CrossComm reports revenue, operating results for first quarter.MARLBOROUGH Marl·bor·ough or Marl·bo·ro A city of east-central Massachusetts east-northeast of Worcester. Settled in 1657, it was nearly destroyed in 1676 during King Philip's War. Population: 38,100. , Mass.--(BUSINESS WIRE)--April 15, 1997-- Announces Return to Profitability CrossComm Corporation (NASDAQ/XCOM) announced today its revenue and operating results for the first quarter ended March 31, 1997. Revenue for the quarter was $11,803,000, a 2% increase from revenue of $11,549,000 for the fourth quarter ended December December: see month. 31, 1996, and an 11% increase from revenue in the comparable quarter a year ago. The Company realized Net Income of $358,000 or $.04 per share, compared to a loss of ($1,594,000) or ($0.17) per share in the comparable quarter a year ago. Operating Income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the quarter, excluding non-recurring charges related to the pending sale of the Company to Olicom A/S, was $339,000. "We are pleased to demonstrate the continuing improvement in our business which began last quarter. Our focus on the Company's traditional market, the IBM/Token Ring market segment which we began last quarter, is continuing to show promise," said Tad (Telephone Answering Device) An answering machine. Witkowicz, CrossComm's Chairman of the Board 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. . Nigel Nigel is a masculine name of English origin and is another form of the name Neil, which is more commonly used. The origin of the name is unusual, as it comes from the form medieval scribes writing in Latin used to "translate" Neil, and the "g" in the name comes from Machin, President of CrossComm's Enterprise Products Division said, "The Management team worked hard during the last two quarters in order to improve operating efficiency without hurting our ability to deliver competitive products and service to our target market. The financial results are an indicator of our progress in this area." About CrossComm CrossComm Corporation (NASDAQ/XCOM), founded in 1987, designs, develops, manufactures and sells high performance networking products - ATM edge routers Also called an "access router," it is a router that sits at the periphery of a network. Contrast with "core router," which is a router that resides in the middle of the network. See router and WAN router. See also edge device. and switches, multiprotocol routers A router that supports two or more communications protocols, such as IP and IPX. It is used to switch network traffic between different LANs located throughout the enterprise as well as to switch LAN traffic to WANs. , and high speed Ethernet switches A device that connects clients and servers to each other in an Ethernet network. See switched Ethernet. . The Company focuses on providing companies whose networks are mainly Token Ring/SNA with a path to high speed connectivity using state-of-the-art, mission critical solutions while preserving legacy LAN An older local area network. It typically refers to Token Ring and FDDI, but may also refer to a slow 10 Mbps Ethernet. See legacy network. environments. On March 20, 1997, the Company entered into an Agreement and Plan of Reorganization with Olicom A/S whereby each outstanding share of the Company will be exchanged for $5.00 in cash, .2667 shares of Olicom stock, and a three year warrant to acquire .1075 shares of Olicom common stock at an exercise price of $19.74 for each full share of Olicom common stock. The business combination is subject to certain conditions and approvals, including the approval of both companies' shareholders. Additional information is available on CrossComm's Web site at http://www.crosscomm.com . Worldwide Headquarters is located at 450 Donald Donald (Domnall, Domhnall, Dumhnuil, Dónall) is an anglicized version of a Scottish or Irish Gaelic personal name, containing the elements dumno "world" and val "rule", viz. "ruler of the world". Compare Dumnorix. Lynch Boulevard, Marlborough, MA 01752. Declaration Regarding 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. Statements included herein that are not historical facts may include forward-looking statements that involve risks and uncertainties, including those discussed further in the 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 section of CrossComm Corporation's 1996 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. filed with the Securities and Exchange Commission. (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 Statements of Operations and Balance Sheets Follow) -0- All CrossComm product names herein are trademarked by CrossComm. All other product or company names are trademarked by their respective companies.
CrossComm Corporation
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
Three Months Ended
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March 31, March 31,
1997 1996
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Revenues $11,803 $10,658
Cost of revenues 5,521 5,685
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Gross profit 6,282 4,973
Operating expenses:
Selling, general & administrative 4,108 4,614
Research and development 1,835 2,448
Other charges 356 --
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Total operating expenses 6,299 7,062
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Income (loss) from operations (17) (2,089)
Interest income, net 458 538
Other income (expense) (83) (43)
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Income (loss) before provision
for income taxes 358 (1,594)
Provision for income taxes -- --
-------- ---------
Net income (loss) $358 ($1,594)
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Earnings (loss) per share $0.04 ($0.17)
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Shares used in computing earnings
(loss) per share 9,860 9,150
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CrossComm Corporation
Condensed Consolidated Balance Sheets
(in thousands)
March 31, December 31,
1997 1996
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ASSETS
Current assets:
Cash and cash equivalents $ 8,965 $ 6,461
Available-for-sale securities 34,132 37,279
Accounts receivable, net 9,209 8,276
Inventories, net 5,171 5,473
Prepaids and other current assets 1,904 1,703
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Total current assets 59,381 59,192
Fixed assets, net 5,077 5,464
Other assets, net 1,994 2,203
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Total assets $66,452 $66,859
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $3,155 $3,537
Accrued expenses 5,637 5,621
Deferred revenue 4,630 3,339
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Total current liabilities 13,422 12,497
Stockholders' equity 53,030 54,362
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Total liabilities and stockholders' equity $66,452 $66,859
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CONTACT: CrossComm Corporation Doug DOUG Dumb Old Utility Guy Bryant Bry·ant , William Cullen 1794-1878. American poet, critic, and editor known especially for his early nature poems, such as "Thanatopsis" (1817) and "To a Waterfowl" (1821). 508-229-5303 |
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