Xircom Won’t Meet Revenue Projections

Xircom Inc., a Thousand Oaks computer network developer, said its revenues for the quarter ending June 30 will be $50 million, or 15% lower than the $58.5 million currently expected by Wall Street analysts.

The company said the lower sales projection is due to sluggish PC Card sales for its third quarter.

“The U.S. market is experiencing strong demand but limited availability for the new high-end MMX-equipped portable computers,” said Xircom president and CEO Dirk Gates. “As a result of this latest processor transition, we are currently experiencing slower growth in demand for PC Cards.”

The company anticipates demand for the PC Cards and modems will increase over the next two quarters, enabling Xircom to return to an annualized growth target of 40%.