Asante Announces First Quarter 1999 Operating Results and Plans To Launch Major New Product Lines.SAN JOSE San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif.--(BUSINESS WIRE)--Jan. 21, 1999--Asante Technologies (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ASNT ASNT American Society of Non-destructive Testing ASNT American Society for Neural Transplantation ASNT Astrological Association of North Texas (Dallas - Fort Worth Metroplex) ASNT Application Sharing Nt ) today announced operating results for the first quarter of fiscal year 1999. The company also announced plans to introduce a number of major new product lines over the next few quarters. With these introductions, Asante plans to continue the process of replacing and extending its key existing product lines with newer, more competitive families of products. The company is pleased with initial sales of its new 10/100 switch family, which began shipping in quantity during the first quarter, and believes that accelerating the rate of introduction of additional new product families is the key to returning to sustained profitability and growth. The company also plans to move most of the manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. for the new products offshore, to further reduce operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. and improve the company's cost structure going forward. Revenues for the first quarter ended January 2, 1999 were below expectations at approximately $11.6 million, compared to $17.5 million in the first quarter last year. The net loss for the quarter was $4.4 million or $0.48 per share as compared to net income of $0.2 million, or $0.02 per share, for the same period in the prior year. The shortfall in revenue is primarily attributed to lower OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and and distributor sales, including delays in shipments of products which the Company had expected to ship in December 1998. The net loss for the quarter also includes $1.2 million in inventory write-downs principally related to lower revenues from the Company's older product lines. The company has taken immediate action to further reduce operating costs operating costs npl → gastos mpl operacionales and eliminate 20% of its workforce over the next few quarters. Commenting on the quarter, Wilson Wong, Asante's Chairman, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , said, "Softer sales of our older products to our major distributors primarily contributed to this revenue shortfall. However, we are seeing larger volumes of our newer products moving through the top three national retailers, CompUSA, Fry's and MicroCenter. "We have also just announced our plans to introduce the industry's first "plug-and-play" Gigabit switches plus the company's first family of "all-in-one" Multi-user Internet Connectivity solutions at Mac World San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden . "We are also announcing several additions to our dual-speed 10/100 hub and switch product lines plus new network adapter A printed circuit board that plugs into the bus of both user machines (clients) and servers in a local area network (LAN). Also commonly called a "network interface card" (NIC) or "LAN card," the network adapter transmits data onto the network and receives data from the network. cards, including a 64-bit Gigabit PCI card A circuit board that plugs into the computer's PCI bus and contains the control electronics for a peripheral device. Starting in the latter half of the 1990s, PCI became very popular. See PCI. for high-performance clients and workstations." "This new suite of products provides impressive performance coupled with easy installation at a new level of affordability and allows Asante's popular FriendlyNET family of products to be used in offices, schools and small-office home-office applications without requiring on-site networking experts. "As a result of these and other new products to be introduced this year, we are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about our revenue growth in 1999", Wong added. About Asante Founded in 1988, Asante Technologies, Inc. is widely recognized as a leader in providing high-performance LAN (Local Area Network) A communications network that serves users within a confined geographical area. The "clients" are the user's workstations typically running Windows, although Mac and Linux clients are also used. networking solutions for education, pre-press and other small-to-medium enterprise markets. The company's Ethernet and Fast Ethernet An earlier name for 100Mbps Ethernet. See 100Base-T. (networking) Fast Ethernet - A version of Ethernet developed in the 1990s(?) which can carry 100 Mbps compared with standard Ethernet's 10 Mbps. It requires upgraded network cards and hubs. products include switches, hubs and adapter cards See adapter and expansion board. , as well as network management and network acceleration software. Asante's products are sold through an international network of distributors, value-added resellers A value-added reseller (VAR) is a company that adds some feature(s) to an existing product(s), then resells it (usually to end-users) as an integrated product or complete "turn-key" solution. (VARs), system integrators See systems integrator. and retail channels. Asante's headquarters are located at 821 Fox Lane, San Jose, CA 95131; Telephone: 800/662-9686. Asante's World Wide Web address is: www.asante.com. Corporate Contact: Raj raj also Raj n. Dominion or rule, especially the British rule over India (1757-1947). [Hindi r Matthew, Phone: 408/435-8401 Ext. 304, Fax:408/432-1429 Email: ir@asante.com This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or anticipated results, including those risks set forth under the caption "Business Risks" in "Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Financial Condition and Results of Operations" of the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended October 3, 1998 and in the Company's Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. and other reports filed from time to time with the Securities and Exchange Commission. Such risks include the company's potential need for additional financing, and the company's ability to attract and retain qualified personnel, competition, and technological change. Readers should carefully review the risk factors described in such reports and other filings made by the company from time to time with the Securities and Exchange Commission. -0-
Asante Technologies, Inc.
Condensed Statements of Operations
(in thousands, except per share data)
(unaudited)
Three months ended,
January 2, December 27,
1999 1997
--------------- ---------------
Net sales $11,605 $17,520
Cost of sales 10,153 10,386
--------------- ---------------
Gross profit 1,452 7,134
--------------- ---------------
Operating expenses:
Sales and marketing 3,653 4,519
Research and development 1,008 1,619
General and
administrative 847 891
--------------- ---------------
Total operating expenses 5,508 7,029
--------------- ---------------
Income (loss) from operations (4,056) 105
Interest & other income, net (362) 153
--------------- ---------------
Income (loss) before income
taxes (4,418) 258
Provision for income taxes - 88
--------------- ---------------
Net income (loss) ($4,418) $170
=============== ===============
Basic and diluted earnings
(loss) per share ($0.48) $0.02
=============== ===============
Weighted average common shares
and equivalents:
Basic 9,236 9,142
=============== ===============
Diluted 9,236 9,220
=============== ===============
Asante Technologies, Inc.
Condensed Balance Sheets
(in thousands)
(unaudited)
January 2, October 3,
1999 1998
---------- ----------
Assets
Current assets:
Cash, cash equivalents and
short-term investments $6,838 $8,852
Accounts receivable, net 7,717 8,328
Inventory 8,745 7,673
Prepaid expenses and other
current assets 3,046 3,301
---------- ----------
Total current assets 26,346 28,154
Property and equipment, net 1,310 2,004
Other assets 217 201
---------- ----------
Total assets $27,873 $30,359
========== ==========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $7,122 $7,714
Accrued expenses 5,335 4,799
Payable to affiliate 4,074 1,996
---------- ----------
Total current liabilities 16,531 14,509
---------- ----------
Stockholders' equity:
Common stock 26,683 26,772
Retained earnings (Accumulated
deficit) (15,341) (10,922)
---------- ----------
Total stockholders' equity 11,342 15,850
---------- ----------
Total liabilities and stockholders'
equity $27,873 $30,359
========== ==========
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion