeclared preferred dividends of $38, plus
interest expense adjustment of $126, divided by shares outstanding.
Contact:
Sitrick and Company
Jeffrey Lloyd/Tom Ekman, 310/788-2850 |
