Joe W., Here is how INRG did...
INRANGE Announces Record Q1 Revenue of $63.9 Million Fueled by FC/9000 Director
235% Growth in Open Storage Networking
LUMBERTON, N.J., April 19 /PRNewswire/ -- INRANGE Technologies Corporation (Nasdaq: INRG - news), a leading provider of networking products and services for storage area networks (SANs), and data and telecommunications networks, today reported record revenues of $63.9 million, adjusted net income of $3.0 million and earnings per share of $0.04 for the quarter ended March 31, 2001, excluding the effects of the amortization of goodwill and other intangibles.
FIRST QUARTER REVENUE UP 38%, DRIVING 37th CONSECUTIVE PROFITABLE QUARTER
The company reported record revenues for the first quarter of $63.9 million, a 38% increase over first quarter of 2000. In terms of revenue, this was the best first quarter in Inrange's 33-year history.
Revenues in the open storage networking business in the quarter totaled $21.1 million, a 235% increase over first quarter 2000, and increased about 20% sequentially over the fourth quarter 2000. This 235% growth was mainly fueled by the continued marketplace acceptance of the FC/9000 128 port director and SAN services.
The company reported adjusted net income of $3.0 million, and $0.04 earnings per share, excluding the effects of the amortization of goodwill and other intangibles. On an actual basis, net income was $2.3 million and earnings per share were $0.03 for the quarter ended March 31, 2001.
This was the 37th consecutive profitable quarter for Inrange, excluding one-time or special charges.
FIRST QUARTER HIGHLIGHTS
In the quarter, Inrange announced:
* General availability of 128-Port FC/9000 Fibre Channel Director
achieved in March, on target with previous forecasts.
* 46% growth in services revenues compared to first quarter 2000.
Services revenues were $12.3 million or about 20% of total revenues.
* A new partnership with VERITAS, including bundling VERITAS SAN
Software Release 2.0 with each FC/9000 Director.
* A new partnership with BMC to simplify Storage Management.
* A worldwide alliance with Hitachi Data Systems to enable
high-availability, Virtual Storage Networks. HDS to resell IN-VSN
Family including Inrange Director, channel extension, optical
networking and services offerings.
* Professional Services Group bolstered with Prevail Technology
acquisition.
``Inrange continued to build on its technology leadership position in Q1 with the introduction of the 128 port capacity director. However, we are not in the business to just talk about having the largest and best directors. Market leading technology doesn't lead to market traction unless that technology is focused on helping customers solve their complex business problems -- and you have the right way to 'deliver' that solution to the customer. We tailor our solutions to our customers' unique environment, for their specific applications. The FC/9000 now scales between 24-to-128 ports, without any degradation in performance. We accomplish this with our unique XCA 'any-to-any, non-blocking architecture.' This allows our customers to build larger SANs than previously available,'' stated Greg R. Grodhaus, Inrange President and CEO.
``We have the right delivery systems. With the Prevail acquisition completed and fully integrated, Inrange now has over 450 sales, service and systems field based experts dispersed around the world. This allows Inrange to support customers and Business Partners directly in more than 90 locations throughout the world. This business model, together with our sales and service resources, allows Inrange to focus on providing solutions directly to the customer -- and giving us better 'control of our destiny.'''
``This is a tough 'economy.' However, our technologies are driving customer efficiencies and value -- and I am proud to say that our customers are responding by ordering our products and services in greater quantities than at any time in our history.''
``With our technology partner, QLogic, we continue to bring products to market much faster than our competitors. In this day of shrinking product life cycles, our two companies' combined technological resources of 600+ engineers, allows us to more quickly respond to our customer needs. In addition, we design our products to be seamlessly field-upgradeable to protect our customer's technology investments. The 128 port FC/9000 is the perfect example. All previously installed FC/9000 24-to-64 port units now scale between 24-to-128 ports. This is the ultimate 'pay-as-you-grow' system,'' added Grodhaus.
