pavlov, this should make you salivate :
MINNEAPOLIS, Oct. 20 /PRNewswire/ -- Computer Network Technology Corp.
(CNT(R)), the leading provider of high-performance networking solutions for
Storage Area Network (SAN) and enterprise integration applications, today
reported strong company results for the third quarter of 1998.
Revenue of $33.0 million for the third quarter ended September 30, 1998,
represents an increase of $9.2 million or 39 percent when compared to revenue
of $23.8 million for the same period in l997. Net income for the third
quarter of l998 was $1.8 million or $.08 per share compared to a net income of
$373,000 or $.02 per share for the third quarter of l997. This is the highest
net income reported for CNT since second quarter 1995.
For the first three quarters of 1998, revenues totaled $97.6 million, an
increase of $31.4 million or 47 percent when compared to $66.3 million for the
same period in 1997. Net income for the first three quarters of 1998 totaled
$3.0 million or $.14 per share, compared to a net loss of ($108,000) for the
comparable period of 1997.
"I'm very pleased to report that the increased demand for our SAN Services
and Internet products, along with decreased operating expenses, resulted in a
net income that is 3.8 times higher than 1997," said Thomas G. Hudson, CNT's
president and chief executive officer. "Product revenue for the quarter
totaled $23.4 million, up 39 percent when compared to total product revenue of
$16.8 million in the third quarter of 1997.
"Revenue for networking products increased 26 percent to $17.8 million,"
Hudson continued. "Very strong interest in disk mirroring and other SAN
applications, along with a mix of channel extension sales and solid interest
in data movement solutions from FileSpeed(TM), has led to this increase.
Substantially stronger revenues via our internationalchannels were the result
of personnel investments made last year. Customer acceptance of our new
UltraNet(R) technology and interest in CNT's SAN applications continues to
drive our UltraNet product sales, particularly in the International market.
"Internet product revenue increased 102 percent, to $5.6 million from the
third quarter of 1997, primarily due to the acquisition of the Internet
Solutions Division from Apertus Technologies, Inc. in the fourth quarter of
1997," Hudson added. "Our continuing strength in the SNA Gateway market and
the initial growth of our re-engineering products are factors contributing to
this product revenue. In addition, we received a $2.2 million dollar order on
October 1, 1998, from a foremost Systems Integrator for a large government
re-engineering project.
"Service revenue increased 38 percent from the third quarter of 1997, to
$9.6 million due to the Apertus acquisition and new incremental revenue
generated from the sale of professional services to our customers, which
increased 27 percent from the second quarter of 1998," said Hudson. "CNT is
focused on increasing our strong customer service and creating additional
value-add professional services to help our customers accelerate their product
implementation plans thereby improving their return on investment.
"We made progress on our goal of expense management by decreasing third
quarter operating expenses to 49 percent of revenue, down from 55 percent of
revenue in the second quarter and 57 percent of revenue in the third quarter
of 1997," Hudson continued. "At our 1998 Shareholders meeting, we committed
to achieve a 7.5 percent quarterly operating margin in the fourth quarter. We
actually achieved this goal in the third quarter with an operating margin
equal to 7.9 percent of revenue. Although we have met our goal, we will
continue to work to satisfy customers, grow revenue and contain expenses,
thereby improving the company's overall level of profitability."
About Computer Network Technology (CNT)
Computer Network Technology (Nasdaq: CMNT), based in Minneapolis, Minn.,
is a leading provider of high-performance networking solutions that allow
mainframe and open systems environments to share data and information. The
company's Channelink(R), FileSpeed(TM), and UltraNet(R) product lines offer
high-speed open systems connectivity, access to legacy data and guaranteed
data integrity for applications such as remote storage, disk mirroring and
disaster recovery. In addition, its Enterprise/Connect, Enterprise/Access and
Web/Integrator products offer unique gateway and legacy application
integration solutions. The company's products are sold worldwide through a
direct sales force and a network of authorized distributors. For more
information, visit CNT's web site at cnt.com, or call
1-800-638-8324 (U.S.) or 612-797-6000 (International). |
