FRAMINGHAM, Mass. -- Talk about market valuation. Maker Communications Inc., the network processor company that Conexant Systems Inc. is acquiring for $990 million, released its financial results for the fourth quarter and fiscal year ended Dec. 31, 1999. Maker, a six-year-old company with 80 employees, brought in $15.7 million in the fiscal year -- which was double the company's revenue in fiscal 1998.
For the fourth quarter, Maker recorded $4.9 million in revenue, up 75% from the $2.8 million reported in the fourth quarter of 1998 and up 20% sequentially. Maker also reported operating income for the fourth quarter of $109,000 compared to a $506,000 operating loss for the same period in 1998. Net income for the quarter was $878,000, or 4 cents per diluted share, versus a net loss of $403,000, or 7 cents per diluted share for the fourth quarter of 1998.
Both operating income and net income for the fourth quarter of 1999 include $200,000 ofacquisition costs associated with Maker's proposed merger with Conexant (see Dec. 20, 1999, story ).
"I am pleased to report Maker's strong performance in the fourth quarter, which closes another year of record revenues and profitability," said William N. Giudice, chairman and CEO of Maker Communications. "We more than doubled annual revenues, as the number of product programs in production using our network processors continues to grow."
In 1999, Maker's network processors were designed into new equipment at both new and existing customers, he said. Key wins include new designs at Cisco Systems, Juniper Networks, and Ericsson.
In the deal with Conexant, an all-stock transaction, Maker shareholders will receive 0.66 share of Conexant common stock for each share of Maker stock they own. The acquisition is expected to close by the end of March 2000. Maker's stock closed today at $48, down 1 3/16.