UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
(Mark One)
[X] Quarterly report pursuant to Section 13 or 15 (d) of the Securities Exchange
Act of 1934
For the quarterly period ended September 30, 1997
or
[ ] Transition report pursuant to Section 13 or 15 (d) of the Securities
Exchange Act of 1994
For the transition period from _______ to ________
Commission file number 0-23970
NETWORK PERIPHERALS INC.
(Exact name of registrant as specified in its charter)
Delaware 77-0216135
-------- ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
1371 McCarthy Boulevard
Milpitas, California 95035
(Address, including zip code, of principal executive offices)
(408) 321-7300
(Registrant's telephone number, including area code)
Indicate by check mark whether the Registrant: (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes _X_ No ___
The number of shares of the Registrant's Common Stock, $0.001 par value,
outstanding as of October 31, 1997 was 12,213,497.
This quarterly report on Form 10-Q consists of 14 pages of which this is page 1.
The Exhibit Index starts on page 13.
<PAGE>
NETWORK PERIPHERALS INC.
INDEX TO FORM 10-Q
For the quarter ended
September 30, 1997
PART I. FINANCIAL INFORMATION
Item Page
- ---- ----
1. Financial Statements (unaudited):
a. Consolidated Balance Sheets - September 30, 1997
and December 31, 1996. 3
b. Consolidated Statements of Operations - Three
and Nine Months Ended September 30, 1997 and 1996 4
c. Consolidated Statements of Cash Flows -- Nine
Months Ended September 30, 1997 and 1996. 5
d. Notes to Consolidated Financial Statements 6-8
2. Management's Discussion and Analysis of Financial Condition and
Results of Operations 9-12
PART II. OTHER INFORMATION
6. Exhibits and Reports on Form 8-K 13
Signatures 14
2
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
NETWORK PERIPHERALS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS - Unaudited
(in thousands, except share and per share data)
<CAPTION>
September 30, December 31,
1997 1996
------------ ------------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 25,738 $ 23,523
Short-term investments 7,000 22,350
Accounts receivable, net of allowance for doubtful
accounts and returns of $1,324 and $1,154, respectively 5,101 8,359
Inventories 1,548 8,228
Deferred income taxes 2,271 2,271
Prepaid expenses and other current assets 2,872 1,843
-------- --------
Total current assets 44,530 66,574
Property and equipment, net 4,260 3,575
Deferred income taxes and other assets 1,155 443
Goodwill 185 842
-------- --------
$ 50,130 $ 71,434
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,465 $ 2,736
Accrued liabilities 7,807 8,841
-------- --------
Total current liabilities 10,272 11,577
-------- --------
Stockholders' equity:
Preferred Stock, $0.001 par value, 2,000,000 shares
authorized; no shares issued or outstanding -- --
Common Stock, $0.001 par value, 20,000,000
shares authorized; 12,213,497 and 11,954,000,
shares issued and outstanding, respectively 12 12
Additional paid-in capital 63,183 62,614
Accumulated deficit (23,337) (2,769)
-------- --------
Total stockholders' equity 39,858 59,857
-------- --------
$ 50,130 $ 71,434
======== ========
<FN>
The accompanying notes are an integral part of these consolidated financial statements.
</FN>
</TABLE>
3
<PAGE>
<TABLE>
NETWORK PERIPHERALS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - Unaudited
(in thousands except per share data)
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------------ ----------------------------
1997 1996 1997 1996
------------- -------------- ------------ ------------
<S> <C> <C> <C> <C>
Net sales $ 5,578 $ 14,098 $ 28,221 $ 37,001
Cost of sales 9,286 7,402 21,869 20,393
-------- -------- -------- --------
Gross profit (loss) (3,708) 6,696 6,352 16,608
-------- -------- -------- --------
Operating expenses:
Research and development 2,526 2,342 6,398 6,294
Marketing and selling 3,212 3,102 11,051 7,835
General and administrative 728 944 4,074 2,485
Acquired research and development in
process and product integration costs -- -- 6,462 13,732
Restructuring expense 3,662 -- 3,662 --
-------- -------- -------- --------
Total operating expenses 10,128 6,388 31,647 30,346
-------- -------- -------- --------
Income (loss) from operations (13,836) 308 (25,295) (13,738)
Interest income 418 424 1,201 1,353
-------- -------- -------- --------
Income (loss) before income taxes (13,418) 732 (24,094) (12,385)
Provision for (benefit from) income taxes (1,912) 256 (3,526) 226
-------- -------- -------- --------
Net income (loss) $(11,506) $ 476 $(20,568) $(12,611)
======== ======== ======== ========
Net income (loss) per share $ (0.94) $ 0.04 $ (1.69) $ (1.08)
======== ======== ======== ========
Weighted average common shares
and common equivalent shares 12,191 12,276 12,140 11,701
======== ======== ======== ========
<FN>
The accompanying notes are an integral part of these consolidated financial statements.
