Printer Friendly

COMPUTER NETWORK TECHNOLOGY CORPORATION ANNOUNCES RECORD THIRD QUARTER RESULTS

 MAPLE GROVE, Minn., Nov. 2 /PRNewswire/ -- Computer Network Technology Corporation (NASDAQ: CMNT) (CNT) today reported net income of $1,548,695, or $.08 per share, for the third quarter, ended Sept. 30, 1993, compared with net income of $271,936, or $.02 per share for the same period a year ago. Revenue for the third quarter of 1993 totaled $15.5 million, a 117 percent increase from $7.2 million for the prior year period. Net income for the 1993 third quarter was reduced by approximately $.01 per share due to one-time costs associated with the acquisition of the assets of Ultra Network Technologies, Inc. (Ultra) in July 1993. Results for the 1992 third quarter were reduced by approximately $.02 per share due to the acquisition of CNT's distributor in the United Kingdom in July 1992.
 For the first nine months of 1993, net income was $2,974,773, or $.16 per share, as compared with net income of $1,197,498, or $.07 per share, for the first nine months of 1992. Revenue for the first nine months of 1993 was $36.0 million, a 72 percent increase from $21.0 million for the first nine months of 1992.
 Orders for the 1993 third quarter, which included $1.3 million in orders for CNT's new UltraNet product line, totaled $14.9 million, up 145 percent from $6.1 million for the 1992 third quarter. Orders for the first nine months of 1993 totaled $39.0 million, up 69 percent from $23.2 million during the same period in 1992.
 Commenting on these results, Mac Lewis, CNT's president and CEO, said, "We are pleased to report significant gains in revenue and earnings during the third quarter. Revenue from our CHANNELink product line increased 78 percent compared to the prior year period, and when combined with $2.8 million in initial revenue from our new UltraNet product line, resulted in record revenue growth for the third quarter. During the third quarter, we recorded initial revenue from 17 new customers, which brings our year-to-date new customer total to 66."
 Lewis continued, "Our year-to-date net income increased 148 percent to approximately $3 million, despite the one-time costs associated with Ultra and a 34 percent effective tax rate, up from 12 percent during the first nine months of 1992."
 Lewis concluded, "For the first nine months of 1993, we recorded 71 percent of our revenue from customers in North America and 29 percent from international customers. We are encouraged by the activity in our sales pipeline in North America and Europe as we enter what has traditionally been our strongest quarter."
 Computer Network Technology Corporation, a leader in the channel networking industry, develops, manufactures and markets high-speed channel networking systems. These systems serve the data networking needs of many of the world's largest corporations by connecting high performance computers, peripheral devices and LAN based networks in enterprise-wide backbone networks. CNT's common stock is traded on the NASDAQ National Market under the symbol CMNT.
 COMPUTER NETWORK TECHNOLOGY CORPORATION
 CONSOLIDATED STATEMENTS OF INCOME
 (Unaudited)
 Three Months Ended Nine Months Ended
 9/30/93 9/30/92 9/30/93 9/30/92
 Revenue:
 Equipment sales $12,674,876 $5,693,953 $29,830,754 $17,501,026
 Service fees 2,853,549 1,468,508 6,217,945 3,504,845
 Total revenue 15,528,425 7,162,461 36,048,699 21,005,871
 Cost of revenue:
 Cost of
 equipment sales 3,800,149 1,715,424 8,609,093 4,947,232
 Cost of service fees 2,081,180 1,253,461 5,276,376 3,411,060
 Total cost
 of revenue 5,881,329 2,968,885 13,885,469 8,358,292
 Gross profit 9,647,096 4,193,576 22,163,230 12,647,579
 Operating expenses:
 Sales and marketing 3,796,784 2,068,312 9,464,319 5,987,443
 Engineering and
 development 2,217,313 1,320,533 5,460,099 4,122,015
 General and
 administrative 907,099 484,142 2,181,678 1,348,314
 Costs of acquisition 386,267 -- 528,369 --
 Total operating
 expenses 7,307,463 3,872,987 17,634,465 11,457,772
 Income from
 operations 2,339,633 320,589 4,528,765 1,189,807
 Other income (expense):
 Interest income 47,251 86,975 156,507 300,821
 Interest expense (56,903) (40,941) (120,314) (116,134)
 Other, net 18,714 (19,687) (40,185) (16,996)
 Other income (expense) 9,062 26,347 (3,992) 167,691
 Income before income
 taxes 2,348,695 346,936 4,524,773 1,357,498
 Provision for income
 taxes 800,000 75,000 1,550,000 160,000
 Net income $1,548,695 $271,936 $2,974,773 $1,197,498
 Net income per common
 and common equivalent
 share $.08 $.02 $.16 $.07
 Weighted average number of
 common and common
 equivalent shares 18,825,248 17,272,552 18,296,154 17,170,111
 COMPUTER NETWORK TECHNOLOGY CORPORATION
 CONSOLIDATED BALANCE SHEETS
 9/30/93 12/31/92
 (Unaudited)
 Assets
 Current assets:
 Cash and cash equivalents $22,666,003 $3,574,532
 Marketable securities -- 1,972,909
 Receivables, net 14,469,698 11,963,319
 Inventories 11,443,568 5,249,366
 Other current assets 1,586,687 314,983
 Total current assets 50,165,956 23,075,109
 Property and equipment, net 7,017,632 4,663,709
 Field support spares, net 1,219,260 1,318,957
 Goodwill and other tangible
 assets, net 916,923 1,132,515
 Other assets 244,180 105,082
 -- $59,563,951 $30,295,372
 Liabilities and shareholders'
 equity
 Current liabilities:
 Accounts payable $4,498,587 $3,311,126
 Accrued expenses 4,987,454 2,501,764
 Deferred revenue 5,382,139 3,171,576
 Current installments of
 obligations under capital
 leases 924,910 485,580
 Total current liabilities 15,793,090 9,470,046
 Obligations under capital
 leases, less current
 installments 584,693 622,463
 Total liabilities 16,377,783 10,092,509
 Shareholders' equity:
 Common stock, $.01 par value;
 authorized 30,000,000 shares;
 issued and outstanding
 20,465,819 at Sept. 30, 1993
 and 17,027,288 at
 Dec. 31, 1992 204,658 170,273
 Additional paid-in capital 41,960,240 22,338,748
 Retained earnings (deficit) 1,031,141 (1,943,632)
 Cumulative translation
 adjustment (9,871) (362,526)
 Total shareholders' equity 43,186,168 20,202,863
 -- $59,563,951 $30,295,372
 -0- 11/2/93
 /CONTACT: John Brintall of Computer Network Technology, 612-550-8110/
 (CMNT)


CO: Computer Network Technology Corporation ST: Minnesota IN: CPR SU: ERN

DS-DB -- MN017 -- 9797 11/02/93 16:20 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 2, 1993
Words:1116
Previous Article:ST. LOUIS STATION JOINS RADIO AAHS FAMILY
Next Article:AU BON PAIN REPORTS THIRD QUARTER NET INCOME UP 25 PERCENT ON CONTINUED STRONG COMPARABLE RESTAURANT SALES OF 8.2 PERCENT
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters