alileo Technology Ltd. Reports Fourth Quarter and Fiscal 1997 Year
Results
SAN JOSE, Calif.--(BUSINESS WIRE)--Jan. 22, 1998--Galileo Technology Ltd. (NASDAQ:GALTF - news) today
reported that net sales for the fourth quarter of 1997 increased 323% to $13.2 million, compared to $3.1 million for the fourth
quarter of 1996.
Net income for the quarter increased to $4.4 million, or $0.21 per share compared to net income of $0.1 million, or $0.01 per
share, for the corresponding quarter last year. All per share amounts are diluted earnings per share under the new calculation
methodology prescribed by financial reporting requirements.
Net sales for the fourth quarter of 1997 increased 25% from the third quarter 1997 net sales of $10.5 million. Fourth quarter
1997 net income increased 41% compared to the third quarter 1997 net income of $3.2 million. During the third quarter of
1997, Galileo Technology Ltd. completed its initial public offering of 3,450,000 ordinary shares. The full dilutive impact from
the initial public offering was included in the fourth quarter shares used in computing diluted earnings per share, which increased
to 21.1 million compared to 19.9 million in the third quarter, with earnings per share increasing sequentially 31%.
Net sales for 1997 increased 465% to $36.5 million, compared to $6.5 million for 1996. Net income for 1997 was $10.3
million or $0.54 per share, as compared to a net loss of ($0.9) million, or ($0.06) per share, for 1996. Shares used in
computing diluted earnings per share for 1997 were 19.0 million, compared to 15.4 million shares for 1996.
''1997 was a very strong year for Galileo Technology Ltd.,'' stated Avigdor Willenz, Galileo's Chairman and CEO. ''The
positive acceptance by our customers' of our Datacom Systems on Silicon(tm) products allowed us to grow our year over
year revenue by 465% and increase our return on sales to 28% in 1997. As we enter 1998 we look forward to continued
growth in our served markets.''
Manuel Alba, President of Galileo stated, ''During 1997, Galileo Technology Ltd. emerged as a leading supplier to the
Datacom market for Ethernet and Fast Ethernet switches. Our initial product offerings have been adopted by many leading
companies in the Datacom market and our recently introduced new products will continue to provide OEMs with reduced
system costs and advanced network features to accelerate the market's migration from shared-media hubs to switched
Ethernet LANs.''
Galileo Wins Two Fabless Semiconductor Association Awards
On November 13, 1997, the Fabless Semiconductor Association (FSA) held its Third Anniversary Dinner Celebration. At
that dinner, Galileo Technology Ltd. received, for the second year in a row, an award for Outstanding Financial Performer. To
be considered for this award, FSA members had to double annual revenues for the twelve-month period ending
September/October 1997. Additionally, Galileo received an award as Favorite Fabless Pick as selected by the analyst
community.
About Galileo Technology Ltd.
Galileo Technology Ltd., defines, develops and markets advanced digital semiconductor devices that perform critical functions
for network systems. Galileo's Datacom Systems on Silicon(tm) are designed to simplify design efforts, reduce development
risks and costs, and substantially improve time-to-market for OEM's in the data communications equipment market. The
company's product lines - system controllers, switched Ethernet LAN controllers and remote access WAN controllers -
provide three of the key functionalities of data communications systems. Galileo Technology Ltd., founded in Karmiel, Israel,
began operations in early 1993, and opened its business operations, Galileo Technology, Inc., in San Jose, California, in early
1994. Galileo employs more than 100 employees worldwide.
Any forward-looking statements contained in this document reflect management's current intentions and expectations. Actual
future results could vary materially depending on certain risks and uncertainties, including dependence on new product
development, customer acceptance and competition and other risk factors listed in the company's Prospectus dated July 28,
1997. |
