Olicom Reports Record Revenue and Earnings for Fourth Quarter 1997.COPENHAGEN Copenhagen (kō`pənhā'gən, –hä'gən), Dan. København (kö'bənhoun`), city (1992 pop. 464,566; metropolitan area 1,339,395), capital of Denmark and of Copenhagen co. , Denmark Denmark (dĕn`märk), Dan. Danmark, officially Kingdom of Denmark, kingdom (2005 est. pop. 5,432,000), 16,629 sq mi (43,069 sq km), N Europe. and DALLAS--(BUSINESS WIRE)--Jan. 28, 1998--Olicom A/S (Nasdaq:OLCMF), a leading global supplier of high performance data networking solutions, today reported financial results for the fourth quarter and fiscal year ended December December: see month. 31, 1997. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the fourth quarter of 1997 were a record $72.5 million compared with $50.3 million in net sales reported in the fourth quarter of 1996, an increase of 44 percent. Net income for the fourth quarter of 1997 was $6.7 million compared with $4.5 million in net income reported for the fourth quarter of 1996, an increase of 50 percent. Earnings per share (diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. ) were $0.36 per share on 18.8 million shares outstanding, compared with $0.30 per share on 14.9 million shares outstanding reported for the fourth quarter of 1996. Gross Margin for the fourth quarter of 1997 was 48.0 percent compared to 44.6 percent for the fourth quarter of 1996. This increase was primarily due to increased sales of higher margin Network Systems products. Net sales for fiscal year 1997 were $238.2 million, an increase of 42 percent over fiscal year 1996 net sales of $168.2 million. Results of operations for 1997 reflected a net loss of $18.1 million, or a loss of $1.15 per share on 15.8 million shares outstanding. This compares with net income for fiscal year 1996 of $7.4 million or $0.50 per share, based on 14.8 million shares outstanding. The 1997 results include expenses of $40.9 million in connection with the acquisition of CrossComm Corporation, primarily due to the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of in-process R&D. Excluding these charges, pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net income for fiscal 1997 was $22.5 million or $1.37 per share (diluted EPS), compared with pro forma net income for fiscal 1996 of $9.1 million or $0.61 per share, an increase in earnings per share of 125 percent. "Our sixth consecutive record in quarterly earnings was especially noteworthy because it shows a strong growth trend in our business," said Lars Stig STIG Steam-Injected Gas Turbine STIG Security Technical Implementation Guide STIG Space Technology Interdependency Group STIG Security Technical Implementation Guidelines Nielsen Noun 1. Nielsen - Danish composer (1865-1931) Carl August Nielsen, Carl Nielsen , Olicom's chief executive officer. "We had a very productive year with the June June: see month. acquisition of CrossComm and the operational integration of the two companies. Also, Olicom's expanded network product line was unveiled in September September: see month. with the launch of important new network switching products. These products were well accepted by our customers and further reinforced re·in·force also re-en·force or re·en·force tr.v. re·in·forced, re·in·forc·ing, re·in·forc·es 1. To give more force or effectiveness to; strengthen: The news reinforced her hopes. the Company's price/performance leadership. With sales of 24,000 Token-Ring ports during the fourth quarter of 1997, Olicom became a leading provider of Token-Ring switching solutions." Note: The Company has implemented Statement of Financial Accounting Standards (SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System ) 128, "Earnings Per Share" (EPS) which is effective for fiscal periods ending after December 15, 1997. This standard requires presentation of both basic and diluted EPS on the face of the earnings statement. Accordingly, these amounts appear on the three pages of financial statements attached to this release. SFAS 128 does not address which numbers need to be discussed in the text of the earnings release, and, consistent with Olicom's past practice, the discussion of earnings per share in this release focuses on diluted EPS. Olicom Background Olicom, a leading global supplier 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" data networking solutions, designs, develops, manufactures, and markets its products for large, geographically ge·o·graph·ic also ge·o·graph·i·cal adj. 1. Of or relating to geography. 2. Concerning the topography of a specific region. ge dispersed dis·perse v. dis·persed, dis·pers·ing, dis·pers·es v.tr. 1. a. To drive off or scatter in different directions: The police dispersed the crowd. b. enterprises. Olicom specializes in providing end-to-end connectivity End-to-end connectivity is a property of the Internet that allows all nodes of the network to send packets to all other nodes of the network, without requiring intermediate network elements to further interpret them. It was for the first time implemented in the CYCLADES-network. solutions, advanced technical support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services and ClearStep(TM) evolution strategies for networks in transition. The Company's products are distributed worldwide by a network of strategic partners and resellers. More information on Olicom is available from the company's SEC filings or by contacting the company directly. See Olicom news, product, and service information on its web site at http://www.olicom.com. This news release contains 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 involve risks and uncertainties that could cause actual results to differ from predicted results. Further information on factors that could affect the company's results are detailed from time to time in Olicom's periodic filings with the Securities and Exchange Commission, specifically the most recent Annual Report on Form 20-F. Olicom is a registered trademark. -0-
OLICOM A/S
Condensed Consolidated Statements of Income
Twelve Months Ended Three months Ended
December 31 December 31
------------------- ------------------
1996 1997 1996 1997
------------------- ------------------
(In thousands, except per share amounts)
(Unaudited) (Unaudited)
Net sales $168,228 $238,229 $ 50,311 $ 72,487
Cost of sales 95,236 123,195 27,852 37,679
-------- -------- -------- --------
Gross profit 72,992 115,034 22,459 34,808
-------- -------- -------- --------
43.4% 48.3% 44.6% 48.0%
Operating expenses
Sales and
marketing 40,496 53,754 10,707 16,525
Research and
development 12,852 17,748 3,282 5,737
General and
administrative 6,848 11,032 1,777 3,136
Acquisition related
expenses 3,787 40,917 0 0
Special charge re.
