April 23, 1997 5:45 PM PDT
U.S. Robotics posts gains
U.S. Robotics, which issued its financial report after the market's close, posted net income of $91.5 million, or 95 cents a share, for the quarter ending March 30, compared with $51.6 million, or 55 cents, a year ago. But excluding a one-time tax benefit, U.S. Robotics would have reported net profits of $73.5 million, or 77 cents a share.
Today's results were slightly better than Wall Street's expectations of a profit of 75 cents, according to First Call.
Revenues, meanwhile, climbed to $690.2 million for the quarter, up more than 52 percent. Sales of network systems and PC-related products drove that increase, with network systems alone accounting for $177 million in the three-month period.
Net earnings were driven by improved profit margins on the company's 56-kbps desktop modem products.
U.S. Robotics also reported gross margins of 49.1 percent for the quarter, compared with 41.9 percent a year ago. That improvement came from reduced manufacturing costs and product mix changes.
The modem giant expects to finalize its merger with 3Com in June.