Asante Announces Second Quarter 2003 Operating Results.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)--April 30, 2003 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. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :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 results for the second quarter of fiscal 2003. The Company reported sales of $2.6 million for the quarter ended March 29, 2003, down from $4.0 million for the same period last year. The Company posted a net loss of $0.8 million, or $0.07 per share, compared to a net loss of $0.5 million, or $0.05 per share, in the second fiscal quarter of 2002. The decline in sales was due primarily to the current economic slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. , a reduction of sales in the distributor channel, and sharp reductions in average selling prices The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. due to several factors including reduced channel demand due to the then-impending war in Iraq Iraq or Irak (both: ēräk`, ĭrăk`), officially Republic of Iraq, republic (2005 est. pop. 26,075,000), 167,924 sq mi (434,924 sq km), SW Asia. , and seasonally weaker sales in the second quarter. Sales totaled $6.4 million for the first six months of fiscal 2003, a decrease of 18 percent compared with $7.8 million for the same period a year ago. The Company reported a net loss for the first six months of fiscal 2003 of $1.0 million, or $0.11 per share, compared to net loss of $1.2 million, or $0.12 per share, a year ago. During the quarter, the Company completed the introduction of its family of unmanaged Gigabit switches, and introduced its first high-end high-end adj. Informal 1. Appealing to sophisticated and discerning customers: a high-end department store; high-end video equipment. 2. Layer 3/4 high-port count Gigabit switch offering powerful Quality of Service (QOS) features and support for Jumbo frames In computer networking, jumbo frames are Ethernet frames with more than 1500 bytes of payload (MTU). Conventionally, jumbo frames can carry up to 9000 bytes of payload, but variations exist and some care must be taken when using the term. . These introductions provide solutions for a majority of customers from the backbone of a network to the desktop and home office. However, sales of the Company's products were negatively impacted by a reduction of revenues in the industry affecting the distribution channel, and budget cuts in education causing a delay in purchasing by many educational institutions. "I am disappointed with the results. However, the Company currently offers a great end-to-end solution (jargon) end-to-end solution - (E2ES) A term that suggests that the supplier of an application program or system will provide all the hardware and/or software components and resouces to meet the customer's requirement and no other supplier need be involved. Compare: turn-key solution. for a large portion of customers at a good value, which is very attractive. Additionally, we have seen a lot of interest in our new Gigabit products and feel we are well positioned in this segment of the market," stated 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, 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. . "Additionally, we have been successful with the majority of our current major direct accounts in strengthening our ties, and taking steps to move forward with new projects and mutual collaboration Working together on a project. See collaborative software. in several areas." "Until we see anticipated improvement in this economy, the Company will continue to make moves to improve operational efficiencies, improve effectiveness and seek strategic partners to enable the customer to increase market awareness. We believe competition will remain strong during this prolonged pro·long tr.v. pro·longed, pro·long·ing, pro·longs 1. To lengthen in duration; protract. 2. To lengthen in extent. downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. and plan to use our strengths to improve our results and increase sales to key accounts and channels," concluded Wong. About Asante Asante is a leading supplier of network connectivity products for Macs and PCs. The Company's FriendlyNET(R) products simplify networking and provide Internet access See how to access the Internet. for small offices/home offices and education (K-12 and universities). The Company's IntraCore products support multi-service applications for large enterprises. For additional information telephone (408) 435-8388 or visit Asante's Worldwide Web address 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 "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 September 28, 2002 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 Technologies, Inc.
Condensed Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Three months ended, Six months ended,
March 29, March 30, March 29, March 30,
2003 2002 2003 2002
---------- --------- --------- ---------
Net sales $2,564 $3,955 $6,398 $7,814
Cost of sales 1,567 2,518 3,954 5,067
---------- --------- --------- ---------
Gross profit 997 1,437 2,444 2,747
---------- --------- --------- ---------
Operating expenses:
Sales and marketing 978 914 1,876 1,955
Research and development 498 629 1,053 1,319
General and administrative 243 342 538 705
---------- --------- --------- ---------
Total operating expenses 1,719 1,885 3,467 3,979
---------- --------- --------- ---------
Loss from operations (722) (448) (1,023) (1,232)
Interest & other income
(expense), net (33) (18) (41) 10
---------- --------- --------- ---------
Loss before income taxes (755) (466) (1,064) (1,222)
Provision for income taxes - - - -
---------- --------- --------- ---------
Net loss (755) (466) (1,064) (1,222)
========== ========= ========= =========
Basic and Diluted loss per
share (0.07) (0.05) (0.11) (0.12)
========== ========= ========= =========
Weighted average common
shares and equivalents
Basic 10,086 10,017 10,076 10,010
========== ========= ========= =========
Diluted 10,086 10,017 10,076 10,010
========== ========= ========= =========
Asante Technologies, Inc.
Condensed Balance Sheets
(in thousands)
(unaudited)
March 29, September 30,
2003 2002
------------ -------------
Assets
Current assets:
Cash and cash equivalents $2,464 $3,282
Accounts receivable, net 1,277 1,558
Inventory 1,991 1,515
Prepaid expenses and other current assets 145 141
------------ -------------
Total current assets 5,877 6,496
Property and equipment, net 75 90
Other assets 170 172
------------ -------------
Total assets $6,122 $6,758
============ =============
Liabilities and stockholders' equity
(deficit)
Current liabilities:
Accounts payable $2,567 $2,291
Accrued expenses 3,933 3,834
Payable to stockholder 52 -
------------ -------------
Total current liabilities 6,552 6,125
------------ -------------
Stockholders' equity (deficit):
Common stock 28,423 28,422
Accumulated deficit (28,853) (27,789)
------------ -------------
Total stockholders' equity (deficit) (430) 633
------------ -------------
Total liabilities and stockholders' equity
(deficit) $6,122 $6,758
============ =============
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