Proxim Inc. Announces First Quarter 1995 Financial Results
MOUNTAIN VIEW, Calif. — April 18, 1995 — Proxim Inc. (NASDAQ:PROX) announced Tuesday its financial results for the quarter ended March 31, 1995.
Revenue for the first quarter of 1995 was $ 3,363,000, which represents an increase of 27% compared to revenue of $ 2,650,000 for the first quarter of 1994, and an increase of 4% compared to revenue of $ 3,234,000 in the fourth quarter of 1994.
Net income for the first quarter of 1995 was $ 18,000, or $ .00 per share, compared to net income of $ 272,000, or $ .03 per share, for the first quarter of 1994, and net income of $ 134,000, or $ .02 per share, for the fourth quarter of 1994.
"Results for the first quarter of 1995 reflect a continued period of transition in our business," said David C. King, president and chief executive officer. "While sales of our 902 MHz OEM products rebounded from a dip in the past two quarters, RangeLAN2 sales represented a majority of product revenues for the quarter.
"RangeLAN2 shipments in the quarter were affected by the timing of customer orders and the production ramp up time needed to meet the initial requirements of several key OEM customers for internationally certified products. We are optimistic that these initial requirements can be fulfilled during the course of the second quarter.
"From an operating perspective, the first quarter proved extremely productive for Proxim in terms of new OEM customers, new products, new distribution channels and new geographic markets," continued King.
"During the quarter we began shipping pilot quantities of our 2.4 GHz RangeLAN2 products to a number of key OEM customers, including Intermec Corporation, LXE Inc., and Fujitsu Personal Systems Inc. while continuing production level shipments to Zenith Data Systems and other established RangeLAN2 distribution channels.
"We also announced our new RangeLINK family of 2.4 GHz wireless remote bridge products, a new distribution partnership with Anixter Inc. covering North and South America, and a new strategic technology and marketing alliance with Digital Equipment Corporation.
"In addition, we are pleased to announced that Proxim has obtained certification for the RangeLAN2 family of products from a European Telecommunications Standards Institute (ETSI) independent testing organization," stated King.
"This enabled us to receive government authorization for our RangeLAN2 branded product family in the United Kingdom in late March and to apply for certification in numerous other European countries. We look forward to obtaining further government approvals throughout Europe and Asia during the balance of the year, not only for Proxim, but for many of the company's major OEM partners."
Headquartered in Mountain View, Proxim Inc. was founded in 1984 to develop and market wireless communications technology. Since 1989, the company has been the industry's leading OEM supplier of spread spectrum wireless data networking products. In 1994, Proxim introduced RangeLAN2, its award winning 2.4 GHz frequency hopping wireless LAN product family. To date, the company has shipped more than 95,000 spread spectrum radio products.
NOTE TO EDITORS: Product and company names used herein are trademarks or registered trademarks of their respective companies.
PROXIM INC.
STATEMENT OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended
March 31, December 31,
1995 1994 1994
Revenue:
Product $ 3,213 $ 2,350 $ 3,084
Non-recurring engineering 150 300 150
Total revenue 3,363 2,650 3,234
Cost of revenue:
Product 1,508 1,022 1,395
Non-recurring engineering 111 223 111
Total cost of revenue 1,619 1,245 1,506
Gross profit 1,744 1,405 1,728
Research and development 652 361 585
Selling, general and administrative 1,235 844 1,140
Income (loss) from operations (143) 200 3
Interest income, net 163 102 146
Income before income taxes 20 302 149
Income tax provision 2 30 15
Net income $ 18 $ 272 $ 134
Net income per share $ 0.00 $ 0.03 $ 0.02
Weighted average common shares 7,733 7,777 7,737
As a percentage of total revenue:
Gross margin 51.9% 53.0% 53.4%
Research and development 19.4% 13.6% 18.1%
Selling, general and administrative 36.7% 31.8% 35.3%
Net income 0.5% 10.3% 4.1%
PROXIM INC.
CONDENSED BALANCE SHEET
(in thousands)
(unaudited)
March 31 December 31
1995 1994
Assets
Current assets:
Cash and cash equivalents $ 10,491 $ 11,300
Accounts receivable 1,787 2,129
Inventories 3,491 3,026
Other assets 178 242
Total current assets 15,947 16,697
Property and equipment, net 1,183 738
——- ——-
$ 17,130 $ 17,435
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 1,038 $ 1,687
Other current liabilities 721 522
Total current liabilities 1,759 2,209
Capital stock 27,350 27,223
Accumulated deficit (11,979) (11,997)
Total stockholders' equity 15,371 15,226
——– ———
$ 17,130 $ 17,435
CONTACT:
Proxim Inc., Mountain View
Keith E. Glover, 415/960-1630