MMC Networks Reports Record Revenues and Earnings for First Quarter 1999
Business Wire - April 15, 1999 16:35
SUNNYVALE, Calif.--(BUSINESS WIRE)--April 15, 1999--MMC Networks (Nasdaq:MMCN) today reported financial results for the first quarter ended March 31, 1999.
Revenues for the first quarter of 1999 were $16.1 million, up 67 percent from the $9.6 million reported in the first quarter of 1998, and up 18 percent from the $13.6 million reported in the fourth quarter of 1998. Net income for the first quarter of 1999 was $3.3 million, or $0.10 per share, versus net income of $1.3 million, or $0.04 per share, for the first quarter of 1998, and net income of $2.9 million, or $0.09 per share, for the fourth quarter of 1998.
"We are pleased to report a record quarter, with revenues up 67 percent and net income up 161 percent year-over-year," said Amos Wilnai, chairman of the Board. "We are very proud of the progress we have made so far. We are excited to have Doug Spreng join the team as president and CEO to help us capitalize on our early leadership in the Network Processor market and lead us to continued success."
"I am impressed with MMC Networks' accomplishments and am eager to contribute to the company's future successes," said Doug Spreng, president and CEO. "MMC has built a foundation of exceptional products and solid customer relationships that will enable us to continue to capitalize on the explosive growth in the Internet and Enterprise networking, as well as the outsourcing trends we are seeing in the marketplace."
This release may contain forward-looking statements that are subject to risks and uncertainties. Factors that could cause actual results to differ materially include, but are not limited to, general business conditions in the networking equipment and semiconductor industries, changes in demand for network equipment products of MMC Networks' customers, the timing and amount or cancellation of orders from MMC Networks' network equipment vendor customers and other risks detailed from time to time in the company's filings with the Securities and Exchange Commission including the company's Annual Report on Form 10-K.
MMC Networks, Inc. is a leading developer and supplier of Network Processors, which are high performance, open-architecture, software programmable processors optimized for networking applications. More information on the company is available from the company's SEC filings. If you would like additional product information, please call 408/731-1600 or visit mmcnet.com. MMC Networks is traded on the Nasdaq National Market under the symbol MMCN.
MMC Networks, Inc.
Condensed Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Three Months Ended
March 31, March 31,
1999 1998
Revenues $16,110 $ 9,623
Cost of revenues 4,801 2,936
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Gross profit 11,309 6,687
Operating expenses:
Research and
development, net 4,454 3,144
Selling, general and
administrative 2,392 2,097
------- -------
Total operating expenses 6,846 5,241
Operating income 4,463 1,446
Interest income, net 654 510
------- -------
Income before income taxes 5,117 1,956
Provision for income taxes 1,840 700
------- -------
Net income $ 3,277 $ 1,256
Diluted income per share $ 0.10 $ 0.04
Shares used to compute diluted
income per share 33,499 33,717
MMC Networks, Inc.
Condensed Balance Sheets
(in thousands)
(unaudited)
March 31, December 31,
1999 1998
ASSETS
Current assets:
Cash, cash equivalents
& short-term investments $58,216 $53,178
Accounts receivable, net 9,720 10,582
Inventory, net 1,143 630
Other current assets 3,050 3,372
------- -------
Total current assets 72,129 67,762
Property and equipment, net 5,179 5,487
Other assets, non current 156 135
------- -------
Total assets $77,464 $73,384
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities $10,797 $10,425
Capital lease obligations, net
of current portion 3 14
Stockholders' equity 66,664 62,945
Total liabilities and
stockholders' equity $77,464 $73,384
CONTACT: MMC Networks
Uday Bellary, 408/731-1600
or
Stapleton Communications Inc.
Deborah Stapleton or Kristine Mozes, 408/731-1999
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