WALTHAM, Mass. -- Demand for its embedded networking connectivity products in the third fiscal quarter of 2000 drove NETsilicon Inc.'s revenues to $10.1 million --more than triple the $3.0 million it registered for the same period in fiscal 1999.
The company also reported net income for the quarter, ended Oct. 31, of $905,000, or 7 cents per share, compared with a net loss of $1.7 million for the comparable period a year ago. Revenue for the previous nine months rose 179% to $23.5 million from $8.4 million for the prior year period.
Cornelius "Pete" Peterson VIII, chairman, CEO and president of NETsilicon, said he was extremely pleased with the company's financial results, but cautioned that he does not expect the high revenue growth rate experienced during this third quarter to be sustained in immediate upcoming quarters.
NETsilicon said much of the quarter's stepped-up business came from existing OEM imaging customers and a significant order from a new customer whose imaging product was experiencing increased demand as a result of Y2K.
"This rapid increase in orders was attributable in part to one-time orders related to Y2K. We expect to return to more normal growth rates in ensuing quarters," he said.
Peterson noted that backlog was approximately $7 million at Oct. 31, compared with $11 million at the close of the second fiscal quarter of this year. "While our focus in the most recent quarter was on production and meeting high order flow, the efforts of our expanded sales and marketing team have kept the backlog in line with normal levels," he said.
Peterson said NETsilicon is on plan to reach its financial goals for fiscal 2000 and is seeing an increase in design-win activity. He was especially optimistic about the company's NET+Fast IP, a software module that makes Ethernet viable for high-speed, real-time industrial automation applications (see Nov. 19 story).
He also noted that the company is taking measures to ensure adequate supply of specialized flash memory chips in response to industry shortages, including contracting with new suppliers.
In September, NETsilicon made an initial public offering of 3.5 million shares at $7 per share. Net proceeds to the company were $23 million.