CrossComm reports revenue, operating results for second quarter; Continued quarterly revenue growth; More comprehensive LAN and ATM switching product line; New focus on the corporate intranet market.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)--July 31, 1996--CrossComm Corp. (Nasdaq/XCOM) today announced revenue and operating results for its second quarter ended June June: see month. 30, 1996. Revenue for the quarter ended June 30, 1996 was $11,802,000, an 11 percent increase from revenue of $10,658,000 for the first quarter ended March 31, 1996, and a two percent increase from revenue in the comparable quarter one year ago. The company's pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta and net loss for the quarter was $1,720,000. Included in the operating results for the second quarter of 1996 is a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charge of approximately $300,000 related to the buy out of minority interest in a consolidated subsidiary. "We are please with the continued revenue growth experienced in the second quarter," said William William, crown prince of Germany William or Frederick William, 1882–1951, crown prince of Germany, son of William II. In World War I he commanded (1914) an army on the Western Front and was nominal commander in the German attack ("BJ") Johnson, CrossComm's 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. . "We believe progress was made during Q2 toward our goal of returning to profitability, including the expansion of our switching product line with the introduction of the RiserSwitch line of high-performance Adj. 1. high-performance - modified to give superior performance; "a high-performance car" superior - of high or superior quality or performance; "superior wisdom derived from experience"; "superior math students" Ethernet switches A device that connects clients and servers to each other in an Ethernet network. See switched Ethernet. and the CrossLAN Exchange state-of-the-art intranet communications platform. We also continued to improve our senior management team with industry veterans Stephen Beason and Edward Bednarcik joining us as senior vice president of operations and vice president of worldwide sales, respectively. Additionally, we continued to effectively execute our expense control and asset management plan which was implemented in Q1. As we expand on these efforts and begin to execute our recently announced plans to direct business toward the corporate intranet segment of the networking market, we are hopeful that we can 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>. the opportunity available within our rapidly growing industry," concluded Johnson. "We are very excited about the opportunity available in the emerging market for corporate intranets," said David Zwicker, CrossComm's vice president of marketing. "The task of building effective, reliable industrial-strength corporate intranets is becoming critical to today's network managers. To help meet this need, earlier this month we introduced our CrossLAN Exchange -- one of the industry's first off-the-shelf, single-box intranet product. We can now provide efficient, comprehensive cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. solutions in this area," added Zwicker. About CrossComm CrossComm Corp. (Nasdaq:XCOM XCOM Exterior Communication System XCOM External Communications ), founded in 1987, designs, develops, manufactures, sells and supports high-performance intranet and networking solutions, enabling customers to integrate the benefits of ATM technology, while preserving their 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. The company also offers complete, high-performance, scaleable LAN switching
LAN switching is a form of packet switching used in local area networks. Switching technologies are crucial to network design, or to that minority of LANs that are used outside the home. solutions that can grow as bandwidth demands increase. Worldwide headquarters are located at 450 Donald Lynch Blvd., Marlborough, Mass. 01752. Statement 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 Corp.'s 1995 Annual Report to Shareholders and 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. Copies of these documents may be received at no charge by contacting Investor Relations Investor relations The process by which the corporation communicates with its investors. at CrossComm. -0- All CrossComm products herein are trademarked by CrossComm Corp. All other non-CrossComm product names are trademarked by their respective companies. -0-
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
1996 1995 1996 1995
Revenues $ 11,802 $ 11,533 $ 22,460 $ 24,735 Cost of revenues 6,143 5,663 11,828 11,652 Gross profit 5,659 5,870 10,632 13,083 Operating expenses: Selling, general & administrative 5,313 5,332 9,926 9,945 Research and development 2,516 3,102 4,964 6,113 Total operating expenses 7,829 8,434 14,890 16,058 Income (loss) from operations (2,170) (2,564) (4,258) (2,975) Interest income, net 487 587 1,024 1,113 Gain on sale of investment -- 2,100 -- 2,100 Other income (expense) (37) (1) (81) (8) Income (loss) before provision for income taxes (1,720) 122 (3,315) 230 Provision for income taxes -- -- -- -- Net income (loss) $(1,720) $122 $(3,315) $230 Earnings (loss) per share $ (0.19) $ 0.01 $ (0.36) $ 0.02 Shares used in computing earnings (loss) per share 9,175 9,200 9,163 9,190 -0-
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
June 30, Dec. 31,
1996 1995
ASSETS
Current assets:
Cash and cash equivalents $ 2,518 $ 2,244
Available-for-sale securities 44,914 44,529
Accounts receivable, net 8,474 7,141
Inventories, net 5,211 6,635
Prepaid expenses and other current
assets 1,487 1,254
Total current assets 62,604 61,803
Fixed assets, net 7,204 6,839 Other assets, net 2,932 2,704
Total assets $72,740 $ 71,346
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 5,193 $ 4,728
Accrued expenses 5,897 5,863
Deferred revenue 3,406 3,348
Total current liabilities 14,496 13,939
Minority interest in consolidated subsidiary -- 44 Stockholders' equity 58,244 57,363
Total liabilities and
stockholders' equity $ 72,740 $ 71,346-0-
CONTACT: CrossComm Corp. Doug Bryant, 508/229-5303 or Donald Sullivan, 508/229-5101 |
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