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XIRCOM CONTINUES EARNINGS INCREASES WITH 189 PERCENT GAIN IN QUARTER

 XIRCOM CONTINUES EARNINGS INCREASES
 WITH 189 PERCENT GAIN IN QUARTER
 CALABASAS, Calif., July 23 /PRNewswire/ -- Xircom Inc. (NASDAQ: XIRC), today reported that net income for the third quarter of fiscal 1992, ended June 30, increased 189 percent to $1.6 million, equal to $0.10 per share, compared with $0.6 million, or $0.04 per share, in the third quarter of the previous fiscal year. Net sales for the same period increased 114 percent to $14.6 million, from $6.8 million in the year-earlier period. The company's balance sheet at the end of the third quarter included cash of $30.5 million, reflecting the receipt of proceeds from the initial public offering of common stock on March 31, 1992.
 Xircom president and chief executive officer, Dirk I. Gates, credited the growth to continued strong demand for the company's external adapters for connecting personal computers (PCs) to local- area networks (LANs) through the universal PC parallel port. Gates said, "Xircom's Pocket LAN Adapters are the ideal solution for connecting portable computers to LANs, and with Xircom's leading position in the pocket adapter marketplace, we continue to benefit from both the growth in sales of portable computers and increased use of portables on networks."
 Net income for the first nine months of fiscal 1992 increased 194 percent, to $4.3 million from $1.5 million in the first nine months of fiscal 1991, with net income per share of $0.30 vs. $0.11. Net sales for the nine-month period increased 141 percent, to $42.0 million vs. $17.4 million. The company indicated it had strong growth in both Ethernet and Token Ring external LAN adapters, which accounted for more than 90 percent of total revenues for the first nine months of fiscal 1992.
 Gates said, "We continue to be the leader in portable PC-to-LAN connectivity solutions. Enhanced Parallel Port (EPP) technology, which Xircom developed with Zenith and Intel, has recently been incorporated in an IEEE standard for new-generation parallel ports. We are also active on industry committees developing standards for such future technologies as wireless LANs and the PCMCIA (Personal Computer Memory Card International Association) form factor, which will allow delivery of LAN connectivity on credit card-sized adapters for PCs."
 Gates said that, in addition to internal development projects incorporating these advanced technologies, the company is developing a third generation of its parallel port adapter and is considering other products complementary to its current product lines and distribution channels.
 The company also indicated it has experienced limited sell- through to date of its Network Simplicity product, and shipments to new customers have been delayed pending an expected release of a new version of NetWare Lite in the company's fourth quarter. Network Simplicity provides in one package Xircom external LAN adapters, NetWare Lite (Novell Inc.'s peer-to-peer network operating system) and Simplicity SetUp (Xircom's easy-to-use installation software). Introduced in December 1991, Network Simplicity has accounted for less than 5 percent of revenues in fiscal 1992 and did not contribute to revenues in the third quarter.
 Xircom manufactures easy-to-use networking and connectivity products that extend networks to computer users who previously could not readily connect to local area networks (LANs). The company pioneered the use of the universal personal computer (PC) parallel port to connect PCs to a LAN, and has sold more than a quarter of a million external LAN adapters to date.
 XIRCOM INC.
 Condensed Consolidated Income Statements (Unaudited)
 (In thousands, except per share information)
 Three months ended Nine months ended
 June 30, June 30,
 1992 1991 1992 1991
 Net Sales $14,565 $6,798 $42,032 $17,447
 Cost of
 sales 6,520 2,993 19,323 8,020
 Gross profit 8,045 3,805 22,709 9,427
 Operating
 expenses:
 Research and
 development 920 443 2,567 1,004
 Sales and
 marketing 3,849 1,815 10,792 4,266
 General and
 administrative 970 608 2,428 1,748
 Total operating
 expenses 5,739 2,866 15,787 7,018
 Operating
 profit 2,306 939 6,922 2,409
 Other income
 (expense), net 184 (1) (11) 29
 Income before
 income taxes 2,490 938 6,911 2,438
 Provision for
 income taxes 871 377 2,618 980
 Net income $1,619 $561 $4,293 $1,458
 Shares used in
 computing net
 income per
 share 16,362 13,362 14,496 13,176
 Net income
 per share $.10 $.04 $.30 $.11
 XIRCOM INC.
 Condensed Consolidated Balance Sheets
 (In thousands)
 June 30, 1992
 (Unaudited) Sept. 30, 1991
 Current assets:
 Cash and short-term
 investments $30,493 ---
 Accounts receivable 8,599 5,692
 Inventories 11,367 5,577
 Other current assets 1,404 756
 Total current assets 51,863 12,025
 Equipment and
 improvements, net 2,799 1,450
 Other assets 274 272
 Total assets $54,936 $13,747
 Current liabilities:
 Notes payable to bank --- $2,200
 Accounts payable 2,885 2,812
 Accrued liabilities 1,884 919
 Current portion of
 long-term obligations 374 278
 Accrued income taxes 1,133 681
 Total current liabilities 6,276 6,890
 Long-term obligations 1,285 678
 Stockholders' equity:
 Convertible preferred
 stock-series A --- 26
 Convertible preferred
 stock-series B --- 2,497
 Common Stock 11 ---
 Paid-in capital,
 net of unearned
 stock compensation 39,477 61
 Retained earnings 7,887 3,595
 Total stockholders' equity 47,375 6,179
 Total liabilities and
 stockholders' equity $54,936 $13,747
 -0- 7/23/92
 /EDITOR'S NOTE: Xircom is a registered trademark, and Pocket LAN Adapter, Network Simplicity and Simplicity SetUp are trademarks of Xircom Inc.
 Other product or company names in this news release have been used for identification purposes and may be trademarks of their respective companies./
 /CONTACT: JoAnne F. Martz of Xircom, 818-878-6220/
 (XIRC) CO: Xircom Inc. ST: California IN: CPR SU: ERN


EH-JL -- LA034 -- 2714 07/23/92 16:32 EDT
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Date:Jul 23, 1992
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