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EXHIBIT 99.1
FOR IMMEDIATE RELEASE
Xircom Announces Third-Quarter 2000 Results
Reports Revenues of $126.7 Million and Earnings of $.47 Per Share, Excluding
Acquisition-Related Costs
THOUSAND OAKS, Calif., July 17, 2000 -- Xircom, Inc. (Nasdaq: XIRC) today
reported net sales for the third quarter ended June 30, 2000, of $126.7 million,
compared to $108.4 million for the same period last year. Net income, excluding
acquisition-related costs, was $14.8 million, or $.47 per share, compared to
$9.9 million, or $.39 per share, for the same period last year. Net sales for
the first nine months of fiscal 2000 totaled $362.1 million, compared to the
$308.8 million reported for the same period last year, and net income, excluding
acquisition-related costs and unusual items, was $41.5 million, or $1.37 per
share, compared to $26.9 million, or $1.06 per share, for the same period last
year.
Including acquisition-related costs and unusual items, net loss was $5.1
million, or $.17 per share, for the third quarter of fiscal 2000, and net income
was $15.5 million, or $.51 per share, for the first nine months of fiscal 2000.
Acquisition-related costs consist of the write-off of $19.5 million of in-
process research and development acquired in the purchase of Omnipoint
Technologies, Inc., completed on June 27, 2000, and ongoing amortization of
goodwill and other acquisition-related intangibles from transactions completed
in prior periods. Unusual items consist of a provision for customer insolvency
recorded in the second quarter of fiscal 2000 and non-recurring acquisition-
related transaction and transition charges recorded in the first quarter of
fiscal 2000.
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Xircom Announces Third-Quarter 2000 Results - Page 2
"We had very strong sequential revenue growth this quarter driven by
shipments to our large enterprise customers. However, the most significant
progress in the quarter came from the announcement of three new partnerships
that accelerate our entrance into the wireless data market," said Dirk Gates,
Xircom chairman, president and chief executive officer. "The acquisition of
Omnipoint Technologies, Inc. and new partnerships with VoiceStream Wireless
Corporation, Ericsson Mobile Communications AB, and Cisco Systems are designed
to take us from being the leader in providing wired data access for mobile users
to being the leader in providing wireless data access for mobile users. They
also will allow us to capitalize on the explosive growth predicted for wireless
Wide Area, Personal Area, and Local Area Networks."
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 1,800
employees worldwide and trailing four-quarter revenue of $478 million. Please
visit http://www.xircom.com for more information.
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Xircom Announces Third-Quarter 2000 Results - Page 3
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 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-Q for the quarters
ended June 30, 2000 (to be filed subsequent to this release), March 31, 2000 and
December 31, 1999, the company's report on Form 10-K for the fiscal year ended
September 30, 1999, the company's reports on Form 8-K filed on 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.
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Xircom Announces Third-Quarter 2000 Results - Page 4
XIRCOM, INC.
