Asante Technologies Inc. announces results for the first quarter ended Dec. 31, 1994.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. 25, 1995--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 ) Wednesday announced the results for its first quarter of fiscal 1995. 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 for the first quarter ended Dec. 31, 1994 were $17.5 million compared to net sales of $21.3 million in the first quarter of fiscal 1994. The company posted a net loss of $1.3 million, or $0.17 per share, in the first quarter of fiscal 1995 compared to net income of $1.0 million, or $0.13 per share, in the first quarter of fiscal 1994. For the prior quarter ended Sept. 30, 1994, the company recorded net sales of $19.7 million and a net loss of $0.8 million, or $0.11 per share. The loss in the current quarter was due primarily to lower than planned sales resulting from a decline in demand for the company's network system products. Additionally, gross profit which declined to 24% of sales, was affected by a $570,000 charge relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc price reductions on certain of the hub products, a one-time charge of approximately $300,000 of for purchased technology and sale of approximately $1.1 million of older products at cost. In commenting on the results, Jeff Lin, president and chief executive officer, stated: "While we are very disappointed in the results for our first quarter of fiscal 1995, we have recently taken a number of steps which we believe will help restore growth in sales and market share. "Our primary emphasis is on developing additional channels of distribution for our products including the Asante Strategic Reseller An organization that sells hardware and software to the general public. Resellers purchase products from software publishers and hardware manufacturers. ("STAR") program with a goal of adding over 100 value added resellers See VAR. (company) value added reseller - (VAR, or "value added retailer") A company which sells something (e.g. computers) made by another company (an OEM) with extra components added (e.g. specialist software). . In the near future, we plan to launch a distribution program designed to market our products through the mass-merchandise (a.k.a. super store) channel. "Asante also plans to develop marketing programs to further 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 strong presence in the university and K-12 educational market." Lin went on to say: "Later this year, Asante will be introducing new 100BASE-T and Ethernet switching A device that connects clients and servers to each other in an Ethernet network. See switched Ethernet. hub products designed to support the demand for additional LAN (Local Area Network) A communications network that serves users within a confined geographical area. The "clients" are the user's workstations typically running Windows, although Mac and Linux clients are also used. bandwidth to the desktop. We anticipate that the combination of future manufacturing cost reductions, our new channel development programs, and our new Fast Ethernet An earlier name for 100Mbps Ethernet. See 100Base-T. (networking) Fast Ethernet - A version of Ethernet developed in the 1990s(?) which can carry 100 Mbps compared with standard Ethernet's 10 Mbps. It requires upgraded network cards and hubs. products will be the driving force behind our return to sales growth and profitability." Lin also pointed out: "During the December quarter, the company made additional progress with respect to asset management. Both receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed and inventory were reduced to more reasonable levels. Cash and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments currently total $8 million compared to $6 million at the end of September 1994. Working capital is $24.5 million, the current ratio is 3 to 1, and we have very little long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. ." Founded in 1988, Asante Technologies Inc. designs, manufactures and markets a full line of high-performance networking products for Ethernet Ethernet Telecommunications networking protocol introduced by Xerox Corp. in 1979. It was developed as an inexpensive way of sending information quickly between office machines connected together in a single room or building, but it rapidly became a standard computer networks, including adapter cards See adapter and expansion board. for both PCs and Macs, intelligent and non-intelligent Ethernet hubs A device that all lines on an Ethernet segment are plugged into. 10Base-T and 100Base-T Ethernets are star networks and require a hub for operation. The earlier 10Base5 and 10Base2 Ethernets are bus networks, but are often wired into a star configuration using a central hub for improved , remote access communications
Access Communications Co-operative Ltd. servers, and network management software. -0-
Asante Technologies Inc.
Statements of Operations
(in thousands, except per share data)
(unaudited)
Three months ended December 31,
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1994 1993
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Net sales $ 17,466 $ 21,258
Cost of sales 13,352 12,757
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Gross profit 4,114 8,501
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Operating expenses:
Sales and marketing 4,398 4,367
Research and development 1,083 1,471
General and administrative 908 908
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Total operating expenses 6,389 6,746
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Income (loss) from operations (2,275) 1,755
Interest income (expenses)
and other, net 17 (65)
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Income (loss) before income taxes (2,258) 1,690
Provision (benefit) for income taxes (926) 693
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Net income (loss) $ (1,332) $ 997
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Net income (loss) per share $(0.17) $0.13
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Weighted average common
shares and equivalents 7,901 7,644
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Asante Technologies Inc.
Condensed Balance Sheets
(in thousands)
December 31, September 30,
1994 1994
------------ ------------
(unaudited)
Assets
Current assets:
Cash, cash equivalents and temporary
investments $ 8,353 $ 6,040
Accounts receivable, net 12,813 15,223
Receivable from stockholder 180 81
Inventories 7,927 9,501
Other current assets 4,983 6,157
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Total current assets 34,256 37,002
Property and equipment - net 1,816 2,054
Other assets 932 1,857
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Total assets $ 37,004 $ 40,913
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Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 5,769 $ 6,303
Payable to stockholder 1,714 2,199
Income taxes payable and accrued expenses 2,230 3,871
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Total current liabilities 9,713 12,373
Long term obligations, less
current portion 136 151
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Total liabilities 9,849 12,524
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Stockholders' equity:
Common stock 8 8
Additional paid-in capital 22,970 23,083
Deferred compensation and note receivable
from stockholder (240) (451)
Retained earnings 4,417 5,749
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Total stockholders' equity 27,155 28,389
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Total liabilities and stockholders'
equity $ 37,004 $ 40,913
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CONTACT: Asante Technologies Inc. Steven Hess Hess , Walter Rudolf 1881-1973. Swiss physiologist. He shared a 1949 Nobel Prize for his research on the brain's control of the body. , 408/435-8388 |
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