Hifn Revenues Dip in Q2

LOS GATOS, Calif. -- Hifn (Nasdaq: HIFN) today reported financial results for the third quarter and nine months ended June 30, 2003. Revenues for the third quarter of fiscal 2003 were $5.3 million, an increase of 15.8% from the $4.5 million in revenues reported in the previous quarter and down 4.0% from the $5.5 million in revenues reported in the third quarter of fiscal 2002. Revenues for the nine months ended June 30, 2003 were $14.2 million, a decrease of 19.2% from the $17.6 million reported for the nine months ended June 30, 2002. Net loss for the third quarter ended June 30, 2003 was $4.1 million, or $0.38 per diluted share, as compared to net loss of $18.7 million, or $1.78 per diluted share, for the third quarter of fiscal 2002 ended June 30, 2002. Net loss for the nine months ended June 30, 2003 was $14.5 million, or $1.36 per diluted share, as compared to net loss of $29.8 million, or $2.87 per diluted share, for the nine months ended June 30, 2002. "The turnaround in the networking industry continues, albeit at a modest pace," said Chris Kenber, Hifn's Chairman and CEO. "Design wins, some with industry leaders, are beginning to ship in volume and we expect continued revenue growth over the next several quarters, though not at a dramatic rate. We are also seeing an upsurge in design activity with last quarter providing significant new design wins both in North American and overseas markets," he added. "Our financial condition remains strong and with the market recovery now in progress, we can be guardedly confident about the future." Hifn Inc.