Asante Technologies Inc.
posted its third quarter results this week, and the news is not good. The company reported a net loss of about US$600,000 for the third quarter, on sales of $4.9 million. Asante blamed the poor results on a continued economic slowdown, as well as week sales of some of the company’s legacy Mac products.
Sales were down for the quarter compared with year over year results and for the previous quarter, which ended March 31. Sales dropped $100,000 from the last quarter, and were $1.8 million lower than the same period last year.
All told, Asante has seen about $16.9 million in sales for the first nine months of its fiscal year 2001, down about 22 percent for the same period in 2000.
Wilson Wong, Asante’s chairman, president and CEO, said that his company took cost-reducing measures this quarter, which it hopes will offset the effects of the economic slowdown. Additional actions are planned for the coming quarter, including reductions in overhead and facilities expenses.
“We see large opportunities to grow the Company in the Multi-Tenant Unit/Multi-Dwelling Unit/Hospitality (MTU/MDU/Hospitality) market. The Company’s products and customized integrated software features fit the demands of this fast-growing market segment very well,” said Wong.
The company cited successes this quarter including the launch of its IntraCore 65120 Layer 2 Gigabit switches, as well as its FR3002 wireless-ready router, which won “Best of Show” at this past July’s Macworld Expo in New York.