</FN>
</TABLE>
4
<PAGE>
<TABLE>
NETWORK PERIPHERALS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - Unaudited
Increase (Decrease) in Cash and Cash Equivalents
<CAPTION>
Nine Months Ended
September 30,
---------------------------
1997 1996
---------- ---------
<S> <C> <C>
Cash flows from operating activities:
Net loss $(20,568) $(12,611)
Adjustments to reconcile net loss to
net cash from operating activities:
Depreciation and amortization, net of disposals (491) 1,855
Amortization of goodwill 1,340 959
One-time charge for excess and obsolete inventory 5,117 --
Acquired research and development in process 6,462 13,032
Changes in assets and liabilities (net of effect of
acquisitions)
Accounts receivable 3,259 (3,005)
Inventories 1,563 (1,947)
Prepaid expenses and other assets (2,181) 326
Accounts payable (271) 1,423
Accrued liabilities (1,291) 2,588
--------- --------
Net cash provided by (used in) operating activities (7,061) 2,620
--------- --------
Cash flows from investing activities:
Cash paid for acquisition, net of cash acquired (6,449) (10,401)
Sale (purchase) of short-term investments 15,350 (14,099)
Purchases of property and equipment (194) (2,028)
--------- --------
Net cash provided by (used in) investing activities 8,707 (26,528)
--------- --------
Cash flows from financing activities:
Proceeds from issuance of Common Stock 729 557
--------- --------
Net cash provided by financing activities 729 557
--------- --------
Foreign currency translation (160) --
--------- --------
Net increase (decrease) in cash and cash equivalents 2,215 (23,351)
Cash and cash equivalents at beginning of period 23,523 27,210
--------- --------
Cash and cash equivalents at end of period $ 25,738 $ 3,859
========= ========
Supplemental disclosure of cash flow information:
Income taxes paid 87 --
========= ========
Supplemental disclosure of noncash investing activity:
Common Stock used for purchase of Nucom -- $ 5,342
========= ========
<FN>
The accompanying notes are an integral part of these consolidated financial statements
</FN>
</TABLE>
5
<PAGE>
NETWORK PERIPHERALS INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements
have been prepared in accordance with generally accepted accounting principles
for interim financial information and with the instructions to Form 10-Q and
Rule 10-01 of Regulation S-X. Accordingly, they do not contain all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements. In the opinion of management, the
accompanying unaudited condensed consolidated financial statements reflect all
adjustments (consisting of normal recurring adjustments) considered necessary
for a fair presentation of the Company's financial condition as of September 30,
1997 and December 31, 1996, the results of its operations for the three and nine
month periods ended September 30, 1997 and 1996, and its cash flows for the nine
month periods ended September 30, 1997 and 1996. These financial statements
should be read in conjunction with the audited financial statements of the
Company as of December 31, 1996 and 1995 and for each of the three years in the
period ended December 31, 1996, including notes thereto, included in the
Company's Annual Report on Form 10-K (Commission File No. 0-23970).
Operating results for the three and nine month periods ended September
30, 1997 are not necessarily indicative of the results that may be expected for
the year ending December 31, 1997 or for any other future period.
2. NET LOSS PER SHARE
Net income per share is computed using the weighted average number of
common and common equivalent shares outstanding during these periods. Common
equivalent shares consist of stock options (using the treasury stock method).
Common equivalent shares from stock options are excluded from the computation if
their effect is antidilutive. Net loss per share is computed using the weighted
average number of common shares outstanding during the periods. Common stock
equivalents have been excluded from the calculation of weighted average shares
as a result of the operating losses in the three months ended September 30, 1997
and the nine months ended September 30, 1997 and 1996.
