Excel Switching Corporation Announces Record Results For Quarter Q2
Revenues up 40%, Net Income Increased 57% over Q2 1997
HYANNIS, Mass.--(BUSINESS WIRE)--July 22, 1998--Excel Switching Corporation (Nasdaq:XLSW - news), a leading
provider of open switching platforms for telecommunications networks worldwide, today announced record results for the
second quarter of 1998.
Revenues for the second quarter of 1998 increased 40% to $28.7 million from $20.5 million for the second quarter of 1997.
Net income for the second quarter of 1998 increased 57% to $6.5 million from $4.1 million for the same period in 1997.
Diluted earnings per share were $0.17 for the second quarter of 1998 versus $0.12 in the second quarter of 1997, an increase
of 42%.
Revenues for the first six months of 1998 increased 39% to $54.3 million from $39.1 million for the first six months of 1997.
Net income for the first six months of 1998 increased 59% to $11.8 million from $7.4 million for the same period in 1997.
Diluted earnings per share were $0.30 for the first six months of 1998 versus $0.22 in the first six months of 1997, an increase
of 36%.
''The results of this quarter are representative of Excel's increasing presence in infrastructure markets,'' said Robert P.
Madonna, president and chief executive officer of Excel Switching. ''We maintained our technology focus by continuing the
ONE Architecture(TM) product rollout program, which delivers significant new capabilities for infrastructure switching.''
During the quarter, Excel demonstrated several software and hardware enhancements to its ONE Architecture switching
platform. Open Network Expansion Architecture, or ONE Architecture, is 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. At Supercomm '98,
a major industry trade show, Excel showcased ONE Architecture's ability to enable Voice over IP (Internet Protocol), a
technology which provides voice messaging over the Internet.
Other Q2 Company highlights:
The opening of a new 46,000 square foot research and development facility. Excel's Hyannis campus now encompasses
four buildings with a combined total of approximately 127,000 square feet.
Establishment of a subsidiary corporation in Japan, Excel Switching KK, with headquarters in Tokyo.
Company recognition including Business Week's ''Hot Growth Company'', the Ernst & Young Entrepreneur of the
Year award and the 1998 New England Technology Fast 50 by Deloitte & Touche.
About Excel
Excel Switching Corporation is a leading provider of open switching platforms for telecommunications networks worldwide.
Excel develops, manufactures, markets and supports a family of open, programmable, carrier-class switches that address the
complex enhanced services and wireless and wireline infrastructure needs of network providers. Excel's products are currently
deployed in telecommunications networks in almost 60 countries throughout the world. Visit Excel's website at
xl.com.
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. |