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands, except per share information)
<TABLE>
<CAPTION>
Three months ended Nine months ended
June 30 June 30
2000 1999 2000 1999
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net sales $126,706 $108,439 $362,067 $308,809
Cost of sales 72,203 61,634 201,121 179,341
-------- -------- -------- --------
Gross profit 54,503 46,805 160,946 129,468
Operating expenses:
Research and development 8,845 6,520 25,054 17,508
Sales and marketing 23,856 22,604 72,214 62,951
General and administrative 4,851 3,671 13,986 10,679
In-process research and development and
other nonrecurring acquisition-related
charges 19,535 - 22,400 -
Amortization of goodwill and other
acquisition-related intangibles 544 - 1,762 -
Provision for customer insolvency - - 4,150 -
-------- -------- -------- --------
Total operating expenses 57,631 32,795 139,566 91,138
-------- -------- -------- --------
Operating income (loss) (3,128) 14,010 21,380 38,330
Other income, net 2,828 554 6,202 1,316
-------- -------- -------- --------
Income (loss) before income taxes (300) 14,564 27,582 39,646
Income tax provision 4,807 4,700 12,126 12,712
-------- -------- -------- --------
Net income (loss) $ (5,107) $ 9,864 $ 15,456 $ 26,934
======== ======== ======== ========
Diluted earnings (loss) per share $ (.17) $ .39 $ .51 $ 1.06
Diluted earnings per share, excluding
acquisition-related costs and unusual items $ .47 $ .39 $ 1.37 $ 1.06
Weighted average shares outstanding 31,531 25,414 30,364 25,503
--------------------------------------------------------------------------------------------------------------------------
Net sales 100.0% 100.0% 100.0% 100.0%
Gross profit 43.0% 43.2% 44.5% 41.9%
Research and development 7.0% 6.0% 6.9% 5.7%
Sales and marketing 18.8% 20.9% 20.0% 20.4%
General and administrative 3.8% 3.4% 3.9% 3.4%
Acquisition-related costs and unusual items 15.9% - 7.8% -
-------- -------- -------- --------
45.5% 30.3% 38.6% 29.5%
Operating income (loss) (2.5)% 12.9% 5.9% 12.4%
Operating income, excluding acquisition-
related costs and unusual items 13.4% 12.9% 13.7% 12.4%
Net income (loss) (4.0)% 9.1% 4.3% 8.7%
</TABLE>
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Xircom Announces Third-Quarter 2000 Results - Page 5
Xircom, Inc.
Information Excluding Acquisition-Related
Costs And Unusual Items (Unaudited)
(In thousands, except per share information)
The following supplemental information excludes acquisition-related costs
and unusual items consisting of in-process research and development and other
nonrecurring acquisition-related charges, ongoing amortization of goodwill and
other acquisition-related intangibles, and provision for customer insolvency.
This information is not prepared in accordance with generally accepted
accounting principles.
<TABLE>
<CAPTION>
Three months ended Nine months ended
June 30 June 30
2000 1999 2000 1999
---- ---- ---- ----
<S> <C> <C> <C> <C>
Operations excluding acquisition-related
costs and unusual items:
Operating expenses $ 37,552 $ 32,795 $111,254 $ 91,138
Operating income $ 16,951 $ 14,010 $ 49,692 $ 38,330
Net income $ 14,836 $ 9,864 $ 41,505 $ 26,934
Diluted earnings per share $ .47 $ .39 $ 1.37 $ 1.06
-------------------------------------------------------------------------------------------------------------
Operating expenses 29.6% 30.3% 30.8% 29.5%
Operating income 13.4% 12.9% 13.7% 12.4%
Income tax rate 25.0% 32.3% 25.7% 32.1%
Net income 11.7% 9.1% 11.5% 8.7%
</TABLE>
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Xircom Announces Third-Quarter 2000 Results - Page 6
Xircom, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
<TABLE>
<CAPTION>
(Unaudited)
June 30, 2000 September 30, 1999
------------- ------------------
<S> <C> <C>
Current assets:
Cash and short term investments $359,742 $135,630
Accounts receivable 53,230 38,012
Income tax receivable 1,102 300
Inventories 18,473 23,563
Deferred income taxes 15,195 15,195
Other current assets 6,792 9,696
-------- --------
Total current assets 454,534 222,396
Property and equipment, net 61,206 40,536
Other assets 56,640 12,564
-------- --------
Total assets $572,380 $275,496
======== ========
Current liabilities:
Notes payable $ - $ 9,138
Accounts payable 20,408 31,591
Accrued liabilities 47,309 42,235
Accrued income taxes - 3,952
-------- --------
Total current liabilities 67,717 86,916
Deferred income taxes 14,321 13,660
Shareholders' equity:
Common stock 31 24
Paid-in capital 451,884 151,925
Retained earnings 38,427 22,971
-------- --------
Total shareholders' equity 490,342 174,920
-------- --------
Total liabilities and shareholders' equity $572,380 $275,496
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</TABLE>
