Asante Announces Third Quarter 2000 Operating Results and 12% Sequential Quarterly Increase in Revenues.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)--Aug. 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 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 third quarter of fiscal 2000. The Company reported revenues of $6.7 million for the quarter ended July July: see month. 1, 2000, an increase of 12% from $6.0 million in the second quarter ended April 1, 2000. This contrasts to the same quarter of fiscal 1999, in which revenues declined 11% from the previous quarter. Revenues for the third quarter of fiscal 2000 compared to the third quarter of fiscal 1999 declined 15% from $7.9 million. The decline was due primarily to the phasing out of the Company's older managed hubs A network hub that has intelligence built into firmware. Typically an Ethernet hub, it responds to management queries for statistics and to commands for setting the configuration. Managed Ethernet hubs evolved into managed Ethernet switches. Contrast with unmanaged hub. See intelligent hub. and the decrease in sales of adapter cards See adapter and expansion board. used in older Apple computers. The Company posted a net loss of $60,000, or $0.01 per share, for the quarter, compared to a net loss of $146,000, or $0.02 per share, in the previous quarter and a net loss of $4.6 million, or $0.50 per share, in the third fiscal quarter of 1999. The lower loss is due to the successful cost reduction actions taken by the Company. Revenues totaled $21.7 million for the first nine months of fiscal 2000, a decrease of 23 percent as compared with $28.4 million for the same period a year ago. Net loss for the first nine months of fiscal 2000 was $20,000, or $0.00 per share, compared to a $13.7 million loss, or $1.48 per share, a year ago. The Company began shipments of the Company's new multi-service IntraCore 8000 and 9000 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. switches, which were primary contributors to the Company's revenue growth for the quarter. Revenues improved during the quarter despite a decrease in channel inventories of $0.6 million to approximately 3 weeks. "I am pleased with the third quarter result. We finally experienced revenue growth again in the advanced network system products. During the quarter, the Company shipped the highly anticipated IntraCore 8000 and 9000 intelligent Gigabit switches which will continue to contribute into advanced network system revenue," commented 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 n. 1. A field. , 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, the Company announced the IntraCore 6524, which offers the lowest price per port for any managed Gigabit switch. The Company also completed development of its first 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). dual platform Cable/DSL routers See broadband router. which were just introduced at Macworld New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and received an extremely positive response. These routers offer customers the best in features, platform compatibility, and value. These new products, together with the announced strategic alliance between Asante and Apple Computer to bring copper Gigabit to the desktop, offer significant revenue opportunities for us going forward. I am very optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that the new products we have introduced recently will be significant contributors in bringing the Company to consistent revenue growth," concluded Wong. About Asante Founded in 1988, Asante is the world's leading supplier of 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. For additional information, Asante's headquarters are located at 821 Fox Lane, San Jose, CA 95131; Telephone: 800-662-9686. Asante's World Wide Web address is: http://www.asante.com. Note to Editors: 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 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 Technologies, Inc.
Condensed Statements of Operations
(in thousands, except per share data)
(unaudited)
Three months ended, Nine months ended,
July 1, July 3, July 1, July 3,
2000 1999 2000 1999
-------- -------- -------- --------
Net sales $ 6,688 $ 7,914 $ 21,740 $ 28,386
Cost of sales 4,225 8,543 13,499 26,563
-------- -------- -------- --------
Gross profit (loss) 2,463 (629) 8,241 1,823
-------- -------- -------- --------
Operating expenses:
Sales and
marketing 1,447 2,787 4,858 10,856
Research and
development 735 765 2,300 2,494
General and
administrative 365 462 1,221 1,867
-------- -------- -------- --------
Total operating
expenses 2,547 4,014 8,379 15,217
-------- -------- -------- --------
Loss from operations (84) (4,643) (138) (13,394)
Interest & other income
(expense), net 24 2 118 (335)
-------- -------- -------- --------
Loss before income taxes (60) (4,641) (20) (13,729)
Provision for
income taxes -- -- -- --
-------- -------- -------- --------
Net loss ($ 60) ($ 4,641) ($ 20) ($13,729)
======== ======== ======== ========
Basic and diluted
loss per share ($ 0.01) ($ 0.50) ($ 0.00) ($ 1.48)
======== ======== ======== ========
Weighted average
common shares and
equivalents:
Basic and diluted 9,877 9,278 9,526 9,278
======== ======== ======== ========
Asante Technologies, Inc.
Condensed Balance Sheets
(in thousands)
(unaudited)
July 1, October 2,
2000 1999
-------- --------
Assets
Current assets:
Cash and cash
equivalents $ 5,332 $ 4,808
Accounts receivable, net 2,399 4,414
Inventory 3,482 2,663
Prepaid expenses and other
current assets 404 529
-------- --------
Total current assets 11,617 12,414
Property and equipment, net 334 713
Other assets 179 218
-------- --------
Total assets $ 12,130 $ 13,345
======== ========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 2,584 $ 5,027
Accrued expenses 5,790 5,705
Payable to stockholder 544 931
-------- --------
Total current
liabilities 8,918 11,663
-------- --------
Stockholders' equity:
Common stock 28,315 26,765
Accumulated deficit (25,103) (25,083)
-------- --------
Total stockholders'
equity 3,212 1,682
-------- --------
Total liabilities and
stockholders' equity $ 12,130 $ 13,345
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