Xircom Announces Fiscal 1997 and Fourth- Quarter Results.THOUSAND OAKS Thousand Oaks, residential city (1990 pop. 104,352), Ventura co., S Calif., in a farm area; inc. 1964. Avocados, citrus, vegetables, strawberries, and nursery products are grown. , Calif.--(BUSINESS WIRE)--Oct. 20, 1997--Xircom Inc. (Nasdaq:XIRC) Monday Monday: see week. reported 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 and results of operations for its fiscal year ended Sept. 30, 1997. Net sales for the year were $184.6 million, compared with $166.8 million for the prior year. Loss from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the was $3.3 million, or 16 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. ($1.8 million, or 9 cents per share, excluding the after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. impact of a charge for in-process research and development related to the acquisition of certain assets from Angia Communications Inc. announced on Oct. 2, 1997), compared with income from continuing operations of $5.2 million, or 26 cents per share ($6.2 million, or 31 cents per share, excluding the after-tax impact of a nonrecurring charge Nonrecurring Charge An expense occurring only once on a company's financial statement. Notes: An extraordinary item is an example of a nonrecurring charge. Also known as "nonrecurring item". ), for fiscal 1996. Fourth-Quarter Results Net sales for the fourth quarter of fiscal 1997 totaled $20.9 million, compared with $49.1 million for the comparable quarter of last year. Loss from continuing operations was $12.8 million, or 57 cents per share ($11.3 million, or 50 cents per share, excluding the after-tax impact of a charge for in-process research and development related to the acquisition of certain assets from Angia Communications), compared with income from continuing operations of $2.5 million, or 12 cents per share ($3.5 million, or 18 cents per share, excluding the after-tax impact of a nonrecurring charge), last year. The fourth-quarter net loss also includes a $3.8 million charge for additional inventory reserves, and severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when and reorganization expenses. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Dirk Gates, chairman, president, and chief executive officer of Xircom Xircom, Inc. was based in Thousand Oaks, California, with manufacturing facilities located in Penang & Malaysia and international offices throughout Europe and Asia Pacific. They were one of the first companies to develop network computing products for notebook computers. : ``While not truly reflected in our financial performance, our achievements in fiscal 1997 have resulted in a more aggressive, action-oriented company poised to take advantage of the strong growth opportunity offered by the mobile-networking market. Throughout the year we: -- Received a $52 million equity investment from Intel Corp., and signed a three-year technology and OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and agreement with the company; -- Sharpened sharp·en tr. & intr.v. sharp·ened, sharp·en·ing, sharp·ens To make or become sharp or sharper. sharp our singular SINGULAR, construction. In grammar the singular is used to express only one, not plural. Johnson. 2. In law, the singular frequently includes the plural. focus on the growing PC Card market even further by divesting our remote-access-server division, Netaccess Inc.; -- Delivered on our promise of rapid product innovation with the introduction of 19 new products, strengthening our leadership position; -- Broadened our business through the addition of several major original-equipment-manufacturer (OEM) agreements, delivering 10 of the 19 new products as custom-developed products for our OEM partners; and -- Shortened short·en v. short·ened, short·en·ing, short·ens v.tr. 1. To make short or shorter. 2. manufacturing and distribution supply chains while increasing sales-out of the channel steadily, and we continue to hone our business model, putting in place a series of operational systems and processes that will further solidify so·lid·i·fy v. so·lid·i·fied, so·lid·i·fy·ing, so·lid·i·fies v.tr. 1. To make solid, compact, or hard. 2. To make strong or united. v.intr. our leadership in mobile networking.'' Gates continued, ``In our fourth fiscal quarter, one that is normally a seasonally weak quarter for us, we successfully transitioned our distribution channel to our new speed model and at the same time enjoyed strong sell-through of products out of our distribution channel. We now enter fiscal 1998 in our best position yet to take advantage of the rapidly growing mobile-networking market.'' Xircom Corporate Background Xircom is the leading manufacturer of PC Card and CardBus communications products for connecting mobile and remote portable PC users to corporate networks, the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the , and other on-line services from a wide variety of locations. More information about Xircom may be found at www.xircom.com Xircom has headquarters in Thousand Oaks, and has regional offices in Antwerp, Belgium, and Singapore. Sales: 800/438-4526. Telephone: 805/376-9300. Fax: 805/376-9311. -0- Notice to readers: 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. based on current expectations that involve a number of risks and uncertainties that could cause actual results to differ materially and include, but are not limited to, actual growth and the competitive environment in the PC Card and mobile-networking markets. Other additional risks are described in the company's Securities and Exchange Commission reports on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended Sept. 30, 1997 (to be filed subsequent to this release), as well as the reports on Form 10-Q Form 10-Q See 10-Q. for the quarters ended June 30, 1997, March 31, 1997 and Dec. 31, 1996. Investor information may be found on Xircom's Web site at www.xircom.com, or on the SEC's EDGAR Edgar or Eadgar (both: ĕd`gər), 943?–975, king of the English (959–75), son of Edmund, king of Wessex. In 957 the Mercians and Northumbrians rebelled against Edgar's brother Edwy and chose Edgar as their king. electronic-filing database. Xircom is a registered trademark of Xircom Inc. Other company or product names have been used for identification purposes only and may be trademarks of their respective companies.
