MMC Networks Reports Q3 Revenue Up 32 Percent From Q2; A Record 15 Design Wins in Q3.Business Editors/High-Tech Writers SUNNYVALE, Calif.--(BUSINESS WIRE)--Oct. 18, 2000 MMC See MultiMediaCard and Microsoft Management Console. Networks Inc. (Nasdaq:MMCN MMCN Materiel Management Control Number (MEDCOM Logistics) ) today reported financial results for the third quarter ended Sept. 30, 2000. Revenues for the third quarter of 2000 were $22.5 million, up 32 percent from the $17.0 million reported in the second quarter of 2000. Net income for the third quarter of 2000 was $2.5 million or earnings of $0.07 per share, compared with a net income of $964,000, or earnings of $0.03 per share, in the second quarter of 2000. Shipments in the third quarter of 2000 to Cisco Systems “Cisco” redirects here. For other uses, see Cisco (disambiguation). Cisco System,Inc. (NASDAQ: CSCO, HKSE: 4333 ) is an American multinational corporation with 54,000 employees and annual revenue of US $28.48 billion as of 2006. , Inc. (including ArrowPoint) were $12.2 million, or 54 percent of total revenues; shipments to Nortel Networks (Nortel Networks Limited, Brampton, Ontario, www.nortelnetworks.com) A world leader in telecommunications products, which includes switching, wireless and broadband systems for service providers and carriers, telephones and systems for residential and business users, computer telephony Corporation were $3.0 million, representing 13 percent of total revenue; and shipments to Fujitsu Limited were $2.0 million, representing 9 percent of total revenues. "We captured a record 15 new design wins in the third quarter, all of which were in the Service Provider/WAN Edge space, including seven in the optical networking Communications between computers, telephones and other electronic devices using light. An optical network is far more reliable and has far greater potential transmission capacity than networking in the electrical domain. See optical fiber. space and two new VoIP gateways," said Doug Spreng, 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. . "Of the fifteen, we recorded design wins at Cisco, Nortel and Lucent, along with second generation wins at a number of smart startups. "Our impending im·pend intr.v. im·pend·ed, im·pend·ing, im·pends 1. To be about to occur: Her retirement is impending. 2. merger with AMCC AMCC Applied Micro Circuits Corporation AMCC Air Mobility Control Center AMCC Ashore Mobile Contingency Communications AMCC Advanced Materials Commercialization Center AMCC allied movement coordination center (US DoD) is the most significant scaling event in our company's history. We believe the merger will help customers get to market sooner with a more complete product solution, enable the combined company to optimize optimize - optimisation system and silicon integration for our customers and increase our ability to acquire complementary technologies. In addition to being ideal for our customers, we believe this merger will optimize the long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. prospects for our employees and shareholders," Spreng said. Conference Call MMC management will hold a conference call to discuss these results today, Oct. 18, at 1:30 p.m. Pacific Time. Those wishing to join should dial 712/257-3176, passcode "MMC Networks" at approximately 1:15 p.m. A replay of the call will be available starting one hour after the completion of the call until Oct. 25, 2000. To access the replay, please dial 402/220-0278. About the Company On August 27, 2000, MMC Networks (Nasdaq:MMCN) and Applied Micro Circuits Corporation Applied Micro Circuits Corporation (NASDAQ: AMCC) is a fabless semiconductor company designing network and embedded Power Architecture (including a Power Architecture license), optical transport and storage solutions. (AMCC) (Nasdaq:AMCC) announced that they have signed a definitive agreement under which MMC will merge with AMCC. MMC Networks is the first mover mover /mov·er/ (moo´ver) that which produces motion. prime mover a muscle that acts directly to bring about a desired movement. and market leader in providing total network processing platforms and services, enabling network and communications equipment vendors to rapidly develop scalable, feature-rich, 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. products. MMC platforms form the silicon heart of many L2-L7 WAN and LAN switches A network device that cross-connects clients, servers and network devices. Also known as a "frame switch," stand-alone LAN switches are common in all Ethernet networks. A four-port switch is also typically built into a wired or wireless router for homes and small business (see wireless and routers, broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). , optical, web switching Using a Web switch to route Web traffic to the server that can process it most efficiently. See Web switch. , subscriber management, and other communications platforms. For additional information visit www.mmcnetworks.com or call 408/731-1600. MMC Networks -- The Network Processor Company(TM) The foregoing release includes 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 are subject to significant risks. In particular there can be no assurance that the statements by the Company's CEO concerning design wins, product development and customer product life cycles will result in revenues to the Company due to the risks of end user acceptance, design wins not resulting in product orders and the market for network processors generally. Other forward-looking statements include the impact of the impending merger with AMCC, including statements regarding the finalization Writing the table of contents (TOC) on a recordable CD or DVD disc. The finalization process ensures that the disc can be played back on most CD and DVD players. See disc-at-once. of the merger, the expected benefits of the merger, the ability of the combined company to successfully develop and supply products after the merger, and the future growth of the markets served by the companies. We refer you to the company's 10-K and 10-Q filings made with the SEC, including those filed on March 28, 2000, May 15, 2000 and July 24, 2000, respectively, for additional information on risk factors which could cause actual results to differ materially from our current expectations.
MMC Networks, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
------------------ ------------------
Revenues $ 22,477 $ 23,149 $ 52,146 $ 58,582
Cost of revenues 5,994 6,868 14,854 17,336
------------------ ------------------
Gross profit 16,483 16,281 37,292 41,246
Gross profit % of revenue 73.3% 70.3% 71.5% 70.4%
Operating expenses:
Research and development 9,484 6,360 24,566 16,070
Selling, general
and administrative 4,452 3,136 11,401 8,211
------------------ ------------------
Total operating expenses 13,936 9,496 35,967 24,281
Operating income 2,547 6,785 1,325 16,965
Interest income, net 1,137 844 3,187 2,189
------------------ ------------------
Income before income taxes 3,684 7,629 4,512 19,154
Provision for income taxes 1,178 2,745 1,442 6,890
------------------ ------------------
Net income $ 2,506 $ 4,884 $ 3,070 $ 12,264
------------------ ------------------
------------------ ------------------
Diluted income per share $ 0.07 $ 0.14 $ 0.08 $ 0.36
Shares used to compute diluted
income per share 36,988 35,283 36,136 34,456
MMC Networks, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
September 30, December 31,
2000 1999
------------- -------------
ASSETS
Current assets:
Cash, cash equivalents
& short-term investments $ 77,742 $ 71,995
Accounts receivable, net 12,707 6,358
Inventory, net 7,704 3,216
Other current assets 6,064 6,374
------------- -------------
Total current assets 104,217 87,943
Property and equipment, net 12,380 8,222
Other assets, non current 1,363 230
------------- -------------
Total assets $ 117,960 $ 96,395
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 17,951 $ 8,435
Stockholders' equity 100,009 87,960
------------- -------------
Total liabilities
and stockholders' equity $ 117,960 $ 96,395
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