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Previous: CENTRAL EQUITY TRUST UTILITY SERIES 15, 485BPOS, 1997-04-24 |
Next: WALKER INTERACTIVE SYSTEMS INC, DEF 14A, 1997-04-24 |
<PAGE> 1
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
April 23, 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
- - ----------------- ---------------- ------------------
(State or other (Commission (I.R.S. Employer
jurisdiction of File 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)
<PAGE> 2
Item 5. Other Events.
The purpose of this Form 8-K is to file a press release issued by
Xircom, Inc. on April 14, 1997 regarding the release of the Company's second
quarter 1997 results. 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 April 14, 1997 entitled "Xircom
Announces Second Quarter 1997 Results"
<PAGE> 3
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: April 23, 1997 By: /s/ RANDALL H. HOLLIDAY
-----------------------------
Randall H. Holliday
Secretary and General
Counsel
<PAGE> 4
INDEX TO EXHIBITS
EXHIBIT
NUMBER DESCRIPTION
- - ------- -----------
99.1 Press Release dated April 14, 1997 entitled "Xircom
Announces Second Quarter 1997 Results"
<PAGE> 1
EXHIBIT 99.1
XIRCOM ANNOUNCES SECOND QUARTER 1997 RESULTS
PC Card Net Sales of $57.1 Million are 43% Ahead of Last Year's Comparable
Period
THOUSAND OAKS, CALIF., APRIL 14, 1997 -- Xircom, Inc. (Nasdaq: XIRC) today
reported record net sales and earnings from its core PC Card business for the
second quarter of fiscal 1997 ended March 31, 1997. Net sales of PC Card
products grew to $57.1 million, an increase of 43% over the second quarter of
1996, and income from PC Card operations were $4.9 million in the second
quarter, a 308% improvement over the $1.2 million recorded during the 1996
period. Net sales of PC Card products for the first six months of fiscal 1997
totaled $113.4 million, an increase of 54% compared to $73.8 million last year,
while income from PC Card operations of $9.0 million is substantially higher
than the $0.8 million in the prior year.
The Company also announced it's intention to divest Netaccess, Inc.,
its remote access subsidiary and, as a result, will now account for this
activity as a discontinued operation. Until the divestiture of Netaccess is
complete, the core PC Card business will be reported separately as Continuing
Operations on the earnings statement, while the results of Netaccess will be
reflected on a single line item titled Discontinued Operations. Net sales for
Netaccess were $4.1 million for the second quarter, a decrease of 24% compared
to the prior-year period and a decrease of 32% compared to the first quarter of
fiscal 1997. For the six months of 1997, net sales for Netaccess were $10.1
million compared to $9.2 million last year.
Earnings per share from continuing operations for the second quarter
of $0.22 far exceeds the $0.06 in 1996. On a year-to-date basis, earnings per
share from continuing operations of $0.42 is a significant improvement over the
$0.04 during the first six months of last year.
Average shares outstanding used in the per share calculation were
21,748,000 for the three months of this year versus 19,448,000 in 1996. The
majority of the year-to-year increase is a result of new shares issued in
exchange for a $52 million equity investment made by Intel Corporation, which
was finalized during the second quarter of fiscal 1997.
<PAGE> 2
"Our PC Card business experienced double-digit sales-out unit growth
in all three of our geographic regions," said Dirk Gates, chairman, president
and chief executive officer. "This growth far exceeded the growth of notebook
PC shipments during the quarter, a clear indication that we continue to gain
market share in the PC Card space."
In closing, Mr. Gates stated, "Unfortunately, Netaccess continues to
perform below expectations. While we believe the market for Netaccess'
products will experience significant growth in the future, we also believe the
investment necessary to fully exploit the opportunity would be dilutive to our
efforts and distract from our primary strategy to maximize the growth and
profitability of our PC Card business. We have, therefore, decided to divest
the Netaccess subsidiary and have engaged an independent financial advisor to
assist in the transaction. We are currently in discussions with multiple
parties."
XIRCOM CORPORATE BACKGROUND. Founded in 1988, Xircom is the leading
manufacturer of PC Card communications products for connecting mobile and
remote portable computer users to corporate networks, the Internet, and other
online services from a wide variety of locations. World Wide Web:
http://www.xircom.com
# # #
FOR MORE INFORMATION CONTACT:
Kristi Cushing, Investor Relations Peggy Garcia, Public Relations
(805) 376-6968 (805) 376-6932
[email protected] [email protected]
http://www.xircom.com http://www.xircom.com
<PAGE> 3
Xircom is a registered trademark and Netaccess is a 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 in
Salem, N.H.; Antwerp, Belgium; and Singapore. Sales: (800) 438- 4526.
