Excel Switching Corporation Announces Record First Quarter Results
Q1 Revenues up 38%, Net Income Increased 62% over Q1 1997
HYANNIS, Mass.--(BUSINESS WIRE)--April 22, 1998--Excel Switching Corporation (Nasdaq:XLSW - news), a leading
provider of open switching platforms for telecommunications networks worldwide, today announced results for its first quarter
of 1998.
Revenues for the first quarter of 1998 increased 38% to $25.6 million from $18.5 million for the first quarter of 1997. Net
income for the first quarter of 1998 increased 62% to $5.4 million from $3.3 million for the same period in 1997. Diluted
earnings per share were $0.14 for the first quarter of 1998 versus $0.10 in the first quarter of 1997, an increase of 40%.
''The first quarter saw the introduction of our new product strategy, ONE Architecture(TM), which was well received at
major domestic and international industry trade shows, and will continue to be rolled out over the course of the year,'' said
Robert P. Madonna, chairman and chief executive officer. ''The first quarter was also Excel's first complete quarter as a public
company, and was our best first quarter in history in terms of financial performance. With record Q1 revenues, we continue to
expand our market position as a worldwide leader for programmable switching solutions and broaden our customer base. We
also paid off all outstanding bank debt, further strengthening our balance sheet.''
Excel introduced its Open Network Expansion Architecture, or ONE Architecture(TM), a product strategy that begins with
the company's flagship product, the Expandable Switching System, EXS, and adds new capabilities and services that extend
the openness, programmability, and flexibility of the system. The strategy encompasses a series of products designed to enable
carriers worldwide to rely on ONE Architecture to provide them with a truly open network infrastructure solution.
Other Q1 Company highlights include:
Established sales forces in Europe and Asia;
Received Massachusetts Telecom Council 'Company of the Year' and 'Best Initial Public Offering' awards; and,
Received Qualcomm 'Supplier of the Year' award.
Note to Investors:
This release may contain statements which are ''forward looking'', and is subject to risks and uncertainties that could cause
actual results to differ significantly from expectations. Factors that might cause such a difference include, but are not limited to,
those relating to: quarterly fluctuations in results of operations; concentration of customers within market segments;
management of growth; dependence on and concentration of relationships with application developers, original equipment
manufacturers and systems integrators; length of sales cycle; risk of new product introductions; dependence on proprietary
rights; and other risks identified in the Company's Securities and Exchange Commission filings including those risks identified in
the section entitled ''Risk Factors'' of the Company's Annual Report for the year ended December 27, 1997 on Form 10-K.
There can be no assurance that the Company's current gross, operating and net income margins will be sustainable in future
quarterly periods. |
