<PAGE> 1
EXHIBIT 99.1
[OLICOM LOGO]
OLICOM REPORTS FIRST HALF 2000 RESULTS:
NET INCOME OF DKK 85.0 MILLION ($10.9 MILLION)
DUE TO SUBSTANTIAL NON-RECURRING INCOME ITEMS
COPENHAGEN, DENMARK, AUGUST 24, 2000 - Olicom A/S (OTC Bulletin Board: OLCMF)
("Olicom" or "the Company") today announced net income of 85.0 million Danish
Kroner ("DKK"), or $10.9 million, for the first six months of 2000. Earnings per
share were DKK 4.77, or $0.61 per share. All amounts expressed in dollar are
calculated at the June 30, 2000, rate of exchange between U.S. dollar and DKK.
Net sales, cost of sales, charges to inventories and operating expenses
(except for general and administrative expenses) all relate to the discontinued
business operations.
Olicom's general and administrative expenses in the first six months
reflect the higher level of discontinued operations at the beginning of the
year. During this period, the Company's personnel headcount was reduced to 21
employees at June 30, 2000 from 60 at year end 1999. The number has subsequently
been further reduced to 13.
Interest income includes currency gains which resulted from a higher
dollar exchange rate against the Danish Kroner in the first half of the year.
The Company's dollar-denominated financial assets have now been hedged.
As of June 30, 2000, Olicom had cash, cash equivalents and restricted
cash of DKK 289 million, or $37 million.
Shareholders' equity was DKK 250 million, or $32 million, at the end of
June 2000, corresponding to 78 percent of the balance sheet total of DKK 319
million, or $41 million. The Company holds 902,291 treasury shares,
corresponding to 4.9 percent of the issued shares.
For the six months ended June 30, 2000, Olicom also reported a loss of
DKK 376,000, or $48,000, from its affiliated company, Juize A/S ("Juize"), which
relates to amortization of goodwill and the Company's share in operating losses
of Juize. Juize operates the wireless application protocol ("WAP") site
"Juize.com" which - partly based on proprietary applications - offers
information, m-commerce and entertainment services to users of WAP enabled
handsets. During the first half of this year, the market penetration of WAP
enabled handsets was slower than originally expected. Consequently, Juize has
increased its focus on the development and sale of applications. Juize's current
personnel headcount is 14 employees.
Page 17 of 21
<PAGE> 2
On May 15, 2000, the Company's new Board of Directors, elected at
Olicom's Annual General Meeting held on April 14, announced a new business plan
to initiate or participate in the development of new products and services that
leverage leading-edge technologies, primarily with a focus on satisfying the
needs of mobile communication users. Since this announcement, Olicom has
reviewed more than 30 investment proposals. To date, financing has been provided
to one company, Juize A/S. Olicom continues to solicit investment opportunities,
and is currently negotiating additional investments.
As of June 30, 2000, Olicom had essentially fulfilled its expense
consuming commitments in connection with the divestiture in 1999 of the
Company's former business activities. However, some activities relating to the
final winding-up of foreign subsidiaries remain. The divestiture of Olicom's
former business activities has progressed favorably against the Company's plan.
In light of the continued positive progress of the Company's
fulfillment of commitments in connection with the divested and discontinued
business operations, the expectations for 2000 have been increased to a net
income of Danish kroner 70 million before the depreciation of goodwill and the
Company's share in operating losses relating to possible further investments
which will adversely impact the financial result for the year.
The Company's financial statements are prepared in accordance with U.S.
GAAP. However, the Company's reporting currency is now Danish Kroner ("DKK").
The dollar amounts presented were calculated at an exchange rate of DKK 7.7895
per U.S. dollar on the closing date of the Company's most recent balance sheet.
In accordance with Danish reporting conventions, Olicom's current
financial statements have been prepared for the first 6 months of 2000. However,
all future financial results will be reported on a quarterly basis in accordance
with U.S. reporting practices.
It should be noted that all reported activities for 1999 relate to
divested or discontinued business operations. Consequently, a comparison between
the two fiscal periods presented in the financial statements will be distorted.
Expectations for 2000
In light of the Company's progress in meeting divestiture commitments
in connection with divested and discontinued business operations, expectations
for full-year net income before goodwill amortization and share in operating
losses relating to additional investments have been increased to a net income of
DKK 70 million, or $9 million. Previously, the Company had anticipated net
income before goodwill amortization and share in operating losses of DKK 60
million, or $7.7 million.
