Madge Networks Releases Fourth Quarter and Fiscal 1999 Results

Madge Networks N.V. (http://www.madge.com) today announced results for its fourth fiscal quarter and full financial year ended December 31, 1999.

Madge reported revenues of US$51.8 million for the fourth fiscal quarter, an increase of $9.6 million or 23 per cent compared to revenues of $42.2 million for the third quarter of 1999. Revenues for the fourth quarter of 1998 were $53.3 million. The net loss was $5.3 million, or $(0.13) per share for the quarter, compared to a net profit of $2.7 million, or $0.06 per share, for the fourth quarter of fiscal 1998. Results for the 1999 quarter include special gains of $8.8 million related to the release of certain provisions partly offset by a charge related to the reorganization of Madge.connect.

Net loss for the fiscal year ended December 1999, including disposals and non-recurring charges, was $40.3 million, or $(1.00) per share, in comparison to a profit of $35.8 million, or $0.80 per share for the same period in 1998.

"We are very pleased with the results for the fourth quarter," said Robert Madge, Chairman of Madge Networks N.V. "The return to strength of Madge.connect revenues, supported by last August's acquisition of Olicom's Token Ring business, demonstrates the success of our strategy to consolidate our market position as the number one player in the Token Ring market, and continued cost reduction will provide the basis for significant profit and cash generation. Madge.web is proceeding according to plan with a significant momentum of new orders, and further signing of new customers."

The company recently partnered with RealNetworks to establish the Madge Broadcast Network for streaming media in Europe.