Castelle announces first quarter results.SANTA CLARA Santa Clara, city, Cuba Santa Clara (sän`tä klä`rä), city (1994 est. pop. 217,000), capital of Villa Clara prov., central Cuba. , Calif.--(BUSINESS WIRE)--April 16, 1997--Castelle (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 :CSTL CSTL Chemical Science and Technology Laboratory CSTL Clinical Study Team Leader ) today announced sales and earnings for the first quarter ended March 28, 1997. 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 $6.4 million versus $7.1 million in the first quarter of 1996. Net income for the first quarter of 1997 was $367,000 or $.08 per share on 4.6 million shares, compared to net income of $599,000 or $.13 per share on 4.7 million shares for the comparable period of 1996. Results of the first quarter of 1996 were favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impacted by the tax benefit of a net operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. carryforward. Without such non-recurring tax benefit, net income for that quarter would have been $389,000 or $.08 per share. Arthur Bruno, 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. said, "The first quarter of 1997 began with a definite softness in the 10BaseT segment of the print server market. This was caused in part by seasonal inventory adjustments and the introduction of 100BaseT print server models by Castelle and Intel Corporation (company) Intel Corporation - A US microelectronics manufacturer. They produced the Intel 4004, Intel 8080, Intel 8086, Intel 80186, Intel 80286, Intel 80386, Intel 486 and Pentium microprocessor families as well as many other integrated circuits and personal computer networking . As the quarter commenced, sales of Castelle's 100 BaseT product were very encouraging and at the end of the quarter, the product was in a backlog position. "After some price adjustments on the 10BaseT products, the sales improved dramatically and point of sales (POS (1) See point of sale and packet over SONET. (2) "Parent over shoulder." See digispeak. POS - point of sale ) in the domestic distribution channel increased to very high levels for the month of March. Sales of FactsLine and InfoPress, the information-on-demand products from the company's Ibex division acquired in November 1996 were below expectations due primarily to delays in new product releases. "The new InfoPress product line is expected to be fully released in the second quarter including the Web agent which enables a user to obtain information from the Web via e-mail or fax. Activity on Castelle's FaxPress network fax servers continued to be strong, particularly in the high performance FaxPress 3500 models, and as a result the gross margin percentage for the quarter was at an all-time high. "During the quarter, Castelle entered into two strategic technology and marketing relationships. Castelle and Hewlett-Packard Company, the developer of the first true network scanner, announced a joint- marketing effort to deliver a network-ready fax and scanning solution that eliminates the need for stand- alone fax machines. Bringing the Castelle FaxPress and the Hewlett-Packard ScanJet 5 scanner together allows users to fax directly from the front panel of the scanner or to scan a document, edit it if necessary and fax it from a desktop computer. "In addition, Castelle and NetXchange Communications entered into a technology agreement which will add Internet fax Using the Internet to send faxes. Fax servers accept an incoming fax message and route it to a fax server in the same locality as the destination fax machine. The fax server then makes a local telephone call to send the fax. delivery to Castelle's FaxPress product line. Internet fax routing can dramatically reduce a customer's overall transmission costs, particularly for international and intra-company faxing, and in many cases can reduce to zero the incremental cost Incremental Cost The encompassing change that a company experiences within its balance sheet due to one additional unit of production. Notes: Incremental cost is the overall change that a company experiences by producing one additional unit of good. of sending a fax. "These new relationships along with other planned new product introductions in 1997, demonstrate Castelle's continuing commitment to providing the highest value products to our growing customer base. Castelle, founded in 1987, designs, develops, markets and supports specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. network servers for increased productivity in workgroups and distributed enterprise applications. Products include: 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. fax and print servers for workgroups, fax and e-mail on demand, fax gateways, plus fax broadcast and Web fax systems. Products are available through a worldwide network of distributors. The company also has relationships with selected original equipment manufacturers and system integrators and sells software enhancements and upgrades directly to end users. The company, publicly traded on the over-the-counter market over-the-counter market Trading in stocks and bonds that does not take place on stock exchanges. Such trading occurs most often in the U.S., where requirements for listing stocks on the exchanges are strict. under the NASDAQ symbol CSTL, is headquartered in Santa Clara, California Santa Clara, California (IPA: /ˌsæntəˈklærə/) , founded in 1777 and incorporated in 1852, is a city in Santa Clara County, in the U.S. state of California. . For more information, call 800/289-7555 or visit Castelle's web site at http://www.castelle.com . Except for the historical information contained herein, this news 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. that involve risks and uncertainties, including timely development, acceptance and pricing of new products and general economic conditions as they affect the company's customers, as well as the other risks detailed from time to time in the company's SEC reports, including the report on form 10- KSB KSB Kogod School of Business (American University) KSB Kelley School of Business (Indiana University) KSB Kantonsschule Am Brühl St. for the year ended December 31, 1996. -0-
CASTELLE
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three months ended
3/28/97 3/29/96
Net sales $6,419 $7,097
Cost of sales 2,578 3,560
Gross profit 3,841 3,537
Operating expenses:
Research and development 830 704
Sales and marketing 2,031 1,880
General and administrative 429 361
Total operating expenses 3,290 2,945
Operating income 551 592
Nonoperating income 60 56
Income before income taxes 611 648
Provision for income taxes 244 49
Net income $367 $599
Net income per share $0.08 $0.13
Shares used in per share calculation 4,628 4,689
As a percentage of net sales:
Net sales 100.0% 100.0%
Cost of sales 40.2% 50.2%
Gross profit 59.8% 49.8%
Operating expenses:
Research and development 12.9% 9.9%
Sales and marketing 31.6% 26.5%
General and administrative 6.7% 5.1%
Total operating expenses 51.2% 41.5%
Operating income 8.6% 8.3%
Nonoperating income 0.9% .8%
Income before income taxes 9.5% 9.1%
Provision for income taxes 3.8% 0.7%
Net income 5.7% 8.4%
CASTELLE
CONSOLIDATED BALANCE SHEETS
(in thousands)
3/28/97 12/31/96
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 8,685 $ 8,161
Accounts receivable, net 5,417 5,783
Inventories 3,722 2,841
Prepaids and other assets 753 626
Deferred income taxes 1,439 1,439
Total current assets 20,016 18,850
PPE, net 641 593
Other assets, net 118 84
Deferred income taxes 2,860 2,860
$ 23,635 $ 22,387
LIABILITIES & S/H EQUITY
Current liabilities:
Accounts payable 3,140 1,862
Accrued liabilities 3,335 3,825
Total current liabilities 6,475 5,687
Total stockholders' equity 17,160 16,700
$ 23,635 $ 22,387
CONTACT: Castelle Arthur H Arthur Higelin (born Paris, France, 27 March 1966), better known under his stage name Arthur H, is a pianist, songwriter and singer. He is the son of the French singer Jacques Higelin and Nicole Courtois. . Bruno, 408/496-0474 Randall I. Bambrough, 408/496-0474 |
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