In February 1997, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 128, "Earnings Per Share" ("FAS
128"). This statement is effective for the Company's quarter ending December 31,
1997. The Statement redefines earnings per share under generally accepted
accounting principles. Under the new standard, primary earnings per share is
replaced by basic earnings per share, and fully diluted earnings per share is
replaced by diluted earnings per share.
<TABLE>
The unaudited pro forma basic and diluted earnings per share is
computed in accordance with FAS 128 for the three and nine month periods ended
September 30, 1997 and 1996 are as follows:
<CAPTION>
Three months ended Nine months ended
September 30, September 30,
--------------- ------------ -------------- --------------
1997 1996 1997 1996
--------------- ------------ -------------- --------------
<S> <C> <C> <C> <C>
Basic earnings (loss) per share ($0.94) $0.04 ($1.69) ($1.08)
Diluted earnings (loss) per share ($0.94) $0.04 ($1.69) ($1.08)
</TABLE>
6
<PAGE>
NETWORK PERIPHERALS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Cont.
3. INVENTORIES
The components of inventory consist of the following (in thousands):
September 30, December 31,
1997 1996
-------------- --------------
Raw materials $ 541 $ 4,685
Work-in-process 570 2,600
Finished goods 437 943
-------------- --------------
$ 1,548 8,228
============== ==============
4. PROPERTY AND EQUIPMENT
Property and equipment consist of the following (in thousands):
September 30, December 31,
1997 1996
-------------- --------------
Computer and test equipment $ 6,976 $ 7,271
Furniture and fixtures 954 817
Leasehold improvements 453 356
-------------- --------------
8,383 8,444
Less: accumulated depreciation (4,123) (4,869)
-------------- --------------
$ 4,260 $ 3,575
============== ==============
5. ACCRUED LIABILITIES
The components of accrued liabilities consist of the following (in
thousands):
September 30, December 31,
1997 1996
-------------- --------------
Salaries and benefits $ 1,539 $ 2,699
Royalty 746 1,154
Warranty 598 717
Income taxes - 1,268
Holdback amount from acquisition - 1,115
Short-term payable 295 -
Customer deposits - 605
Restructuring expense 2,600 -
Other 2,029 1,283
-------------- --------------
$ 7,807 $ 8,841
============== ==============
6. ACQUISITION OF NETVISION
Effective April 29, 1997, the Company acquired NetVision Corporation
(NetVision), a privately held company engaged in the development of very high
bandwidth LAN switching and Gigabit Ethernet technologies. The transaction was
accounted for using the purchase method at a cost of $6.5 million, including
7
<PAGE>
NETWORK PERIPHERALS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Cont.
payments to NetVision stockholders, the assumption of certain liabilities, and
transaction expenses. The purchase price was allocated to the assets acquired
and liabilities assumed based on the estimated fair market values at the date of
acquisition. The research and development in process represented the estimated
current fair market value of specified technologies, which had not reached
technological feasibility and had no future uses. The allocation of the purchase
price was as follows (in thousands):
Research and development, in process $ 6,462
Goodwill 200
Assets 44
Liabilities assumed (257)
--------
$ 6,449
========
7. PROVISION FOR RESTRUCTURING
<TABLE>
In the third quarter of 1997, the Company announced and began to
implement a restructuring plan aimed at reducing costs and restoring
profitability to the Company's operations. The restructuring plan was
necessitated by decreased demand for the Company's products and the Company's
adoption of a new strategic direction. These actions resulted in a net charge of
$3.7 million. The restructuring actions consist of terminating approximately 25%
of the workforce, or approximately 50 employees, canceling facility and sales
office leases as a result of those employee terminations, and write-off of
excess manufacturing equipment and goodwill as a result of downsizing
operations. The Company expects most of the contemplated restructuring actions
will be completed within the next six months and will be financed through
current working capital. The following table depicts the restructuring accrual
activity from July 1, 1997 to September 30, 1997: (in thousands)
<CAPTION>
Write-off of Reduction in Closure of Excess Other
Goodwill Work Force Facilities Equipment Restructuring
-------------- ---------------- -------------- --------------- -----------------
<S> <C> <C> <C> <C> <C>
Reserve provided in third
quarter of 1997 $962 $500 $200 $1,500 $500
Reserve utilized in third
quarter of 1997 $962 $ -- $100 $ -- $ --
Reserve balance at
September 30, 1997 $ -- $500 $100 $1,500 $500
</TABLE>
8
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Results of Operations
The forward-looking statements included in the succeeding paragraphs
are made in reliance upon the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. The future events described in such statements
involve risks and uncertainties, including:
o the timely development and market acceptance of new products;
o the market demand by customers for the Company's existing products,
including demand by OEM customers for custom products, and the distribution
channels through which such demand is satisfied;
o competitive actions, including pricing actions and the introduction of new
competitive products, that may affect the volume of sales of the Company's
products;
o uninterrupted supply of key components, including semiconductor devices
and other materials, some of which are sourced from a single supplier;
o uninterrupted service by subcontractors;
o the cost of materials and components, and subcontractor services;
o the ability of the Company to recruit, train and retain key personnel,
including engineers and other technical professionals;
o the development of new technologies rendering existing technologies and
products obsolete; and general market conditions.
