Larscom provides outlook on second quarter results.
Revenues for the quarter are expected to be within the range of $18.9 million and $19.1 million. Earnings per share for the period are expected to be within the range of $0.13 and $0.14. Final results for the second quarter are scheduled to be announced on July 22, 1997. For the second quarter ended June 30, 1996, Larscom recorded revenues of $18.8 million and earnings per share of $0.15.
Deborah Soon, president and chief executive officer, commented: "Revenues in the second quarter were slightly lower than expected due to two opportunities that did not materialize. Even with these events, broadband revenues grew 30% over the immediately preceding first quarter, and increased to 38% of overall sales compared to 28% in the second quarter of last year. The healthy margins in broadband product sales, and our on-going cost reduction efforts, are expected to favorably impact our gross margins and we are continuing to make progress leveraging SG&A expenses."
Larscom Inc. is a leading provider of high speed wide area network (WAN) access equipment. Its customers include carriers, Internet service providers, corporate users, and government agencies worldwide. Its products cover a wide range of transmission rates and services including full and fractional T1, E1, NxT1, NxE1, and T3, as well as frame relay and ATM inverse multiplexing. To help ensure optimum network performance, Larscom products feature advanced monitoring, diagnostic, and management functions, including SNMP.
The company's headquarters are located at 4600 Patrick Henry Drive, Santa Clara, Calif. 95054.
Any forward-looking statements in this news release are based on current expectations and beliefs and are subject to risks and uncertainties that could cause the actual results to differ materially. Factors that could cause actual results to differ materially include customer concentration, dependence on recently introduced products and products under development, rapid technological change, no recent independent operating history, fluctuations in quarterly operating results; absence of significant backlog, as well as additional risk factors as discussed in the "Risk Factors" section of Larscom's prospectus, dated December 18, 1996, and Larscom's annual report on Form 10-K filed with the U.S. Securities Exchange Commission.
CONTACT: Larscom Inc., Santa Clara
Bruce Horn, 408/988-6600
Chris Danne/Alex Williamson/Douglas Sherk, 415/296-7383
David Sasso, 212/850-5600
Josh Passman, 212/850-5698
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|Date:||Jul 1, 1997|
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