Asante Reports First Quarter 2002 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)--Feb. 7, 2002 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) announced results for the first quarter of fiscal 2002. 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 were $3.9 million for the first fiscal quarter ended December December: see month. 29, 2001, compared to $5.2 million in the previously completed fourth quarter of fiscal 2001. The Company's net sales were $7.0 million for the first quarter of fiscal 2001. The Company posted a net loss of $756,000 or ($0.08) per 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 net income of $232,000 or $0.02 per diluted share in the first quarter of fiscal 2001. Market conditions in the high tech industry and networking sector in particular were hard hit by the depressed economic conditions. A significant number of businesses and consumers further reduced spending on network infrastructure and communications products due to the events surrounding sur·round tr.v. sur·round·ed, sur·round·ing, sur·rounds 1. To extend on all sides of simultaneously; encircle. 2. To enclose or confine on all sides so as to bar escape or outside communication. n. September September: see month. 11, 2001 as well as year end spending reductions. Additionally, the Company's results were partially affected by non-recurring subcontract sub·con·tract n. A contract that assigns some of the obligations of a prior contract to another party. intr. & tr.v. sub·con·tract·ed, sub·con·tract·ing, sub·con·tracts manufacturing issues that affected sales to several new customers. Due to the depressed economic conditions, the Company's distributors significantly reduced channel inventory levels, which resulted in the distribution channel being unable to meet actual demand for several of the Company's products. The Company has taken several measures to offset shortages of inventories at the distributor level. "In January January: see month. , the Company experienced improved bookings over October October: see month. and November November: see month. . Consumer and industry interest in the Company's products appears to be strong. The Company is in the process of expanding its channels significantly to make its award winning products more easily available to a much greater number of customers," reported Wilson Wong, Asante's Chairman 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, during the last two months, the Company has made progress in beginning to tap the large potential of the Multi-Tenant Unit/Multi-Dwelling Unit (MTU/MDU) market and has made progress in several geographic areas." "Our products continue to achieve high ratings in the media and user community and the Company has experienced a significant amount of interest recently in its products by many large customers. We plan to move forward quickly with our product plan introductions to complement our Layer 2 IntraCore solutions with advanced Layer 3-7 switches and additional routing to strengthen our product offerings to enhance our educational, MTU/MDU customers, and small business to medium business opportunities," continued Wong. "We have seen signs of improved demand in the last several weeks and believe the historically low levels of inventory in the distribution channel at the end of the first quarter should contribute positively to financial results in the current quarter," 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 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 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 408/435-8388 or visit Asante's Web site 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 September 29, 2001, 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 and FriendlyNet are registered trademarks and FriendlyNET, GigaNIX and IntraCore are trademarks of Asante Technologies.
Asante Technologies, Inc.
Condensed Statements of Operations
(in thousands, except per-share data)
(unaudited)
Three months ended,
December 29, December 30,
2001 2000
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Net sales $ 3,859 $ 6,952
Cost of sales 2,549 4,422
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Gross profit 1,310 2,530
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Operating expenses:
Sales and marketing 1,041 1,244
Research and development 690 696
General and administrative 363 376
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Total operating expenses 2,094 2,316
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Income from operations (784) 214
Interest and other income, net 28 18
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Income before income taxes (756) 232
Provision for income taxes - -
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Net income (loss) ($756) $ 232
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Basic and diluted net income
(loss) per share ($0.08) $ 0.02
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Weighted average common shares
and equivalents:
Basic 10,003 9,914
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Diluted 10,003 9,919
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Asante Technologies, Inc.
Condensed Balance Sheets
(in thousands)
(unaudited)
December 29, September 29,
2001 2001
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Assets
Current assets:
Cash, cash equivalents $ 5,190 $ 5,065
Accounts receivable, net 933 1,764
Inventory 2,092 1,848
Prepaid expenses and other
current assets 388 400
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Total current assets 8,603 9,077
Property and equipment, net 96 117
Other assets 174 172
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Total assets $ 8,873 $ 9,366
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Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 2,679 $ 2,469
Accrued expenses 4,167 4,117
Payable to stockholder 11 8
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Total current liabilities 6,857 6,594
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Stockholders' equity:
Common stock 28,412 28,412
Accumulated deficit (26,396) (25,640)
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Total stockholders' equity 2,016 2,772
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Total liabilities and
stockholders' equity $ 8,873 $ 9,366
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