SEEQ Technology Inc. Reports Second-Quarter 1998 Results
April 16, 1998 04:03 PM
FREMONT, Calif.--(BUSINESS WIRE)--April 16, 1998--SEEQ Technology Inc. SEEQ Thursday announced financial results for its fiscal second quarter and six-month period ended March 31, 1998. For the second quarter, the company reported net income of $973,000, or 3 cents per diluted share, up from $614,000, or 2 cents per diluted share, for the same period in fiscal 1997. Revenues for the 1998 period were $7.9 million, compared with revenues of $8 million for the corresponding quarter last year. For the six months ended March 31, 1998, net income totaled $2.1 million, or 6 cents per diluted share, vs. $648,000, or 2 cents per diluted share, for the first six months of fiscal 1997. Revenues for the six-month period were $15.4 million in 1998, compared with $14.7 million in 1997. Phil Salsbury, SEEQ's president and chief executive officer, commented: "We were encouraged that we grew revenues sequentially from the prior quarter, a positive reflection on the market acceptance for our Fast Ethernet products. "Among the period's highlights, we began volume shipments of our 100Base-TX Physical Layer product, a device that we expect to become an important source of new revenue in future quarters. Just this week, in fact, we announced that Xircom, a leader in the Ethernet-adapter- card industry, has selected this product for its new adapter-card designs. "During the quarter we experienced some flattening in the new- order rate primarily attributable to inventory levels at our largest customers. To ensure our position on the cutting edge of technology and bring new products to market faster, we continue to invest significantly in research and development, spending for which increased by $170,000 in the 1998 quarter, compared with 1997. "At the same time, we held our marketing, general and administrative costs steady." SEEQ Technology is a leading manufacturer of data-communications semiconductor products. With headquarters in Fremont, the company is a LAN pioneer, having introduced the first integrated Ethernet controller in 1982. SEEQ's product families include Gigabit Ethernet, Fast Ethernet (100Base-T) and ATM components. SEEQ leads the Ethernet Media Access Controller (MAC) market and offers the broadest line of Fast Ethernet MACs and PHYs in the industry. The company's Ethernet solutions are used in industry-leading applications, including network-interface cards, hubs/bridges/routers, switches and test equipment. SEEQ is a contributing member of the IEEE Fast Ethernet and Gigabit Ethernet committees, as well as the Gigabit Ethernet Alliance (GEA). For further information about SEEQ and its products, visit the company's World Wide Web site at seeq.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this news release regarding SEEQ's business that are not historical facts are "forward-looking statements" that involve risks and uncertainties, including, but not limited to, market acceptance risks, the effect of economic conditions, the impact of competitive products and pricing, product development, commercialization and technological difficulty and capacity and supply constraints, and the risk factors listed in SEEQ's most recent Annual Report on Form 10-K, "Management's Discussion and Analysis of Financial Condition and Results of Operations, Factors Affecting Future Results." SEEQ assumes no obligation to update the information included in this news release.
SEEQ TECHNOLOGY INC.
CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except per-share amounts)
(unaudited)
Three months Six months ended
ended March 31, ended March 31,
1998 1997 1998 1997
Revenues $ 7,880 $ 8,031 $15,432 $14,655
Costs and expenses:
Cost of revenues 4,442 5,059 8,625 9,619
Research and
development 1,072 902 1,922 1,682
Marketing, general
and administrative 1,445 1,444 2,979 2,696
Total costs and expenses 6,959 7,405 13,526 13,997
Income from operations 921 626 1,906 658
Interest expense (80) (87) (168) (170)
Interest and other
income, net 164 95 299 181
Income before income
taxes 1,005 634 2,037 669
Income tax (provision),
benefit (32) (20) 16 (21)
Net income $ 973 $ 614 $ 2,053 $ 648
Net income per share:
Basic 3 cents 2 cents 7 cents 2 cents
Diluted 3 cents 2 cents 6 cents 2 cents
Shares used in per share calculation:
Basic 30,624 30,288 30,549 30,280
Diluted 32,036 31,571 32,315 31,742
SEEQ TECHNOLOGY INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
(unaudited)
March 31, Sept. 30,
1998 1997
Assets
Current assets:
Cash and cash equivalents $ 10,286 $ 6,937
Accounts receivable, less allowances 5,590 7,284
Inventories 4,330 3,176
Deposits and prepaid expenses 337 332
Deferred taxes 2,029 1,950
Total current assets 22,572 19,679
Net property and equipment 4,973 4,384
Other assets 2,875 2,977
Total assets $ 30,420 $ 27,040
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 2,336 $ 1,582
Accrued salaries, wages and
employee benefits 684 698
Other accrued liabilities 902 1,143
Current portion of long-term
obligations 1,422 1,091
Total current liabilities 5,344 4,514
Long-term obligations 3,491 3,308
Total liabilities 8,835 7,822
Stockholders' equity 21,585 19,218
Total liabilities and
stockholders' equity $ 30,420 $ 27,040
c 1998 Business Wire.
looks like next quarter again ..... |