Telephone: (805) 376-9300. Fax: (805) 376-9311.
NOTICE TO READERS. This news release contains forward-looking statements based
on current expectations that involve a number of risks and uncertainties which
could cause actual results to differ materially and include, but are not
limited to, market share gains in the PC Card market, growth in the remote
access market, and future earnings in the PC Card business. Other additional
risks are described in the company's SEC reports on Form 10-Q for the quarters
ended March 31, 1997 (to be filed subsequent to this release), and December 31,
1996, as well as the report on Form 10-K for the fiscal year ended September
30, 1996. Investor information may be found on Xircom's web site at
www.xircom.com or on the SEC's EDGAR electronic filing database.
<PAGE> 4
XIRCOM, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands, except per share information)
<TABLE>
<CAPTION>
Three months ended Six months ended
March 31 March 31
--------------------- -----------------------
1997 1996 1997 1996
------- ------- -------- -------
<S> <C> <C> <C> <C>
Net sales $57,140 $39,978 $113,449 $73,783
Cost of sales 35,400 26,281 70,893 48,306
------- ------- -------- -------
Gross profit 21,740 13,697 42,556 25,477
Operating expenses:
Research and development 2,738 2,424 5,679 4,692
Sales and marketing 10,401 7,635 20,483 15,749
General and administrative 1,660 1,524 3,589 3,212
------- ------- -------- -------
Total operating expenses 14,799 11,583 29,751 23,653
------- ------- -------- -------
Operating income from continuing
operations 6,941 2,114 12,805 1,824
Other income (expense), net 34 (352) 86 (631)
------- ------- -------- -------
Income from continuing operations
before income taxes 6,975 1,762 12,891 1,193
Provision for income taxes 2,092 564 3,867 430
------- ------- -------- -------
Income from continuing operations 4,883 1,198 9,024 763
Discontinued operations:
Operating income (loss), net of
income taxes (542) 175 (226) (150)
------- ------- -------- -------
Net income $ 4,341 $ 1,373 $ 8,798 $ 613
======= ======= ======== =======
Weighted average shares outstanding 21,748 19,448 21,201 19,428
Net income (loss) per share:
Continuing operations $ .22 $ .06 $ .42 $ .04
Discontinued operations (.02) .01 -- (.01)
------- ------- -------- -------
Net income $ .20 $ .07 $ .42 $ .03
- - ------------------------------------------------------------------------------------------------------------
Net sales 100.0% 100.0% 100.0% 100.0%
Gross profit 38.0% 34.3% 37.5% 34.5%
Research and development 4.8% 6.1% 5.0% 6.4%
Sales and marketing 18.2% 19.1% 18.0% 21.3%
General and administrative 2.9% 3.8% 3.2% 4.3%
------- ------- ------- -------
25.9% 29.0% 26.2% 32.0%
Operating income from continuing
operations 12.1% 5.3% 11.3% 2.5%
Income tax rate 30.0% 32.0% 30.0% 36.0%
Income from continuing operations 8.5% 3.0% 8.0% 1.0%
Net income 7.6% 3.4% 7.8% 0.8%
</TABLE>
<PAGE> 5
XIRCOM, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
<TABLE>
<CAPTION>
March 31, 1997 September 30, 1996
-------------- ------------------
(Unaudited)
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 65,537 $ 21,377
Accounts receivable 49,408 25,006
Income tax receivable -- 2,652
Inventories 16,680 13,771
Deferred income taxes 5,409 5,409
Other current assets 2,643 3,330
-------- --------
Total current assets 139,677 71,545
Equipment and improvements, net 18,030 18,136
Net assets of discontinued operations 15,557 17,151
Other assets 390 369
-------- --------
Total assets $173,654 $107,201
======== ========
Current liabilities:
Notes payable to bank $ -- $ 5,100
Accounts payable 14,516 10,260
Accrued liabilities 18,304 18,986
Current portion of long-term obligations 1,769 1,422
Accrued income taxes 2,656 1,066
-------- --------
Total current liabilities 37,245 36,834
Long-term obligations 1,839 1,860
Deferred income taxes 2,904 2,904
Shareholders' equity:
Common stock 23 20
Paid-in capital 140,483 83,221
Retained earnings (accumulated deficit) (8,840) (17,638)
-------- --------
Total shareholders' equity 131,666 65,603
-------- --------
Total liabilities and shareholders' equity $173,654 $107,201
======== ========
</TABLE>
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