AM Reports Fourth Quarter and Fiscal Year 1999 Results.QUAKERTOWN, Pa.--(BUSINESS WIRE)--June 22, 1999-- AM restructures for long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth AM Communications, Inc (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). :AMCM AMCM Airborne Mine Countermeasures AMCM Autoridade Monetaria de Macau (Monetary and Foreign Exchange Authority of Macau, China) AMCM Advanced Missions Cost Model AMCM Air Mission Coordination Meeting AMCM Advanced Mine Countermeasures ) announces the financial results for the fourth quarter and fiscal year ending April 3, 1999. Revenues for the fourth quarter of fiscal 1999 were $2,116,000 and $9,069,000 for the 1999 fiscal year. The Company reported a net loss of $1,556,000 for the fourth quarter of fiscal 1999 a net loss of $3,480,000 for the 1999 fiscal year. The Company reported revenues of $16,854,000 and a net income of $937,000 in the 1998 fiscal year ended March 29, 1998. Commenting on the results, Keith Schneck, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. said, "our operating results for the 1999 fiscal year reflect the impact of previously reported revenue issues and a major redevelopment effort to upgrade the Company's software platform. We experienced a 46% revenue decline in fiscal 1999 due to two major customers ending capital programs involving the Company's products. We were unable to replace revenues from new customers as our technology upgrade program for the new Omni2000(tm) Management Software was not ready for release until after the end of fiscal 1999." AM Communications' efforts in fiscal 1999 focused on rebuilding the Company's technology platforms using the technological resources of NeST Technologies resulting from the strategic development relationship announced in November 1998. As part of this major corporate restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). , Jay Hassan joined AM Communications as Chairman of the Board that same month. Mr. Hassan brings more than 30 years of experience building and managing communication systems businesses with companies like IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) and AMP. Mr. Hassan is also the principal owner and CEO of NeST Technologies. NeST (Network Systems & Technologies, Ltd.) is a global conglomerate conglomerate, in business conglomerate, corporation whose asset growth, often very rapid, comes largely through the acquisition of, or merger with, other firms whose products are largely unrelated to each other or to that of the parent company. employing 2,000+ people in the development of software system solutions and electronic manufacturing capabilities. NeST is headquartered in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. with principal technical resources located in Southwest India. NeST's software development organization is SEI/CMM Level 3 certified See certification. ... one of a few companies in the world to achieve this distinction. "NeST has become an invaluable resource which provides AM access to a significantly larger pool of leading edge software talent and manufacturing resources at substantially lower costs. The joint AM/NeST development efforts are starting to deliver results as we install the beta version A pre-shipping release of hardware or software that has gone through alpha test. A beta version of software is supposed to be very close to the final product, but, in practice, it is more a way of getting users to test the software in the first place under real conditions. of the Omni2000(tm) Management Software System in selected key accounts this month. The Omni2000 Software System is a major upgrade to AM's OmniStat(tm) Management System and is expected to be the cornerstone cornerstone Ceremonial building block, dated or otherwise inscribed, usually placed in an outer wall of a building to commemorate its dedication. Often the stone is hollowed out to contain newspapers, photographs, or other documents reflecting current customs, with a view to of our efforts to re-establish revenue growth and recapture recapture n. in income tax, the requirement that the taxpayer pay the amount of tax savings from past years due to accelerated depreciation or deferred capital gains upon sale of property. (See: income tax) RECAPTURE, war. market position in the network management marketplace", said Keith Schneck, AM's President and CEO. In the anticipation of delivering new technology solutions, AM has also refocused its sales and marketing efforts in the latter half of fiscal 1999. Harry Tankin joined AM in February 1999 as Vice President of Sales and Marketing after spending over 20 years in the systems business with such companies as Digital Equipment Corporation and General Instrument Corporation. AM has also recently added several new staff members to its sales and marketing department. "While fiscal 1999 was a very difficult year for AM, the strategy has been to increase the level and competency COMPETENCY, evidence. The legal fitness or ability of a witness to be heard on the trial of a cause. This term is also applied to written or other evidence which may be legally given on such trial, as, depositions, letters, account-books, and the like. 2. of the technical resources, launch new hardware and software products, and re-establish a strong sales and marketing presence," said Keith Schneck, AM's President and CEO. "Based on the results achieved to date, we look forward to improved financial results in fiscal 2000." The net loss for fiscal 1999 was financed through the use of existing lines of credit available and working capital and the issuance of 4.2 million of warrants to NeST in payment of development services performed during fiscal 1999. The Company has restructured its operations to reduce its short-term cash needs by reducing staffing levels in technical and manufacturing areas and utilizing NeST technical and manufacturing resources which can be paid in either cash or AM warrants. Also, the Company has presently borrowed the maximum amount available under its line of credit and is in technical violation of certain financial covenants. The Company is negotiating with its lender to modify the terms of the line of credit. While the Company's short-term cash requirements have been reduced, continued operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. above planned levels or the inability to negotiate appropriate lending terms would have a significant adverse impact on the Company's operations which would require the Company to take additional actions. Mr. Jay Hassan, AM's Chairman, commented, "I am optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that our three pronged prong n. 1. A thin, pointed, projecting part: a pitchfork with four prongs. 