Verilink Corporation Reports Record Fourth Quarter Revenues and Returns to Profitability
Business Wire - July 23, 1998 16:32
SAN JOSE, Calif.--(BUSINESS WIRE)--July 23, 1998--Verilink Corporation (NASDAQ:VRLK), a supplier of access products that link corporate networks to the Internet and other WAN services, today reported its fourth quarter and 1998 fiscal year-end results for the period ended June 28, 1998.
Net sales for the fourth quarter were $17.3 million, an increase of 39% over $12.4 million for the same quarter one year ago and an increase of 23% from $14.1 million for the third quarter of 1998. Net sales for fiscal year 1998 were $50.9 million, compared with $57.2 million for fiscal year 1997.
The Company reported net income for the fourth quarter of $903,000 or $0.06 per share, compared with net income of $169,000 or $0.01 per share for the fourth quarter last year. This compares to a net loss of $470,000 or $0.03 per share for the third quarter of 1998. The Company reported a net loss of $1.1 million, or $0.08 per share for fiscal year 1998 versus net income of $4.2 million, or $0.29 per share for fiscal year 1997.
"We are pleased with Verilink's performance in the fourth quarter as sales reached record levels, and we returned to profitability. Business momentum that began last quarter continued throughout the fourth quarter with strength coming from both our wireless segment and from our traditional carrier customers," said Leigh S. Belden, president and chief executive officer.
"1998 was a pivotal year for Verilink as we stepped up the rate of new product development, shipped production quantities of our new broadband T3 and IMUX applications and introduced a new low-end CSU/DSU product family," continued Belden. "We also established relationships with a significant number of new customers, expanded our distribution channels, and put in place a new worldwide service capability. We continue to execute on our strategy that we put in place for the company earlier in the year highlighted by our introduction at the SUPERCOMM tradeshow of our next generation Access System 3000(TM) platform and of our first frame aware access product WANscope(TM)."
During the quarter, the Company also announced two important strategic alliances:
Verilink announced that MCI has selected Verilink wide-area network (WAN) access products as key components for a new communications infrastructure now being built for NASDAQ Stock Market electronic trading network.
Verilink announced that Splitrock Services, Inc., the U.S.-based provider of Internet access to Prodigy customers, has selected Verilink to provide high-speed access products for its nationwide ATM network.
About Verilink
Verilink is a leading supplier of WAN access products for telecommunications network service providers and corporate enterprises. The Company's products and services are designed for easy access to multiple communication services in the changing environment of data, voice, and video communications. Major market segments for Verilink include access to wide area networks (WANs), the Internet, and wireless services. The Company's headquarters are at 145 Baytech Drive, San Jose, Calif. 95134; telephone 408/945-1199. Verilink stock trades on the Nasdaq National Market under the symbol "VRLK." Company information is available at www.verilink.com.
Certain statements in this press release are forward-looking. Actual results could differ materially. Among the factors that could cause actual results to differ are the following: loss of, or a material reduction in orders by one or more of the Company's major customers, delays in new product introductions, and competition from current and potential competitors. For a more detailed discussion of these and other risk factors, see the Company's SEC reports, including but not limited to the Annual Report on Form 10-K for the year ended June 29, 1997. The Company disclaims any duty to update the forward-looking statements contained herein, except as may be required by law.
|
