April 07, 1999 16:37 here it is!!!!!!!!!!!!!!!!!!!!!
Wind River Anticipates Lower Than Expected Revenues For First
Quarter; Acquisition of Xact, Inc. Conference Call Scheduled for 2:30
p.m. PDT, Wednesday, April 7th
Jump to first matched term
ALAMEDA, Calif.--(BUSINESS WIRE)--April 7, 1999--Wind River Systems, Inc. (Nasdaq:WIND), the
leading provider of real-time operating systems, integrated software development tools and engineering
services for embedded applications, announced that in response to the recent market activity the
company will host a conference call at 2:30 p.m. (PDT) today, Wednesday April 7th.
"As of today, approximately 20% of the quarter remains," said Ronald A. Abelmann, president and chief
executive officer of Wind River Systems, Inc. "With that caveat noted, we believe that our bookings for the
fiscal quarter will be close to or will exceed the consensus street estimate of revenues for the first fiscal
quarter."
"However, the company's revenues will be impacted by a delay in shipments from the first fiscal quarter to
the second fiscal quarter of the Tornado(TM) for Managed Switches product line," continued Abelmann.
"Market acceptance and orders for this product have been excellent. As previously announced, the core of
this technology was acquired from our partner, Xact, Inc. of Carollton, Texas. Productizing the Xact
technology has required a far more extensive engineering effort on the part of Wind River and Xact than
was originally anticipated and as a result, Wind River shipments of between $2 million and $3 million will
slip from the first quarter to the second quarter."
"In addressing the productization issues, Wind River has had extensive discussions with Xact. These
have resulted in an excellent opportunity for both companies. We are happy to announce that this morning
Wind River and Xact, Inc. signed an agreement whereby Wind River has acquired certain assets of Xact,
Inc. We are now in the process of transitioning the Xact employee team to Wind River Systems. This
team includes specialists with extensive experience in the networking software technology which
underlies both advanced switches and routers."
"From the time that Wind River became the first vendor to incorporate TCP/IP networking into our
embedded operating system, we have been the leading provider of enabling software for applications that
span the Internet infrastructure--including hubs, switches, routers, cable and xDSL modems, network
interface cards, and server I/O subsystems. With the acquisition of Xact we are now in a position to
provide the most complete off-the-shelf solution to manufacturers of advanced switches and routers--the
critical building blocks of the Internet."
"We look forward to the addition of Xact's very talented team to the Wind River organization, and believe
that this new relationship will serve to further strengthen Wind River's position in the Internet
infrastructure," continued Abelmann.
Wind River Systems, Inc.
Wind River Systems, Inc., an ISO 9001 registered company, is the leading provider of integrated software
development tools for real-time embedded applications in the Internet, telecommunications, data
communications, office automation, networking, computer peripherals, medical, automotive, industrial,
aerospace and multimedia markets. Through the industry's most comprehensive product line and
customer support, Wind River enables customers to develop and reuse application software across a
variety of products and platforms, shortening development cycles and improving time-to-market.
Incorporated in 1983, Wind River is headquartered in Alameda, Calif., with representation worldwide.
Note to Editors: Tornado, Wind River Systems and the Wind River Systems logo are trademarks or
registered trademarks of Wind River Systems, Inc. All other names mentioned are trademarks, registered
trademarks or service marks of their respective companies.
This news release contains forward-looking statements, including those relating to contemplated product
offerings and market share, that involve risks and uncertainties that could cause actual results to differ
materially from those contemplated herein. Factors that could cause or contribute to such differences
include but are not limited to timely development, acceptance and pricing of new products, the impact of
competitive products and pricing, and other risk factors detailed in the company's 1998 Annual Report on
Form 10-K and other periodic filings with the Securities and Exchange Commission. The Company
undertakes no obligation to update or revise any forward-looking statements, whether as a result of new
information, future events, or otherwise.
CONTACT: Wind River Systems
Richard Kraber, 510/749-2181 (Chief Financial Officer)
De Anna Mekwunye, 510/749-2577 (Investor Relations)
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