<PAGE>
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
January 18, 2000
Date of Report (Date of earliest event reported)
XIRCOM, INC.
(Exact name of registrant as specified in its charter)
California 0-19856 95-4221884
- ----------------- ---------------- ----------------
(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 January 18, 2000 announcing the Company's financial results for
the three month period ended December 31, 1999. 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 January 18, 2000 entitled "Xircom Announces
First-Quarter 2000 Results"
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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: January 18, 2000 By: /s/ RANDALL H. HOLLIDAY
-----------------------------
Randall H. Holliday
Secretary and General Counsel
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INDEX TO EXHIBITS
EXHIBIT
NUMBER DESCRIPTION
- ------- -----------
99.1 Press Release dated January 18, 2000 entitled "Xircom
Announces First-Quarter 2000 Results"
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EXHIBIT 99.1
FOR IMMEDIATE RELEASE
Xircom Announces First-Quarter 2000 Results
Reports Record Revenues of $124.1 Million and Record Earnings of $.55 Per Share,
Excluding Acquisition-Related Costs
THOUSAND OAKS, Calif., January 18, 2000 -- Xircom, Inc. (Nasdaq: XIRC) today
reported record net sales for the first quarter of fiscal 2000 ended December
31, 1999, of $124.1 million, compared to $98.5 million for the same period last
year, and $115.6 million for the prior quarter. Net income, excluding
acquisition-related costs, was a record $15.3 million, or $.55 per share,
compared to $7.6 million, or $.30 per share, for the same period last year, and
$11.0 million, or $.42 per share for the prior quarter.
Including acquisition-related costs, net income was $12.7 million, or $.46
per share. Acquisition-related costs consisted of $0.6 million of ongoing
amortization of goodwill and other acquisition-related intangibles from the
purchase of the Rex(R) product line and $2.9 million of non-recurring
transaction and transition charges from the acquisition of Entrega Technologies,
Inc.
"We experienced an impressive 70% sequential revenue growth in new product
lines, including our PortStation(TM) and PortGear(TM) USB Port Expansion
solutions, and the Rex wearable information accessory. In addition to that, we
had solid sequential revenue growth in our core access card business. Our
product portfolio continues to expand, meeting a broader scope of mobile
information access needs, as demonstrated earlier this month with the launch of
our second-generation RealPort2(TM) Integrated PC Card family of products," said
Dirk Gates, Xircom chairman, president and chief executive officer. "From an
operational standpoint, we made significant investments in our e.business and
supply-chain infrastructure over the past quarter which enable us
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Xircom Announces First-Quarter 2000 Results - Page 6
to scale the business and position us to capitalize on new opportunities for
growth in the Internet economy. We are encouraged by the progress we have made
in integrating the Entrega and Rex businesses, which we acquired last fall. In
just one quarter we have already returned to the financial business model we
were operating under prior to the two transactions."
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
1,600 employees worldwide and trailing four-quarter revenue of $450 million.
Please visit http://www.xircom.com for more information.
--------------
# # #
For more information contact:
Kristi Cushing Craig Rexroad
Xircom Investor Relations P/E
(805) 376-9300 (310) 275-8784
[email protected] [email protected]
http://www.xircom.com
Xircom and Rex are registered trademarks of Xircom, Inc. Other company or
product names have been used for identification purposes only and may be
trademarks of their respective companies.
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, actual growth rates of
market segments, computer industry trends, the company's success in
implementation of "e.business" and related operational infrastructure tools, and
actual earnings performance. Other additional risks are described in the
company's SEC reports on Form 10-Q for the quarter ended December 31, 1999 (to
be filed subsequent to this release), the company's report on Form 10-K for the
fiscal year ended September 30, 1999, the company's report on Form 8-K filed on
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.
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Xircom Announces First-Quarter 2000 Results - Page 7
Xircom, Inc.
