<Fibre Channel product revenues experienced a nine-fold increase over the first quarter of 1997>
At least someone is selling some fibre channel product.
=====================================================================
Interphase Corporation Reports 630-Percent Increase in Earnings for First Quarter of 1998
Business Wire - April 16, 1998 08:25
DALLAS--(BUSINESS WIRE)--April 16, 1998--Interphase Corporation (Nasdaq/NMS:INPH) today reported operating results for the first quarter of 1998, which included a 630-percent increase in net income compared with the first quarter of 1997.
For the quarter ended March 31, 1998, Interphase reported revenues of $17.6 million, compared with revenues of $16.8 million for the first quarter of 1997. The company recorded net income of $708,000, or $.13 per share, during the first quarter of 1998, compared with net income of $97,000, or $.02 per share, for the quarter ended March 31, 1997. Net income for the quarter increased 630 percent compared with the prior-year period.
"Results for the first quarter demonstrate that Interphase is realizing the positive effects of an aggressive profit improvement program, which we implemented last year," said Stephen Polley, chairman, chief executive officer and president of Interphase. "Not only have our revenues remained strong, but we have made significant strides in reducing the company's operating expenses."
According to Polley, Interphase's revenue growth for the first quarter was attributable to growth in product revenues from its ATM, Fast Ethernet and Fibre Channel product lines. ATM product revenues increased 53 percent compared with the first quarter of last year, while Fast Ethernet product revenues grew 43 percent. In addition, Fibre Channel product revenues experienced a nine-fold increase over the first quarter of 1997.
First-quarter revenue growth was partially offset by a decline in revenues for Interphase's legacy products, including the company's FDDI product line. "During the past several years, we have invested heavily in the development of new products based on emerging technologies that demonstrate the strongest market potential," Polley said.
Polley said that the company's strong improvement in earnings is the direct result of a concentrated effort to reduce operating expenses and achieve profitable growth. Operating expenses for the first quarter of 1998 were approximately 37 percent of total revenues, compared with 45 percent of revenues for the first quarter of last year. Engineering and development expenses totaled 16 percent of revenues, a three-point improvement over last year's first quarter. Sales, marketing and general/administrative expenses totaled 21 percent of revenues, representing a five-point improvement over the first quarter of 1997.
Polley also noted that Interphase continues to maintain a strong balance sheet. Cash and marketable securities increased from $5.5 million for the quarter ended March 31, 1997, to $8.5 million for the current period, reflecting increased collections activity on accounts receivable, a reduction in the company's inventory position and profitable results from operations. In addition, total liabilities decreased by $1.3 million from last year's first quarter, due to a reduction of bank debt and a net reduction in accounts payable and other liabilities.
"With two consecutive quarters of profitability, Interphase has established a solid platform from which to build future financial results," Polley said. "During the remainder of 1998 and beyond, our overriding objective will be to leverage this position in building sustainable, profitable growth for our company."
Founded in 1974, Interphase Corporation is a leading international supplier of high-performance server connectivity for enterprise networks. The company's primary product lines are based on established and emerging technologies for the high-speed transmission and storage of information in local and wide area networks (LANs and WANs). The LAN products are based upon FDDI, ATM and Fast Ethernet technologies, and provide the network interface within server and high-performance workstation environments. The WAN products employ remote access technologies, such as ISDN, frame relay and X.25, to provide connectivity solutions for remote sites in heterogeneous, multi-vendor enterprise networking environments. In addition, the company's mass storage products, based upon SCSI and Fibre Channel technologies, create high-bandwidth connectivity between networks and mass storage devices. Headquartered in Dallas, Texas, Interphase markets its products to original equipment manufacturers (!
OEMs), distributors, systems integrators, value-added resellers (VARs) and large end-users through a worldwide sales and service network.
This press release contains forward-looking statements with respect to financial results and certain other matters. These statements are made under the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such risks and uncertainties include, without limitation, fluctuations in demand, the quality and price of similar or comparable networking products, access to sources of capital, general economic conditions in the company's market areas, and that future sales and growth rates for the industry and the company could be lower than anticipated. |
