Excel Switching Corporation Announces Record First Quarter Results; Q1 Revenues up 38%, Net Income Increased 62% over Q1 1997.HYANNIS Hyannis (hīăn`ĭs), resort village (1990 pop. 14,120), Barnstable co., SE Mass., on Cape Cod; inc. 1639. It is the business center and shipping point of the area; major industries are tourism and home construction. , Mass.--(BUSINESS WIRE)--April 22, 1998--Excel Switching Corporation (Nasdaq:XLSW XLSW Excel Switching (former stock symbol; now delisted) ), a leading provider of open switching platforms for telecommunications networks A telecommunications network is a of telecommunications links and nodes arranged so that messages may be passed from one part of the network to another over multiple links and through various nodes. worldwide, today announced results for its first quarter of 1998. Revenues for the first quarter of 1998 increased 38% to $25.6 million from $18.5 million for the first quarter of 1997. Net income for the first quarter of 1998 increased 62% to $5.4 million from $3.3 million for the same period in 1997. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of were $0.14 for the first quarter of 1998 versus $0.10 in the first quarter of 1997, an increase of 40%. "The first quarter saw the introduction of our new product strategy, ONE Architecture(TM), which was well received at major domestic and international industry trade shows, and will continue to be rolled out over the course of the year," said Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. P. Madonna Madonna (Madonna Louise Ciccone) (mədŏn`ə, chĭkō`nē), 1958–, American pop singer and actress, b. Bay City, Mich. She trained as a dancer at the Univ. , chairman and chief executive officer. "The first quarter was also Excel's first complete quarter as a public company, and was our best first quarter in history in terms of financial performance. With record Q1 revenues, we continue to expand our market position as a worldwide leader for programmable switching solutions and broaden our customer base. We also paid off all outstanding bank debt, further strengthening our balance sheet." Excel A full-featured spreadsheet for Windows and the Macintosh from Microsoft. It can link many spreadsheets for consolidation and provides a wide variety of business graphics and charts for creating presentation materials. introduced its Open Network Expansion Architecture, or ONE Architecture(TM), a product strategy that begins with the company's flagship product A primary product of a company, which is typically why the company was founded and/or what made it well known. For example, MS-DOS, Windows and the Microsoft Office suite have been flagship products of Microsoft. CorelDRAW is a flagship product of Corel Corporation. , the Expandable Switching System, EXS EXS Expandable Switching System (Lucent) EXS Executed Schedule , and adds new capabilities and services that extend the openness, programmability, and flexibility of the system. The strategy encompasses a series of products designed to enable carriers worldwide to rely on ONE Architecture to provide them with a truly open network infrastructure solution. Other Q1 Company highlights include: -- Established sales forces in Europe and Asia; -- Received Massachusetts Massachusetts (măsəch  `sĭts), most populous of the New England states of the NE United States. Telecom Council 'Company of the
Year' and 'Best Initial Public Offering' awards; and,-- Received Qualcomm 'Supplier of the Year' award. Note to Investors: This release may contain statements which are "forward looking", and is subject to risks and uncertainties that could cause actual results to differ significantly from expectations. Factors that might cause such a difference include, but are not limited to, those relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc : quarterly fluctuations in results of operations; concentration of customers within market segments; management of growth; dependence on and concentration of relationships with application developers, original equipment manufacturers and systems integrators An individual or organization that builds systems from a variety of diverse components. With increasing complexity of technology, more customers want complete solutions to information problems, requiring hardware, software and networking expertise in a multivendor environment. ; length of sales cycle; risk of new product introductions; dependence on proprietary rights; and other risks identified in the Company's Securities and Exchange Commission filings including those risks identified in the section entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: "Risk Factors" of the Company's Annual Report for the year ended December 27, 1997 on 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. . There can be no assurance that the Company's current gross, operating and net income margins will be sustainable in future quarterly periods. -0-
Excel Switching Corporation
Consolidated Condensed Statements of Income
(unaudited)
(in thousands, except per share data)
Three Months Ended
March 28, March 29,
1998 1997
Revenues $25,556 $18,518
Cost of revenues 7,580 5,860
Gross profit 17,976 12,658
Engineering, research &
development 4,726 2,942
Selling and marketing 3,920 2,297
General and administrative 2,418 1,959
Total operating expenses 11,064 7,198
Income from operations 6,912 5,460
Other income, net 1,648 44
Income before provision
for income taxes 8,560 5,504
Provision for income taxes 3,210 2,201
Net income $5,350 $3,303
Basic earnings per share $.16 $.12
Diluted earnings per share $.14 $.10
Basic weighted average
shares outstanding 32,645 28,090
Diluted weighted average
shares outstanding 38,936 33,202
-0-
Excel Switching Corporation
Consolidated Condensed Balance Sheets
(unaudited)
(in thousands)
March 28, Dec. 27,
1998 1997
Current assets:
Cash and marketable securities $115,585 $114,897
Accounts receivable, net 14,048 12,843
Inventories 5,609 4,740
Prepaid and deferred taxes 6,044 5,748
Prepaid expenses and other 1,877 1,298
Total current assets 143,163 139,526
Property and equipment, net 12,296 10,168
________ ________
$155,459 $149,694
Current liabilities:
Current maturities of
long-term obligations $1,078 $4,213
Accounts payable 4,312 4,177
Accrued expenses 13,543 11,156
Accrued income taxes 3,654 3,606
Total current liabilities 22,587 23,152
Deferred income taxes 467 519
Long-term obligations 64 108
Stockholders' equity:
Common stock 327 326
Additional paid-in capital 89,376 88,134
Deferred compensation (676) (491)
Unrealized loss on investments (2) (20)
Retained earnings 43,316 37,966
Total stockholders' equity 132,341 125,915
________ ________
$155,459 $149,694
CONTACT: Excel Switching Corporation Investor Relations Investor relations The process by which the corporation communicates with its investors. , 508/862-3000 Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the : http://www.xl.com |
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