Spurred by a good showing in the region and continued optimism, network vendor Xylan, has elevated its Singapore operations to a $US2 million Asia-Pacific headquarters.
Xylan raked in $97.4 million in revenues for the fourth quarter 1998, a 52 per cent increase from the same quarter last year. Revenue for fiscal year 1998 ended December 31 totalled $347.6 million, or an increase of 65 per cent from $210.8 million in fiscal year 1997. Net income for fiscal year 1998 was $US39.4 million or 83 cents per share.
"We expected Asia-Pacific revenues to be flat in the third quarter," said Steven Kim, the company's president and chief executive officer (CEO), noting a better-than-expected performance in the region. "Instead, business turned out to be stronger than we forecast, with a sequential increase of 20 per cent." Kim said. "Of course we had some setbacks in Malaysia and Thailand which were going through a difficult time."
But he noted that the company's business grew in Singapore, Taiwan and Australia where Kim expects to see continued significant growth.
"For Singapore, it does not matter if the country is very small," he said. "The government's information technology (IT) vision is really impressive. The nation's IT infrastructure has become a driver for the whole country and there's a lot of things that can be done."
"We see tons of business opportunities in Singapore." Kim had met with local government officials during his recent visit here.
Meanwhile, the Xylan regional headquarters here includes an Asia-Pacific Technical Response Centre as well as a training centre, in a move that will significantly expand its Asia-Pacific operations and exploit the fast-growing market for networking in this region.
With the setting up of this response centre, Xylan now has four such centres around the world providing seven-day by 24-hour phone assistance for the installation, diagnosis and problem resolution of network systems, and a complete library of technical information services on the Internet and intranets.