NetSilicon Nets Less

WALTHAM, Mass. -- NetSilicon, Inc. (Nasdaq: NSIL), the leading provider of Ethernet microprocessing solutions to OEMs of intelligent networked devices, today reported financial results for the second quarter of fiscal 2002 ended July 28, 2001. Revenue for the second quarter of fiscal 2002 was $7.1 million compared with $9.9 million in the second quarter of fiscal 2001 and $7.0 million in the sequential first quarter of fiscal 2002. NetSilicon posted a net loss for the second quarter of $2.3 million, or $0.16 per share, compared with net income of $746,000, or $0.05 per diluted share, for the same period a year ago. Included in the second quarter fiscal 2002 net loss is approximately $500,000 related to severance accruals for the departure of certain employees. Cash and short-term investments totaled $11.3 million at July 28, 2001, compared with $11.9 million as of April 28, 2001. "Despite the challenging economic conditions domestically, as well as in Europe and Asia, NetSilicon's second quarter performance was consistent with our expectations," said Cornelius "Pete" Peterson, NetSilicon's chairman and CEO. "Although we expect to see challenges over the next two quarters, their impact on our operations should not be as severe as that which we have already experienced during the first half of the fiscal year. Looking further ahead, we believe that NetSilicon's intelligent device technology puts us in prime position to capitalize on the global drive toward embedded Ethernet connectivity. In addition, our imaging business has stabilized and is beginning to show signs of growth." NetSilicon Inc.