Company Also Approves "Asset Purchase" Plan
Santa Clara, Calif. -- January 30, 2003 -- Gadzoox Networks, Inc. (OTC:ZOOX) a global supplier of proven Fibre Channel technology for storage networking, today filed its operating report with the bankruptcy court and intends to emerge from bankruptcy.
The Company recognized its first profitable quarter with a profit of $.07 million based on revenue of $4.9 million and operating expenses of $2.7 million. Other highlights for the quarter included the signing of a government and commercial focused OEM for the Company's 2Gb Slingshot technology and the addition of another FabriCore Engines Open SAN OS customer.
On January 22, 2003, the Company filed a motion with the bankruptcy court seeking approval of an asset purchase agreement. The sale of these assets, coupled with the sale of the remaining assets via a stock sale to be effectuated through a plan of reorganization, is contemplated. If approved by the bankruptcy court, the Company will emerge from bankruptcy.
Based on current information Gadzoox Networks believes when it emerges from bankruptcy proceedings, its existing stock will have no value. Additional information is available from Gadzoox Networks bankruptcy counsel, Levene, Neale, Bender, Rankin & Brill L.L.P., located in Los Angeles, CA.
About Gadzoox Networks, Inc.
Since 1996 Gadzoox Networks has led the industry in market "firsts" and continues to drive the Storage Area Network (SAN) entry-level market with innovative Fibre Channel switching technology. The company has consistently delivered a time to market advantage to major OEM customers enabling them to create clear business value for their customer base. Gadzoox Networks is a voting member of the Storage Networking Industry Association (SNIA), with corporate headquarters located in Santa Clara, California. For more information about Gadzoox Networks' products and technology advancements in the SAN industry, visit the company's Web site at http://www.gadzoox.com.
This press release contains unaudited operating results and forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Specifically, statements concerning the company's emergence from Bankruptcy protection and the purchase of Gadzoox Networks assets are forward-looking statements within the meaning of the Safe Harbor. Actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including but not limited to: the outcome of the Company's bankruptcy proceedings, market acceptance for the new OEM's Slingshot-based products and the new FabriCore Engines customer. Information contained herein should not be used for investment decisions. Gadzoox Networks undertakes no obligation to release publicly any revisions to any forward-looking statements contained herein to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Gadzoox and the Gadzoox logo are registered trademarks of Gadzoox Networks, Inc. All other trademarks are property of their respective owners.