CA - Xircom to Miss Q2 Expectations, Cites Y2K : LUSENET : Grassroots Information Coordination Center (GICC) : One Thread

[Fair use for education and research purpose only]

March 24, 2000 7:14am FOCUS-Xircom to miss Q2 expectations, cites Y2K Reuters(Recasts, adds analysts' forecast)

THOUSAND OAKS, Calif., March 24 (Reuters) - Xircom Inc. , which makes products that enable computers to connect to networks, said on Friday its quarterly earnings would fall short of Wall Street expectations, due in part to Y2K issues.

The company forecast fiscal second-quarter earnings of 30 to 35 cents per share, excluding certain items. Analysts' consensus estimate is 56 cents, according to First Call/Thomson Financial.

Xircom said revenue would range between $108 million and $110 million.

In the first quarter, ended Dec. 31, the company reported earnings of 55 cents per diluted share, excluding acquisition-related costs.

"The first half of the (second) quarter got off to a slow start in our access card business due to an extended Y2K freeze on notebook roll-outs at several of our large enterprise customers," said Dirk Gates, Xircom's chairman, president and chief executive officer.

"Sell-through of access cards from our distribution and OEM partners has improved considerably in the last several weeks and has returned to the levels we expected entering the quarter. We are encouraged by the continued strong demand for our new product lines, including our PortStation and PortGear USB Port Expansion solutions, and the Rex wearable information accessory, where we expect 40 percent sequential unit growth this quarter," he said.

The company was to hold a conference call with analysts later today. It will report second-quarter earnings on April 17.

((--Amy Collins, New York Newsdesk +212 859 1700))

Copyright ) 1999 Reuters Limited. All rights reserved.


-- (, March 24, 2000

Moderation questions? read the FAQ