CHIPCOM ANNOUNCES SECOND QUARTER, FIRST HALF 1995 FINANCIAL RESULTS.SOUTHBOROUGH, Mass.--(BUSINESS WIRE)--July 19, 1995--Chipcom Corporation (Nasdaq/CHPM) today announced revenue and earnings for the second quarter and first six months of its 1995 fiscal year, ended July 1. For the quarter, Chipcom reported revenue of $71,511,000, compared with $61,306,000 achieved during the second quarter of 1994. Net income for the second quarter of 1995 was $1,192,000, or $0.07 per share, compared with $6,132,000, or $0.36 per share, reported during the second quarter last year. For the first six months of fiscal 1995, Chipcom reported revenue of $157,721,000, versus the $113,188,000 achieved during the first six months of fiscal 1994. Net income for the first half of 1995 was $9,218,000, or $0.52 per share, compared with $8,005,000, or $0.47 per share, for the same period one year ago. Over 50 percent of Chipcom's second quarter 1995 sales, or $36,051,000, were derived from international markets, compared with $27,321,000 for the same period last year. United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. sales were $35,460,000, compared with $33,985,000 reported during the second quarter of 1994. "As we previously disclosed on May 26, revenue and earnings for the second quarter were below original expectations due primarily to lower than anticipated revenue contribution from IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) ," said Rob Held, Chipcom's president and chief executive officer. "We continue to have success in expanding our third-party distribution channels, which is a key corporate objective," Held stated. "Recent additions to Chipcom's family of systems integrators, including Hewlett-Packard, British Telecom The telephone and communications carrier that provides services in Great Britain and Northern Ireland. It used to be a division of the British Post Office, but was privatized in 1984 under Margaret Thatcher's administration. , Andersen Consulting See Accenture. and ITS, will greatly enhance and broaden our distribution base. Our new, worldwide enterprise partner agreement with the service and support organization of HP strengthens the availability of comprehensive, multivendor network support for Chipcom's multinational customers. Chipcom's reseller agreement with BT is the first step towards our two organizations delivering an innovative Managed 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. Service. "Along with diversifying our revenue base," continued Held, "another key objective for the company is to provide customers with a product set that will meet today's needs and offer a migration path to tomorrow's technologies. We are encouraged that customers have shown strong acceptance of both our existing products, and of our Chipcom Cornerstone Networking Architecture -- a road map that gives users an open approach to tomorrow's high-speed virtual and switched campus networks. "An example of this customer endorsement is Hospital de Brest in France," Held added. "During the second quarter, the hospital purchased ONcore Switching Systems Switching systems (communications) The assemblies of switching and control devices provided so that any station in a communications system may be connected as desired with any other station. with ATM switches along with our ONsemble StackSystem family. This customer's leading-edge network will include an ATM backbone supporting real-time video and a high-definition medical image server. We continue to win accounts employing similar sophisticated applications. These new customers confirm our belief that we are providing users with the right foundation today while helping them move toward future technologies." Also during the quarter, Chipcom enhanced its relationship with Cisco Systems “Cisco” redirects here. For other uses, see Cisco (disambiguation). Cisco System,Inc. (NASDAQ: CSCO, HKSE: 4333 ) is an American multinational corporation with 54,000 employees and annual revenue of US $28.48 billion as of 2006. to include a program for delivering next-generation networking solutions based on a shared commitment to multivendor standards, Asynchronous Transfer Mode See ATM. (communications) Asynchronous Transfer Mode - (ATM, or "fast packet") A method for the dynamic allocation of bandwidth using a fixed-size packet (called a cell). See also ATM Forum, Wideband ATM. ATM acronyms. Indiana acronyms. (ATM) interoperability The capability of two or more hardware devices or two or more software routines to work harmoniously together. For example, in an Ethernet network, display adapters, hubs, switches and routers from different vendors must conform to the Ethernet standard and interoperate with each other. and integration of key Cisco technologies into Chipcom's product families. Chipcom expects to deliver Reduced Instruction Set Computing- (RISC RISC in full Reduced Instruction Set Computing Computer architecture that uses a