2. A branch; a fork: the two prongs of a river. tr.v. strategy to evolve AM into a world-class software provider and the lowest cost producer of hardware products for advanced network integrity solutions in the global broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). market will be successful. Our development and restructuring efforts in fiscal 1999 represent a major step in laying a strong foundation. "We aim for long-term, sustainable growth and see future opportunities to leverage our resources in the evolving broadband market including such areas as bandwidth management Controlling the traffic flow in a network. See bandwidth manager. , monitoring, and service capabilities. The market continues to desire cost-effective network integrity solutions that enable CATV (Community Antenna TV) The original name for cable TV. It used a single antenna at the highest location in the community in order to deliver a quality signal to homes in areas with hilly terrain or other interference. systems to operate at quality levels equal to that of telecom providers. We look forward to establishing AM as a provider capable of meeting these customer needs." AM Communications is a leading provider of plant and headend management solutions for the CATV broadband industry. Our systems provide network operators with greater control over their network's performance levels and reliability, giving them a competitive edge in today's deregulated communications environment. Through our partnerships, AM Communications has emerged as a true open systems company capable of supporting multi-vendor networks through cooperative engineering. AM provides system solutions through its OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and partnerships with the industry leaders (i.e. - General Instrument, Philips Broadband Networks  This article or section needs copy editing for grammar, style, cohesion, tone and/or spelling.You can assist by [ editing it] now. , Scientific Atlanta, and Harmonic harmonic. 1 Physical term describing the vibration in segments of a sound-producing body (see sound). A string vibrates simultaneously in its whole length and in segments of halves, thirds, fourths, etc. ) and directly to end user customers. Registered under ISO- iso- or is- pref. 1. Equal; uniform: isobar. 2. Isomeric: isopropyl. 3. 9001, AM's 25+ years of quality, dependability dependability - software reliability , and service are key to designing, building, and implementing management solutions for the Hybrid-Fiber Coax (HFC 1. (networking) HFC - Hybrid Fiber Coax. 2. (hardware) HFC - hydrofluorocarbon. ) network. Additional information regarding AM's business activities and products can be found on its Web Site (http://www.amcomm.com). This news release discusses primarily historical information. Statements included in this release, to the extent they are forward looking, involve a number of risks and uncertainties such as competitive factors, technological developments, and market demand. Further information on potential factors that could affect the Company's financial results can be found in the Company's Forms 10-QSB for the fiscal year 1999. -0-
Condensed Statements of Operations ($000)
Three Months Ended Year Ended
April 3, March 28, April 3, March 28,
1999 1998 1999 1998
--------- -------- --------- --------
(Unaudited) (Unaudited) (Unaudited) (Audited)
Revenues $ 2,116 $ 4,635 $9,069 $16,854
Cost of Sales 1,694 2,681 5,587 9,303
Selling, General
& Administrative 827 758 2,716 2,611
Research and Development 1,103 1,069 4,192 3,937
--------- -------- --------- --------
Operating Income (Loss) (1,508) 127 (3,426) 1,003
Net Income (Loss) $(1,556) $ 105 $(3,480) $ 937
========= ======== ========= =========
Basic Net Income
(Loss) Per Share $ (0.05) $ Nil $ (0.11) $ 0.03
========= ======== ========= =========
Diluted Net Income
(Loss) Per Share (0.05) Nil (0.11) 0.03
========= ======== ========= =========
Shares Used in
Computation of Basic
Net Income (Loss)
Per Share 31,072 31,068 31,072 31,053
========= ======== ========= =========
Shares Used in
Computation of
Diluted Net Income
(Loss) Per Share 31,072 34,005 31,072 33,902
========= ======== ========= =========
Condensed Balance Sheet ($000)
April 3, March 28,
1999 1998
-------- --------
(Unaudited) (Audited)
Cash $ 24 $ 710
Accounts Receivable 1,489 1,851
Due From Affiliate 42 ---
Inventory 1,218 2,073
Prepaid Expenses and Other 43 63
-------- --------
Total Current Assets 2,816 4,697
Equipment and Fixtures, Net 396 734
Other Assets 16 19
Total Assets $ 3,228 $ 5,450
========== ==========
Current Portion of Capitalized Leases $ 38 $ 108
Current Portion of Notes Payable 30 ---
Bank Line of Credit 625 ---
Accounts Payable 1,163 991
Advances --- 194
Accrued Expenses and Other 889 987
-------- --------
Total Current Liabilities 2,745 2,280
-------- --------
Capitalized Leases - Long Term --- 39
Notes Payable - Long Term 120 ---
Senior Convertible Redeemable
Preferred Stock 2,583 2,583
-------- --------
Stockholders' Equity (Deficit) (2,220) 548
Total Liabilities and
Stockholders' Equity $ 3,228 $ 5,450
========== ==========
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