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EXHIBIT 99
[OLICOM LOGO]
NEWS RELEASE
OLICOM REPORTS RECORD REVENUE FOR SECOND QUARTER 1997
Copenhagen, Denmark and Dallas, Texas, July 16, 1997 - Olicom A/S (Nasdaq:
OLCMF), a leading global supplier of high-performance networking solutions,
today reported financial results for the second quarter ended June 30, 1997.
Actual reported financial results include acquisition costs of $40.9 million,
during the second quarter of 1997, for CrossComm Corp., primarily as a write-off
of in-process R&D.
Net sales for the second quarter were $53.3 million, up 32 percent from $40.3
million in net sales reported in the second quarter of 1996.
Pro forma net income for the second quarter of 1997, which excludes the one-time
charge, was $5.1 million, or $0.33 per share on 15.5 million shares outstanding.
Such pro forma net income and earnings represent records for Olicom. In the
second quarter of 1996 the company reported net income of $2.0 million, or $0.14
per share on 14.9 million shares outstanding. The actual net loss for the second
quarter of 1997, which includes the one-time charge, was $35.5 million or $2.34
per share on 15.2 million shares outstanding.
"We are extremely pleased to report yet another all-time record for both revenue
and, excluding acquisition-related charges, earnings. This would also be our
fourth consecutive record in earnings," said Lars Stig Nielsen, Olicom's chief
executive officer. "We continue to be strongest in our core business, Token-Ring
solutions, but we have grown across a wide range of product categories as well."
Olicom exhibited strongest relative growth in its mobile computing product line,
growing 35 percent quarter-to-quarter and 95 percent year-to-year. Another
strong performer was the company's market-leading Token-Ring PCI adapter, sales
of which increased 20 percent quarter-to-quarter and 111 percent year-to-year.
Further, with no change to its price structure, Olicom maintained its
price-performance leadership position despite pricing pressures from competing
providers of Token-Ring adapters. Olicom also delivered improvements in gross
margins this quarter, climbing from 46 percent in the first quarter 1997 to 48
percent in the second quarter.
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The integration process with CrossComm is proceeding as expected. "Olicom and
former CrossComm customers are realizing the benefit of our broader, integrated
product line as well as an enhanced service organization which results from this
acquisition," said Nielsen. "We have successfully begun the transition to a new
organization, and I am pleased with the progress we have made in a short period
of time."
Olicom designs, develops and manufactures high-performance, high-availability
networking solutions for the corporate enterprise, specializing in providing
end-to-end connectivity solutions and a migration path to high-speed LANs. The
products of Olicom and its subsidiary, LASAT, are distributed worldwide by a
network of strategic partners and resellers. More information on Olicom is
available from the company's SEC filings or by contacting the company directly.
Olicom news and product/service information are available at the company's World
Wide Web site at http://www.olicom.com.
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This news release contains forward-looking statements that involve risks and
uncertainties that could cause actual results to differ from predicted results.
Further information on factors that could affect the company's results are
detailed from time to time in Olicom's periodic filings with the Securities and
Exchange Commission, specifically the most recent Annual Report on Form 20-F.
Statements of income and balance sheets follow.
CONTACT INFORMATION:
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OLICOM GROUP
Boje Rinhart, CFO Michael Camp, CEO
Olicom A/S Olicom, Inc.
+45 45 27 00 77 972-423-7560
EDITORIAL CONTACTS: INVESTOR RELATIONS CONTACT:
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OLICOM, INC. STAPLETON COMMUNICATIONS
Diane Weldin Tersh Barber
972-516-4698 415-988-9207
dweldin@olicom.com tersh@stapleton.com