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 CALABASAS, Calif., Oct. 19 /PRNewswire/ -- Xircom Inc. (NASDAQ: XIRC) today reported that net income for fiscal 1993, ended Sept. 30, increased 59 percent to $9.7 million, or $0.59 per share, compared with $6.1 million, or $0.41 per share, for fiscal 1992. Net sales for the year increased 39 percent to $82.2 million from $59.1 million for fiscal 1992.
 Fourth-Quarter Earnings Up 79 Percent. The fourth quarter of fiscal 1993 was the 10th consecutive quarter of record sales and net income. Net income increased 79 percent to $3.2 million, or $0.19 per share, which compared with $1.8 million, or $0.11 per share, for the same period in fiscal 1992. Net sales for the fourth quarter were $24.7 million, which compared with $17.1 million in fiscal 1992, a 45 percent increase.
 Fiscal 1993: Continued Leadership Through Product Innovation. Xircom President and Chief Executive Officer, Dirk I. Gates, said, "Xircom's technological advances and our expertise in addressing the special requirements for networking portable PCs have kept us at the forefront in our industry. The third-generation Pocket LAN Adapter, introduced in early fiscal 1993, is the leading local area network (LAN) connection solution for nomadic computer users."
 Xircom introduced a number of other new products in fiscal 1993, both new-generation products with improved performance, new features and cost savings as well as strategically important new product families. Gates added, "In 1993 over half of revenues were from new products introduced during the year. We also increased R&D spending from 6.6 percent of sales in the previous year to 8.4 percent this year to expand our product diversification efforts."
 Expanded PCMCIA Offerings: Cordless LANs and Remote Access. Early in the year Xircom shipped the CreditCard Ethernet Adapter, compliant with the PCMCIA (PC Memory Card International Association) standard. PC manufacturers are now shipping portables with PCMCIA slots in volume and are beginning to ship a few PCMCIA desktop PCs. Gates said, "Today Xircom offers the most broadly compatible PCMCIA LAN adapter on the market. In addition, we will soon begin shipments of our CreditCard Token Ring Adapter, our CreditCard Netwave Adapter for cordless in-office Ethernet LAN access and our CreditCard Ethernet+Modem, a combination LAN adapter and high-speed data/fax modem in a single PCMCIA package. With these products, Xircom will clearly offer one of the broadest families of PCMCIA-compliant LAN adapters."
 Strategic Direction: Mobility and Location Independence. The strategic product families Xircom announced in the second half of 1993 will address the demand by portable PC users for increased mobility and true location independence. The Xircom Netwave product family for cordless network connectivity within the office enables users of portable PCs to move freely to various worksite locations while maintaining their network connection. The Ethernet+Modem product family accommodates users' need for access to the network whether they are in the office, at home or on the road, and offers access to remote computers and information services.
 Outlook for Continued Industry Growth. Portable PCs are the highest growth area in the PC industry, and as these machines have bm?e more powerful and fully featured, an increasing percentage of users connect them to LANs. According to International Data Corp., the installed base of portable PCs worldwide will grow over 20 percent annually through 1996, and during this time the percentage of these computers connected to networks is projected to double.
 Gates said, "Xircom will continue to bring to this fast-paced, high- growth market new products enabling a smooth transition from wired to wireless networks and providing effortless network access from any location."
 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 600,000 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.
 Condensed Consolidated Statements of Operations
 (In thousands, except per share information)
 Three months ended Year ended
 Sept. 30, Sept. 30,
 1993 1992 1993 1992
 Net sales $24,673 $17,051 $82,212 $59,083
 Cost of sales 11,267 8,117 38,093 27,440
 Gross profit 13,406 8,934 44,119 31,643
 Operating expenses:
 Research and
 development 2,056 1,341 6,882 3,908
 Sales and marketing 4,815 4,025 17,105 14,817
 General and
 administrative 1,569 963 5?,073 3,391
 Total operating
 expenses 8,440 6,329 29,060 22,116
 Operating income 4,966 2,605 15,059 9,527
 Other income
 (expense), net 215 101 760 90
 Income before
 income taxes 5,181 2,706 15,819 9,617
 Provision for
 income taxes 2,021 942 6,169 3,560
 Net income $3,160 $1,764 $9,650 $6,057
 Shares used in
 computing net
 income per share 16,632 16,216 16,351 14,926
 Net income per share $.19 $.11 $.59 $.41
 Net sales 100.0 pct 100.0 pct 100.0 pct 100.0 pct
 Gross profit 54.3 pct 52.4 pct 53.7 pct 53.6 pct
 Research and
 development 8.3 pct 7.9 pct 8.4 pct 6.6 pct
 Sales and
 marketing 19.5 pct 23.6 pct 20.8 pct 25.1 pct
 General and
 administrative 6.4 pct 5.6 pct 6.2 pct 5.8 pct
 34.2 pct 37.1 pct 35.4 pct 37.5 pct
 Operating income 20.1 pct 15.3 pct 18.3 pct 16.1 pct
 Net income 12.8 pct 10.3 pct 11.7 pct 10.3 pct
 Condensed Consolidated Balance Sheets
 (In thousands)
 Sept. 30, 1993 Sept. 30, 1992
 Current assets:
 Cash and short-term
 investments $40,425 $32,739
 Accounts receivable 14,150 10,480
 Inventories 11,245 8,196
 Other current assets 3,883 2,178
 Total current assets 69,703 53,593
 Equipment and
 improvements, net ? 5,193 3,124
 Other assets 371 326
 Total assets $75,267 $57,043
 Current liabilities:
 Accounts payable $5,888 $2,856
 Accrued liabilities 4,107 1,519
 Current portion of
 long-term obligations 480 436
 Accrued income taxes 1,469 1,482
 Total current liabilities 11,944 6,293
 Long-term obligations 793 1,181
 Stockholders' equity:
 Common stock 16 15
 Paid-in capital, net of
 unearned stock compensation 43,212 39,902
 Retained earnings 19,302 9,652
 Total stockholders' equity 62,530 49,569
 Total liabilities and
 stockholders' equity $75,267 $57,043
 /NOTE TO EDITORS: Xircom is a registered trademark of Xircom Inc. Pocket Ethernet Adapter, CreditCard Ethernet Adapter, Netwave and Ethernet+Modem 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./
 -0- 10/19/93
 /CONTACT: JoAnne Martz, director of investor relations, of Xircom, 818-878-6220/

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

EH-JL -- LA033 -- 4158 10/19/93 16:12 EDT
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Publication:PR Newswire
Date:Oct 19, 1993

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