Condensed Consolidated Income Statement
(In thousands, except per share information)
<TABLE>
<CAPTION>
(Unaudited)
Three months ended
December 31
1999 1998
---- ----
<S> <C> <C>
Net sales $124,111 $98,498
Cost of sales 67,038 59,064
-------- -------
Gross profit 57,073 39,434
Operating expenses:
Research and development 7,569 5,549
Sales and marketing 24,832 19,419
General and administrative 4,392 3,340
Amortization of goodwill and other
acquisition-related intangibles 608 -
Acquisition-related non-recurring
charges 2,865 -
-------- -------
Total operating expenses 40,266 28,308
-------- -------
Operating income 16,807 11,126
Other income, net 625 284
-------- -------
Income before income taxes 17,432 11,410
Income tax provision 4,707 3,801
-------- -------
Net income $ 12,725 $ 7,609
======== =======
Diluted earnings per share $ .46 $ .30
Diluted earnings per share, excluding
acquisition-related costs $ .55 $ .30
Weighted average shares outstanding 27,905 25,272
- -------------------------------------------------------------------------------------------------------
Net sales 100.0% 100.0%
Gross profit 46.0% 40.0%
Research and development 6.1% 5.6%
Sales and marketing 20.0% 19.7%
General and administrative 3.6% 3.4%
Amortization of goodwill and other
acquisition-related intangibles 0.5% -
Acquisition-related non-recurring charges 2.3% -
-------- -------
32.5% 28.7%
Operating income 13.5% 11.3%
Operating income, excluding acquisition-
related costs 16.3% 11.3%
Income tax rate 27.0% 33.3%
Net income 10.3% 7.7%
</TABLE>
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Xircom Announces First-Quarter 2000 Results - Page 8
Information Excluding Acquisition-Related Costs
The following supplemental information excludes the effect of ongoing
amortization of goodwill and other acquisition-related intangibles as well as
acquisition-related non-recurring charges. This information is not prepared in
accordance with generally accepted accounting principles.
<TABLE>
<CAPTION>
(Unaudited)
Three months ended
December 31
1999 1998
---- ----
<S> <C> <C>
Operating expenses, excluding
acquisition-related costs $36,793 $28,308
Operating income, excluding
acquisition-related costs $20,280 $11,126
Net income, excluding
acquisition-related costs $15,261 $ 7,609
Diluted earnings per share, excluding
acquisition-related costs $ .55 $ .30
- -------------------------------------------------------------------------------------------------------
Operating expenses, excluding
acquisition-related costs 29.7% 28.7%
Operating income, excluding
acquisition-related costs 16.3% 11.3%
Net income, excluding
acquisition-related costs 12.3% 7.7%
</TABLE>
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Xircom Announces First-Quarter 2000 Results - Page 9
Xircom, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
<TABLE>
<CAPTION>
(Unaudited)
December 31, 1999 September 30, 1999
----------------- ------------------
<S> <C> <C>
Current assets:
Cash, and short term investments $344,593 $135,630
Accounts receivable 54,581 38,012
Income tax receivable 1,354 300
Inventories 20,462 23,563
Deferred income taxes 15,195 15,195
Other current assets 6,083 9,696
-------- --------
Total current assets 442,268 222,396
Equipment and improvements, net 47,749 40,536
Other assets 12,880 12,564
-------- --------
Total assets $502,897 $275,496
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Current liabilities:
Notes payable $ - $ 9,138
Accounts payable 21,755 31,591
Accrued liabilities 41,674 42,235
Accrued income taxes - 3,952
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Total current liabilities 63,429 86,916
Deferred income taxes 13,660 13,660
Shareholders' equity:
Common stock 30 24
Paid-in capital 390,337 151,925
Cumulative comprehensive income (255) -
Retained earnings 35,696 22,971
-------- --------
Total shareholders' equity 425,808 174,920
-------- --------
Total liabilities and shareholders' equity $502,897 $275,496
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</TABLE>
