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NETRIX ANNOUNCES FIRST QUARTER RESULTS

 HERNDON, Va., April 22 /PRNewswire/ -- Netrix Corporation (NASDAQ: NTRX) today reported net revenue of $3,609,000 for the first quarter ending March 31, 1993, resulting in a net loss for the quarter of $2,360,000, or $.29 per share. This compares to the first quarter of 1992 when the company reported net revenue of $6,755,000 and net income of $425,000 or $.07 per share.
 Commenting on the results, Charles W. Stein, President and CEO of Netrix, said, "As previously announced, Netrix business has suffered because of economic softening in our international markets. This softening, and the resultant currency fluctuations, have raised the effective price of our equipment overseas, and as a result, sales cycles have lengthened. Network expansions and the procurement of new networks have been delayed, but we don't believe we have lost any major contracts to competitors."
 A second factor in the results was the delay of a new processor module for the company's No.1-ISS Series 10 product line, which affected the successful completion of several pilot projects. "The processor module is now available for volume shipments, and the pilot projects are underway at several existing customer sites," Stein said.
 "Given the fact that business slowed so suddenly and so sharply," Stein explained, "we're extremely cautious about the company's prospects for the remainder of the year. At this point, it's impossible to predict exactly when we will begin consistently closing the major orders we are currently pursuing. As a result, we have already instituted a number of actions designed to reduce operating expenses, and we will continue to explore ways to further reduce expenses."
 Stein also pointed out that, in addition to Netrix seeing an increase in the number of prospects, the company is encouraged by the start-up of its worldwide marketing relationship with Siemens AG, and the announcement, made earlier this week, of an agreement with ROLM in North America. "Both of these relationships are off to a promising start," said Stein, noting that the ROLM relationship will bring a substantial sales force to large multinational companies in the United States, a market where Netrix has been trying to grow its presence.
 Netrix Corporation manufactures and markets products that are used to build new corporate networks and to consolidate multiple application-specific networks into more effective enterprise-wide networks. Netrix customers include major financial organizations, government agencies, retail chains, and value-added service providers. Netrix products are sold and supported by a direct sales organization, distributors, systems integrators, and original equipment manufacturers worldwide.
 NETRIX CORPORATION
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 (In thousands, except per share amounts)
 (Unaudited)
 Three Months Ended
 March 31,
 1993 1992
 Revenues:
 Product $ 2,723 $ 5,925
 Service 886 830
 Total revenues 3,609 6,755
 Cost of revenues:
 Product 1,205 2,344
 Service 739 511
 Total cost of revenues 1,944 2,855
 Gross profit 1,665 3,900
 Operating Expenses:
 Sales and marketing 2,176 1,801
 Research and development 1,360 1,144
 General and administrative 676 509
 Income (loss) from operations (2,547) 446
 Interest (income) expense, net (158) 7
 Income (loss) before income taxes (2,389) 439
 Provision (benefit) for income taxes (29) 14
 Net income (loss) $ (2,360) $ 425
 Earnings (loss) per share $ (0.29) $ 0.07
 Weighted average number of shares outstanding 8,278 6,145
 NETRIX CORPORATION
 CONDENSED CONSOLIDATED BALANCE SHEETS
 (in thousands)
 March 31, Dec. 31,
 1993 1992
 ASSETS (unaudited)
 Current assets:
 Cash and cash equivalents $ 6,795 $ 7,535
 Short-term investments 17,253 16,977
 Accounts receivable, net 7,135 12,055
 Inventories 6,212 4,608
 Other current assets 532 343
 Total current assets 37,927 41,518
 Property and equipment, net 4,890 4,909
 Deposits and other assets 902 403
 Total $ 43,719 $ 46,830
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities:
 Accounts payable $ 2,112 $ 2,425
 Accrued liabilities 3,569 3,782
 Current portion of capital lease obligations 750 768
 Total current liabilities 6,431 6,975
 Capital lease obligations, net
 of current portion 846 1,048
 Deferred rent, net of current portion 1,156 1,192
 Total 8,433 9,215
 Stockholders' equity:
 Preferred stock, $0.05 par value; 1,000,000 shares
 authorized; none issued and outstanding -- --
 Common stock, $0.05 par value; 15,000,000
 shares authorized; 8,293,479 and 8,265,233
 shares issued and outstanding at March 31,
 1993 and Dec. 31, 1992, respectively 415 413
 Additional paid-in capital 50,243 50,213
 Accumulated deficit (15,372) (13,011)
 Total stockholders' equity 35,286 37,615
 Total $ 43,719 $ 46,830
 -0- 4/22/93
 /CONTACT: Louann Curlin, Manager, Treasury Services, 703-793-2051, Ellen Jennings, Director, Marketing Communications, Netrix Corporation,


703-793-2016/
 (NTRX)


CO: Netrix Corporation ST: Virginia IN: CPR SU: ERN

DC-TW -- DC037 -- 9745 04/22/93 16:55 EDT
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Date:Apr 22, 1993
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