As previously reported, Olicom expects to complete 3 to 5 investments
before the end of this year. The Company does not expect to sell any investments
during 2000.
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<PAGE> 3
ABOUT OLICOM
More information on Olicom is available from the Company's SEC filings
or by contacting the Company directly. Information is also available on the
Company's Web site at http://www.olicom.com.
Olicom is a registered trademark.
Except for historical information contained herein, the matters
discussed in this news release may contain forward-looking statements, involving
risks and uncertainties that may cause actual results to differ materially.
Further information may be found in Olicom's periodic filings with the US
Securities and Exchange Commission (SEC), including the most recent report on
Form 20-F.
Contact Information:
Boje Rinhart, CEO
Olicom A/S
+45 (45) 27 00 00
[email protected]
###
Statements of Income and Balance Sheet follow
Page 19 of 21
<PAGE> 4
OLICOM A/S
Condensed Consolidated Statements of Income
All amounts in thousands except per share data
<TABLE>
<CAPTION>
SIX MONTHS
ENDED JUNE 30,
-----------------------------------------
1999 2000 2000
---- ---- ----
CONVENIENCE
TRANSLATION
DKK DKK US$
(Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C>
INCOME/(LOSS) FROM AFFILIATED COMPANY 0 (376) $ (48)
NET SALES 306,612 71,888 9,229
COST OF SALES 225,501 37,861 4,860
SPECIAL CHARGES RELATED TO
INVENTORIES 240,650 (13,416) (1,722)
-------- -------- --------
GROSS PROFIT (159,539) 47,067 6,043
-------- -------- --------
OPERATING EXPENSES
Sales and marketing 213,751 3,299 424
Research and development 65,025 430 55
General and administrative 51,670 24,368 3,128
Restructuring charges 134,092 2,290 294
-------- -------- --------
Total operating expenses 464,538 30,387 3,901
-------- -------- --------
INCOME/(LOSS) FROM OPERATIONS BEFORE
INTEREST AND INCOME TAXES (624,077) 16,680 2,142
Income from sale of activities 9,421 50,930 6,538
Interest income and other, net 6,296 17,777 2,282
-------- -------- --------
INCOME/(LOSS) BEFORE INCOME TAXES (608,360) 85,387 10,962
Income taxes 29,120 420 54
-------- -------- --------
INCOME/(LOSS) BEFORE MINORITY INTERESTS
IN INCOME OF CONSOLIDATED SUBSIDIARY (637,480) 84,967 10,908
Minority interests 442 0 0
-------- -------- --------
NET INCOME/(LOSS) (637,922) 84,967 10,908
-------- -------- --------
BASIC EARNINGS/(LOSS) PER SHARE,
BASIC AND DILUTED (35.71) 4.77 0.61
======== ======== ========
WEIGHTED AVERAGE SHARES OUTSTANDING
INCLUDING COMMON STOCK EQUIVALENTS 17,863 17,827 17,827
======== ======== ========
</TABLE>
DKK are converted into USD at an exchange rate of DKK 7.7895 per USD 1.00 on
June 30, 2000.
Page 20 of 21
<PAGE> 5
OLICOM A/S
Condensed Consolidated Balance Sheets
(In thousands)
<TABLE>
<CAPTION>
DECEMBER 31 JUNE 30 JUNE 30
1999 2000 2000
----------- ------- -------
ASSETS CONVENIENCE
TRANSLATION
DKK DKK US$
(Audited) (Unaudited) (Unaudited)
<S> <C> <C> <C>
Current assets:
Cash and cash equivalents 209,586 203,020 $26,063
Restricted cash 65,435 85,949 11,034
Accounts receivable 30,757 7,320 940
Inventories 32,081 1,600 206
Prepaid expenses and other current assets 16,603 18,081 2,321
------- ------- -------
Total current assets 354,462 315,970 40,564
Investments, property and equipment, net 4,143 1,932 248
Investments in affiliated companies 0 1,332 171
------- ------- -------
TOTAL ASSETS 358,605 319,234 40,983
======= ======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable, accrued liabilities
and restructuring charges 191,873 69,940 $ 8,979
Notes payable, current 718 0 0
------- ------- -------
Total current liabilities 192,591 69,940 8,979
Shareholders' equity 166,014 249,294 32,004
------- ------- -------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 358,605 319,234 40,983
======= ======= =======
</TABLE>
DKK are converted into USD at an exchange rate of DKK 7.7895 per USD 1.00 on
June 30, 2000.
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