Olicom Reports Record Revenue and Earnings for Third Quarter 1997.DALLAS--(BUSINESS WIRE)--Oct. 15, 1997--Olicom A/S (Nasdaq: OLCMF), 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" networking solutions, today reported financial results for the third quarter ended Sept. 30, 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 third quarter were $64.0 million compared with $45.5 million in net sales reported in the third quarter of 1996. Net income for the third quarter of 1997 was $6.1 million compared with $4.1 million in net income reported for the third quarter of 1996. Earnings per share were $0.34 per share on 18.2 million shares outstanding, compared with $0.28 per share on 14.8 million shares outstanding reported for the third quarter of 1996. "Our fifth consecutive record in quarterly earnings was noteworthy because this was Olicom's first full quarter of integration and synergy The enhanced result of two or more people, groups or organizations working together. In other words, one and one equals three! It comes from the Greek "synergia," which means joint work and cooperative action. with the former CrossComm, which we acquired in June June: see month. ," said Mr. 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 have already realized some benefits from these synergies during the September September: see month. launch of our industry-leading Token-Ring and ATM network switching products. These products continue to demonstrate Olicom's ability to deliver price-performance leadership." During September, Olicom launched its CrossFire A multi-GPU interface from ATI for connecting two ATI display adapters together for faster graphics rendering on one monitor. CrossFire machines require PCI Express slots, a CrossFire-enabled motherboard and, depending on which models are used, either a pair of ATI Radeon adapters or one (TM) 8600 Token-Ring switch, which introduced a price-per-port that is half the average price of previous generation products. Concurrently, the Company launched the CrossFire(TM) 9100 ATM workgroup switch A network switch designed for LAN traffic within an enterprise. Contrast with carrier-class switch. . The OC-9100 features reduced complexity for enterprises transitioning from frame-based to cell-based backbones, and the first product implementation of the ATM ABR/Explicit Rate (ER) standard. ABR/ER delivers the promise of standards-based flow control under ATM. During the quarter, sales of Olicom's industry-leading Token-Ring PCI (1) (Payment Card Industry) See PCI DSS. (2) (Peripheral Component Interconnect) The most widely used I/O bus (peripheral bus). adapters grew at a sequential One after the other in some consecutive order such as by name or number. rate of 15 percent. This 15 percent growth, together with strong post-launch sales of the Company's new switching products, and other revenue related thereto there·to adv. 1. To that, this, or it. 2. Archaic In addition to that; furthermore. thereto Adverb Formal 1. to that or it 2. , pushed the gross margin to 50.5 percent. The gross margin was further bolstered bol·ster n. A long narrow pillow or cushion. tr.v. bol·stered, bol·ster·ing, bol·sters 1. To support or prop up with or as if with a long narrow pillow or cushion. 2. by lower revenues, year over year, from Lasat, Olicom's subsidiary which produces lower margin modem products. On October October: see month. 3, 1997 Olicom announced its intention to be listed on the Copenhagen Stock Exchange Copenhagen Stock Exchange The only securities exchange in Denmark. It features electronic trading of stocks, bonds, futures, and options. in November November: see month. . Olicom designs, develops, manufactures and markets high-performance, high-availability networking solutions for corporate enterprises, specializing 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 and a migration path to high-speed high-speed adj. 1. Operated or designed for operation at high speed: a high-speed food processor. 2. Taking place at high speed: a high-speed chase. 3. LANs. Olicom offers products utilizing Token-Ring, Ethernet Ethernet Telecommunications networking protocol introduced by Xerox Corp. in 1979. It was developed as an inexpensive way of sending information quickly between office machines connected together in a single room or building, but it rapidly became a standard computer , Fast Ethernet An earlier name for 100Mbps Ethernet. See 100Base-T. (networking) Fast Ethernet - A version of Ethernet developed in the 1990s(?) which can carry 100 Mbps compared with standard Ethernet's 10 Mbps. It requires upgraded network cards and hubs. , and ATM network technologies. This wide coverage allows customers to engage Olicom as a single source for complete, cost-efficient Adj. 1. cost-efficient - productive relative to the cost cost-effective efficient - being effective without wasting time or effort or expense; "an efficient production manager"; "efficient engines save gas" networking solutions. The products of Olicom and its subsidiary, LASAT, 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. Current Olicom news and product/service information is available at the company's World Wide Web site at http://www.olicom.com . -0- 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. Statements of income and balance sheets follow.
