Eicon Technology Reports Third Consecutive Quarter of record Sales
MAY 6, 1999
MONTREAL, QUEBEC, CANADA--Eicon Technology, a global leader in
remote access connectivity, today announced its results for its
third quarter ended March 31, 1999. Sales continued to grow,
reaching $49.7 million in the third quarter, representing a 73
percent increase from the same period last year and a 15 percent
increase from the previous quarter. Net income was $3.5 million,
or $0.10 per share, a 39 percent increase from the $2.5 million,
or $0.08 per share, reported in the previous quarter and five
times last year's third quarter net income of $0.7 million, or $0.02 per share.
Nine month year-to-date sales amounted to $126.3 million, up 41
percent from $89.6 million reported in the same period last year.
Net income was $7.0 million, or $0.21 per share, up 40 percent
from $5.0 million, or $0.15 per share, reported a year ago.
"We are delighted with the trend we are seeing in our financial
performance. Sales growth is strong and consistent," said Peter
Brojde, Eicon's President and Chief Executive Officer. "Sales and
net earnings for the first nine months have already exceeded
levels achieved in our full 1998 fiscal year."
The Company's consistent performance continues to be fuelled by
strong demand for ISDN products. During the third quarter, over
125,000 units of Eicon's DIVA ISDN products were shipped
worldwide, the highest quarterly sales ever recorded. ISDN
product sales amounted to $30.5 million in the third quarter, a 30
percent increase from the previous quarter and up 144 percent
compared with last year's third quarter.
In Eicon's other product lines, WAN product sales amounted to
$15.8 million in the third quarter, a robust 40 percent increase
year- over-year and a 9 percent increase from the previous
quarter. All regions posted sales growth in this segment,
reflecting Eicon's worldwide expanding OEM client base. SNA
product sales amounted to $3.4 million in the third quarter,
representing 7 percent of overall sales.
The strong growth in Eicon's sales and earnings reflects the
Company's successful long-term partnerships with world-leading
OEMs and telecommunication companies, as well as its transitioning
strategy towards higher volume, lower margin products. Combined
sales to OEM and telecommunication companies accounted for 41
percent of year-to-date sales compared to 31 percent for the
entire 1998 fiscal year.
Eicon's Trisignal business unit, acquired in January of this year,
has been integrated into the Company's operations and has made a
positive contribution to the Company's results.
"The telecommunications market continues to present outstanding
growth prospects for Eicon," said Mr. Brojde. "With worldwide
demand for ISDN products accelerating and our successful
partnerships with telecom leaders, we are confident we can sustain
earnings growth in the months ahead." About Eicon Technology Corporation
Eicon Technology Corporation is a worldwide provider of remote
access products for personal computers. The Company develops,
markets and supports hardware and software products for connecting
network servers and desktop and notebook PCs to corporate
networks, host computers and the Internet. Its products are sold
in more than 70 countries through an extensive distribution
network and to original equipment manufacturers. Eicon Technology
shares are traded on The Toronto Stock Exchange and the Montreal
Exchange under the symbol EIC. Information about Eicon and its
products is available at eicon.com. |