In evaluating these forward-looking statements, consideration should also be
given to the Business Risks discussed below in this interim report.
Net Sales
Net sales for the three months ended September 30, 1997 ("third quarter
of 1997") were $5.6 million, as compared to $14.1 million for the three months
ended September 30, 1996 ("comparative quarter"), a decrease of 60%. Net sales
for the nine months ended September 30, 1997 ("nine months of 1997") were $28.2
million, as compared to $37.0 million for the nine months ended September 30,
1996 ("comparative nine months"), a decrease of 24%. The decrease in the three
and nine month periods reflected price reductions, primarily resulting from
competitive pressures in the distribution channel, and reduced unit shipments to
OEM customers. For the third quarter and nine months of 1997, sales to the
distribution channel represented 34% and 37% of net sales, respectively, as
compared to 53% and 41% in the comparative periods, respectively.
Net sales of Fast Ethernet products decreased by 34%, to $2.2 million,
in the third quarter of 1997 from the comparative quarter, but unit shipments
increased by 32% in the same period, reflecting competitive price pressures,
partially offset by continual demand. For the nine months of 1997, Fast Ethernet
sales increased by 54% and unit shipments increased by 132%. This increase was
attributed to the Fast Ethernet product line not reaching volume shipments until
the second quarter of 1996. Net sales of FDDI products decreased by 70% and 40%
in the third quarter and nine months of 1997 from the comparative periods as the
product line reached its maturity stage. As a result of its maturing FDDI
product line and assuming continuing price pressures, the Company does not
expect significant growth in sales in the next several quarters.
Gross Profit/Margin
Gross margin for the third quarter of 1997 was negative 66%, which
included a $5.1 million charge to reserve against slow moving and obsolete
inventory. Excluding the inventory reserve charge, gross margins for the third
quarter and nine months of 1997 were 25% and 41%, respectively, as compared to
47% and 45%, respectively, in the comparative periods. The decrease for the
third quarter of 1997 was attributable primarily to price reductions and price
credits associated with those price reductions. The costs associated with the
transfer of production of FDDI products from internal operations to an external
turnkey-manufacturing partner and write-off of excess FDDI products were primary
contributors to the lower than historical gross margin in the nine months of
1997. The Company does not believe the gross margin for the three and nine month
periods are indicative of future gross margins and expects that gross margin
will improve in the long term. However, due to the Company's lack of experience
with turnkey manufacturing, competitive price pressures, fluctuations in the
9
<PAGE>
cost of materials and components, product and channel mix, and other factors,
the gross margin may be adversely affected.
Research and Development In-Process
For quarter ended June 30, 1997, the Company recorded a non-recurring
charge of $6.5 million for in-process research and development costs related to
the acquisition of NetVision Corporation (refer to Note 6).
