SUNNYVALE, Calif. -- MMC Networks Inc. here took a hit -- as it expected to -- in the fourth quarter, ended Dec. 31, recording revenue of $11.6 million compared with $13.6 million reported in the fourth quarter of 1998, and a net loss of $427,000 compared with a profit of $2.9 million, or 9 cents per share, for the fourth quarter of 1998.
When the network processor supplier's largest customer, IBM Corp., sold its router business to Cisco Systems Inc. last summer, MMC expected a negative fourth quarter (see story in the Jan. 15 publication).
Doug Spreng, president and CEO, remarked that the company was making good progress in replacing the lost business and forecast a stronger first quarter. "Nortel Networks Inc. became a material customer for the first time, representing more than 10% of revenues, and our relationship with Cisco continues to be very good as evidenced by today's announcementthat Cisco is using our network processors in its form factor, Layer 3 backbone switches targeted at mid-size networks," he said.
For the year, MMC still recorded a 42% increase in revenue, to $70.1 million, and net income of $11.8 million or 35 cents per share compared with a net income of $8.4 million or 25 cents per share for 1998.