Wiping out its year-ago loss, NETsilicon Inc. reported fourth-quarter earnings of $789,000 on revenue of $8.4 million.
The Waltham, Mass., company, which designs system-on-silicon and software for connecting electronic devices to the Internet and Ethernet networks, reported a 5-cent-per-share profit, following a fourth-quarter 1998 loss of $165,000, or 2 cents per share, on revenue of $5 million.
For the year ended Jan. 31, NETsilicon reported a 137% revenue increase to $31.8 million and recorded net income of $2 million, or 17 cents per share, compared with a net loss of $2.1 million, or 21 cents per share, in its previous fiscal year.
"Fiscal 2000 was a year of excellent growth for NETsilicon," said Cornelius "Pete" Peterson VIII, the company's chairman, chief executive, and president. "We experienced strong growth in demand for our imaging products and are beginning to see rapid market acceptance of our embedded networking products. In our third quarter, we had unexpected and exceptionally positive results. In our fourth quarter, we are on a growth track in line with our business plan."
In the year ahead, NETsilicon plans to develop and launch embedded networking-system products based on Linux and Java operating environments. "We believe this initiative represents a great opportunity for us and one we hope will enable our customers to add network connectivity to many smaller and less expensive devices, and bring them to market faster and at lower cost," Peterson said.
"Because of its outstanding programming productivity and large libraries of open applications, Java is the language of choice for many networking applications, and both Linux and Java have a broad following within the software development community," he added.
NETsilicon is also planning what it called significant investments in R&D, marketing, and technical support to launch the Java and Linux initiatives in fiscal 2001 and 2002. The new plan, however, could reduce profit levels below previous estimates, the company warned.
"We anticipate that our net income for fiscal 2001 and 2002 will be substantially lower than earlier expectations due to investments in these new business opportunities," Peterson said. "We plan to continue to be profitable, but we will be investing significantly in new platforms that we expect will greatly strengthen our overall leadership in the embedded systems market."