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EXHIBIT 99.1
Xircom Announces First-Quarter 2001 Results
Reports Revenues of $120.1 Million and Earnings of $.01 Per Share, Excluding
Acquisition-Related Costs
THOUSAND OAKS, Calif., January 15, 2001 -- Xircom, Inc. (Nasdaq: XIRC) today
reported net sales for the first quarter of fiscal 2001 ended December 31, 2000,
of $120.1 million, compared to $124.1 million for the same period last year.
Net income, excluding acquisition-related costs, was $.2 million, or $.01 per
share, compared to $15.3 million, or $.55 per share, for the same period last
year.
Including acquisition-related costs, net loss was $2.5 million, or
$.08 per share. Acquisition-related costs consist of non-recurring acquisition-
related charges and ongoing amortization of goodwill and other acquisition-
related intangibles from transactions completed in prior periods.
An analyst call will be held at 4:30PM, Eastern Time on Tuesday,
January 16, 2001, to discuss these results. The dial in number for this call is
303-224-6997, reservation number 894008. Replay options are available on
Xircom's website at www.xircom.com/earnings.
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The Company also announced today, the signing of a definitive
agreement to be acquired by Intel Corporation (Nasdaq: INTC). An analyst call
will be held today at 4:00PM Eastern Time to discuss this announcement. The dial
in number for this call is 913-981-5517. Replay options are available on Intel's
website at www.intc.com.
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Xircom Announces First-Quarter 2001 Results
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 $492 million.
Please visit http://www.xircom.com for more information.
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# # #
For more information contact:
Kristi Cushing
Xircom Investor Relations
(805) 376-9300
[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. The Company's risk factors are described in SEC reports on
Form 10-Q for the quarter ended December 31, 2000 (to be filed subsequent to
this release), and the Company's report on Form 10-K for the fiscal year ended
September 30, 2000. 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 2001 Results
Xircom, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share information)
<TABLE>
<CAPTION>
(Unaudited)
Three months ended
December 31
2000 1999
---- ----
<S> <C> <C>
Net sales $120,094 $124,111
Cost of sales 84,765 67,038
-------- --------
Gross profit 35,329 57,073
Operating expenses:
Research and development 11,027 7,569
Sales and marketing 21,798 24,832
General and administrative 5,931 4,392
Nonrecurring acquisition-related charges - 2,865
Amortization of goodwill and other
acquisition-related intangibles 2,815 608
-------- --------
Total operating expenses 41,571 40,266
-------- --------
Operating income (loss) (6,242) 16,807
Other income, net 3,719 625
-------- --------
Income (loss) before income taxes (2,523) 17,432
Income tax provision (benefit) (63) 4,707
-------- --------
Net income (loss) $ (2,460) $ 12,725
======== ========
Diluted earnings (loss) per share $ (.08) $ .46
Diluted earnings (loss) per share, excluding
acquisition-related costs $ .01 $ .55
Weighted average shares outstanding 29,726 27,905
--------------------------------------------------------------------------------------
Net sales 100.0% 100.0%
Gross profit 29.4% 46.0%
Research and development 9.3% 6.1%
Sales and marketing 18.1% 20.0%
General and administrative 4.9% 3.6%
Acquisition-related costs 2.3% 2.8%
-------- --------
34.6% 32.5%
Operating income (loss) (5.2)% 13.5%
Operating income (loss), excluding acquisition-
related costs (2.9)% 16.3%
Net income (loss) (2.0)% 10.3%
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Xircom Announces First-Quarter 2001 Results
Xircom, Inc.
Information Excluding Acquisition-Related
Costs (Unaudited)
(In thousands, except per share information)
The following supplemental information excludes acquisition-related costs
consisting of nonrecurring acquisition-related charges and ongoing amortization
of goodwill and other acquisition-related intangibles. This information is not
prepared in accordance with generally accepted accounting principles.
<TABLE>
<CAPTION>
(Unaudited)
Three months ended
December 31
2000 1999
---- ----
<S> <C> <C>
Operations excluding acquisition-related
costs:
Operating expenses $ 38,756 $ 36,793
Operating income $ (3,427) $ 20,280
Net income $ 229 $ 15,261
Diluted earnings per share $ .01 $ .55
--------------------------------------------------------------------------------
Operating expenses 32.3% 29.7%
Operating income (loss) (2.9)% 16.3%
Income tax rate 22.0% 27.0%
Net income 0.2% 12.3%
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Xircom, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
<TABLE>
<CAPTION>
(Unaudited)
December 31, 2000 September 30, 2000
----------------- ------------------
<S> <C> <C>
Current assets:
Cash, and short term investments $ 274,465 $ 308,489
Accounts receivable 48,841 53,203
Income tax receivable 6,029 2,377
Inventories 35,104 24,483
Deferred income taxes 15,109 14,674
Other current assets 13,360 9,045
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Total current assets 392,908 412,271
Property and equipment, net 81,858 74,734
Other assets 54,638 54,544
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Total assets $ 529,404 $ 541,549
=========== ===========
Current liabilities:
Accounts payable $ 24,852 $ 34,014
Accrued liabilities 36,054 39,442
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Total current liabilities 60,906 73,456
Deferred income taxes 20,723 17,134
Shareholders' equity:
Common stock 30 30
Paid-in capital 402,206 402,930
Retained earnings 45,539 47,999
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Total shareholders' equity 447,775 450,959
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Total liabilities and shareholders' equity $ 529,404 $ 541,549
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