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 CALABASAS, Calif., Jan. 12 /PRNewswire/ -- Xircom Inc. (NASDAQ: XIRC) today reported that net income for the first quarter of fiscal 1994, ended Dec. 31, 1993, increased 92 percent to $3.4 million, or $0.21 per share, compared with $1.8 million, or $0.11 per share, for the first quarter of fiscal 1993. Net sales for the quarter increased 54 percent to $26.4 million, from $17.2 million for the previous year's first quarter.
 Continued Market Strength. Xircom President and Chief Executive Officer Dirk I. Gates said, "We continue to see strong demand for our Ethernet adapters, driven by growth in sales of the newest high- performance portable PCs and the market strength of our Ethernet product lines. While Token Ring products have not shown the same growth, we just launched our third-generation Pocket Token Ring Adapter mid-quarter and shipped limited quantities of our first CreditCard Token Ring Adapter in late December. With our Token Ring PCMCIA card now available, we believe there is potential for increased growth in our Token Ring business."
 Market Leadership Confirmed. Having pioneered LAN adapters for portable PCs five years ago, Xircom has retained its leadership in this growth market. Recent independent market research reconfirmed Xircom's dominant share (over 70 percent) in the parallel port adapter market. This research also estimates that for calendar 1993, Xircom captured approximately two-thirds of the Ethernet PCMCIA adapter market, giving Xircom the leading position, with more than half of the overall PCMCIA LAN adapter market. Xircom's PCMCIA-compliant CreditCard adapters were over one-fourth of total company adapter sales for the first quarter.
 Leadership in Industry Standards. As a result of Xircom's work with industry partners, NCR Corp. and Symbol Technologies, a large part of Xircom's Netwave cordless LAN technology was included in the joint proposal adopted by the IEEE Wireless LAN Standards Committee in November when they approved the proposal as the foundation for the Media Access Control protocol for the future standard. Gates said Xircom is currently in beta testing of the Netwave cordless LAN product line with a large list of early customer sites. He added, "We believe Netwave will revolutionize the wireless LAN market by offering network users true mobility rather than simply a wire-replacement alternative to wired LANs."
 Strategic Alliance Opens Apple Portable Market. Last week Xircom announced a strategic alliance with Dayna Communications Inc. to cross- license and jointly develop products for the Apple Computer market. Referring to that announcement, Gates said, "With our entry into the Apple market in the spring, Xircom will address the entire portable PC market. While we are conservative in our estimate of near-term revenues gained from Apple market products, we believe the expansion of Netwave cordless connectivity products to include devices that work with Apple's PowerBook PC and Newton Personal Digital Assistant will provide many opportunities in the latter half of the 1990s."
 Corporate Information. Founded in 1988, Xircom develops and manufactures simple-to-use network connectivity solutions for the portable personal computer market and has sold more than 750,000 LAN adapters for connecting portable PCs to local area networks (LANs). Xircom's common stock, which was first offered to the public in March 1992, is traded on the NASDAQ Stock Market.
 Xircom is a registered trademark of Xircom Inc. Pocket Token Ring Adapter, CreditCard Token Ring Adapter and Netwave are trademarks of Xircom Inc.
 Other company or product names have been used for identification purposes only and may be trademarks of their respective companies.
 Condensed Consolidated Statements of Operations
 (In thousands, except per share information)
 Three months ended
 Dec. 31,
 1993 1992
 Net sales $26,376 $17,170
 Cost of sales 12,006 8,072
 Gross profit 14,370 9,098
 Operating expenses:
 Research and development 2,225 1,428
 Sales and marketing 5,230 3,878
 General and administrative 1,403 1,032
 Total operating expenses 8,858 6,338
 Operating income 5,512 2,760
 Other income, net 112 164
 Income before income taxes 5,624 2,924
 Provision for income taxes 2,193 1,140
 Net income $3,431 $1,784
 Shares used in computing
 net income per share 16,672 16,225
 Net income per share $.21 $.11
 Net sales 100.0% 100.0%
 Gross profit 54.5% 53.0%
 Research and development 8.5% 8.3%
 Sales and marketing 19.8% 22.6%
 General and administrative 5.3% 6.0%
 Total 33.6% 36.9%
 Operating income 20.9% 16.1%
 Net income 13.0% 10.4%
 Condensed Consolidated Balance Sheets
 (In thousands)
 Dec. 31, 1993 Sept. 30, 1993
 Current assets:
 Cash and short-term investments $46,386 $40,425
 Accounts receivable 12,944 14,150
 Inventories 9,295 11,245
 Other current assets 3,814 3,883
 Total current assets 72,439 69,703
 Equipment and improvements, net 5,738 5,193
 Other assets 404 371
 Total assets $78,581 $75,267
 Current liabilities:
 Accounts payable $4,391 $5,888
 Accrued liabilities 4,386 4,107
 Current portion of long-term
 obligations 508 480
 Accrued income taxes 2,396 1,469
 Total current liabilities 11,681 11,944
 Long-term obligations 650 793
 Stockholders' equity:
 Common stock 16 16
 Paid-in capital, net of unearned
 stock compensation 43,501 43,212
 Retained earnings 22,733 19,302
 Total stockholders' equity 66,250 62,530
 Total liabilities and stockholders'
 equity $78,581 $75,267
 -0- 1/12/94
 /CONTACT: JoAnne Martz, director of investor relations, 818-878-6220/

CO: Xircom Inc. ST: California IN: CPR SU: ERN

LS-JL -- LA037 -- 1522 01/12/94 16:11 EST
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Publication:PR Newswire
Date:Jan 12, 1994

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