<PAGE>
EXHIBIT 99.1
FOR IMMEDIATE RELEASE
Xircom Announces Fiscal 2000 and Fourth-Quarter Results
Reports Record Quarterly Revenues of $134.1 Million and Quarterly Earnings of
$.39 Per Share, Excluding Acquisition-Related Costs
THOUSAND OAKS, Calif., October 17, 2000 -- Xircom, Inc. (Nasdaq: XIRC) today
reported record net sales and record earnings for its fiscal year ended
September 30, 2000. Net sales for the year were $496.2 million, a 17% increase
compared to $424.4 million for the prior year. Net income, excluding
acquisition-related costs and special charges, was $53.7 million, or $1.76 per
share, an increase of 42% compared to $37.9 million, or $1.48 per share, for
fiscal 1999. Including acquisition-related costs and special charges, net
income was $25.0 million, or $.82 per share.
An analyst call will be held at 4:30 PM, Eastern Time today to discuss
these results and the Company's outlook. The dial in number for this call is
212-896-6053, reservation number 16454845. Replay options are available on
Xircom's website at www.xircom.com/earnings.
-----------------------
Fourth-Quarter Results. Net sales for the fourth quarter of fiscal 2000
grew to a record $134.1 million, a 16% increase compared to $115.6 million for
the same period last year, and a 6% increase compared to the $126.7 million for
the prior quarter. Net income, excluding acquisition-related costs and special
charges, was $12.2 million, or $.39 per share, compared with $11.0 million, or
$.42 per share, in the same period last year, and $14.8 million, or $.47 per
share, for the prior quarter. Including acquisition-related costs and special
charges, net income was $9.6 million, or $.31 per share. Acquisition-related
costs consist of the write-off of in-process research and development, non-
recurring acquisition-related charges, and ongoing amortization of goodwill
<PAGE>
Xircom Announces Fourth-Quarter 2000 Results - Page 2
and other acquisition-related intangibles from transactions completed in prior
periods. Special charges consist of provision for customer insolvency and other
unusual items.
Positioned for leadership in the exploding wireless market. "In 2000 we
put in place the key elements that will position the Company as the unique
supplier of both wired and wireless data access solutions for the mobile
technology user," said Dirk Gates, chairman, president, and chief executive
officer of Xircom. "We will leverage our position today as the leading provider
of wired data connectivity for mobile users to become the leading provider of
wireless data access solutions for the mobile market," said Gates. "Our recent
acquisition of Omnipoint Technologies Inc. is already paying dividends - our
first two Wireless Wide Area Networking (WWAN) products have officially passed
GSM FTA (Formal Type Approval). Additionally, we see the market for wired
access solutions moving to the embedded Mini PCI form factor. We are working
aggressively to translate our dominant share in PC Cards into leading share in
this market, and will evolve our business model to ensure our competitiveness in
this space," said Gates.
Fiscal 2000 Highlights:
. Announced a series of key industry partnerships and an acquisition that
will firmly position the Company as a unique provider of both wired and
wireless data access solutions.
. Acquired Omnipoint Technologies Inc. (OTI) from VoiceStream Wireless
Corporation (Nasdaq: VSTR), enhancing Xircom's wireless position by adding
General Packet Radio Service (GPRS) products and technology to its Wireless
Wide Area Network (WWAN) data solutions.
. Teamed with Cisco Systems, (Nasdaq: CSCO), the leader in networking for the
Internet, to cooperate in the development, marketing, and sales of mobile
Wireless Local Area Networking (WLAN) adapters based on the IEEE 802.11b
wireless Ethernet standard.
. Gained the number one market share position in total PC Card Ethernet and
Modem connections with a 15-point annual gain and a total of 46 percent
market share.
. Expanded our line of access card products to include solutions for the
Visor(TM) handheld market with the introduction of the SpringPort(TM) Modem
56 GlobalACCESS
<PAGE>
Xircom Announces Fourth-Quarter 2000 Results - Page 3
. Springboard(TM) module, the first international high-speed 56K V.90
modem for the Handspring(TM) Visor.
