Exhibit 99.2
Asante Logo
Asante Announces Third Quarter 2003 Operating Results
Corporate Contact:
Anthony Contos
Asante Technologies, Inc.
Phone: 408-435-8401 Ext.388
Fax: 408-894-0526
Email: ir@asante.com
SAN JOSE, Calif., August 12, 2003 - Asante Technologies, Inc. (NASDAQ: ASNT.OB)
today announced results for the third quarter of fiscal 2003. The Company
reported revenues of $2.8 million for the quarter ended June 28, 2003, compared
to revenues of $2.6 million in the recently completed second quarter of fiscal
2003. The Company posted a net loss of $0.5 million, or $0.05 per share. The
results showed an improvement over the prior quarter due to increased revenues,
and cost-cutting measures that included a reduction in personnel. At the same
time, the Company's inventory in the channel decreased by approximately $0.3
million.
Sales totaled $9.2 million for the first nine months of fiscal 2003. The Company
reported a net loss for the first nine months of fiscal 2003 of $1.6 million, or
$0.15 per share.
The Company experienced increased interest in its IntraCore managed system
products, and has seen strong interest from Value Added Resellers (VARs), and
System Integrators from its new Gold and Silver VAR Program, a program which was
designed to attract additional premier VARs. This new program sets specific
technical and volume goals for participating VARs and requires them to have
certain levels of technical expertise in the Company's products. It then rewards
the VARs by offering certain discounts and incentives for this commitment and
achievement of revenue goals.
In addition, the Company made moves to improve its channel for its managed
systems products, and reduce its cost structure. By the end of the quarter, the
Company moved closer to its goal of reducing operating costs to a lower
break-even point, a target the Company would like to achieve in the next several
months. These reductions involved internal restructuring, a reduction in
personnel and payroll related costs, soliciting competitive bids to reduce the
Company's audit costs, and reducing overhead costs.
"While the general market is still soft, I am pleased with the progress we made
in the third quarter to stabilize revenue and improve awareness of the Company's
IntraCore managed product offerings. Already we have begun to see improved
interest for many of the Company's managed products," stated Wilson Wong,
Asante's Chairman, President and CEO. "The fourth quarter is historically a
stronger quarter due to the buying habits of educational institutions and we
hope to achieve further improvements in revenue. Additionally, the measures the
Company has taken will help ensure a more agile Company and allow us to pursue
significant business opportunities."
About Asante
Asante is a leading supplier of network connectivity products for Macs and PCs.
The Company's FriendlyNET(R) products simplify networking and provide Internet
access for small offices/home offices and education (K-12 and universities). The
Company's IntraCore products support multi-service applications for large
enterprises. For additional information telephone (408) 435-8388 or visit
Asante's Worldwide Web address at: http://www.asante.com.
* * * *
This press release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These forward-looking statements
are subject to certain risks and uncertainties that could cause actual results
to differ materially from historical results or anticipated results, including
those risks set forth under the caption "Business Risks" in "Management's
Discussion and Analysis of Financial Condition and Results of Operations" of the
Company's Annual Report on Form 10-K for the year ended September 28, 2002 and
in the Company's Quarterly Reports on Form 10-Q and other reports filed from
time to time with the Securities and Exchange Commission. Such risks include the
Company's potential need for additional financing, and the Company's ability to
attract and retain qualified personnel, competition, and technological change.
Readers should carefully review the risk factors described in such reports and
other filings made by the Company from time to time with the Securities and
Exchange Commission.
Asante Technologies, Inc.
Condensed Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Three months ended, Nine months ended,
June 28, June 28,
2003 2003
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Net sales $ 2,775 $ 9,173
Cost of sales 1,768 5,722
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Gross profit 1,007 3,451
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Operating expenses:
Sales and marketing 569 2,445
Research and development 572 1,625
General and administrative 342 880
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Total operating expenses 1,483 4,950
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Loss from operations (476) (1,499)
Interest and other income, net (18) (59)
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Loss before income taxes (494) (1,558)
Net loss ($ 494) ($ 1,558)
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Basic and Diluted loss per share ($ 0.05) ($ 0.15)
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Weighted average common
shares and equivalents
Basic 10,097 10,083
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Diluted 10,097 10,083
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