Xylan Corp

Calabasas-based Xylan Corp. on Tuesday said it expected its second-quarter earnings and sales to lag the previous period amid lower-than-expected shipments of networking equipment. The announcement sent its shares tumbling $3 to close at $14.25 in Nasdaq trading. So far this year, Xylan shares have fallen almost 40%. In the first quarter, the computer-networking company earned 13 cents a share on sales of $48 million.

Xylan Corp. said Monday that its second-quarter profit more than tripled as the Calabasas-based computer-networking company sold more of its sophisticated equipment to a broader range of customers. Profit for the quarter was $9.6 million, or 20 cents a diluted share, compared with $3.1 million, or 7 cents, before a gain a year earlier. The company was expected to earn 19 cents a share, based on a poll by First Call Corp.

Xylan Corp., a Calabasas-based maker of computer switching technology, became the hottest initial public offering of the year Tuesday when its stock price more than doubled in its first day of trading, reflecting investors' voracious appetite for some high-tech issues. Xylan's stock soared from the initial offering price of $26 a share to its close at $58.375 on the Nasdaq market. The company's shares were the biggest percentage gainer for the day in U.S. markets. A total of 5.

LSI Logic Corp. said Wednesday that it will cut 1,200 jobs and close plants to combat the effects of a worldwide economic slowdown, as the chip maker's third-quarter profit fell 60%. The company earned $19 million, or 14 cents a share, before charges in the quarter resulted in a loss, down from $47 million, or 33 cents, a year earlier. The No. 1 maker of chips used in networking equipment had been expected to earn 13 cents a share, the average estimate of analysts polled by First Call Corp.

Xylan, the Calabasas company that makes computer networking switches, will be acquired by French telecom giant Alcatel in a $2-billion cash deal that underscores the unrelenting demand for networks designed to carry both voice and data traffic. The $37-per-share offer announced Tuesday represents a 76% premium over Xylan's share price of $19.88 last week, before merger rumors began pushing its stock up. Xylan shares soared $8.81--or 33%--to close at $35.

Xylan reported second-quarter earnings that matched expectations, posting a gain of $2.9 million, or 6 cents a share. A year ago, Xylan lost $3.7 million, or 18 cents.

Expanding on a lucrative partnership that dates back nearly three years, Xylan and IBM have announced an agreement under which IBM will market Xylan's new lower-cost computer networking equipment under the IBM brand name. In addition, IBM will share with Calabasas-based Xylan a semiconductor chip technology that will help Xylan improve its product line. IBM is the single largest customer of Xylan, which makes high-band-width switching systems used in computer networks.

Five companies in the San Fernando Valley area were among the 10 fastest-growing companies in Deloitte & Touches' 1999 "Los Angeles Technology Fast 50." The companies were ranked by revenue growth and were required to report revenues for at least five years to be eligible. Valley-area companies in the top 10 were: Xylan Corp., Calabasas, with revenue growth of 78,361%; Soligen Technologies Inc., Northridge, with growth of 3,948%; THQ Inc., Calabasas, 1,518%; MRV Communications Inc.