Inrange is ``on-target'' with the 2001 product roadmap previously announced in the fourth quarter 2000. With the 128 port director now available and FC-over-WAN capability and the 256 port FC/9000 coming later in 2001, Inrange will widen its technology lead.
Media Contact:
Lou Martelli
609-518-4179
Investor Relations:
Nelson Viola
609-518-4435
INRANGE TECHNOLOGIES CORPORATION
UNAUDITED CONDENSED BALANCE SHEETS
(in thousands)
March 31, December 31,
2001 2000
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 22,809 $ 22,646
Demand note from SPX 52,341 60,956
Accounts receivable, net 73,069 79,988
Inventories 30,855 29,271
Prepaid expenses and other 5,171 5,209
Deferred income taxes 4,968 4,968
Total current assets 189,213 203,038
PROPERTY, PLANT AND EQUIPMENT, net 17,577 16,103
GOODWILL AND OTHER INTANGIBLES, net 45,672 44,629
OTHER ASSETS, net 40,499 37,288
Total assets $ 292,961 $ 301,058
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt $ 2,894 $ 4,438
Accounts payable 24,129 23,541
Accrued expenses 19,631 29,401
Deferred revenue 11,409 10,923
Total current liabilities 58,063 68,303
LONG-TERM DEBT 1,315 1,283
DEFERRED INCOME TAXES 918 918
COMMITMENTS AND CONTINGENCIES
TOTAL STOCKHOLDERS' EQUITY 232,665 230,554
Total liabilities and stockholders' equity $ 292,961 $ 301,058
INRANGE TECHNOLOGIES CORPORATION
UNAUDITED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
Quarter Ended March 31,
2001 2000
REVENUE:
Product revenue $ 51,532 $ 37,697
Service revenue 12,343 8,456
Total revenue 63,875 46,153
COST OF REVENUE:
Cost of product revenue 25,701 18,306
Cost of service revenue 8,205 5,047
Total cost of revenue 33,906 23,353
Gross margin 29,969 22,800
OPERATING EXPENSES:
Research, development and engineering 7,584 4,963
Selling, general and administrative 18,743 12,137
Amortization of goodwill and other intangibles 1,041 267
Operating expenses 27,368 17,367
OPERATING INCOME 2,601 5,433
INTEREST (INCOME) EXPENSE (1,273) 177
OTHER INCOME (41) (94)
Income before income taxes 3,915 5,350
INCOME TAXES 1,569 2,140
NET INCOME $ 2,346 $ 3,210
BASIC AND DILUTED EARNINGS PER COMMON SHARE:
Basic and diluted earnings per common share $ 0.03 $ 0.04
Shares used in computing basic and diluted
earnings per common share 84,483,333 75,633,333
INRANGE TECHNOLOGIES CORPORATION
UNAUDITED RECONCILIATION OF RESULTS ON A COMPARATIVE BASIS
EXCLUDING THE AMORTIZATION OF GOODWILL AND OTHER INTANGIBLES
(In thousands, except share and per share data)
Quarter Ended March 31,
2001 2000
INCOME BEFORE INCOME TAXES $ 3,915 $ 5,350
ADD:
Amortization of goodwill and other intangibles 1,041 267
INCOME BEFORE INCOME TAXES
EXCLUDING AMORTIZATION 4,956 5,617
INCOME TAXES 1,982 2,247
NET INCOME EXCLUDING AMORTIZATION $ 2,974 $ 3,370
BASIC AND DILUTED EARNINGS PER COMMON SHARE:
Basic and diluted earnings per common share $ 0.04 $ 0.04
Shares used in computing basic
earnings per common share 84,833,333 75,633,333
About INRANGE Technologies (www.inrange.com )
So while some SAN vendors didn't get the sequential growth that many wanted INRG was able to. Good for them. Will lesten to the call if I can. |