OLICOM A/S
Condensed Consolidated Statements of Income
Nine months
Ended
September 30
1997 1996
(In thousands, except
per share amounts)
Net sales $ 165,742 $ 117,917
Cost of sales 85,515 67,384
----------- -----------
Gross profit 80,227 50,533
----------- -----------
48.4% 42.9%
Operating expenses
Sales and marketing 37,229 29,790
Research and development 12,011 9,571
General and administrative 7,896 5,071
Acquisition related expenses 40,917 3,787
Special charge re. management
change - 1,402
----------- -----------
Total operating expenses 98,053 49,621
----------- -----------
Income from operations (17,826) 912
Related party gain on sale of
investment - 2,878
Interest income (expense)
and other, net 840 1,687
----------- -----------
Income before income taxes (16,986) 5,477
Income taxes 7,649 2,094
----------- -----------
Income before minority interests (24,635) 3,383
Minority interests 195 440
----------- -----------
Net income $ (24,830) $ 2,934
=========== ===========
Net income per share $ (1.58) $ 0.20
=========== ===========
Weighted average shares outstanding 15,745 14,793
=========== ===========
Three months
Ended
September 30
1997 1996
(In thousands, except
per share amounts)
(Unaudited)
Net sales $ 64,035 $ 45,453
Cost of sales 31,676 25,180
---------- ----------
Gross profit 32,359 20,273
---------- ----------
50.5% 44.6%
Operating expenses
Sales and marketing 14,760 9,080
Research and development 5,592 3,183
General and administrative 3,073 1,738
Acquisition related expenses - -
Special charge re. management
change - -
---------- ----------
Total operating expenses 23,425 14,001
---------- ----------
Income from operations 8,934 6,272
Related party gain on sale of
investment - -
Interest income (expense)
and other, net (11) 220
---------- ----------
Income before income taxes 8,923 6,492
Income taxes 2,785 2,343
---------- ----------
Income before minority interests 6,138 4,149
Minority interests 36 7
---------- ----------
Net income $ 6,102 $ 4,142
========== ==========
Net income per share $ 0.34 $ 0.28
========== ==========
Weighted average shares outstanding 18,203 14,849
========== ==========
-0-
OLICOM A/S
Condensed Consolidated Balance Sheets
September 30 December 31
1997 1996
ASSETS
(Unaudited)
Current assets:
Cash and cash equivalents $32,920 $41,663
Short-term investments 12,351 9,887
Accounts receivable 56,703 37,712
Inventories 23,717 22,252
Deferred Income Tax 3,941 945
Prepaid expenses and other 2,756 3,682
--------- --------
Total current assets 132,388 116,141
Investments, property and equipment, net 14,482 11,032
Purchased intangibles 9,673 751
Investments in affiliated companies 527 -
--------- --------
Total assets $157,070 $127,924
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 38,008 $ 29,734
-------- ---------
Total current liabilities $ 38,008 $ 29,734
Minority interests 876 681
Shareholders' equity 118,186 97,509
---------- -----------
Total liabilities and shareholders' equity $157,070 $127,924
======== ==========
CONTACT: Olicom Group Boje Rinhart, +45 45 27 00 77 or 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 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 dweldin@olicom.com or Stapleton Stapleton may refer to: Places United Kingdom
Tersh Barber A barber (from the Latin barba, "beard") is someone whose occupation is to cut any type of hair, give shaves, and trim beards. In previous times, barbers also performed surgery and dentistry. , 650/988-9207 tersh@stapleton.com |
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