Xircom Nets $126.7 Million in Sales for 3rd Quarter

Xircom Inc. in Thousand Oaks reported net sales of $126.7 million for the third quarter ended June 30, compared with $108.4 million for the same period last year.

Net income, excluding acquisition-related costs, was $14.8 million, or 47 cents per share, compared with $9.9 million or 39 cents per share for the same period last year.

When acquisition-related costs and unusual items are factored in, the company reported a net loss of $5.1 million or 17 cents per share for the third quarter.

Acquisition-related costs consisted of a $19.5-million write-off of in-process research and development acquired in the purchase of Omnipoint Technologies Inc., which was completed June 27, and ongoing acquisition-related intangibles from transactions completed in prior periods.

“We had very strong sequential revenue growth this quarter driven by shipments to our large enterprise customers,” said Dirk Gates, Xircom chairman, president and chief executive. “However, the most significant progress in the quarter came from the announcement of three new partnerships that accelerate our entrance into the wireless data market.”

Besides the acquisition of Omnipoint, the company entered partnerships with VoiceStream Wireless Corp., Ericsson Mobile Communications AB and Cisco Systems.

These partnerships “are designed to take us from being the leader in providing wired data access for mobile users to being the leader in providing wireless data access for mobile users,” Gates said.