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EXHIBIT 99.1
FOR MORE INFORMATION CONTACT:
Investor Contact:
Christine Munson
Chief Financial Officer
Gadzoox Networks, Inc.
408.361.6191
[email protected]
Press Contact:
Dominique Pheiffer
Corporate Communications Manager
Gadzoox Networks, Inc.
408.361.6143
[email protected]
GADZOOX NETWORKS ANNOUNCES EXPECTATIONS FOR
FIRST QUARTER REVENUES
SAN JOSE, CA - June 19, 2000 - Gadzoox Networks, Inc. (NASDAQ: ZOOX), a
leading provider of SAN (storage area network) products, today announced that it
anticipates lower than expected revenues for its first fiscal quarter ending
June 30, 2000. The company believes that revenues for the quarter may be as much
as 1/3 below revenues for the prior quarter. For the next two quarters, while
revenues are expected to grow, they are likely to lag current expectations. This
shortfall is primarily the result of lower than expected movement of inventory
through the distribution channel to end customers.
The company has taken several actions to improve sell-through at the
end-user level and expects that these actions will increase end-user demand in
the coming months. It has recently increased the size of the sales force and
realigned it to more directly support the reseller channel. It is now proceeding
with several additional actions to build the infrastructure needed to support
reseller sales to end-users. These actions include expanding its training and
customer service capability and implementing new reseller and distributor
programs.
Gadzoox believes that its long-term outlook remains positive. The Company
recently announced its break-through networked storage pooling product, Axxess,
and its Fibre Channel to SCSI router product, Geminix. Gadzoox believes that
with its product roadmap and technology, it will continue to be a strong leader
in the storage area networking market.
The Company will be broadcasting a conference call on June 20, 2000 at
5:30AM PST, to access the conference call dial 800.937.6563.
GADZOOX NETWORKS OFFERS BROAD LINE OF SAN PRODUCTS
Gadzoox, a leader in the SAN market, offers a broad range of advanced
products including the performance record-setting1 Capellix(TM) 3000 (modular
SAN switch), Capellix(TM) 2000 (stackable SAN
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switch), Geminix(TM) family of routers, Ventana(TM) and SANtools(TM) (SAN
Management software application), and Gibraltar(TM) (managed Fibre Channel hub),
and Bitstrip(TM) (gigabit Fibre Channel hub).
ABOUT GADZOOX NETWORKS, INC.
Gadzoox Networks, Inc. (NASDAQ: ZOOX) is a leader in SAN (storage area
network) products. The Company provides networking solutions for enterprise
storage with scalable, managed SAN solutions based on Gadzoox' Fibre Channel
hubs, routers, switches and management products. Serving as modular building
blocks, Gadzoox' products are designed to address the growth in enterprise data
through the evolving capabilities of SANs. According to the most recent report
from market research firm IDC dated February 2000, Gadzoox holds the largest
installed base of combined switch and managed hub port shipments from 1997
through 19992. Gadzoox is an ISO 9001 certified Company. Gadzoox corporate
headquarters is located at: 5850 Hellyer Avenue, San Jose, CA 95138. For more
information, visit the company's Web site at www.gadzoox.com or call
888.423.3222.
The foregoing statements regarding anticipated results for the June quarter
are preliminary and forward-looking. Actual results could differ materially,
based, among other things, on the actual order and shipment rate during the
remainder of this month and on any accounting adjustments made during the
quarterly close. The foregoing statements regarding end-user demand and
long-term outlook are also forward-looking. Actual results may differ materially
and depend on a number of factors, including: market acceptance of the Company's
new products, the rate of development of the Company's channel distribution
strategy, growth rates of the market segment within which the Company
participates, the Company's dependence on a limited number of products, a
significant portion of which are sold to a limited number of partners, and
competition in the Company's industry and the timing of new technology and
product introductions. For additional information on these and other risk
factors, please see the Company's most recent quarterly report on Form 10-Q.
Note to editor:
(1) Record setting results based on configurations tested by TPC-C through
December 1999, for more information see: www.tpc.org.
(2) For more information on IDC's market research information please
reference report 21806.
Gadzoox and the Gadzoox logo are registered trademarks of Gadzoox
Networks, Inc. Capellix, Gibraltar, Ventana, Reflex and SANtools are
trademarks of Gadzoox Networks, Inc. All other trademarks are property of
their respective owners.
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