The bleeding continues..... Proteon, Inc. Reports Third Quarter Results
October 23, 1997 04:14 PM
WESTBORO, Mass., Oct. 23 /PRNewswire/ -- Proteon, Inc. PTON today reported a net loss for the third quarter ended September 27, 1997, of $2,894,000, or $0.19 per share, compared with a net loss of $1,763,000, or $0.11 per share, for the third quarter of 1996. Net sales for the third quarter of 1997 were $5,006,000, compared with net sales of $10,589,000 for the third quarter of 1996. The balance sheet remained strong with cash increasing to $19.5 million and inventory decreasing 15 percent during the quarter. The Company ended the quarter with $26.6 million of working capital and no debt.
For the nine months ended September 27, 1997, Proteon reported a net loss of $4,340,000, or $0.28 per share, compared with a net loss of $3,967,000, or $0.26 per share, for the same period last year. Net sales for the first nine months of 1997 were $21,880,000, compared with $35,253,000 for the first nine months of 1996.
Daniel J. Capone, Jr., Proteon's president and chief executive officer, said, "Financial results for the period reflect a continued reduction in Token Ring local area networking revenues coupled with continued decreases in enterprise router sales. In addition, there were several delayed orders from key channel partners in the Internet Access segment of our business. Continued investments to attract new sales and marketing talent to the Company also affected profitability.
"After an analysis of our sales productivity, we have made several substantial changes to better position the Company for market share growth. First, we will increase our focus on business relationships with Internet Service Providers, OEMs, public network operators who manage private networks, and partners with brand recognition in the markets and channels they serve.
"Second, we have changed the senior management team and attracted new executives with strong marketing and sales experience who have successfully managed customer relationships and sold into major accounts. This new group includes Gene Chang as vice president of sales and marketing for North America; Rick Arena as vice president of sales, marketing and field operations for international markets; Steve Bielagus as vice president of business development; and Bob Koch as vice president of engineering and product development and management. We also announced the appointment of Steve Shedd as vice president of finance and chief financial officer.
"Also, we will continue to add value to the Company through the introduction of award-winning products such as our ISDN routers which recently received a "Tester's Choice" award from Data Communications magazine. We also are gratified by the acceptance of our GTX 1000 modular Internet Access router at the recent Networld+Interop show in Atlanta where industry consultants, selling partners, press and customers voiced their support of this important product."
In this announcement, under the provisions of the "safe harbor" section of the Private Securities Litigation Reform Act of 1995, Proteon, Inc. makes forward-looking statements that involve a number of risks and uncertainties. Among the factors that could cause actual future results to differ materially are the level of acceptance of Proteon's and OpenROUTE Networks' products in the marketplace; the company's ability to generate revenue across all existing product lines; future revenues generated by the licensing of OpenROUTE software; general competitive pressures in the marketplace; the company's ability to sign agreements with reseller partners including both Premier Access Partner VARs and Internet Service Providers (ISPs); the ability to sign OEM agreements; and continued overall growth in the networking industry. Risk factors are listed in the company's annual report, Form 10-K, Forms 10-Q, and other filings with the Securities and Exchange Commission.
About Proteon and OpenROUTE Networks
OpenROUTE Networks' GlobeTrotter (GT) Internet Access routers feature the best price performance in their class. Single unit prices for Internet Protocol (IP) connectivity start at only $795 per unit, which includes hardware and software. All GT router products come standard with OpenROUTE Networks' data compression functionality. The Company's "ALLWays.Secure"(TM) network security portfolio provides the widest range of integrated network security features for Internet and corporate Intranet applications.
All GTs feature OpenROUTE(TM), the company's interoperable, standards- based routing software. This means that GTs are compatible with networking devices from such leading vendors as IBM, Digital and Motorola, who have licensed OpenROUTE. GT products also come standard with the company's new "ALLWays.Connected(TM) Guarantee," which means that they are guaranteed to connect to products from Cisco and Ascend and all other suppliers; carry a lifetime warranty; and are offered with a "trade up" support program to provide investment protection. GT products can be installed in minutes and are easily maintained and managed from central network sites. For more information, contact OpenROUTE Networks, Inc. at 800-545-7464 or on the World Wide Web at openroute.com or proteon.com.
OpenROUTE, IBM, Digital, Motorola, Cisco Systems, and Ascend Communications are trademarks of their respective organizations.
SOURCE Proteon, In |
