CALABASAS, Calif.--(BUSINESS WIRE)--Oct. 14, 1998--Xylan Corp. XYLN , a leading provider of high-bandwidth switching systems, Wednesday reported its operating results for the three and nine months ended Sept. 30, 1998.
Revenue for the third quarter increased to $91.1 million, from $83.7 million in the second quarter of fiscal 1998, a sequential increase of 9 percent. As compared with the same quarter of the preceding year, revenues increased from $53.5 million, an increase of 70 percent. Revenue for the nine months ended Sept. 30, 1998, was $250.2 million, as compared with $146.6 million for the nine months ended Sept. 30, 1997, an increase of 71 percent.
Net income for the third quarter was $10.4 million, or 22 cents per share, compared with second-quarter net income of $9.6 million, or 20 cents per share. In the third quarter of 1997 the company reported net income of $4.6 million, or 10 cents per share.
Net income for the nine months ended Sept. 30, 1998, was $28.4 million, or 60 cents per share, as compared with $17.6 million, or 38 cents per share, for the comparable period one year ago. All per share amounts are computed on a diluted basis.
"We're delighted with our results in the September quarter," stated Steve Kim, chairman, president and chief executive officer of Xylan. "We achieved dramatic growth, once again outpacing our competitors. In particular, our VAR and direct business grew 25 percent, shifting to 68 percent of our overall business.
"We have started initial shipments of our new OmniS/R Gigabit switch, in combination with X-Cell ATM switching and OmniStack low-end products. As a result, we feel confident that we can continue strong growth in the December quarter and beyond."
As of Sept. 30, 1998, the company's cash, cash equivalents, and short- and long-term investments equaled $123 million, and shareholders' equity equaled $212 million. The company bought back approximately 1.5 million shares of its common stock during the third quarter ended Sept. 30, 1998. For the nine months ended Sept. 30, 1998, the company has repurchased approximately 2.2 million shares.
Xylan will make the text of its quarterly conference call available for a short time on its Web site at www.xylan.com/q3call/, starting at 3 p.m. PDT.
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