Asante Announces First Quarter Results.Business Editors/High-Tech Writers 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)--Feb. 1, 2000 Asante Asante or Ashanti People of southern Ghana and adjacent areas of Togo and Côte d'Ivoire. The largest segment of the Akan peoples, they speak Twi, a language of the Kwa group of Niger-Congo languages; all together the Akan peoples make up about half the Technologies, Inc. (Nasdaq: 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 .OB) today announced results for the first quarter of fiscal 2000. The Company announced that net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the first quarter ended January January: see month. 1, 2000 were $9.1 million compared to $9.1 million in the fourth quarter of fiscal 1999. The first quarter of fiscal 1999, net sales were down 22% from $11.6 million. Management also reported that gross margins increased to 39% in the first quarter of fiscal 2000, from 34% in the fourth quarter of fiscal 1999 and 13% in the first quarter of fiscal 1999. 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. declined by 5% to $3.4 million in the first quarter ended January 1, 2000, from $3.6 million in the fourth quarter of fiscal 1999, as a result of the Company's continued cost reduction efforts. Compared to the first quarter of fiscal 1999, operating expenses decreased 39% from $5.5 million. The Company also reported a net income of $0.2 million, or $0.02 per basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, for the first quarter ended January 1, 2000, compared with a net loss of $0.4 million for the fourth quarter of fiscal 1999, and a net loss of $4.4 million for the first quarter of fiscal 1999. &uot;I am pleased with the continued financial progress we are making at Asante, especially with the fact that the Company has recorded its first quarterly net income since the last quarter of fiscal 1998,&uot; said Wilson Wilson, city (1990 pop. 36,930), seat of Wilson co., E N.C., in a rich agricultural region; inc. 1849. It is a commercial and industrial center with a large tobacco market. Manufactures include textile goods (especially clothing), metal products, and processed foods. Wong, 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. of Asante. &uot;Although revenues for the first quarter of the fiscal year have been historically lower than those of our immediately preceding fourth quarter, the Company was able to achieve comparable revenues. The Company also experienced strong demand for several of its higher margin product lines, resulting in better than expected gross margins for the current quarter. Furthermore, our lower operating costs operating costs npl → gastos mpl operacionales for the third consecutive quarter are indicative of the efforts of everyone in the Company to participate in cost reduction programs initiated a year ago.&uot; &uot;Looking forward, near term revenue will continue to be affected by the erosion of the Company's Apple adapter card See adapter and expansion board. business and the slowing in the growth of the unmanaged hub A network hub that does not support management queries or commands. Typically an Ethernet hub, it serves as a central connecting point only. Contrast with managed hub. and switch business,&uot; continued Wong. &uot;However, the Company has been developing many key new products in the past year to bring the Company back to consistent revenue growth. Some of these products are close to completion. In order to fund the pending shipment of the advanced Gigabit Ethernet An Ethernet standard that transmits at 1 Gbps. Used mostly to connect high-end workstations and servers as well as for network backbones, Gigabit Ethernet transmits full duplex from point to point using switches and half duplex in a shared environment (CSMA/CD) using a hub. switch products and the introduction of the new copper Gigabit Ethernet products, the Company is evaluating the possibility of raising additional capital from business partners and other sources.&uot; About Asante Founded in 1988, Asante Technologies is a leading provider of high-performance networking solutions for the SOHO Soho (sōhō`, sə–), district of Westminster, London, England, known for its continental restaurants. Once a fashionable quarter, it became popular among writers and artists in the 19th cent. (small office/home office See SOHO. ), education (including K-12 and higher education higher education Study beyond the level of secondary education. Institutions of higher education include not only colleges and universities but also professional schools in such fields as law, theology, medicine, business, music, and art. ) and enterprise communications markets. The Company's SOHO products provide hardware and software solutions to simplify networking and Internet access See how to access the Internet. for mobile, small and home office professionals. The Advanced Systems products target multi-service applications in education and large enterprises. For additional information, call 800/662-9686 for SOHO products, 800/303-9121 for Advanced Systems Division products, or 408/435-8388 or visit www.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 a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , 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 &uot;Factors Affecting Future Operating Results&uot; in &uot;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&uot; 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 2, 1999, as amended, and in the Company's subsequent 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 uncertainties associated with 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. Certain prior period balances were reclassified to conform with current period presentation. Financial Results to follow
ASANTE TECHNOLOGIES, INC.
Unaudited Condensed Statements of Operations
(In thousands, except per share amounts)
Three Months Ended
January 1, October 2, January 2,
2000 1999 1999
---------- --------- ----------
Net sales $ 9,065 $ 9,102 $ 11,605
Cost of sales 5,534 5,994 10,153
---------- --------- ----------
Gross margin 3,531 3,108 1,452
---------- --------- ----------
Operating expenses:
Sales and marketing 2,063 2,311 3,467
Research and development 833 831 1,194
General and administrative 486 435 847
---------- --------- ----------
Total operating expenses 3,382 3,577 5,508
---------- --------- ----------
Income (loss) from operations 149 (469) (4,056)
Interest and other
income (expense), net 40 37 (362)
---------- --------- ----------
Income (loss) before
income taxes 189 (432) (4,418)
Provision for income taxes - - -
---------- --------- ----------
Net income (loss) $ 189 $ (432) (4,418)
========== ========== ==========
Basic net income (loss)
per share $ 0.02 $ (0.05) $ (0.48)
========== ========= =========
Diluted net income (loss)
per share $ 0.02 $ (0.05) $ (0.48)
========== ========= =========
Weighted average common shares
and equivalents outstanding:
Basic 9,302 9,294 9,236
========== ========= ==========
Diluted 9,482 9,294 9,236
========== ========= ==========
ASANTE TECHNOLOGIES, INC.
Unaudited Condensed Balance Sheets
(In thousands)
January 1, October 2,
2000 1999
ASSETS
Current assets:
Cash and cash equivalents $ 4,752 $ 4,808
Accounts receivable, net 4,588 4,414
Inventory 4,140 2,663
Prepaid expenses and other
current assets 568 529
---------- ----------
Total current assets 14,048 12,414
---------- ----------
Property and equipment, net 563 713
Other assets 189 218
---------- ----------
Total assets $ 14,800 $ 13,345
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 5,485 $ 5,027
Accrued expenses 5,892 5,705
Payable to stockholder 1,550 931
---------- ----------
Total current liabilities 12,927 11,663
---------- ----------
Stockholders' equity:
Common stock 26,767 26,765
Accumulated deficit (24,894) (25,083)
--------- ----------
Total stockholders' equity 1,873 1,682
---------- ----------
Total liabilities and
stockholders' equity $ 14,800 $ 13,345
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