INRANGE Announces Record Q1 Revenue of $63.9 Million Fueled by FC/9000 Director

235% Growth in Open Storage Networking



Apr 19, 2001, 01:00 ET from INRANGE Technologies Corporation

    LUMBERTON, N.J., April 19 /PRNewswire/ -- INRANGE Technologies Corporation
 (Nasdaq: INRG), a leading provider of networking products and services for
 storage area networks (SANs), and data and telecommunications networks, today
 reported record revenues of $63.9 million, adjusted net income of $3.0 million
 and earnings per share of $0.04 for the quarter ended March 31, 2001,
 excluding the effects of the amortization of goodwill and other intangibles.
 
     FIRST QUARTER REVENUE UP 38%, DRIVING 37th CONSECUTIVE PROFITABLE QUARTER
     The company reported record revenues for the first quarter of
 $63.9 million, a 38% increase over first quarter of 2000.  In terms of
 revenue, this was the best first quarter in Inrange's 33-year history.
     Revenues in the open storage networking business in the quarter totaled
 $21.1 million, a 235% increase over first quarter 2000, and increased about
 20% sequentially over the fourth quarter 2000.  This 235% growth was mainly
 fueled by the continued marketplace acceptance of the FC/9000 128 port
 director and SAN services.
     The company reported adjusted net income of $3.0 million, and $0.04
 earnings per share, excluding the effects of the amortization of goodwill and
 other intangibles.  On an actual basis, net income was $2.3 million and
 earnings per share were $0.03 for the quarter ended March 31, 2001.
     This was the 37th consecutive profitable quarter for Inrange, excluding
 one-time or special charges.
 
     FIRST QUARTER HIGHLIGHTS
     In the quarter, Inrange announced:
 
      *  General availability of 128-Port FC/9000 Fibre Channel Director
         achieved in March, on target with previous forecasts.
 
      *  46% growth in services revenues compared to first quarter 2000.
         Services revenues were $12.3 million or about 20% of total revenues.
 
      *  A new partnership with VERITAS, including bundling VERITAS SAN
         Software Release 2.0 with each FC/9000 Director.
 
      *  A new partnership with BMC to simplify Storage Management.
 
      *  A worldwide alliance with Hitachi Data Systems to enable
         high-availability, Virtual Storage Networks.  HDS to resell IN-VSN
         Family including Inrange Director, channel extension, optical
         networking and services offerings.
 
      *  Professional Services Group bolstered with Prevail Technology
         acquisition.
 
     "Inrange continued to build on its technology leadership position in Q1
 with the introduction of the 128 port capacity director.  However, we are not
 in the business to just talk about having the largest and best directors.
 Market leading technology doesn't lead to market traction unless that
 technology is focused on helping customers solve their complex business
 problems -- and you have the right way to 'deliver' that solution to the
 customer.  We tailor our solutions to our customers' unique environment, for
 their specific applications.  The FC/9000 now scales between 24-to-128 ports,
 without any degradation in performance.  We accomplish this with our unique
 XCA 'any-to-any, non-blocking architecture.'  This allows our customers to
 build larger SANs than previously available," stated Greg R. Grodhaus, Inrange
 President and CEO.
     "We have the right delivery systems.  With the Prevail acquisition
 completed and fully integrated, Inrange now has over 450 sales, service and
 systems field based experts dispersed around the world.  This allows Inrange
 to support customers and Business Partners directly in more than 90 locations
 throughout the world.  This business model, together with our sales and
 service resources, allows Inrange to focus on providing solutions directly to
 the customer -- and giving us better 'control of our destiny.'"
     "This is a tough 'economy.'  However, our technologies are driving
 customer efficiencies and value -- and I am proud to say that our customers
 are responding by ordering our products and services in greater quantities
 than at any time in our history."
     "With our technology partner, QLogic, we continue to bring products to
 market much faster than our competitors.  In this day of shrinking product
 life cycles, our two companies' combined technological resources of
 600+ engineers, allows us to more quickly respond to our customer needs.  In
 addition, we design our products to be seamlessly field-upgradeable to protect
 our customer's technology investments.  The 128 port FC/9000 is the perfect
 example.  All previously installed FC/9000 24-to-64 port units now scale
 between 24-to-128 ports.  This is the ultimate 'pay-as-you-grow' system,"
 added Grodhaus.
     Inrange is "on-target" with the 2001 product roadmap previously announced
 in the fourth quarter 2000.  With the 128 port director now available and
 FC-over-WAN capability and the 256 port FC/9000 coming later in 2001, Inrange
 will widen its technology lead.
 
