Ancor Communications Reports First Quarter Results
MINNEAPOLIS, April 29 /PRNewswire/ -- Ancor Communications, Inc.
(Nasdaq: ANCR) today reported a net loss of $2,765,021, or $.25 per fully
diluted share, on gross revenues of $1,042,227 for the first quarter ended
March 31, 1998. In the comparable 1997 period, the company reported a net
loss of $1,797,234, or $.18 per fully diluted share, on gross revenues of
$1,802,778.
Ken Hendrickson, Ancor's chairman and chief executive officer, said
revenues for the quarter trailed the company's expectations as a result of
customer implementations taking longer than planned. For example, the company
shipped approximately $1 million in April which it had anticipated shipping in
the first quarter.
Hendrickson said the net loss for the quarter reflects the company's
continuing investments in product development and marketing activities
targeting the OEM storage and high performance networking markets. "With the
successful completion of an $11.0 million private placement of convertible
preferred stock during the first quarter, we are well positioned to continue
our market and product development initiatives," said Hendrickson.
Shipments of Ancor Fibre Channel products to customers who are deploying
them in CAD/CAM and high-speed data backup applications accounted for the
majority of the company's first quarter revenues, according to Hendrickson.
"We again received a major order from our Japanese distributor, Hucom, for
Fibre Channel switches that are being used in a leading-edge CAD/CAM
application in Japan. We also won repeat business from IBM Global Services
for Fibre Channel switches that are being used to backup hundreds of terabytes
of data overnight. This follow-on business from customers representing two of
our targeted vertical market segments is very encouraging and validates our
focus on CAD/CAM and data backup applications for Fibre Channel," said
Hendrickson. He noted that the company continues to work with resellers to
capture additional Fibre Channel business in the geo-seismic and national
defense markets, two other application areas where Fibre Channel's bandwidth,
capacity and high availability advantages are most compelling.
"We also continue to focus on the emerging opportunities for Fibre Channel
in storage area networks and we are encouraged by the product plan
announcements being made by storage vendors," said Hendrickson. During the
first quarter, Craig Frane, formerly of Seagate Technology, joined Ancor as
director of product management. Frane is directing Ancor's expansion into
storage connectivity applications, focusing particularly on OEM customer
development, storage product development and industry partnerships. "We are
also pleased to announce the addition of a seasoned sales manager to lead our
OEM and channel sales team," said Hendrickson. Paul Pasqua, who has held
senior sales and channel development positions at Artesyn Technologies, Zytec,
IOMEGA and Control Data Corporation, joined Ancor as vice president of
worldwide sales in April. "Paul brings Ancor valuable experience, expertise
and contacts that we expect will help us develop relationships with major
networking, computer and peripherals companies," said Hendrickson.
About Ancor Communications
Ancor Communications, Inc. provides GigWorks(TM) high performance storage
and data-intensive network solutions based on Fibre Channel technology. The
company was the first to deliver a Fibre Channel switch, and the first to top
the one-gigabit performance level. In addition to Fibre Channel switches,
Ancor products also include adapters and connectivity solutions. Ancor is a
member of the Fibre Channel Association, the ANSI Standards Committee and the
University of New Hampshire Fibre Channel Consortium to promote the
advancement of Fibre Channel standards and interoperability. Information about
Ancor is available on the World Wide Web at ancor.com
GigWorks(TM), ANCOR(TM) and the Ancor logo are the marks and property of
Ancor Communications, Inc.
For more information about Fibre Channel technology and Ancor Fibre
Channel solutions, call 800-342-7379 or access the World Wide Web site.
Forward-looking statements as defined by the Private Securities Litigation
Reform Act of 1995 are qualified by the risk factors outlined in the documents
Ancor Communications, Inc. files with the Securities and Exchange Commission.
ANCOR COMMUNICATIONS, INCORPORATED
STATEMENT OF OPERATIONS
(Unaudited)
Three Months Ended
March 31,
1998 1997
Net Sales $1,042,227 $1,802,778
Cost of Sales 699,608 1,093,068
Gross Profit 342,618 709,710
Operating Expenses
Selling, general and administrative 1,711,117 1,501,996
Research and development 1,449,206 1,023,373
Total operating expenses 3,160,323 2,525,370
Operating loss (2,817,704) (1,815,660)
Other income (expense)
Interest expense (13,055) (2,599)
Other, net 65,739 21,025
Net Loss ($2,765,021) ($1,797,234)
Basic and Diluted Net loss per
common share ($0.25) ($0.18)
Weighted average common and
common equivalent shares
outstanding 11,884,248 10,430,948
ANCOR COMMUNICATIONS, INCORPORATED
BALANCE SHEETS
March 31, December 31,
1998 1997
ASSETS (Unaudited)
Current Assets:
Cash and cash equivalents $2,146,021 $2,001,404
Short-term investments 7,882,673 0
Accounts receivable 1,133,250 1,499,634
Inventories 3,188,521 2,493,722
Other current assets 146,796 154,983
Total current assets 14,497,261 6,149,743
Equipment, net of accumulated
depreciation 3,355,855 3,273,528
Patents, Prepaid Royalties, and Other Assets,
net of accumulated amortization 255,489 269,190
Capitalized software development costs
net of accumulated amortization 395,722 471,043
TOTAL ASSETS $18,504,327 $10,163,504
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Current maturities of long-term debt $143,071 $65,145
Accounts payable 1,549,578 963,321
Accrued liabilities 781,077 688,990
Total current liabilities 2,473,725 1,717,456
Long-term Debt, less current maturities 173,606 129,702
Shareholders' Equity
Capital Stock 45,714,219 35,408,549
Accumulated deficit (29,857,223) (27,092,202)
Total shareholders' equity 15,856,995 8,316,346
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $18,504,327 $10,163,504
SOURCE Ancor Communications, Inc.
/CONTACT: Media, contact Mary Miller of Ancor, at 612-932-4071,
marym@ancor.com, or Aaron Pearson of Shandwick for Ancor, 612-832-5000,
apearson@shandwick.com, or Steve Snyder, Chief Financial Officer of Ancor,
612-932-4000/
/Web site: ancor.com
(ANCR) |
