MMC Networks announces likely impact of IBM's exit from LAN switch business; Conference call to be held today at 1:30 Pacific Time.SUNNYVALE, Calif.--(BUSINESS WIRE)--Aug. 31, 1999-- MMC See MultiMediaCard and Microsoft Management Console. Networks (Nasdaq:MMCN MMCN Materiel Management Control Number (MEDCOM Logistics) ) today announced the likely impact to the company of IBM's planned exit from the LAN (Local Area Network) A communications network that serves users within a confined geographical area. The "clients" are the user's workstations typically running Windows, although Mac and Linux clients are also used. switch/router business. This morning IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) announced a strategic agreement with Cisco that effectively means that IBM is exiting the LAN switch/router business. Since IBM represented 23% of MMC Networks' Q2 revenues, the company is faced with a reduction of Q4 and FY2000 revenue, MMC 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. , Doug Spreng, said. "IBM's decision will not materially impact the company's Q3 results but may result in approximately a 5-10% sequential decline in Q4 revenues. MMC had forecasted IBM's business to be about 15% of FY2000 revenues and now expects this business to be negligible. However, based on the large number of design wins achieved outside of IBM, the company continues to expect sequential growth during FY2000 to be in the mid-teens," said Mr. Spreng. Overall, the business climate with 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. and with MMC's other existing customers remains healthy and the company continues to be optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the long term prospects in the network processor market. A teleconference will be held today at 1:30pm Pacific time to discuss the situation in more detail. To participate in the teleconference please dial 415-228-4642. A replay will be available for one week by dialing 402-344-6827. This release may contain 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 risks and uncertainties. Factors that could cause actual results to differ materially include, but are not limited to, general business conditions in the networking equipment and semiconductor industries, changes in demand for network equipment products of MMC Networks' customers, the timing and amount or cancellation of orders from MMC Networks' network equipment vendor customers and other risks detailed from time to time in the company's filings with the Securities and Exchange Commission including the company's most recent report on Forms 10-Q and 10-K. MMC Networks, Inc. is the leading supplier of Network Processors, which are high performance, open-architecture, software programmable processors optimized for networking applications. More information on the company is available from the company's SEC filings. If you would like additional product information, please call (408) 731-1600 or visit http://www.mmcnet.com. MMC Networks is traded on the Nasdaq National Market under the symbol MMCN. |
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