. Entered the broadband and home networking markets with the
introduction of the PortStation(TM) next-generation, expandable ADSL
USB Modem.
. Extended our RealPort(TM) Integrated PC Card family with the
RealPort2(TM) Integrated PC Card, enabling notebook users to create
customized mobile information access solutions.
. Introduced the industry's first all-in-one conference room networking
solution, NetStation(TM), offering mobile users access to their
corporate network from a conference room, eliminating the need for
expensive customized networking furniture.
. Announced two stock repurchase programs, for a total of 2.5 million
shares completing the repurchase of 1.6 million shares as of September
30, 2000.
About Xircom, Inc.
For over a decade mobile professionals around the world have relied on Xircom
for access to their information anytime, anywhere. Xircom designs and develops
innovative solutions that connect mobile users worldwide to corporate networks,
the Internet, Intranets and other online resources. Xircom sells and supports
its products in over 100 countries through distributors, resellers, electronic
channels and global OEM partnerships. Headquartered in Thousand Oaks, Calif.,
with regional headquarters in Belgium, Japan and Singapore, Xircom has 1,900
employees worldwide and trailing four-quarter revenue of $496 million. Please
visit http://www.xircom.com for more information.
--------------
# # #
<PAGE>
Xircom Announces Fourth-Quarter 2000 Results - Page 4
For more information contact:
Kristi Cushing
Xircom Investor Relations
(805) 376-9300
[email protected]
http://www.xircom.com
Notice to Readers. This news release contains certain forward-looking
statements based on current expectations that involve a number of risks and
uncertainties, which could cause actual results to differ materially. These
risks and uncertainties include, but are not limited to, the timing and success
of new product introductions, the Company's ability to implement and execute
upon changes in its business model compared to historical operations, the
introduction and adoption of applicable wide area network wireless technologies
by service providers, the introduction and adoption of wireless technologies
which may compete with wireless technologies used by the Company, and the market
acceptance by users of applicable wide area, personal area, and/or local area
network wireless technologies. Other additional risks are described in the
company's SEC reports on Form 10-K for the fiscal year ended September 30, 2000
(to be filed subsequent to this release), as well as the reports on Form 10-Q
for the quarters ended June 30, 2000, March 31, 2000 and December 31, 1999, the
company's reports on Form 8-K filed on July 18, 2000, June 28, 2000, June 15,
2000, April 20, 2000, March 24, 2000, January 19, 2000 and November 10, 1999,
and the company's most recent registration statement on Form S-3 filed on
December 22, 1999. Investor information may be found on Xircom's web site at
www.xircom.com or on the SEC's EDGAR electronic filing database.
<PAGE>
Xircom Announces Fourth-Quarter 2000 Results - Page 5
Xircom, Inc.
