Xionics Posts Quarterly Financial Results
Xionics (Burlington, MA; Nasdaq: XION) posts Q2 '98 financial results. Revenue of $8.7 million compares with revenue of $9.5 million in Q2 '97. A net loss of $3.065 million compares with a net income of $1.4 million in Q2 '97. The loss includes a one-time charge of $3.9 million representing a write-down of certain intangible assets and the lease costs of certain excess facilities. The loss is attributed to changes in the company's technology licensing model, resulting in smaller up-front payments from some customers, and the timing of certain customer agreements. Xionics will stay true to its current initiatives, citing its core page description language products, color printing solutions, hardware and software products for MFPs and a recent deal with Hewlett-Packard (Greeley, CO) as positive indicators. "We believe that the market for our traditional products is strong," said president and CEO Pete Simone, "and that the markets for our new products are continuing to emerge and develop."