WALTHAM, Mass. -- The introduction of several new products, as well as strengthening in its core business led to a 55% increase in revenue for NETsilicon, Inc. in the first quarter of fiscal 2001 ended April 29.
The company reported revenue of $9.0 million, up from $5.8 million for the first quarter of fiscal 2000. Net income for the quarter equaled $780,600, or 5 cents per share, compared with net income of $15,500, or 0 cents per share, for the same period last year.
Revenue growth for the first quarter resulted from both the expansion of its core imaging business as well as an increase in business in newer embedded markets, according to company reports.
"We are making considerable progress in penetrating the industrial automation and embedded markets," said Cornelius Peterson, NETsilicon chairman, CEO and president.
Gross margin for the quarter increased to 62.3% of revenue, compared with 46.3% in the year-ago period. The improvement in gross margin, according to the company, was due to higher than expected non-recurring engineering fees and royalties as well as early and rapid acceptance of the company's new higher margin NET+OS embedded product. Decreases in component and subcontract labor cost also contributed to the growth, the company reported.
Reflecting the company's growing investment in research and development, operating expenses for the quarter equaled $5.1 million compared with $2.4 million for the same period last year.
"Looking ahead to the balance of the fiscal year and beyond, our business will be driven by the growing number of complex 'smart' electronic devices, enabled by embedded solutions, that are being invisibly woven into the fabric of everyday modern life," said Peterson. "We believe that manufacturers will add network connectivity to virtually every device related to control, measurement or computing over the next several years."