limited number of instructions. RISC became popular in microprocessors in the 1980s. ) based engines for its ONcore(R) Switching System later this year that leverage next-generation Cisco Internetwork (1) To go between one network and another. (2) A large network made up of a number of smaller networks. Same as "internet" (lower case "i"), not the "Internet" (upper case "I"). See internet. Operating System operating system (OS) Software that controls the operation of a computer, directs the input and output of data, keeps track of files, and controls the processing of computer programs. (Cisco IOS Cisco IOS (originally Internetwork Operating System) is the software used on the vast majority of Cisco Systems routers and all current Cisco network switches. IOS is a package of routing, switching, internetworking and telecommunications functions tightly integrated with a ) technology. Chipcom also introduced several new software and hardware products during the quarter. The ONdemand(TM) ATM Campus Manager, a software management application, enables network administrators to analyze and manage ATM networks, including virtual connections, from a central workstation. Two new ONcore System modules announced by the company include the ONcore EtherFlex Media Module, the industry s first user-configurable mixed media module, and the ONcore 36-Port 10BASE-T Media Module, a high-density module for twisted-pair cabling. Founded in 1983, Chipcom Corporation designs, manufactures, markets and services fault-tolerant intelligent switching systems, including hub, internetworking and network management products, for remote site, campus and enterprise network computing Storing and/or running applications in servers in a network. See cloud computing and network computer. environments. The company reported record revenue of $268 million for its 1994 fiscal year, ended December 31, a 67 percent increase over 1993. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the market research firm Dataquest, Inc., Chipcom is the world's third largest supplier of intelligent hubs A network device that performs a variety of processing functions, including network management, bridging, routing and switching. Contrast with passive hub and active hub. See hub. . Together with its resellers, Chipcom has a presence in more than 40 countries, and the company employs over 925 people worldwide. -0- NOTE: Condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. Consolidated Statement of Income and Condensed Consolidated Balance Sheet consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. follow. Chipcom, the Chipcom logo, ONcore and ONsemble are registered trademarks and ONdemand and StackSystem are trademarks of Chipcom Corporation. CONDENSED CONSOLIDATED STATEMENT OF INCOME (unaudited) (in thousands, except per share data)
Three months ended Six months ended
July 1, June 25, July 1, June 25,
1995 1994 1995 1994
Revenue $71,511 $61,306 $157,721 $113,188 Costs and expenses: Cost of goods sold 36,042 28,203 76,820 51,031 Selling, general and administrative 23,589 15,859 46,730 30,896 Research and development 10,421 7,740 20,642 13,966 Merger related expenses -- -- -- 5,125 Total costs and expenses 70,052 51,802 144,192 101,018 Income from operations 1,459 9,504 13,529 12,170 Other income (expense), net 404 229 874 536 Income before provision for income taxes 1,863 9,733 14,403 12,706 Provision for income taxes 671 3,601 5,185 4,701
Net income $1,192 $6,132 $9,218 $8,005
Net income per share $.07 $.36 $.52 $.47 Weighted average shares outstanding 17,534 17,097 17,725 17,145 -0- CONDENSED CONSOLIDATED BALANCE SHEET (in thousands)
July 1, December 31,
1995 1994
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 14,833 $ 10,698
Short-term investments 28,390 41,322
Accounts receivable, net 48,563 45,319
Inventories 70,204 58,701
Prepaid expenses and other
current assets 4,524 4,830
Deferred income taxes 11,195 11,351
Total current assets 177,709 172,221
Fixed assets, net 42,174 34,495
Other assets, including
goodwill 16,247 15,137
$ 236,130 $ 221,853
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term
debt $ 996 $ 800
Accounts payable 21,528 25,627
Accrued expenses 24,414 22,955
Income taxes payable 6,232 3,559
Total current liabilities 53,170 52,941
Deferred income taxes 4,919 4,849
Long-term debt 29 284
Other liabilities 5,349 4,843
Stockholders' equity 172,663 158,936
$ 236,130 $ 221,853
CONTACT: Chipcom Corporation Carol A. Grabowski Senior Investor Relations Investor relations The process by which the corporation communicates with its investors. Specialist 508-490-5693 E-mail: cgrabows@chipcom.com or John H. Ricciardone Director, Public & Investor Relations 508-624-6840 E-mail: jricciar@chipcom.com or Beaupre & Co. Public Relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most , Inc. Glen M. Zimmerman 603-436-6690 E-mail: gzimmer@beaupre.mv.com |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion