Asante Announces Return to Profitability and Fourth Quarter 2000 Operating Results; 13% Sequential Increase in Quarterly Revenues and Improved Yearly Earnings.Business Editors 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)--Nov. 1, 2000 Asante Technologies, Inc. (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 .OB) today announced results for the fourth quarter of fiscal 2000. The Company reported revenues of $7.5 million for the quarter ended September 30, 2000; an increase of 13% from $6.7 million in the third quarter ended July 1, 2000. The Company posted a net profit of $412,000, or $0.04 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 quarter, compared to a net loss of $60,000, or $0.01 per share, in the preceding quarter. The improved results were due primarily to sales of the Company's new broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). Cable/DSL Internet router (1) A router in the Internet that forwards IP packets between local, regional and national providers. Same as "IP router." (2) (InterNet Router) Macintosh software from Apple that internetworks different access methods (LocalTalk, EtherTalk, TokenTalk, etc. products, and streamlined operations. Net income improved by $844,000, from a net loss of $432,000 in the fourth quarter of fiscal 1999, to net income of $412,000 in the fourth quarter of fiscal 2000, despite a 17% reduction in revenues over the same period. The improved earnings were due primarily to reduced 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. . The decline in revenue from the prior year was due primarily to the Company's refocus Verb 1. refocus - focus once again; The physicist refocused the light beam" focus - cause to converge on or toward a central point; "Focus the light on this image" 2. from older Apple adapter A device that allows one system to connect to and work with another. An adapter is often a simple circuit that converts one set of signals to another; however, the term often refers to devices which are more accurately called "controllers. products to newer, high-growth technologies. Revenues totaled $29.3 million for fiscal 2000; a decrease of 22 percent as compared with $37.5 million for the same period a year ago. However gross profit for fiscal 2000 was $10.7 million representing an increase of $5.8 million, or 117%, from $4.9 million in the prior year. Gross margin improved to 37% in fiscal 2000, compared to 13% in the prior year. In addition, net income for fiscal 2000 was $392,000, or $0.04 per basic and diluted share, compared to a net loss of $14.2 million, or $1.53 per share, in the prior year. The improved earnings for fiscal 2000, compared to fiscal 1999, was due to the Company's improved margins and effective expense controls. New FriendlyNET Routers and IntraCore Switch The Company began initial shipments of its first generation FriendlyNET(TM) broadband Internet See broadband. router router Portable electric power tool used in carpentry and furniture making that consists of an electric motor, a base, two handle knobs, and bits (cutting tools). A router can cut fancy edges for shelving, grooves for storm windows and weather stripping, circles and ovals products and strengthened its IntraCore(TM) multi-service 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 family with the addition of its new IntraCore 6500 Series of switches. Both products offer best of class features, performance, platform compatibility, and are the highest value products available on the market today. The 6524 offers the lowest price per port for any managed Gigabit switch. "I am very pleased with the improved results for the fourth quarter. The Company was successful in bringing to market several key products which offer our customers the best products at extremely attractive prices," commented 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. . "These new products were key contributors to the Company's increase in revenues for the quarter and are expected to be major contributors to the Company's revenues over the next several quarters. The Company has a very solid IntraCore product line and in the next couple of quarters will focus on strengthening its offering of broadband internet access Broadband Internet access, often shortened to just "broadband", is high speed Internet access—typically contrasted with dial-up access over modem. Dial-up modems are generally only capable of a maximum bitrate of 56 kbit/s (kilobits per second) and require the full use of a products 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. ) market." "We will continue to strengthen our product lines over the next several quarters, and plan to strengthen our sales channels, while focusing on forging relationships with new strategic business partners, and additional technology partners to bring new high value cutting edge products to market," concluded Wong. About Asante Founded in 1988, Asante is a world leader in supplying network connectivity products for Macs and PCs. The Company's FriendlyNET products simplify networking and provide Internet access See how to access the Internet. for small offices/home offices, digital pre-press and education (K-12 and universities). The Company's IntraCore intelligent Gigabit Ethernet switches support multi-service applications for large enterprises and educational institutions. Asante's headquarters are located at 821 Fox Lane, San Jose, CA 95131. For additional information, call 800-662-9686 or visit Asante's website at http://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 "Factors Affecting Future Operating Results" 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 2, 1999 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. Asante is a registered trademark and FriendlyNET and IntraCore are trademarks of Asante Technologies.
Asante Technologies, Inc.
Condensed Statements of Operations
(in thousands, except per share data)
(unaudited)
Three months ended, Year ended,
Sept. 30, Oct. 2, Sept. 30, Oct. 2,
2000 1999 2000 1999
Net sales $ 7,540 $ 9,102 $ 29,280 $ 37,488
Cost of sales 5,056 5,994 18,555 32,557
-------- -------- -------- --------
Gross profit 2,484 3,108 10,725 4,931
-------- -------- -------- --------
Operating
expenses:
Sales and
marketing 1,072 1,753 5,930 12,609
Research and
development 742 1,389 3,042 3,883
General and
administrative 332 435 1,553 2,302
-------- -------- -------- --------
Total
operating
expenses 2,146 3,577 10,525 18,794
-------- -------- -------- --------
Profit (loss)
from operations 338 (469) 200 (13,863)
Interest &
other income
(expense), net 74 37 192 (298)
-------- -------- -------- --------
Profit (loss)
before income taxes 412 (432) 392 (14,161)
Provision
(benefit) for
income taxes -- -- -- --
-------- -------- -------- --------
Net income (loss) $ 412 ($ 432) $ 392 ($14,161)
======== ======== ======== ========
Basic earnings
(loss) per share $ 0.04 ($ 0.05) $ 0.04 ($ 1.53)
======== ======== ======== ========
Diluted earnings
(loss) per share $ 0.04 ($ 0.05) $ 0.04 ($ 1.53)
======== ======== ======== ========
Weighted
average common
shares and
equivalents
outstanding:
Basic 9,899 9,294 9,620 9,282
======== ======== ======== ========
Diluted 10,214 9,294 10,014 9,282
======== ======== ======== ========
Asante Technologies, Inc.
Condensed Balance Sheets
(in thousands)
(unaudited)
September 30, October 2,
2000 1999
--------------------------------
Assets
Current assets:
Cash and cash equivalents $ 6,433 $ 4,808
Accounts receivable, net 3,233 4,414
Inventory 2,605 2,663
Prepaid expenses and
other current assets 523 529
Total current assets 12,794 12,414
Property and equipment, net 261 713
Other assets 167 218
Total assets $ 13,222 $ 13,345
Liabilities and
Stockholders' Equity
Current liabilities:
Accounts payable $ 3,776 $ 5,027
Accrued expenses 5,437 5,705
Payable to stockholder 330 931
Total current liabilities 9,543 11,663
Stockholders' equity:
Common stock 28,370 26,765
Accumulated deficit (24,691) (25,083)
Total stockholders' equity 3,679 1,682
Total liabilities and
stockholders' equity $ 13,222 $ 13,345
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