INRANGE Announces Third Quarter Financial Results;
Storage networking products, software and services vendor Inrange Technologies Corporation today reported its third quarter 2001 results.
The company reported revenues for the third quarter 2001 of $55.0 million, at the low end of the expected range, versus revenues of $64.1 million in the third quarter 2000. It attributed The decrease in revenues to the effects of the September 11 terrorist events, as well as a decline in optical and certain legacy products, the divestiture of the telecom business in early July 2001, and a four-week delay of FC/9000 certification at a key business partner.
Greg Grodhaus, President and Chief Executive Officer, commented, "INRANGE is committed to its customers and the investment community, and since our public offering in September 2000, we had four consecutive quarters of delivering record revenues. Our plan was to meet expectations for Q3; however, the tragic events that took place late in the third quarter significantly impacted our September business and resulted in quarterly revenues and profits that were below our previous expectations. Further, many economists and analysts forecast that the repercussions from these events are expected to have a negative impact on the economy as a whole for at least the next five to six quarters."
Grodhaus continued, "Our business model is highly scalable, and as a result we are able to react quickly to bring our expenses in line with current economic conditions. Immediately following our third quarter, I directed our team to take cost reduction actions. As a result, we expect our SG&A expenses will be about 22-23% of revenue in 2002. In contrast, we plan to increase R&D spending in 2002 to ensure that we continue to provide excellent offerings and value to our customers."