     Media Contact:
     Lou Martelli
     609-518-4179
 
     Investor Relations:
     Nelson Viola
     609-518-4435
 
 
                        INRANGE TECHNOLOGIES CORPORATION
 
                       UNAUDITED CONDENSED BALANCE SHEETS
                                 (in thousands)
 
                                                      March 31,   December 31,
                                                          2001           2000
 
     ASSETS
 
     CURRENT ASSETS:
      Cash and cash equivalents                      $  22,809      $  22,646
      Demand note from SPX                              52,341         60,956
      Accounts receivable, net                          73,069         79,988
      Inventories                                       30,855         29,271
      Prepaid expenses and other                         5,171          5,209
      Deferred income taxes                              4,968          4,968
          Total current assets                         189,213        203,038
     PROPERTY, PLANT AND EQUIPMENT, net                 17,577         16,103
     GOODWILL AND OTHER INTANGIBLES, net                45,672         44,629
     OTHER ASSETS, net                                  40,499         37,288
         Total assets                                $ 292,961      $ 301,058
 
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
 
     CURRENT LIABILITIES:
      Current portion of long-term debt              $   2,894      $   4,438
      Accounts payable                                  24,129         23,541
      Accrued expenses                                  19,631         29,401
      Deferred revenue                                  11,409         10,923
          Total current liabilities                     58,063         68,303
     LONG-TERM DEBT                                      1,315          1,283
     DEFERRED INCOME TAXES                                 918            918
 
     COMMITMENTS AND CONTINGENCIES
 
     TOTAL STOCKHOLDERS' EQUITY                        232,665        230,554
     Total liabilities and stockholders' equity      $ 292,961      $ 301,058
 
 
                        INRANGE TECHNOLOGIES CORPORATION
 
                       UNAUDITED STATEMENTS OF OPERATIONS
                (In thousands, except share and per share data)
 
                                                       Quarter Ended March 31,
                                                         2001            2000
     REVENUE:
      Product revenue                                $ 51,532       $  37,697
      Service revenue                                  12,343           8,456
      Total revenue                                    63,875          46,153
     COST OF REVENUE:
      Cost of product revenue                          25,701          18,306
      Cost of service revenue                           8,205           5,047
           Total cost of revenue                       33,906          23,353
             Gross margin                              29,969          22,800
     OPERATING EXPENSES:
      Research, development and engineering             7,584           4,963
      Selling, general and administrative              18,743          12,137
      Amortization of goodwill and other intangibles    1,041             267
       Operating expenses                              27,368          17,367
     OPERATING INCOME                                   2,601           5,433
     INTEREST (INCOME) EXPENSE                         (1,273)            177
     OTHER INCOME                                         (41)            (94)
       Income before income taxes                       3,915           5,350
     INCOME TAXES                                       1,569           2,140
     NET INCOME                                      $  2,346       $   3,210
     BASIC AND DILUTED EARNINGS PER COMMON SHARE:
      Basic and diluted earnings per common share    $   0.03       $    0.04
      Shares used in computing basic and diluted
       earnings per common share                   84,483,333      75,633,333
 
 
                        INRANGE TECHNOLOGIES CORPORATION
 
           UNAUDITED RECONCILIATION OF RESULTS ON A COMPARATIVE BASIS
          EXCLUDING THE AMORTIZATION OF GOODWILL AND OTHER INTANGIBLES
                (In thousands, except share and per share data)
 
                                                       Quarter Ended March 31,
                                                         2001            2000
 
     INCOME BEFORE INCOME TAXES                     $   3,915       $   5,350
     ADD:
      Amortization of goodwill and other intangibles    1,041             267
     INCOME BEFORE INCOME TAXES
      EXCLUDING AMORTIZATION                            4,956           5,617
 
