NETWORK COMPUTING DEVICES INC files 12/31/97 10-K.
IFN Smart Edgar News - March 31, 1998 17:16
%SIC3575 %OPR %annrept NCDI V%IFN P%SMRT
--------------------------------------------------------------------------------
Excerpted from 10-K405 filed on 03/31 by NETWORK COMPUTING DEVICES INC:
NETWORK COMPUTING DEVICES INC files 12/31/97 10-K. Reports $133.4 mil tot rev, $2.6 mil NI, $0.16 EPS.
RESULTS OF OPERATIONS
The following table sets forth certain items in the Company's consolidated
statements of operations as a percentage of net revenues for the periods
indicated. Figures are rounded to the nearest whole percentage, and line
items presenting subtotal and total percentages may therefore differ, due to
rounding, from the sum of the percentages for each line item.
TABLE
CAPTION
Years Ended December 31,
1997 1996 1995
S C C C
Net revenues:
Hardware products and services 75% 79% 79%
Software licenses and services 25% 21% 21%
Total net revenues 100% 100% 100%
Cost of revenues:
Hardware products and services 53% 60% 59%
Software licenses and services 7% 6% 3%
Total cost of revenues 61% 67% 62%
Gross profit 39% 33% 38%
Operating expenses:
Research and development 11% 12% 9%
Marketing and selling 23% 27% 25%
General and administrative 5% 9% 6%
Charge (credit) for business restructuring -- (1)% 3%
Litigation settlement (0)% 1% --
Total operating expenses 38% 48% 43%
Operating income (loss) 1% (14)% (5)%
Non-operating income and gains, net 2% 7 % 1%
Income (loss) before income taxes 3% (7)% (4)%
Provision for income taxes (income tax benefit) 1% (3)% (2)%
Net income (loss) 2% (4)% (3)%
TABLE
As mentioned above under "Overview," the Company determined to recombine its
two former business units (i.e., "Systems" and "Software") into a single
operation in June 1996. Although the Company is now managed as one operating
entity, the Company is reporting hardware and software revenues
independently. Revenues, cost of revenues and gross margins relating to prior
operating periods have been conformed to the current presentation, and the
following discussions of net revenues and gross margins address the revised
presentation.
TOTAL NET REVENUES
Total net revenues for 1997 were $133.4 million, an increase of 11% from 1996
net revenues of $120.6 million. Net revenues for 1996 decreased by 13%
compared to 1995 net revenues of $139.3 million. International revenues were
34% of total net revenues for 1997, representing a slight increase from 33%
in 1996 and 1995. Sales to IBM accounted for 26% of revenues in 1997. No
single customer of the Company accounted for more than 10% of the Company's
net revenues during 1996 or 1995.
HARDWARE REVENUES
Hardware revenues consist primarily of revenues from the sale of thin client
products, related hardware, and to a lesser extent, fees for related service
activities. Hardware revenues were $100.6 million for 1997, an increase of 6%
compared to revenues
of $95.0 million in 1996. Hardware revenues for 1996 decreased 13% compared
to revenues of $109.7 million in 1995. The increase in revenues in 1997
reflects the increased shipments related to the IBM Agreement, offset by
lower average selling prices ("ASPs"). The decline in revenues for 1996
was due to a decline in units shipped and a decline in the ASPs of the
Company's hardware products due to the Company's introduction of lower-priced
EXPLORA thin clients and pricing competition.
(End of item excerpt.)
----------FINANCIAL DATA SCHEDULE--------
MULTIPLIER 1,000
PERIOD-TYPE YEAR
FISCAL-YEAR-END DEC-31-1997
PERIOD-START JAN-01-1997
PERIOD-END DEC-31-1997
CASH 21,240
SECURITIES 10,240
RECEIVABLES 27,754
ALLOWANCES 2,606
INVENTORY 15,412
CURRENT-ASSETS 79,646
DEPRECIATION 22,540
TOTAL-ASSETS 86,514
CURRENT-LIABILITIES 25,835
BONDS 0
PREFERRED-MANDATORY 0
PREFERRED 0
COMMON 58,630
OTHER-SE 1,889
TOTAL-LIABILITY-AND-EQUITY 86,514
SALES 133,400
TOTAL-REVENUES 133,400
CGS 81,075
TOTAL-COSTS 81,075
OTHER-EXPENSES 50,589
LOSS-PROVISION 26
INTEREST-EXPENSE 51
INCOME-PRETAX 3,831
INCOME-TAX 1,150
INCOME-CONTINUING 2,681
DISCONTINUED 0
EXTRAORDINARY 0
CHANGES 0
NET-INCOME 2,681
EPS-PRIMARY 0.16
EPS-DILUTED 0.15
------------------------------------------------------------------------
DISCLAIMER:
The information provided through this news feed is excerpted from documents
filed with the Securities and Exchange Commission (SEC) and should not be
relied upon without review of the full documents filed with the SEC. In no
event will Internet Financial Network, Inc., its officers, directors,
employees, stockholders or agents, be liable to you or to any third party for
any damages, costs or expenses arising or incurred in connection with any
action taken or failure to act that is based upond the information contained
in or omitted from this news feed or the documents filed with the SEC.
------------------------------------------------------------------------ |