Research and Development
Research and development expenses for the third quarter of 1997 were
$2.5 million, or 45% of net sales, and $2.3 million, or 17% of net sales, for
the comparative quarter. The expense in the 1996 period was net of contract
funding of $108,000. For the nine months of 1997, research and development
expense was $6.4 million, or 23% of net sales, as compared to $6.3 million, or
10% of net sales, in the comparative nine months. The expenses in the nine month
periods of 1997 and 1996 were net of contract funding of $217,000 and $379,000,
respectively. The increase in research and development expenses for the three
and nine month periods as a percentage of net sales reflected the low level of
shipments in 1997. The increase in expenditures in dollars in the three and nine
month periods reflected the addition of staff, facilities and equipment
resulting from the acquisitions of NetVision and NuCom, respectively. The
increase is also attributable to the development of new technologies, including
Gigabit, and the enhancement and expansion of existing technologies, including
Ethernet switching and network management, from desktop switching and collapsed
backbone to wiring closets and campus data centers. The Company believes it is
essential to continue this level of investment in research and development and
expects the dollar level of spending to increase in the next several quarters.
Marketing and Selling
Marketing and selling expenses for the third quarter of 1997 were $3.2
million, or 58% of net sales, compared to $3.1 million, or 22% of net sales, for
the comparative quarter. For the nine months of 1997, marketing and selling
expenses were $11.1 million, or 40% of net sales, as compared to $7.8 million,
or 21% of net sales, in comparative nine months. The increase in expenditures in
nine month period reflected the addition of staff, facilities and equipment
resulting from the acquisition of NuCom. Additionally, during the first half of
1997, the Company continued to incur expenses pursuing its marketing strategy to
penetrate the global markets and to establish brand name recognition. The
Company expects to realign its marketing resources to focus on increasing the
OEM customer base. This strategy is expected to decrease the expenditures for
marketing and selling in the next several quarters.
General and Administrative
General and administrative expenses for the three months of 1997 were
$728,000, or 13% of net sales, compared to $944,000, or 7% of net sales, in the
comparative quarter. For the nine months of 1997, general and administrative
expenses were $4.1 million, or 14% of net sales as compared to $2.5 million, or
7% of sales, in the comparative nine months. To enhance the Company's
information system infrastructure to support future growth, the Company incurred
costs associated with increased staffing, equipment, consulting and overhead.
The Company expects the dollar level of general and administrative expenses to
remain relatively unchanged in the next several quarters.
Restructuring
For the quarter ended September 30, 1997, the Company incurred a
one-time charge of $3.7 million to restructure its operations.(Refer to Note 7).
Interest Income
Interest income for the third quarter 1997 was $418,000, compared to
$424,000 in the corresponding period in 1996. For the nine months of 1997 and
1996, interest income was $1.2 million and $1.4 million, respectively. The
decrease was the result of reduced level of invested funds as a result of the
acquisition of NuCom and NetVision, offset in part by higher returns on
investments.
10
<PAGE>
Income Taxes
The Company recorded a tax benefit, using an effective tax rate of 35%
for the three and nine months ended September 30, 1997 and 1996. In recording
the benefit, the Company expects to carry-forward its net operating loss to
prior years.
Liquidity and Capital Resources
For the nine months of 1997, the Company recorded a net loss of $20.6
million. The loss included third quarter charges of $3.7 million associated with
the restructuring of the Company's operations and $5.1 million to reserve for
excess and obsolete inventory. Additionally, in the quarter ended June 30, 1997,
the Company recorded a $6.5 million non-recurring charge for in-process research
and development purchased in connection with the acquisition of NetVision.
Cash used in operating activities for the nine months of 1997 was $7.1
million, primarily due to the operating loss, increase in prepaid expenses and
decrease in accrued liabilities, offset in part by decreases in trade
receivables and net inventory.
Cash provided by investing activities for the nine months of 1997 was
$8.7 million, primarily due to the sale of short-term securities, offset in part
by $6.5 million used in acquisition of NetVision.
Cash provided by financing activities for the nine months of 1997 was
$729,000 and resulted from the exercise of stock options and employee stock
purchase.
At September 30, 1997, the Company's principal sources of liquidity
were its cash, cash equivalents and short-term investments of $32.7 million and
$10.0 million available for borrowing under the Company's line of credit. As of
September 30, 1997, there were no borrowings outstanding under the Company's
bank line of credit. The Company believes that its balance of cash, cash
equivalents and short-term investments and available borrowing capacity will be
sufficient to meet the Company's capital and operating requirements for the
foreseeable future.
Acquisition
Effective April 29, 1997, the Company acquired NetVision Corporation.
