@Track Communications Announces 2000 Fourth Quarter, Year-end Financial Results.Business Editors RICHARDSON Richardson, city (1990 pop. 74,840), Dallas and Collins counties, N Tex., a suburb of Dallas; founded in the 1850s, inc. as a city 1956. Richardson manufactures telecommunications equipment, medical devices, supercomputers, computer chips, and fiber optics. , Texas--(BUSINESS WIRE)--March 2, 2001 @Track Communications, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on SCP (1) (Service Control Point) A node in an SS7 telephone network that provides an interface to databases, which may reside within the SCP computer or in other computers. :ATRKC), a leading provider of wireless-based vehicle fleet management and intelligent mobile-asset-tracking solutions, today reported financial results for the 2000 fourth quarter and year. Total revenues for the fourth quarter ended Dec. 31, 2000, were $29.8 million, compared with $16.3 million for the 1999 fourth quarter. The company reported a net loss of $5.3 million ($0.21 per share) for the 2000 fourth quarter, compared with a net loss of $5.9 million ($0.24 per share) for the fourth quarter of 1999. For the 12 months ended Dec. 31, 2000, total revenues were $102.1 million, versus $95.7 million for the 12 months of 1999. The loss before the $5.2 million cumulative effect of the accounting change in 2000 was $15.3 million ($0.61 per share). Including the cumulative effect, the net loss for 2000 was $20.5 million ($0.81 per share). That compares with a 1999 net loss of $11.5 million ($0.46 per share). Direct financial comparisons for 2000 versus prior years are not meaningful because @Track was required during 2000 to change its accounting policy for product revenue recognition for sales to long-haul long haul n. 1. A long distance: It is a long haul from New York to Los Angeles. 2. A long period of time: Over the long haul the candidates performed well. trucking customers due to the Security and Exchange Commission's issuance of SEC Staff Accounting Bulletin No. 101. As a result, $12.1 million in "ratable That which can be appraised, assessed, or adjusted through the application of a formula or percentage. Ratable property is that which is taxable or capable of being appraised or assessed. ratable adj. product revenue" is included in fiscal 2000 total revenues, together with $10.0 million of "ratable product costs" in cost of revenues. Going forward, @Track will recognize product revenues on its Series 5000 long-haul trucking mobile units, and related costs, ratably over the longer of the term of the service contract or the estimated life of the customer relationship. Previously, product revenues were recognized at the time that the product was shipped to customers. "Results for the fourth quarter were in line with our expectations as we maintained our strong pace of installations to reach an installed base of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 34,000 units for various operating subsidiaries An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. of SBC (1) (SBC Communications Inc., San Antonio, TX, www.sbc.com) A large, national telecommunications company that grew from a multitude of local and regional companies, including Southwestern Bell, Pacific Bell and Nevada Bell, into a single, unified brand by 2002. Communications, Inc. (NYSE NYSE See: New York Stock Exchange :SBC)," said Jana JANA Journal of American Nutraceutical Association JANA Jamahiriyah News Agency JANA Joint Army-Navy-Air Force Ahlfinger Bell, president and chief executive officer. Product revenue, excluding ratable product revenue, for the 2000 fourth quarter was $15.8 million, versus $3.2 million for the 1999 fourth quarter. Service revenue for the 2000 fourth quarter was $12.1 million, versus $13.1 million for the 1999 fourth quarter, primarily due to lower average revenue per mobile unit as an increasingly larger number of regional service vehicle units were placed in operation. The service revenue gross margin percentage for the 2000 fourth quarter was 23.6 percent, which includes additional charges of $1.7 million due to a temporary increase in long-distance long-dis·tance adj. 1. Covering a long distance: a long-distance runner; operating under long-distance supervision. 2. airtime air·time n. 1. The time during which a radio or television station is broadcasting. Also called airspace. 2. The time at which a radio or television program is broadcast. rates during the transition period to a new contract, compared with 36.6 percent for the 1999 fourth quarter. The total installed base at Dec. 31, 2000, increased 32.5 percent to 67,336 mobile units, compared with 50,825 at Dec. 31, 1999. Activations for the 2000 fourth quarter exceeded deactivations by 6,620 units. @Track provides intelligent wireless mobile communications, emergency dispatch A dispatch or dispatches can refer to:
(2) (Global Positioning S satellite location capabilities for vehicle fleet management. The company's mobile-asset-tracking product, TrackWare(TM), combines the technologies of GPS and wireless control channel messaging to track mobile assets. @Track will not hold a conference call in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with the release of fourth quarter and year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 2000 financial results due to the pending issuance of the proxy See proxy server. (networking) proxy - A process that accepts requests for some service and passes them on to the real server. A proxy may run on dedicated hardware or may be purely software. related to the transaction with Minorplanet Systems PLC and other activities related to the company's upcoming annual meeting of stockholders. The company intends to schedule a conference call at the earliest practicable practicable adj. when something can be done or performed. time following the annual meeting to provide investors with the opportunity to discuss matters of interest at that time. For specific questions concerning fourth quarter results, please contact W. Michael Smith Michael or Mike Smith may refer to: Journalists
