Thursday November 18, 4:06 pm Eastern Time
Company Press Release
NETsilicon Reports Third Quarter Fiscal Year 2000 Results
WALTHAM, Mass.--(BUSINESS WIRE)--Nov. 18, 1999--NETsilicon, Inc.
(Nasdaq:NSIL - news), the leading provider of system-on-chip embedded networking solutions, today reported net income for the third quarter of fiscal year 2000 ended October 31, 1999 of approximately $905,000, or $0.07 per share, compared with a net loss of approximately $1.7 million, or $0.17 per share, for the comparable prior year period. Revenues for the most recent period more than tripled to $10.1 million from $3.0 million for the same period in fiscal 1999.
For the nine months ended October 31, 1999, NETsilicon recorded net income of approximately $1.2 million, or $0.11 per share, compared with a loss of approximately $2.0 million, or $0.20 per share, for the first nine months of the prior fiscal year. The net loss for the nine months ended October 31, 1998 of approximately $2.3 million, or $0.23 per share, included a loss from discontinued operations of $310,700, or $0.03 per share. Revenue for the fiscal year-to-date period rose 179 percent to $23.5 million from $8.4 million for the prior year period.
NETsilicon attributed its strong financial performance to high demand for its embedded networking connectivity products from existing OEM imaging customers and a significant order from a new imaging customer related to increased demand for its product as a result of Y2K remediation.
Cornelius ''Pete'' Peterson, VIII, chairman, chief executive officer and president, said he was extremely pleased with the company's financial results, but cautioned that he does not expect the high revenue growth rate experienced during this third quarter to be sustained in immediate upcoming quarters. ''This rapid increase in orders was attributable in part to one-time orders related to Y2K. We expect to return to more normal growth rates in ensuing quarters,'' he said.
Peterson noted that backlog was approximately $7 million at October 31, 1999, compared with $11 million at the close of the second fiscal quarter of this year. ''While our focus in the most recent quarter was on production and meeting high order flow, the efforts of our expanded sales and marketing team have kept the backlog in line with normal levels,'' he said.
The company recently augmented its senior management team with three seasoned executives who have extensive experience in sales, marketing and industrial automation in the embedded systems marketplace. ''These key hires will help us manage and direct our long-term growth, particularly on the sales and marketing front, and hasten our penetration of the industrial automation market,'' Peterson said.
Regarding the outlook for the balance of fiscal year 2000, Peterson said NETsilicon is on plan to reach its financial goals and is seeing an increase in design win activity. He noted that the company is proactively taking measures to ensure adequate supply of specialized flash memory chips in response to industry shortages, including contracting with new suppliers.
In other major events during the quarter, NETsilicon:
Completed an initial public offering of its common stock on September 15, 1999 in which 3,537,500 shares were offered by NETsilicon at $7 per share. Net proceeds to the company were $23 million. Launched two new products. These include NET+Software(TM), a software addition to the company's
NET+Imaging(TM) product family, that moves the printing and management capabilities of a network interface card into a controller's central processing unit (CPU), thus reducing component and footprint requirements. Subsequent to the close of the quarter, NETsilicon announced the launch of NET+Fast IP(TM), a software module that removes the final barrier for using Ethernet in high-speed, real-time industrial automation applications. Entered into two key design and distribution alliances with Destiny Technology Corporation, a leading systems integrator with a strong presence in the Asia Pacific region, and Paragon Innovations, a leading provider of embedded systems design, and an authorized NET+ARM(TM) developer for Texas, Oklahoma, Arkansas and Louisiana.
NETsilicon, Inc. develops and markets semiconductor and software systems that link imaging equipment such as copiers, printers and fax machines, industrial automation equipment and other electronic devices to standard communications networks, including local area networks and the Internet, enabling control by remote administrators. The company's networking products are sold to major OEMs for integration into embedded systems--computers incorporated into larger electronic systems to perform specific tasks. A majority of the company's sales are currently derived from the imaging market. Key target markets include industrial automation equipment, communication devices, medical electronics, data acquisition and test equipment, Internet devices and utility monitoring equipment. Founded in 1984, the company is headquartered in Waltham, Mass. For more information, visit www.netsilicon.com.
|