management change 1,402 0 0 0
-------- -------- -------- --------
Total operating
expenses 65,385 123,451 15,766 25,398
-------- -------- -------- --------
Income from operations 7,607 (8,417) 6,693 9,410
Related party gain on
sale of investment 2,878 0 0 0
Interest income
(expense) and
other, net 2,206 1,230 519 390
-------- -------- -------- --------
Income before income
taxes 12,691 (7,187) 7,212 9,800
Income taxes 4,727 10,689 2,633 3,041
-------- -------- -------- --------
Income before minority
interests 7,964 (17,876) 4,579 6,759
Minority interests 539 245 99 50
-------- -------- -------- --------
Net income $ 7,425 ($18,121) $ 4,480 $ 6,709
======== ======== ======== ========
Net income per share
(diluted EPS) (Note 1) $ 0.50 ($ 1.15) $ 0.30 $ 0.36
======== ======== ======== ========
Weighted average shares
outstanding including
common stock equivalents
(Note 1) 14,786 15,821 14,946 18,848
======== ======== ======== ========
Net income per share
(basic EPS) $ 0.51 ($ 1.15) $ 0.31 $ 0.38
======== ======== ======== ========
Weighted average shares
outstanding 14,653 15,821 14,678 17,567
======== ======== ======== ========
Note 1: Twelve months ended December 31, 1997 show basic EPS and
weighted average shares outstanding
OLICOM A/S
Condensed Consolidated Balance Sheets
December 31
1996 1997
-------------------
ASSETS (In thousands)
(Unaudited)
Current assets:
Cash and cash equivalents $ 41,663 $ 45,591
Short-term investments 9,887 915
Accounts receivable 37,712 57,735
Inventories 22,252 26,107
Prepaid expenses and other 3,682 4,337
-------- --------
Total current assets 115,196 134,685
Investments, property and
equipment, net 11,032 16,028
Purchased intangibles 751 9,172
Investments in affiliated companies 0 733
-------- --------
Total assets $126,979 $160,618
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
liabilities 28,789 34,133
-------- --------
Total current liabilities 28,789 34,133
Minority interests 681 926
Shareholders' equity 97,509 125,559
-------- --------
Total liabilities and
shareholders' equity $126,979 $160,618
======== ========
OLICOM A/S
Pro Forma Condensed Consolidated Statements of Income
Excluding One-time Charges and Gains
Twelve Months Ended
December 31
-------------------
1996 1997
-------------------
(In thousands, except
per share amounts)
(Unaudited)
Net sales $168,228 $238,229
Cost of sales 95,236 123,195
-------- --------
Gross profit 72,992 115,034
-------- --------
43.4% 48.3%
Operating expenses
Sales and marketing 40,496 53,754
Research and development 12,852 17,748
General and administrative 6,848 11,032
-------- --------
Total operating expenses 60,196 82,534
-------- --------
Income from operations 12,796 32,500
Interest income (expense) and
other, net 2,206 1,230
-------- --------
Income before income taxes 15,002 33,730
Income taxes 5,404 11,000
-------- --------
Income before minority interests 9,598 22,730
Minority interests 539 245
-------- --------
Net income $ 9,059 $ 22,485
---------- ======== ========
Net income per share (diluted EPS) $ 0.61 $ 1.37
======== ========
Weighted average shares outstanding
including common stock
equivalents 14,786 16,400
======== ========
Net income per share (basic EPS) $ 0.62 $ 1.42
======== ========
Weighted average shares
outstanding 14,653 15,821
======== ========
Three Months Ended
December 31
------------------
1996 1997
------------------
(In thousands, except
per share amounts)
(Unaudited)
Net sales $ 50,311 $72,487
Cost of sales 27,852 37,679
-------- -------
Gross profit 22,459 34,808
-------- -------
44.6% 48.0%
Operating expenses
Sales and marketing 10,707 16,525
Research and development 3,282 5,737
General and administrative 1,777 3,136
-------- -------
Total operating expenses 15,766 25,398
-------- -------
Income from operations 6,693 9,410
Interest income (expense) and
other, net 519 390
-------- -------
Income before income taxes 7,212 9,800
Income taxes 2,633 3,041
-------- -------
Income before minority interests 4,579 6,759
Minority interests 99 50
-------- -------
Net income $ 4,480 $ 6,709
---------- ======== =======
Net income per share (diluted EPS) $ 0.30 $ 0.36
======== =======
Weighted average shares outstanding
including common stock
equivalents 14,946 18,848
======== =======
Net income per share (basic EPS) $ 0.31 $ 0.38
======== =======
Weighted average shares
outstanding 14,678 17,567
======== =======
CONTACT: Olicom A/S Boje Rinhart, +45 45 27 00 00 or Olicom, Inc. Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. Camp, 972/423-7560 or Olicom A/S Soren Soren may refer to:
E-mail: sho sho (shō), n See akashi. @olicom.dk or Editorial: Olicom, Inc. Diane DIANE Diversified Information and Assistance Network (Tennessee Valley Authority) DIANE Direct Information Access Network for Europe DIANE Digital Integrated Attack and Navigation Equipment Weldin, 972/516-4698 E-mail: dweldin@olicom.com or Investor Relations Investor relations The process by which the corporation communicates with its investors. : Stapleton Stapleton may refer to: Places United Kingdom
Kristine Mozes, 650/470-0200 E-mail: kristine@stapleton.com |
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