     INCOME TAXES                                       1,982           2,247
     NET INCOME EXCLUDING AMORTIZATION              $   2,974       $   3,370
     BASIC AND DILUTED EARNINGS PER COMMON SHARE:
      Basic and diluted earnings per common share   $    0.04       $    0.04
      Shares used in computing basic
       earnings per common share                   84,833,333      75,633,333
 
     About INRANGE Technologies (www.inrange.com )
     INRANGE Technologies, a subsidiary of SPX Corporation (NYSE:   SPW) designs,
 manufactures, markets and services networking and switching products for
 storage, data and telecommunications networks.  Our products provide fast and
 reliable connections among networks of computers and related devices and are
 used in global 2000 businesses and other enterprises that operate large-scale
 and heterogeneous systems where open connectivity, reliability and continuous
 availability are critical.  Our products are designed to be compatible with
 various vendors' products and multiple communication standards and protocols.
     INRANGE and the INRANGE logo are registered trademarks of INRANGE
 Technologies Corporation.  IN-VSN, FC/9000, XCA and CD/9000 are trademarks of
 INRANGE Technologies Corporation.  All other trademarks and product names are
 the property of their respective owners.
 
     Forward-Looking Statements
     This press release contains forward-looking statements, in addition to
 historical facts.  Statements regarding our competitive strengths, business
 strategy, future financial position, the markets and market growth for our
 products, and our plans and objectives, are forward-looking statements and
 made pursuant to the safe harbor provisions of the Private Securities
 Litigation Reform Act of 1995.  Forward-looking statements in our release can
 also be identified generally by the use of forward-looking terminology such as
 "may," "will," "expect," "should," "intend," "estimate," "anticipate,"
 "believe,"  "continue" and the like.  Due to the risks and uncertainties of
 our business including, but not limited to, those described in the "Risk
 Factor," "Management's Discussion and Analysis of Financial Condition and
 Results of Operations" and "Business" sections of our Form 10-K and the other
 reports we file from time to time with the Securities and Exchange Commission,
 readers are cautioned not to rely on these forward-looking statements, which
 speak only as of the date of this release.  We can give no assurance that our
 expectations, as reflected in these forward-looking statements, will prove to
 have been correct and our actual results could differ substantially from those
 anticipated.
 
 

SOURCE INRANGE Technologies Corporation
    LUMBERTON, N.J., April 19 /PRNewswire/ -- INRANGE Technologies Corporation
 (Nasdaq: INRG), a leading provider of networking products and services for
 storage area networks (SANs), and data and telecommunications networks, today
 reported record revenues of $63.9 million, adjusted net income of $3.0 million
 and earnings per share of $0.04 for the quarter ended March 31, 2001,
 excluding the effects of the amortization of goodwill and other intangibles.
 
     FIRST QUARTER REVENUE UP 38%, DRIVING 37th CONSECUTIVE PROFITABLE QUARTER
     The company reported record revenues for the first quarter of
 $63.9 million, a 38% increase over first quarter of 2000.  In terms of
 revenue, this was the best first quarter in Inrange's 33-year history.
     Revenues in the open storage networking business in the quarter totaled
 $21.1 million, a 235% increase over first quarter 2000, and increased about
 20% sequentially over the fourth quarter 2000.  This 235% growth was mainly
 fueled by the continued marketplace acceptance of the FC/9000 128 port
 director and SAN services.
     The company reported adjusted net income of $3.0 million, and $0.04
 earnings per share, excluding the effects of the amortization of goodwill and
 other intangibles.  On an actual basis, net income was $2.3 million and
 earnings per share were $0.03 for the quarter ended March 31, 2001.
     This was the 37th consecutive profitable quarter for Inrange, excluding
 one-time or special charges.
 
     FIRST QUARTER HIGHLIGHTS
     In the quarter, Inrange announced:
 
      *  General availability of 128-Port FC/9000 Fibre Channel Director
         achieved in March, on target with previous forecasts.
 
      *  46% growth in services revenues compared to first quarter 2000.
         Services revenues were $12.3 million or about 20% of total revenues.
 
      *  A new partnership with VERITAS, including bundling VERITAS SAN
         Software Release 2.0 with each FC/9000 Director.
 
      *  A new partnership with BMC to simplify Storage Management.
 
