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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Act of 1934
September 11, 1997
Date of Report (Date of earliest event reported)
XIRCOM, INC.
(Exact name of registrant as specified in its charter)
California 0-19856 95-4421884
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(State or other (Commission File (I.R.S. Employer
jurisdiction of Number) Identification No.)
incorporation)
2300 Corporate Center Drive
Thousand Oaks, CA 91320-1420
(Address of principal executive offices)
(805) 376-9300
(Registrant's telephone number, including area code)
Not Applicable
(Former name or address, if change since last report)
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Item 5. Other Events.
The purpose of this Form 8-K is to file a press release issued by
Xircom, Inc. on September 11, 1997 regarding the Company's announcement of its
shift to a new speed-based distribution model, its estimated fourth quarter 1997
operating results and its new worldwide sales organization. A copy of the press
release is filed herewith as Exhibit 99.1 and is hereby incorporated by
reference to this Item 5.
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
99.1 - Press Release dated September 11, 1997 entitled "Xircom
Announces New Worldwide Sales and Marketing Organizations and
New Speed-Based Distribution Model"
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
XIRCOM, INC.
Dated: September 24, 1997 By: /s/ RANDALL H. HOLLIDAY
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Randall H. Holliday
Secretary and General Counsel
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INDEX TO EXHIBITS
EXHIBIT
NUMBER DESCRIPTION
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99.1 Press Release dated September 11, 1997 entitled "Xircom
Announces New Worldwide Sales and Marketing Organizations and
New Speed-Based Distribution Model"
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EXHIBIT 99.1
Xircom Announces New Worldwide Sales and Marketing Organizations and New
Speed-Based Distribution Model
Reorganization and New Distribution Model to Have One-Time Impact on Operating
Results
THOUSAND OAKS, CALIF., SEPTEMBER 11, 1997 -- Xircom, Inc. (Nasdaq: XIRC) today
announced a new worldwide sales organization to be headed by Marc Devis as
senior vice president of worldwide sales and a new worldwide marketing
organization to be headed by Renee Bader as vice president of worldwide
marketing. Marc Devis, who has been with the Company for eight years, previously
headed the Company's sales organizations in Europe and Asia-Pacific, while Renee
Bader, who has been with the Company for four years, previously had
responsibility for product marketing. In addition, Robert W. "Sam" Bass,
responsible for operations at the Company for the past six years, was promoted
to senior vice president of worldwide operations.
Concurrent with the organizational changes, Xircom unveiled a new
speed-based distribution model that enables the Company to quickly react to the
market and rapidly introduce new products. The new model is based on four weeks
of product inventory in the distribution channel -- significantly accelerated
from the previous ten week model.
"The success of our manufacturing facility in Penang, Malaysia,
established two years ago, and the continuous improvements made in supply chain
logistics, allow us to move to a lean distribution inventory model and pass
speed and cost advantages on to our channel partners and customers," said Carl
Russo, executive vice president and chief operating officer.
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As a result of the reorganization and a one-time reduction in revenue
due to the shift to the new speed-based distribution model, the Company is
revising its revenue and earnings estimates for the fourth quarter ending
September 30, 1997. Revenue for the quarter, now projected to be approximately
$25 million, will be below current expectations of Wall Street analysts. In
addition, the combination of a restructuring charge related to the
reorganization and the one-time reduction in revenues will result in a loss of
approximately $.40 to $.50 per share in the quarter.
"Our move to worldwide organizations throughout the Company and the
extension of our speed-based strategy to include our distribution partners are
the latest set of improvements in our continuing process of focusing the
business and increasing operational efficiencies," said Dirk Gates, chairman,
president and chief executive officer. "These actions and others taken over the
past year have greatly improved our position in the market and continue to drive
growth in the business. In fact, without the one-time impact of these strategic
changes, the Company would have met Wall Street's expectations for the quarter,
and we continue to be comfortable with current expectations for fiscal 1998."
The above information contains forward-looking statements based on
current expectations that involve a number of risks and uncertainties which
could cause actual results to differ materially from those projected and
include, but are not limited to, the level of end-user demand and customer
orders for the Company's products through the remainder of the quarter and for
fiscal 1998, final determination of revenue, actual costs and expenses incurred
during the quarter, and decisions regarding reserves and allowances made in the
normal course of the accounting close for the quarter, which at this time is not
complete. Additional risks are described in the Company's SEC reports on Form
10-Q for the quarters ended June 30, 1997, March 31, 1997 and December 31, 1996,
and the report on Form10-K for the fiscal year ended September 30, 1996.
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XIRCOM CORPORATE BACKGROUND. Xircom is the leading manufacturer of PC
Card and CardBus communications products for connecting mobile and remote
portable PC users to corporate networks, the Internet, and other online services
from a wide variety of locations. More information about Xircom may be found at
www.xircom.com.
# # #
FOR MORE INFORMATION CONTACT:
Kristi Cushing Craig Rexroad
Xircom Investor Relations Manning Selvage & Lee
(805) 376-9300 (213) 782-6600
[email protected]
http://www.xircom.com
Xircom is a registered trademark of Xircom, Inc. Other company or product names
have been used for identification purposes only and may be trademarks of their
respective companies.
Xircom is headquartered in Thousand Oaks, Calif., and has regional offices
Antwerp, Belgium; and Singapore. Sales: (800) 438-4526. Telephone: (805)
376-9300. Fax: (805) 376-9311.