@Track Communications, TrackWare and the red orb logotype are trademarks and service marks of @Track Communications, Inc. - TABLES TO FOLLOW -
@TRACK COMMUNICATIONS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per share)
Three months ended Twelve months ended
December 31, December 31,
----------------- --------------------
2000 1999 2000 1999
------- ------ ------ ------
Revenues:
Product (1) $15,815 $3,162 $41,971 $43,018
Ratable product 1,839 -- 12,093 --
Service (1) 12,127 13,128 48,066 52,655
-------- -------- --------- ---------
Total revenues 29,781 16,290 102,130 95,673
-------- -------- --------- ---------
Cost of revenues:
Product (1) 11,750 1,842 30,031 34,752(2)
Ratable product 1,674 -- 10,006 --
Service (1) 9,260 8,323 30,636 26,724(3)
-------- -------- --------- ---------
Total cost of revenues 22,684 10,165 70,673 61,476
-------- -------- --------- ---------
Gross profit 7,097 6,125 31,457 34,197
-------- -------- --------- ---------
Expenses:
General and administrative 3,742 3,581 12,478 14,706(4)
Customer service 1,939 2,065 7,146 7,770
Sales and marketing 1,434 1,065 4,980 4,091
Engineering 1,613 545 4,345 2,685
Network services center 410 316 1,512 1,437
Severance and AutoLink
termination cost -- -- -- (189)
Depreciation and
amortization 1,542 1,614 5,907 6,551
-------- -------- --------- ---------
10,680 9,186 36,368 37,051
-------- -------- --------- ---------
Operating income (loss) (3,583) (3,061) (4,911) (2,854)
Interest income 216 360 1,371 2,037
Interest expense (3,342) (3,342) (13,368) (13,422)
Other income 1,427(5) 97 1,569(5) 2,715(6)
-------- -------- --------- ---------
Loss before income taxes
and cumulative effect of
accounting change (5,282) (5,946) (15,339) (11,524)
Income tax provision -- -- -- --
-------- -------- --------- ---------
Loss before cumulative
effect of accounting
change (5,282) (5,946) (15,339) (11,524)
Cumulative effect of
accounting change -- -- (5,206) --
-------- -------- --------- ---------
Net loss ($5,282) ($5,946) ($20,545) ($11,524)
======== ======== ========= =========
Per share:
Loss before cumulative
effect of accounting
change ($0.21) ($0.24) ($0.61) ($0.46)
Cumulative effect of
accounting change -- -- (0.20) --
-------- -------- --------- ---------
Basic and diluted loss ($0.21) ($0.24) ($0.81) ($0.46)
======== ======== ========= =========
Weighted average number of
shares outstanding
Basic and diluted 25,327 25,015 25,291 24,974
======== ======== ========= =========
Supplemental information:
EBITDA ($614) ($1,350) $2,565 $6,412(7)
======== ======== ========= =========
Installed units -
beginning of period 60,716 52,424 50,825 47,657
Net additions 6,620 (1,599) 16,511 3,168
-------- -------- --------- ---------
Installed units - end of
period 67,336 50,825 67,336 50,825
======== ======== ========= =========
(1) Amounts for 1999 have been reclassified for consistent
presentation.
(2) Includes warranty provision of $3,500.
(3) Includes non-recurring credits of $4,389.
(4) Includes bad debt expense of $358 related to a customer's
bankruptcy.
(5) Non-recurring gain from settlement of certain litigation
matters.
(6) Includes non-recurring income items associated with the
settlement of certain litigation matters and gain from
termination of customer contract.
(7) Excluding non-recurring income and unusual items EBITDA would
have been $3,076.
@TRACK COMMUNICATIONS, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in thousands)
ASSETS
December 31, December 31,
2000 1999
---------- ----------
Current assets:
Cash and short-term investments $ 20,641 $ 17,768
Accounts receivable, net 12,738 13,341
Inventories 13,216 9,292
Pledged securities -- 12,705
Deferred product costs - current portion 7,406 --
Other current assets 1,759 2,588
---------- ----------
Total current assets 55,760 55,694
Network, equipment and software, net 12,851 15,703
Deferred product costs -
non-current portion 9,770 --
Other assets, net 2,663 2,676
---------- ----------
Total assets $ 81,044 $ 74,073
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable $ 7,992 $ 2,431
Telecommunications costs payable 5,358 4,462
Accrued interest payable 3,784 3,784
Deferred product revenues -
current portion 8,975
Other current liabilities 8,826 9,357
---------- ----------
Total current liabilities 34,935 20,034
Deferred product revenues -
non-current portion 11,966
Senior notes payable 92,484 92,090
---------- ----------
Total liabilities 139,385 112,124
---------- ----------
Commitments and contingencies
Stockholders' equity (deficit):
Preferred Stock -- --
Common Stock 256 255
Common Stock - Class B -- --
Additional paid-in capital 149,996 149,742
Accumulated deficit (208,046) (187,501)
Treasury stock (547) (547)
---------- ----------
Total stockholders' equity (deficit) (58,341) (38,051)
---------- ----------
Total liabilities and stockholders'
equity (deficit) $ 81,044 $ 74,073
========== ==========
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