Condensed Consolidated Income Statements
(In thousands, except per share information)
<TABLE>
<CAPTION>
(Unaudited)
Three months ended Year ended
September 30 September 30
2000 1999 2000 1999
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Net sales $134,132 $115,627 $496,199 $424,436
Cost of sales 78,197 63,907 279,318 243,248
-------- -------- -------- --------
Gross profit 55,935 51,720 216,881 181,188
Operating expenses:
Research and development 12,793 7,049 37,847 24,557
Sales and marketing 24,298 24,397 96,512 87,348
General and administrative 5,662 4,464 19,648 15,143
In-process research and development and
other nonrecurring acquisition-related
charges - 2,232 22,400 2,232
Amortization of goodwill and other
acquisition-related intangibles 2,803 - 4,565 -
Special charges - 2,364 4,150 2,364
-------- -------- -------- --------
Total operating expenses 45,556 40,506 185,122 131,644
-------- -------- -------- --------
Operating income 10,379 11,214 31,759 49,544
Other income, net 3,130 469 9,332 1,785
-------- -------- -------- --------
Income before income taxes 13,509 11,683 41,091 51,329
Income tax provision 3,937 4,012 16,063 16,724
-------- -------- -------- --------
Net income $ 9,572 $ 7,671 $ 25,028 $ 34,605
======== ======== ======== ========
Diluted earnings per share $ .31 $ .29 $ .82 $ 1.35
Diluted earnings per share, excluding
acquisition-related costs and special charges $ .39 $ .42 $ 1.76 $ 1.48
Weighted average shares outstanding 31,335 26,192 30,606 25,682
-----------------------------------------------------------------------------------------------------------------
Net sales 100.0% 100.0% 100.0% 100.0%
Gross profit 41.7% 44.7% 43.7% 42.7%
Research and development 9.6% 6.1% 7.6% 5.8%
Sales and marketing 18.1% 21.1% 19.4% 20.6%
General and administrative 4.2% 3.8% 4.0% 3.5%
Acquisition-related costs and special charges 2.1% 4.0% 6.3% 1.1%
-------- -------- -------- --------
34.0% 35.0% 37.3% 31.0%
Operating income 7.7% 9.7% 6.4% 11.7%
Operating income, excluding
acquisition-related costs and special charges 9.8% 13.7% 12.7% 12.8%
Net income 7.1% 6.6% 5.0% 8.2%
</TABLE>
<PAGE>
Xircom Announces Fourth-Quarter 2000 Results - Page 6
Xircom, Inc.
Information Excluding Acquisition-Related
Costs and Special Charges (Unaudited)
(In thousands, except per share information)
The following supplemental information excludes acquisition-related
costs and special charges consisting of in-process research and development and
other nonrecurring acquisition-related charges, ongoing amortization of goodwill
and other acquisition-related intangibles, provision for customer insolvency,
and other special charges. This information is not prepared in accordance with
generally accepted accounting principles.
<TABLE>
<CAPTION>
Three months ended Year ended
September 30 September 30
2000 1999 2000 1999
---- ---- ---- ----
<S> <C> <C> <C> <C>
Operations excluding acquisition-related
costs and special charges:
Operating expenses $ 42,753 $ 35,910 $154,007 $127,048
Operating income $ 13,182 $ 15,810 $ 62,874 $ 54,140
Net income $ 12,234 $ 10,980 $ 53,739 $ 37,914
Diluted earnings per share $ .39 $ .42 $ 1.76 $ 1.48
-------------------------------------------------------------------------------------------------------------
Operating expenses 31.9% 31.2% 31.1% 29.9%
Operating income 9.8% 13.7% 12.7% 12.8%
Income tax rate 25.0% 32.3% 25.6% 32.2%
Net income 9.1% 9.5% 10.8% 8.9%
</TABLE>
<PAGE>
Xircom Announces Fourth-Quarter 2000 Results - Page 7
Xircom, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
<TABLE>
<CAPTION>
September 30, 2000 September 30, 1999
------------------ ------------------
<S> <C> <C>
Current assets:
Cash and short term investments $ 308,489 $ 135,630
Accounts receivable 53,203 38,012
Income tax receivable 2,377 300
Inventories 24,483 23,563
Deferred income taxes 14,674 15,195
Other current assets 9,045 9,696
---------- ----------
Total current assets 412,271 222,396
Property and equipment, net 74,734 40,536
Other assets 54,544 12,564
-------- --------
Total assets $ 541,549 $ 275,496
======== ========
Current liabilities:
Notes payable $ - $ 9,138
Accounts payable 34,014 31,591
Accrued liabilities 39,442 42,235
Accrued income taxes - 3,952
-------- --------
Total current liabilities 73,456 86,916
Deferred income taxes 17,134 13,660
Shareholders' equity:
Common stock 30 24
Paid-in capital 402,930 151,925
Retained earnings 47,999 22,971
---------- ----------
Total shareholders' equity 450,959 174,920
---------- ----------
Total liabilities and shareholders' equity $ 541,549 $ 275,496
========== ==========
</TABLE>
