Cylink pins future on new releases
- By George I. Seffers
- Dec 13, 2000
After missing its revenue projections this summer sent Cylink Corp. stock
prices into free fall, company executives are taking steps to pull Cylink
back from the brink.
Organizations use Cylink products to protect and manage the access,
privacy and integrity of globally transmitted information. The company's
products are incorporated into local-area networks, wide-area networks and
public networks such as the Internet.
Although Cylink is primarily focused on banking and financial institutions,
it also serves federal government customers, such as the U.S. Postal Service
and the departments of Defense, Justice and Treasury.
Cylink's total revenues have increased steadily in recent years — from
about $42 million in 1998 to about $70 million in 2000 — but this summer
the company missed its revenue projections and paid a heavy price. Cylink
stock went from a high of $22 per to a low of about $3, said William Crowell,
the company's president and chief executive officer.
"We missed a revenue window, and we got punished — as so many companies
have. We have to restore confidence that we'll do better in the future,"
To woo back investors, the company has reduced its workforce from 475
to 400 and reduced company expenses by about $12 million while releasing
a flurry of new products since June.
New products include:
* NetHawk, a virtual private network appliance for establishing secure
* NetAuthority, a standards-based public-key infrastructure system that
is flexible and scalable.
* MiniKey, a low-cost, compact token that combines smart card and reader
features so PC users can authenticate their identity for e-business transactions.
Crowell said he hopes that within the first two fiscal quarters of 2001
the new products will have been adequately tested in the marketplace and
the company will begin to break even or show a modest profit.