To: David Lawrence who wrote (15180 ) 5/4/1998 10:58:00 PM From: Moonray Read Replies (2) | Respond to of 22053
Hayes Q1 loss narrows, Bay pact set Monday May 4, 5:56 pm Eastern Time ATLANTA, May 4 (Reuters) - Computer modem maker Hayes Corp. said its losses narrowed during the first quarter compared with a year ago even though its Access Beyond acquisition and higher research spending boosted expenses in the 1998 period. In a statement, Hayes said it was ''not immune'' to industrywide softness in the modem market, including in Asia. Even so, ''We believe the softness in our Asia business bottomed out in the first quarter.'' The company expects its business there to begin recovering in the second quarter.'' Separately, Hayes announced a wide-ranging pact with Bay Networks Inc. (BAY - news) covering Bay's broadband cable modems. In a joint statement, Bay and Hayes said they had agreed to a comprehensive deal in which Hayes has been licensed to manufacture Bay's current and next-generation cable modems capable of delivering high-speed data to customer homes. The agreement covers not only manufacturing but also marketing, distribution and sales. The deal allows Hayes to sell Bay's next-generation cable modem under the venerable Hayes brand name. Hayes pioneered the personal computer modem business two decades ago, although it has lost ground to rivals such as 3Com Corp. (COMS - news) in recent years. In the first quarter, Hayes' net loss applicable to common shares narrowed to $0.20 per share from a loss of $0.69 in the corresponding period of 1997. First-quarter net sales rose to $44.2 million from $39.2 million in the year-earlier period. Sales in the 1997 fourth quarter were $52.9 million. In the first quarter, the company's operational efficiencies improved. Despite the addition of new expenses from Access Beyond operations and a 27 percent increase in research and development costs, total expenses fell to $14 million from $18.5 million in the 1997 fourth quarter and $15.1 million in the first quarter of 1997. Looking ahead, the company said the adoption of a unified industry standard for 56 kilobit per second modems was expected to spur upgrades to its higher margin 56K V.90 PC modem products to replace older 33.6 kilobit modems. In other announcements, Hayes launched a national retail distribution strategy for cable modems with Tandy Corp.'s (TAN - news) Computer City unit to distribute its products. In addition, the company said it would announce later this week a new class of low-priced V.90 access servers that combine exceptional performance and features at extremely low prices at the industry's Networld+Interop trade show in Las Vegas. o~~~ O