Osicom Technologies Announces Second Quarter Results
THURSDAY, SEPTEMBER 14, 2000 4:19:00 PM EST
SANTA MONICA, Calif., Sep 14, 2000 (BUSINESS WIRE) -- Osicom Technologies Inc. FIBR, a leading developer of metropolitan optical networking systems, today announced revenues aggregating $11.4 million in its fiscal second quarter ended July 31, 2000.
Revenue for the six months ended July 31, 2000 was $21.4 million. Revenues in the quarter and six-month periods include the Company's Sorrento Networks, Meret Optical and Entrada Networks operations. Total revenues from the same operations in last year's second quarter and six-month period were $9.7 million and $23.0 million, respectively. The reported revenues for last year's second quarter and six-month period, which also included NETsilicon which was partially spun-off in September 1999, were $17.2 million and $36.3 million, respectively.
Dr. Xin Cheng, Chairman and Chief Executive Officer, commented, "During our second quarter, we continued to see strength in our principal business lines and accomplished several significant milestones. These accomplishments included taking the final steps to launch Entrada Networks as an independent pure play in the SAN segment of the networking space, and the shipment by Sorrento to three of its strategic customers, namely: UPC, INRANGE and AT&T Broadband. UPC has begun rolling out our end-to-end, all-optical solution into its pan-European network. INRANGE's multinational sales organization is now advocating Sorrento's solution to new customers as well as to INRANGE's installed base of Fortune 1000 enterprise and SAN customers around the globe."
The fiscal 2001 second quarter loss from continuing operations was $13.5 million, or $1.21 per share, compared to a net loss of $2.5 million, or $0.29 per share, a year ago. For the six months ended July 31, 2000, the net loss from continuing operations was $26.4 million, or $2.36 per share, compared with $3.5 million, or $0.45 per share a year ago. The increase in the net loss from continuing operations was primarily due to increased engineering, research and development, and other expenses reflecting the expansion of operations in the Company's Sorrento Networks subsidiary.
Sorrento Networks reported revenue of $3.5 million in the fiscal 2001 second quarter, compared with $1.5 million in the same period last year, and $4.7 million in the fiscal 2001 first quarter. For the six months ended July 31, 2000, Sorrento's revenue was $8.2 million versus $6.3 million in the same period last year. Sorrento's revenue mix changed substantially in the second quarter. Over two-thirds of Sorrento's first quarter revenues were comprised of sales to one customer. This customer did not contribute to second quarter sales. A substantial percentage of sales in the second quarter was attributable to initial shipments to INRANGE, UPC and AT&T Broadband.
Revenue from Entrada Networks totaled $6.0 million in the fiscal 2001 second quarter, compared with $6.6 million in the same period last year and $3.7 million in the first quarter of this fiscal year. For the six months ended July 31, 2000, Entrada had revenue of $9.7 million, compared with $13.0 million in the same period last year, reflecting Entrada's focus on high-performance LAN connectivity solutions to original equipment manufacturers. Sales to those OEM customers were $5.9 million in the fiscal 2001 second quarter and $8.2 million for the six months ended July 31, 2000, as compared with $2.0 million and $3.5 million, respectively, for the same periods last year.
On September 1, 2000, Entrada began trading on the Nasdaq National Market under the symbol ESAN.
As previously reported, the company partially spun off NETsilicon on September 14, 1999 through an initial public offering, and retained a 55 percent non-voting interest. Accordingly, the Company's financial statements include the operations of NETsilicon only through September 14, 1999.
Recent Developments
The Company recently announced the outline of its plan to effectively establish Sorrento Networks as an independent, publicly-traded company and a pure play in metropolitan, all-optical networking solutions. Further details of that plan, which is being executed in conjunction with the Company's financial advisors, are expected to include additional appointments to the Company's board of directors and executive management team. In this regard, the Company will separately announce the appointment of two new independent directors to its board: Gary M. Parsons and Susan Mandl. Mr. Parsons is Chairman of the Boards of Motient Corporation and X-M Satellite Radio and a former Executive Vice President of MCI. Ms. Mandl is the chairman of ASM Investments. She was formerly the Chief Executive Officer of Newcourt Communications Finance and Vice President of Lucent Technologies and AT&T.
With the addition of Mr. Parsons and Ms. Mandl, the Company now has an eight-member board, five of whom are independent directors. The Company expects to add additional board members in the near future. At the end of a three to six month transition period, two members, Rohit Phansalkar and Len Hecht, will resign from the board.
The Company stated that it will be making announcements relating to these and other initiatives over the coming weeks.
About Osicom
Osicom Technologies Inc. is a developer and marketer of metropolitan optical networking systems, through its optical networking subsidiary Sorrento Networks. For more information about Osicom Technologies, visit www.osicom.com. |