      *  A worldwide alliance with Hitachi Data Systems to enable
         high-availability, Virtual Storage Networks.  HDS to resell IN-VSN
         Family including Inrange Director, channel extension, optical
         networking and services offerings.
 
      *  Professional Services Group bolstered with Prevail Technology
         acquisition.
 
     "Inrange continued to build on its technology leadership position in Q1
 with the introduction of the 128 port capacity director.  However, we are not
 in the business to just talk about having the largest and best directors.
 Market leading technology doesn't lead to market traction unless that
 technology is focused on helping customers solve their complex business
 problems -- and you have the right way to 'deliver' that solution to the
 customer.  We tailor our solutions to our customers' unique environment, for
 their specific applications.  The FC/9000 now scales between 24-to-128 ports,
 without any degradation in performance.  We accomplish this with our unique
 XCA 'any-to-any, non-blocking architecture.'  This allows our customers to
 build larger SANs than previously available," stated Greg R. Grodhaus, Inrange
 President and CEO.
     "We have the right delivery systems.  With the Prevail acquisition
 completed and fully integrated, Inrange now has over 450 sales, service and
 systems field based experts dispersed around the world.  This allows Inrange
 to support customers and Business Partners directly in more than 90 locations
 throughout the world.  This business model, together with our sales and
 service resources, allows Inrange to focus on providing solutions directly to
 the customer -- and giving us better 'control of our destiny.'"
     "This is a tough 'economy.'  However, our technologies are driving
 customer efficiencies and value -- and I am proud to say that our customers
 are responding by ordering our products and services in greater quantities
 than at any time in our history."
     "With our technology partner, QLogic, we continue to bring products to
 market much faster than our competitors.  In this day of shrinking product
 life cycles, our two companies' combined technological resources of
 600+ engineers, allows us to more quickly respond to our customer needs.  In
 addition, we design our products to be seamlessly field-upgradeable to protect
 our customer's technology investments.  The 128 port FC/9000 is the perfect
 example.  All previously installed FC/9000 24-to-64 port units now scale
 between 24-to-128 ports.  This is the ultimate 'pay-as-you-grow' system,"
 added Grodhaus.
     Inrange is "on-target" with the 2001 product roadmap previously announced
 in the fourth quarter 2000.  With the 128 port director now available and
 FC-over-WAN capability and the 256 port FC/9000 coming later in 2001, Inrange
 will widen its technology lead.
 
     Media Contact:
     Lou Martelli
     609-518-4179
 
     Investor Relations:
     Nelson Viola
     609-518-4435
 
 
                        INRANGE TECHNOLOGIES CORPORATION
 
                       UNAUDITED CONDENSED BALANCE SHEETS
                                 (in thousands)
 
                                                      March 31,   December 31,
                                                          2001           2000
 
     ASSETS
 
     CURRENT ASSETS:
      Cash and cash equivalents                      $  22,809      $  22,646
      Demand note from SPX                              52,341         60,956
      Accounts receivable, net                          73,069         79,988
      Inventories                                       30,855         29,271
      Prepaid expenses and other                         5,171          5,209
      Deferred income taxes                              4,968          4,968
          Total current assets                         189,213        203,038
     PROPERTY, PLANT AND EQUIPMENT, net                 17,577         16,103
     GOODWILL AND OTHER INTANGIBLES, net                45,672         44,629
     OTHER ASSETS, net                                  40,499         37,288
         Total assets                                $ 292,961      $ 301,058
 
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
 
     CURRENT LIABILITIES:
      Current portion of long-term debt              $   2,894      $   4,438
      Accounts payable                                  24,129         23,541
      Accrued expenses                                  19,631         29,401
      Deferred revenue                                  11,409         10,923
          Total current liabilities                     58,063         68,303
     LONG-TERM DEBT                                      1,315          1,283
     DEFERRED INCOME TAXES                                 918            918
 
     COMMITMENTS AND CONTINGENCIES
 
     TOTAL STOCKHOLDERS' EQUITY                        232,665        230,554
     Total liabilities and stockholders' equity      $ 292,961      $ 301,058
 
 
                        INRANGE TECHNOLOGIES CORPORATION
 
                       UNAUDITED STATEMENTS OF OPERATIONS
                (In thousands, except share and per share data)
 