Refer to Note 6 of Notes to Condensed Consolidated Financial Statements.
Business Risks
In addition to the factors addressed in the preceding sections, certain
characteristics and dynamics of the Company's markets, technologies and
operations create risks to the Company's long-term success and to predictable
quarterly results. These risks will also affect the Company's ability to achieve
the results anticipated by the forward-looking statements contained in this
interim report. The Company's quarterly results have in the past varied, and are
expected in the future to vary significantly as a result of factors such as the
timing and shipment of significant orders, new product introductions or
technological advances by the Company and its competitors, market acceptance of
new or enhanced versions of the Company's products, changes in pricing policies
by the Company and its competitors, the mix of distribution channels through
which the Company's products are sold, the mix of products sold, the accuracy of
resellers' forecast of end-user demand, the ability of the Company to obtain
sufficient supplies of sole or limited source components for the Company's
products and general economic conditions. In response to competitive pressures
or new product introductions, the Company may take certain pricing or marketing
actions that could materially and adversely affect the Company's operating
results. In the event of a reduction in the prices of its products, the Company
has committed to providing retroactive price adjustments on inventories held by
its distributors, which could have the effect of reducing margins and operating
results. In addition, changes in the mix of products sold and the mix of
distribution channels through which the Company's products are sold may cause
fluctuations in the Company's gross margins. The Company's expense levels are
based, in part, on its expectations of its future revenue and, as a result, net
income would be disproportionately affected by a reduction in revenue. Due to
the potential quarterly fluctuation in operating results, the Company believes
that quarter-to-quarter comparisons of its results of operations are not
11
<PAGE>
necessarily meaningful and should not be relied upon as indicators of future
performance.
The markets for the Company's products are characterized by rapidly
changing technology, evolving industry standards, frequent new product
introductions and short product life cycles. These changes can adversely affect
the business and operating results of industry participants. The Company's
success will depend upon its ability to enhance its existing products and to
develop and introduce, on a timely and cost-effective basis, new products that
keep pace with technological developments and emerging industry standards and
address increasingly sophisticated customer requirements. The inability to
develop and manufacture new products in a timely manner, the existence of
reliability, quality or availability problems in the products or their component
parts, the failure to obtain reliable subcontractors for volume production and
testing of mature products, or the failure to achieve market acceptance would
have a material adverse effect on the Company's business and operating results.
The markets in which the Company competes are also characterized by
intense competition. Several of the Company's competitors have significantly
broader product offerings and greater financial, technical, marketing and other
resources and finished installed bases than the Company. These larger
competitors may also be able to obtain higher priority for their products from
distributors and other resellers that carry products of many companies. These
competitive pressures could adversely affect the Company's business and
operating results.
12
<PAGE>
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits Description of Document
-------- -----------------------
27 Financial Data Schedule.
(b) Reports on Form 8-K
-------------------
None
13
<PAGE>
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 thereunto duly authorized.
NETWORK PERIPHERALS INC.
Date: November 14, 1997 By: \s\ ROBERT HERSH
-----------------
Robert Hersh
Vice President, Finance
Chief Financial Officer
(Principal Financial and Accounting
Officer)
14
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<CIK> 0000922521
<NAME> Network Peripherals Inc.
<MULTIPLIER> 1,000
<S> <C>
[ARTICLE] 5
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 32,738
<SECURITIES> 7,000
<RECEIVABLES> 6,424
<ALLOWANCES> 1,324
<INVENTORY> 1,528
<CURRENT-ASSETS> 44,530
<PP&E> 8,383
<DEPRECIATION> 4,123
<TOTAL-ASSETS> 50,130
<CURRENT-LIABILITIES> 10,272
<BONDS> 0
0
0
<COMMON> 12
<OTHER-SE> 39,846
<TOTAL-LIABILITY-AND-EQUITY> 50,130
<SALES> 28,221
<TOTAL-REVENUES> 28,221
<CGS> 21,869
<TOTAL-COSTS> 21,869
<OTHER-EXPENSES> 31,647
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (1,201)
<INCOME-PRETAX> (24,094)
<INCOME-TAX> (3,526)
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (20,568)
<EPS-PRIMARY> (1.69)
<EPS-DILUTED> (1.69)
</TABLE>
