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Gold/Mining/Energy : Eicon Technologies - Montreal exchange -- Ignore unavailable to you. Want to Upgrade?

To: sPD who wrote (263)	3/20/2000 9:51:00 AM
From: Gilbert Drapeau	Read Replies (1) \| Respond to of 295

Bad news: Eicon Technology Issues Earnings Advisory for Third Quarter MARCH 20, 2000 MONTREAL, CANADA--Eicon Technology announced today that it expects earnings for its third quarter ending March 31, 2000 to be significantly below analysts' estimates of $0.02 per share. Based on current information, sales are estimated at approximately $35 million compared to $49.7 million for the third quarter a year ago. The Company anticipates a significant loss for the quarter in the range of $0.40 to $0.45 per share. These estimated results are preliminary and based on partial information and management assumptions. The Company expects to announce its actual results for the quarter on May 4, 2000. "It has only just become clear that sales in all product segments and regions of the Company will be significantly below our projections for the quarter." said Peter Brojde, President and CEO of Eicon Technology. The Company attributes this unanticipated decline for the quarter to two principal factors. First, many of its customers had strong inventory positions in preparation for the possible impact of Y2K. These inventories are moving more slowly than had been anticipated. Second, the Company continues to be affected by the effects of a slowdown in direct sales to original equipment manufacturers (OEMs), particularly in WAN access products, as it was observed during the previous quarter. This situation, which should improve shortly, has further caused the earnings projections to be affected. The Company continues to invest in the DSL technology and looks forward to the introduction of next generation DSL products, originally anticipated to take place during the present quarter. The release of the first product DIVA ADSL for Windows 2000/98 is expected before the end of June. The Company expects its DSL product line to become a significant component of its sales, commencing in the first quarter of fiscal 2001. "We regret that what we anticipate will result in a substantial earnings disappointment." Brojde said. "However, we have taken immediate action. The senior management in conjunction with the Board of Directors is intensively working on a plan to return the Company to profitability. The Company will announce its plan by no later than May 4, 2000." "We do believe that the DSL and the European ISDN markets are fundamentally healthy and allow for tremendous growth opportunities. However, we clearly need to review the above issues to take better advantage of these opportunities." said Brojde in closing. 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 80 countries through a network of certified channel partners and Original Equipment Manufacturers. Eicon Technology shares are traded on the Montreal Exchange and Toronto Stock Exchange under the symbol "EIC." Information about Eicon and its products is available at eicon.com.