Xircom Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per-share information)
(Unaudited)
Three months ended Year ended
Sept. 30 Sept. 30
1997 1996 1997 1996
Net sales $ 20,900 $ 49,055 $ 184,575 $ 166,757
Cost of sales 22,092 30,516 126,300 107,437
Gross profit (loss) (1,192) 18,539 58,275 59,320
Operating expenses:
Research and development 3,958 2,275 12,799 9,537
Sales and marketing 10,950 9,163 43,012 32,723
General and administrative 2,652 1,682 8,259 6,543
In-process research and
development and other
nonrecurring charges 2,163 1,505 2,163 1,505
Total operating expenses 19,723 14,625 66,233 50,308
Operating income (loss) from
continuing operations (20,915) 3,914 (7,958) 9,012
Other income (expense), net 2,607 (252) 3,172 (1,338)
Income (loss) from continuing
operations before
income taxes (18,308) 3,662 (4,786) 7,674
Income tax provision
(benefit) (5,493) 1,173 (1,437) 2,506
Income (loss) from continuing
operations (12,815) 2,489 (3,349) 5,168
Discontinued operations:
Operating income (loss),
net of income taxes -- 315 (226) 784
Loss on disposal, net of
income taxes -- -- (6,275) --
Net income (loss) $(12,815) $ 2,804 $ (9,850) $ 5,952
Weighted average shares
outstanding 22,657 20,026 21,560 19,745
Net income (loss) per share:
Continuing operations (57 cents) 12 cents (16 cents) 26 cents
Discontinued operations -- 2 cents (30 cents) 4 cents
Net income (loss) (57 cents) 14 cents (46 cents) 30 cents
Net sales 100.0% 100.0% 100.0% 100.0%
Gross profit (loss) (5.7%) 37.8% 31.6% 35.6%
Research and development 18.9% 4.6% 6.9% 5.7%
Sales and marketing 52.4% 18.7% 23.3% 19.7%
General and administrative 12.7% 3.4% 4.5% 3.9%
In-process research and
development and other
nonrecurring charges 10.4% 3.1% 1.2% 0.9%
94.4% 29.8% 35.9% 30.2%
Operating income (loss)
from continuing operations (100.1%) 8.0% (4.3%) 5.4%
Income tax rate 30.0% 32.0% 30.0% 32.7%
Income (loss)
from continuing operations (61.3%) 5.1% (4.3%) 3.1%
Net income (loss) (61.3%) 5.7% (5.3%) 3.6%
Xircom Inc.
Condensed Consolidated Balance Sheets
(In thousands)
Sept. 30, 1997 Sept. 30, 1996
Current assets:
Cash and cash equivalents $ 75,109 $ 21,377
Accounts receivable 10,897 25,006
Income tax receivable 5,006 2,652
Inventories 28,962 13,771
Deferred income taxes 7,075 5,409
Other current assets 2,476 3,330
Total current assets 129,525 71,545
Equipment and improvements, net 17,819 18,136
Net assets of discontinued operations -- 17,151
Other assets 586 369
Total assets $147,930 $107,201
Current liabilities:
Notes payable to bank $ -- $ 5,100
Accounts payable 10,431 10,260
Accrued liabilities 20,107 18,986
Current portion of long-term
obligations 1,613 1,422
Accrued income taxes 945 1,066
Total current liabilities 33,096 36,834
Long-term obligations 928 1,860
Deferred income taxes 479 2,904
Shareholders' equity:
Common stock 23 20
Paid-in capital 140,892 83,221
Retained earnings
(accumulated deficit) (27,488) (17,638)
Total shareholders' equity 113,427 65,603
Total liabilities and
shareholders' equity $147,930 $107,201
CONTACT: Xircom Investor Relations Investor relations The process by which the corporation communicates with its investors. Kristi Cushing Cush·ing , Harvey Williams 1869-1939. American surgeon known for his innovations in the field of neurosurgery and for his studies of the pituitary gland. , 805/376-9300 kcushing@xircom.com http://www.xircom.com or Manning Selvage selvage - chad & Lee Craig Rexroad, 213/782-6600 |
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