Asante Reports Profitable First Quarter 2001 Operating Results; Net Income up 23% from Q1 FY 2000.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)--Jan. 30, 2001 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 OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). :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) is pleased to announce results for the first quarter of fiscal 2001. 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 $7.0 million for the first quarter ended December 30, 2000, compared to $9.1 million for the same period last year. The Company continued a profitability trend by posting net income of $232,000 or $0.02 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, an increase of 23% from $189,000 for the first quarter of fiscal 2000. Streamlined Operations Management's streamlined operations continue to yield favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. results. Although the Company continues to invest heavily in new IntraCore(TM) and 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 technologies, total 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. were only $2.3 million, down 32% from $3.4 million from the same period a year ago. The Company reported a gross margin for the first quarter of fiscal 2001 of 36%, compared to 39% for the same period of fiscal 2000. "Asante is well-positioned to meet the most important segments of the Internet industry: high-speed client access and infrastructure," 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. . "Despite the widely-reported industry slow down in the last quarter of 2000, Asante's portfolio of innovative products allowed us to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. our sales momentum offsetting the revenue impact for the quarter. Our sales to education, digital design and small/home business customers have been encouraging." Award Winning Products "Asante finished the first quarter with noteworthy product recognition and market acceptance," explained Anthony Contos, Vice President of Finance. "With top ratings from competitive reviews in Macworld ("best value"), PC World ("best buy"), and MacsOnly ("outstanding") for our FriendlyNET(TM) Cable/DSL Routers See broadband router. plus first-to-market third generation GigaNIX(TM) 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. adapters, we are strengthening our position with our key strategic partners and resellers." 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 September 30, 2000 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. Note to Editors: Asante is a registered trademark 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 30, January 1,
2000 2000
----------- -----------
Net sales $ 6,952 $ 9,065
Cost of sales 4,422 5,534
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Gross profit 2,530 3,531
----------- -----------
Operating expenses:
Sales and marketing 1,244 2,063
Research and development 696 833
General and administrative 376 486
----------- -----------
Total operating expenses 2,316 3,382
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Income from operations 214 149
Interest and other income, net 18 40
----------- -----------
Income before income taxes 232 189
Provision for income taxes - -
----------- -----------
Net income $ 232 $ 189
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Basic and diluted
net income per share $ 0.02 $ 0.02
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Weighted average common shares
and equivalents:
Basic 9,914 9,302
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Diluted 9,919 9,481
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Asante Technologies, Inc.
Condensed Balance Sheets
(in thousands)
(unaudited)
December 30, September 30,
2000 2000
----------- ------------
Assets
Current assets:
Cash, cash equivalents and
short-term investments $ 6,647 $ 6,433
Accounts receivable, net 2,644 3,233
Inventory 3,160 2,605
Prepaid expenses
and other current assets 760 523
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Total current assets 13,211 12,794
Property and equipment, net 208 261
Other assets 176 167
----------- ------------
Total assets $ 13,595 $ 13,222
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Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 3,974 $ 3,776
Accrued expenses 5,204 5,437
Payable to stockholder 504 330
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Total current liabilities 9,682 9,543
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Stockholders' equity:
Common stock 28,372 28,370
Accumulated deficit (24,459) (24,691)
----------- ------------
Total stockholders' equity 3,913 3,679
----------- ------------
Total liabilities and
stockholders' equity $ 13,595 $ 13,222
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