SUNNYVALE, Calif.-Western Multiplex Corp. reported its first- quarter earnings this week with an increase in both revenues and losses.
Revenues reached $37.6 million, an increase of 121 percent from the year ago quarter’s $17 million. Net income before nonrecurring and acquisition related costs was also up, to $1.8 million, or 3 cents per share, compared with $763,000, or 2 cents per share, in the first quarter of 2000. Despite these positive results, when nonrecurring and acquisition costs, namely the acquisition of WirelessHome Corp. and the consequent closure of Ubiquity, were included, the company actually racked up a net loss of $4.5 million.
“We exceeded our expectations domestically but are disappointed with the weakness of our international business. This had less to do with the market than with our sales focus and priorities last quarter-building our domestic sales organizations, reducing customer concentration and growing our campus/enterprise business,” The company’s chairman and chief executive officer, Jonathan Zakin, explained. “We have a new international sales team in place with extensive experience selling wireless to our key IT markets, which gives us added depth that will improve the international sales pipeline and visibility going forward.”
Western Multiplex added that it still expects to meet this year’s revenue growth target of 70 to 80 percent, although revenue growth may slow in the second quarter.
