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Technology Stocks : BAY Ntwks (under House) -- Ignore unavailable to you. Want to Upgrade?

To: Sherman Chen who wrote (6870)	7/20/1998 6:27:00 PM
From: Paul Lee	Respond to of 6980

full report Bay Networks Reports Record Level Revenue for Fiscal 1998 SANTA CLARA, Calif.--(BUSINESS WIRE)--July 20, 1998--Bay Networks, Inc. (NYSE:BAY) today reported results for its fourth fiscal quarter and its fiscal year ended June 27, 1998. For its fourth fiscal quarter of 1998, the company reported revenue of $618.3 million, an increase of 13.0% from the preceding quarter and an increase of 13.9% for the corresponding quarter of the preceding year. Net income for the fourth quarter was $20.6 million, or $0.09 per share; these results include a charge of $7.0 million for in-process research and development charges related to the acquisitions of Netwave Technologies, Inc. and Phase2 Networks, Inc., both of which were completed during the fourth fiscal quarter. Excluding these charges, pro-forma net income and related pro-forma income per share in the fourth quarter were $27.6 million and $0.12, respectively. Bay Networks reported record revenue for fiscal year 1998 of $2,411.7 million, a 15.2% increase compared to revenue of $2,093.1 million for fiscal year 1997. Net loss and loss per share for fiscal year 1998 were $(34.8) million and $(0.16), respectively. Fiscal year 1998 results included charges relating to write-offs of in-process research and development and the cumulative effect of a change in accounting principle. Excluding these charges, net income and earnings per share for fiscal year 1998 were $145.7 million and $0.65 respectively. For fiscal year 1997 net loss and loss per share were $(285.0) million and $(1.46), respectively. The fiscal year 1997 results included charges relating to merger and acquisition activities, business alignment, and restructuring and severance. Excluding these charges, fiscal year 1997 net income and earnings per share were $118.6 million and $0.59, respectively. "We had a strong finish to fiscal 1998 as indicated by the 13% sequential growth we achieved in the fourth quarter," said Dave House, chairman, CEO and president of Bay Networks. "Revenue from North America hit record levels reflecting robust end-user demand. At the same time, channel inventories continue to be at healthy levels." "New products contributed more than 55% of revenue for the third consecutive quarter. Switching products, which grew 87% year-over-year, fueled this performance. The Accelar family of routing switches delivered strong sequential growth again this quarter. We introduced several key products and initiatives, including the introduction of the Versalar 15000 and the establishment of the Bay Networks Open Routing Division. The Versalar 15000 is a new class of product that provides Internet Service Providers (ISPs) with unprecedented IP Class of Service (CoS) features and an extremely high concentration of dedicated connections. The Bay Networks Open Routing Division will license and sell a portable version of Bay Networks Routing Services (BayRS(tm)) technology," continued House. "We believe that the work we accomplished over the past fiscal year - specifically, re-energizing the product line, strengthening the product development cycle, and implementing major steps in our Adaptive Networking strategy - positions the Company for continued growth," concluded House.