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EXHIBIT 99.1
FOR MORE INFORMATION CONTACT
Mike Tate
VP of Finance
(408) 367-1400 x244
Galileo Website Location: http://www.galileoT.com
FOR IMMEDIATE RELEASE
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GALILEO TECHNOLOGY LTD. REPORTS
FIRST QUARTER 2000 RESULTS
San Jose, CA -- April 18, 2000 -- Galileo Technology Ltd. (Nasdaq:
GALT) today reported net sales for the first quarter of 2000 increased 33% to
$20.2 million, compared to $15.2 million for the first quarter of 1999. The net
sales for the first quarter of 2000 were within the range of $19.5 million and
$21.0 million that the Company projected in its February 29, 2000 press release.
Pro forma earnings per share for the first quarter of 2000 was $0.10,
before one-time charges totaling $2.5 million pre-tax to increase the Company's
inventory reserves and write off investments and intellectual property for
discontinued projects. Including these charges, net income was $2.1 million, or
$0.05 per share, compared to net income of $5.0 million, or $0.11 per share, for
the corresponding quarter last year. All per share amounts are diluted earnings
per share. Diluted shares used in computing earnings per share for the first
quarter of 2000 were 45.2 million, compared to 44.1 million shares for the first
quarter of 1999.
Net sales for the first quarter 2000 decreased 17% from the fourth
quarter 1999 net sales of $24.3 million. First quarter 2000 net income decreased
74% compared to the fourth quarter 1999 net income of $8.0 million.
"As we stated in our February 29, 2000 release, Q1 revenue was impacted by
strong inventory positions by many of our customers entering the quarter and the
lack of availability of Copper Phys for the Gigabit market," said Avigdor
Willenz, Galileo's Chairman and CEO. "However, these issues that created
challenges for Q1 are largely behind us and we enter Q2 with renewed momentum
and optimism. Demand has increased across all our product lines demonstrating
the strength of our markets and broad acceptance of Galileo's products."
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About Galileo Technology Ltd.
Galileo Technology, a market leader in Communication Systems on
Silicon(TM), is one of the semiconductor industry's fastest growing suppliers of
complex, high-performance, integrated circuit devices. Galileo's products
include advanced communication switch controllers, high-performance system
controllers for RISC processors and WAN communication controllers. Galileo's
products form the heart of many advanced data communications systems built by
leading OEMs, such as 3Com, Accton, Alcatel, Cabletron Systems, Cisco Systems,
Ericsson, Hewlett Packard, Intel, Lucent Technologies, and Nortel Networks.
Galileo employs more than 275 people worldwide with business
headquarters in San Jose, California and R&D headquarters in Moshav Manof,
Israel.
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Any forward-looking statements contained in this document reflect
management's current intentions and expectations. Actual future results could
vary materially depending on certain risks and uncertainties, including
dependence on new product development, customer acceptance and competition and
other risk factors listed in the company's most recent report on form 20-F on
file with the SEC.
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GALILEO TECHNOLOGY LTD
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars, in thousands, except per share data)
<TABLE>
<CAPTION>
Three Months Ended
March 31, March 31,
2000 1999
-------------- ---------------
<S> <C> <C>
Net sales $ 20,152 $ 15,152
Cost of sales 9,246 5,447
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Gross profit 10,906 9,705
Operating expenses:
Research and development 6,002 3,285
Selling, marketing and administrative 3,768 2,411
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Total operating expenses 9,770 5,696
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Operating income 1,136 4,009
Other income, net 1,034 1,216
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Income before provision for income taxes 2,170 5,225
Provision for income taxes 108 260
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Net income $ 2,062 $ 4,965
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Earnings per share:
Basic $ 0.05 $ 0.12
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Diluted $ 0.05 $ 0.11
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Shares used in computing earnings per share:
Basic 42,233 40,964
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Diluted 45,237 44,086
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</TABLE>
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GALILEO TECHNOLOGY LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. dollars, in thousands)
<TABLE>
<CAPTION>
March 31, December 31,
1999 1999
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<S> <C> <C>
ASSETS
Current assets:
Cash, cash equivalents and short-term investments $ 107,393 $ 105,653
Accounts receivable 12,052 12,523
Inventories 7,381 8,094
Prepaid expenses and other 2,448 3,049
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Total current assets 129,274 129,319
Other assets 4,918 2,031
Property and equipment, net 10,120 9,388
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Total $ 144,312 $ 140,738
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 5,912 $ 6,495
Accrued and other liabilities 8,796 8,969
Deferred income 2,506 1,817
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Total current liabilities 17,214 17,281
Accrued severance pay 691 500
Other liabilities 1,674 1,652
Total shareholders' equity 124,733 121,305
------------- --------------
Total $ 144,312 $ 140,738
============= ==============
</TABLE>
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