Vitesse Semiconductor Reports Record Sales
Three of Ventura County’s best-known high-tech companies lost money in their latest quarters, but one technology concern, Camarillo-based Vitesse Semiconductor Corp., reversed the trend, turning in record sales and profits.
Vitesse, a producer of integrated circuits for the communications and test-equipment industries, said demand is on the rise for its high-speed digital gallium arsenide circuits, an alternative to the silicon-based chips used by most computer makers.
As a result, Vitesse had net income in the latest three months of $1.8 million, or 10 cents a share, on revenues of $12.1 million. In the same period a year earlier, the company earned $562,000, or 4 cents a share, on revenues of $7.4 million.
“Bookings also set a record of $16.9 million and remained strong in our key markets,” said Lou Tomasetta, president and chief executive.
He added that Vitesse strengthened its balance sheet in its latest three months, which represent the start of its fiscal year. Cash on hand increased to $9.2 million from $5.2 million in the year-earlier period. In the quarter ended last Sept. 30, Vitesse had $6.3 million in cash on hand.
* Things weren’t so rosy elsewhere in the high-tech arena, however.
Xircom Inc., ACT Networks Inc. and Micom Communications Corp. all reported red ink in their latest quarters. All are involved in computer networking.
Xircom, a Thousand Oaks producer of computer-network systems, had a net loss of $760,000, or 4 cents a share, on sales of $37.7 million in its fiscal first quarter, ended Dec. 31.
This contrasted with a net profit of $4.5 million, or 27 cents a share, on sales of $40.1 million in the same period a year earlier.
Xircom officials noted that the latest results represent an improvement over the three months ended last Sept. 30, when the company suffered a net loss of $17.1 million, or 91 cents a share.
Dirk I. Gates, Xircom’s president and chief executive, said the company is increasing revenues by concentrating on its core business of connecting portable personal computers to networks.
He added that Xircom is holding discussions with other concerns that might be interested in jointly developing or even buying Xircom’s wireless local-area network business.
* Micom, a Simi Valley producer of integrated computer networks, had a net loss of $2.3 million, or 19 cents a share, on sales of $16.4 million in the quarter ended Dec. 31.
This contrasted with a profit of $1.3 million, or 11 cents a share, on sales of $20.3 million a year earlier.
In the nine months ended Dec. 31, Micom had net income of $753,000, or 6 cents a share, on sales of $62.4 million. In the same period a year earlier, the company earned $5.6 million, or 48 cents a share, on sales of $66.8 million.
Micom had previously announced that it expected to report reduced sales in the final three months of 1995.
Barry Phelps, Micom’s chairman and chief executive, said the company has taken several steps, including reducing shipments, to return to profitability.
“Although we are disappointed with our quarterly results,” he said, “we believe the action we have taken to reduce the inventory levels in our domestic channel was necessary.”
* ACT Networks Inc., a Camarillo producer of wide-area computer network systems, had a net loss of $6.7 million, or 86 cents a share, in the three months ended Dec. 31, even though revenues rose to a record $6.2 million during the quarter.
A year earlier, the company had a net profit of $216,000, or 5 cents a share, on revenues of $4.9 million.
ACT blamed most of its loss in the latest quarter on the cost of acquiring Presticom Inc., a Montreal maker of data-transmitting devices. ACT purchased Presticom on Nov. 30 for $8.7 million in cash and stock.
In the six months ended Dec. 31, ACT had a net loss of $6.8 million, or 89 cents a share, on revenues of $11.3 million. This contrasted with a year-earlier profit of $387,000, or 8 cents a share, on revenues of $9.3 million.
Martin Shum, chairman and chief executive, said ACT “will continue focusing on lowering expenses relative to sales.” Revenue growth in the latest quarter “reflects the increasing opportunities for our expansion,” he added.
