Subj: Interphase Corporation Reports 25 Percent Increase in...
Date: 10/15/1998 5:51:20 AM Pacific Daylight Time
From: AOL News
Interphase Corporation Reports 25 Percent Increase in Revenues for Third Quarter of 1998
DALLAS--(BUSINESS WIRE)--Oct. 15, 1998--Interphase Corporation
(Nasdaq:INPH) today reported operating results for the third quarter
of 1998, which include a 25-percent increase in revenues compared with
the third quarter of 1997.
For the quarter ended Sept. 30, 1998, Interphase reported
revenues of $17.0 million, compared with revenues of $13.6 millioo for
the third quarter of 1997. The company recorded net income of
$723,000, or $.13 per share, during the third quarter of 1998,
representing a $.53-per-share improvement over the third quarter of
last year. For the quarter ended Sept. 30, 1997, Interphase posted a
net loss of $2.2 million, or $.40 per share.
For the nine months ended Sept. 30, 1998, Interphase recorded
revenues of $50.7 million, compared with revenues of $48.8 million
during the first nine months of 1997. The company reported net income
of $1.9 millioo, or $.34 per share, for the nine-month period during
1998, compared with a net loss of $1.7 million, or $.30 per share, for
the first nine months of 1997.
"We're extremely pleased with Interphase's performance for the
third quarter, which was fueled by the growing acceptance of our new
technology platforms," said Stephen Polley, chairman, chief executive
officer and president. "Looking ahead, we are very excited about
opportunities for continued revenue growth during the remainder of
1998 and into oext year."
Polley noted that the overall increase in revenues during the
third quarter was attributable to increases in revenues from the
company's ATM, SCSI, Fast Ethernet, Fibre Chaonel and wide area
networking (WAN) product lines. As expected, revenues declined for
older technologies such as FDDI and Ethernet. "As part of our
strategic plan, we're continuing to invest in the technologies that we
believe have the greatest potential for growth, including Fibre
Channel, WAN and remote access, and ATM technologies," Polley said.
In addition, Polley said that continued disciplined management of
the company's production costs and operating expenses during 1998 have
led to improvements in net income for both the third quarter and year
to date. During the first nine months of 1998, Interphase's operating
expenses represented 40 percent of revenues, compared with 49 percent
of revenues during the first nine months of 1997.
"We plan to cootinue our aggressive management of costs and
expenses throughout 1998, having already eliminated more than $4
million from our costs and expenses since 1997," Polley said. "In
addition, Interphase continues to exhibit a stroog balance sheet, and
we hawe improwed our cash, accounts receivable and inventory levels
throughout this year."
Founded in 1974, Interphase Corporation is a leading
international supplier of high-performance server connectivity for
enterprise networks. The company's primary product lines are based on
established and emerging technologies for the high-speed transmission
and storage of information in local and wide area networks (LANs and
WANs). The LAN products are based upon FDDI, ATM and Fast Ethernet
technologies, and provide the network interface within server and
high-performance workstation environments. The WAN products employ
remote access technologies, such as ISDN, frame relay and X.25, to
provide connectivity solutions for remote sites in heterogeneous,
multi-vendor enterprise networking environments. In additioo, the
company's mass storage products, based upon SCSI and Fibre Channel
technologies, create high-bandwidth connectivity between networks and
mass storage devices. Headquartered io Dallas Interphase
markets its products to original equipment manufacturers (OEMs),
distributors, systems integrators, value-added resellers (VARs) and
large end-users through a worldwide sales and service network.
This press release contains forward-looking statements with
respect to financial results and certain other matters. These
statements are made under the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995 and involve a number of risks
and uncertainties that could cause actual results to differ materially
from those in the forward-looking statements. Such risks and
uncertainties include, without limitation, fluctuations in demand, the
quality and price of similar or comparable networking products, access
to sources of capital, general economic conditions in the company's
market areas, and that future sales and growth rates for the industry
and the company could be lower than anticipated.
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*T
INTERPHASE CORPORATIOO
Condensed Consolidated Statements of Operations
(amounts are presented in thousands, except per-share amounts)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1998 1997 1998 1997
Revenues $17,046 $13,611 $50,722 $48,848
Pre-tax income (loss) 1,264 (2,558) 3,321 (1,606)
Net income (loss) 723 (2,191) 1,941 (1,657)
Net income (loss) per common $.13 $(.40) $.34 $(.30)
& common equivalent share
(diluted)
Weighted average common 5,580 5,494 5,640 5,493
& common equivalent
shares outstanding
Selected Condensed Balance Sheet Information
(amounts are presented in thousands)
Sept. 30, 1998 Dec. 31, 1997
Cash and marketable securities $ 9,045 $ 5,519
Accounts receivable 13,748 13,030
Inventory 12,675 14,895
Net property, plant & equipment 2,785 3,569
Total assets 49,709 49,447
Total liabilities 18,104 19,904
Total stockholders' equity 31,605 29,543
*T
CONTACT:
Interphase Corporation, Dallas
Gregory B. Kalush, 214/654-5000
gkalush@iphase.com
or
Meltzer & Martin Public Relation
Robert Martin/Larry Meltzer, 214/953-0808
rmartin@mm-pr.com
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