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Technology Stocks : Xylan -- Ignore unavailable to you. Want to Upgrade?

To: drdan who wrote (2786)	10/15/1998 12:37:00 AM
From: Gary Korn	Read Replies (2) \| Respond to of 4135

10/14/98 Dow Jones News Serv. 18:52:00 Dow Jones News Service Copyright (c) 1998, Dow Jones & Company, Inc. Wednesday, October 14, 1998 Xylan CEO Sees 4Q Sales Outpacing Networking Indus Avg BUENA PARK, Calif. (Dow Jones)--Xylan Corp. (XYLN) expects fourth-quarter revenue growth to continue to outpace computer networking industry averages, its chief executive said. "We expect strong continuing growth" in the direct and value-added-reseller sales channels, Chairman, Chief Executive and President Steve Kim said in a conference call following Xylan's third-quarter earnings report. He also said he expects fourth-quarter operating expenses to be maintained at third-quarter levels. Given annual industry growth of about 24%, Xylan should post sequential revenue gains exceeding 5%-6%, added Chief Financial Officer Dale J. Bartos. Third-quarter revenue, reported after markets closed on Wednesday, was $91.1 million. Bartos also guided 1999 revenue estimates into the $450-460 million range, in the lower end of analysts' published figures. Third-quarter net income of 22 cents a diluted share for the Calabasas, Calif., company matched Wall Street's expectations. Some market observers were expecting Xylan to report a disappointing third quarter because the company warned in July that sales to its biggest customer, International Business Machines Corp. (IBM), would be down sequentially. A profit warning by Xylan's other major customer, Alcatel SA (ALA), also dimmed the Street's profit hopes. However, the company said, a 26% sequential increase in direct and value- added-reseller, or VAR, sales lessened the company's dependence on those two customers. Xylan plans to continue to broaden its customer base. Analysts on the call expressed some surprise with such a strong jump in VAR sales and wondered if Xylan's VAR channel had absorbed some products sold during the quarter. "We believe (the VAR channel) is fully balanced and well-positioned for the fourth quarter," Bartos said. Very few VAR partners stock inventories of Xylan's products, added Kim. "We usually ship directly to the end user," he said. -By Anthony Palazzo; 714-739-5538; tony.palazzo@cor.dowjones.com (END) DOW JONES NEWS 10-14-98 06:52 PM ---- INDEX REFERENCES ----

To: drdan who wrote (2786)	10/15/1998 12:42:00 AM
From: Gary Korn	Respond to of 4135

10/14/98 Dow Jones News Serv. 16:55:00 Dow Jones News Service Copyright (c) 1998, Dow Jones & Company, Inc. Wednesday, October 14, 1998 Xylan Corp. Earnings -2: 3Q, 9 Mos Financial Table -- XYLN Xylan Corp. - Calabasas, Calif. 3rd Quar Sept. 29: 1998 1997 Revenue $91,133,000 $53,517,000 Net income 10,438,000 4,607,000 Avg shrs (basic) 42,921,000 42,647,000 Avg shrs (diluted) 46,956,000 47,269,000 Shr earns (basic) Net income .24 .11 Shr earns (diluted) Net income .22 .10 9 Months: Revenue 250,181,000 146,647,000 Net income 28,426,000 17,565,000 Avg shrs (basic) 43,063,000 42,398,000 Avg shrs (diluted) 47,593,000 46,822,000 Shr earns (basic) Net income .66 .41 Shr earns (diluted) Net income .60 .38 Xylan Corp. (XYLN) provides network switches (END) DOW JONES NEWS 10-14-98 04:55 PM ---- INDEX REFERENCES ----