                                                       Quarter Ended March 31,
                                                         2001            2000
     REVENUE:
      Product revenue                                $ 51,532       $  37,697
      Service revenue                                  12,343           8,456
      Total revenue                                    63,875          46,153
     COST OF REVENUE:
      Cost of product revenue                          25,701          18,306
      Cost of service revenue                           8,205           5,047
           Total cost of revenue                       33,906          23,353
             Gross margin                              29,969          22,800
     OPERATING EXPENSES:
      Research, development and engineering             7,584           4,963
      Selling, general and administrative              18,743          12,137
      Amortization of goodwill and other intangibles    1,041             267
       Operating expenses                              27,368          17,367
     OPERATING INCOME                                   2,601           5,433
     INTEREST (INCOME) EXPENSE                         (1,273)            177
     OTHER INCOME                                         (41)            (94)
       Income before income taxes                       3,915           5,350
     INCOME TAXES                                       1,569           2,140
     NET INCOME                                      $  2,346       $   3,210
     BASIC AND DILUTED EARNINGS PER COMMON SHARE:
      Basic and diluted earnings per common share    $   0.03       $    0.04
      Shares used in computing basic and diluted
       earnings per common share                   84,483,333      75,633,333
 
 
                        INRANGE TECHNOLOGIES CORPORATION
 
           UNAUDITED RECONCILIATION OF RESULTS ON A COMPARATIVE BASIS
          EXCLUDING THE AMORTIZATION OF GOODWILL AND OTHER INTANGIBLES
                (In thousands, except share and per share data)
 
                                                       Quarter Ended March 31,
                                                         2001            2000
 
     INCOME BEFORE INCOME TAXES                     $   3,915       $   5,350
     ADD:
      Amortization of goodwill and other intangibles    1,041             267
     INCOME BEFORE INCOME TAXES
      EXCLUDING AMORTIZATION                            4,956           5,617
 
     INCOME TAXES                                       1,982           2,247
     NET INCOME EXCLUDING AMORTIZATION              $   2,974       $   3,370
     BASIC AND DILUTED EARNINGS PER COMMON SHARE:
      Basic and diluted earnings per common share   $    0.04       $    0.04
      Shares used in computing basic
       earnings per common share                   84,833,333      75,633,333
 
     About INRANGE Technologies (www.inrange.com )
     INRANGE Technologies, a subsidiary of SPX Corporation (NYSE:   SPW) designs,
 manufactures, markets and services networking and switching products for
 storage, data and telecommunications networks.  Our products provide fast and
 reliable connections among networks of computers and related devices and are
 used in global 2000 businesses and other enterprises that operate large-scale
 and heterogeneous systems where open connectivity, reliability and continuous
 availability are critical.  Our products are designed to be compatible with
 various vendors' products and multiple communication standards and protocols.
     INRANGE and the INRANGE logo are registered trademarks of INRANGE
 Technologies Corporation.  IN-VSN, FC/9000, XCA and CD/9000 are trademarks of
 INRANGE Technologies Corporation.  All other trademarks and product names are
 the property of their respective owners.
 
     Forward-Looking Statements
     This press release contains forward-looking statements, in addition to
 historical facts.  Statements regarding our competitive strengths, business
 strategy, future financial position, the markets and market growth for our
 products, and our plans and objectives, are forward-looking statements and
 made pursuant to the safe harbor provisions of the Private Securities
 Litigation Reform Act of 1995.  Forward-looking statements in our release can
 also be identified generally by the use of forward-looking terminology such as
 "may," "will," "expect," "should," "intend," "estimate," "anticipate,"
 "believe,"  "continue" and the like.  Due to the risks and uncertainties of
 our business including, but not limited to, those described in the "Risk
 Factor," "Management's Discussion and Analysis of Financial Condition and
 Results of Operations" and "Business" sections of our Form 10-K and the other
 reports we file from time to time with the Securities and Exchange Commission,
 readers are cautioned not to rely on these forward-looking statements, which
 speak only as of the date of this release.  We can give no assurance that our
 expectations, as reflected in these forward-looking statements, will prove to
 have been correct and our actual results could differ substantially from those
 anticipated.
 
 SOURCE  INRANGE Technologies Corporation

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