Xircom Reports Loss Despite Sales Growth

Xircom Inc. in Thousand Oaks reported a loss for the third quarter despite an increase in sales.

Net sales for the quarter ended June 30 increased 14% to $50.2 million, compared with $43.9 million a year earlier. Net loss for the quarter was $5.8 million, compared with net income in last year’s third quarter of $2.5 million.

On June 30, the company announced the sale of its Netaccess Inc. subsidiary, which resulted in a loss of $6.3 million or 27 cents per share. Company officials attributed the quarter’s net loss to the sale of Netaccess and reduced income from operations.

Net income for the first nine months of fiscal 1997 was $3 million, compared with $3.1 million for the previous year.

“At the outset of last quarter we established two corporate goals--to bring PC card channel inventory under control and to divest the Netaccess business unit,” said Dirk Gates, chairman, president and chief executive officer. “We exited the quarter having achieved these goals.”