ARI Reports First Quarter Results; Firm Reports 15 Straight Quarters of Revenue Increases; 12 Consecutive Quarters of EBITDA Improvement.MILWAUKEE--(BUSINESS WIRE)--Dec. 2, 1999-- ARI ARI Acute respiratory infection, see there Network Services, Inc. (NASDAQ/NMS:ARIS ARIS American Religious Identification Survey ARIS Architecture of Integrated Information Systems ARIS Active Rack Isolation System ARIS Aggregate Route-based IP Switching ARIS Agentia Romana pentru Investitii Straine ), a leading provider of business-to-business  This article or section needs copy editing for grammar, style, cohesion, tone and/or spelling.You can assist by [ editing it] now. Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. solutions for equipment manufacturers with shared service and distribution networks, today reported results for the first quarter of fiscal 2000 ended October October: see month. 31, 1999. The Milwaukee-based firm reported revenues of $3.4 million for the first quarter of fiscal 2000, compared to $2.6 million for the same quarter in the previous fiscal year, a 33% increase. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
The first quarter represented the 15th consecutive quarter of year-over-year revenue growth for the firm, and the 12th straight quarter of year-over-year improvement in EBITDA. "The revenue increase in the first quarter can be attributed primarily to products we acquired during the last year. We have been rationalizing our product line and, in many cases, we are standardizing on the acquired products," commented Brian The name Brian (sometimes spelled Bryan) comes from an Irish backround. It is of Celtic origin and its meaning may be "hill" or "strong, noble, and high"[1]. E. Dearing Dearing, as a name, may refer to:
"These results are a mixed bag," Dearing said. "While we maintained our unbroken string of quarterly year-over-year financial improvements, our revenues were not what we were hoping for. I attribute this to a number of factors: distractions caused by the integration of the two acquisitions we completed in fiscal 1999, preparations for Y2K See Y2K problem and Y2K compliant. Y2K - Year 2000 , our adoption of a new accounting system and some delays in our software development efforts. In addition, the recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. revenues in the Equipment Industry are not growing as rapidly as we want, because it is taking longer than planned for us to deploy our customized software See custom software. . I expect the back half of our year to pick up again as we get the integration, Y2K and internal systems issues behind us. The market for our products and services remains very strong -- we simply need to improve the speed with which we satisfy it. "Net income also suffered from non-cash amortization of assets gained through acquisitions including software and other intangibles," Dearing added. The company acquired POWERCOM-2000 in September September: see month. of 1998 and Network Dynamics Incorporated in May of 1999. "New products and acquisitions like these are strategic opportunities for us. While they have some short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. impact on profits and may have integration challenges such as those we experienced over the last several months, the opportunity for growth is too important for us to pass up. "Although we recently completed a receivables-based working capital facility, our cash remains very tight. I expect this to improve somewhat during the balance of the year as renewals and new sales come in. About half of our annual renewals are due during the winter months, since that is the off season in many of our industries and it is most convenient for dealers to install new software at that time. Also on the positive side, our recurring revenues during the first quarter were $2.1 million, indicating a continuing base for future quarters," Dearing said. ARI Network Services, Inc. is a leading provider of business-to-business Internet e-commerce solutions for equipment manufacturers with shared service and distribution networks. ARI currently serves over 20,000 dealers and more than 100 major manufacturers in 12 segments of the worldwide manufactured equipment market including outdoor power, recreation vehicle, floor maintenance, marine and construction. The Company's communications systems In telecommunication, a communications system is a collection of individual communications networks, transmission systems, relay stations, tributary stations, and data terminal equipment (DTE) usually capable of interconnection and interoperation to form an integrated whole. link the back end systems of manufacturers to the business systems of their independent dealers, distributors and service points, thereby providing a global pathway pathway /path·way/ (path´wa) 1. a course usually followed. 2. the nerve structures through which an impulse passes between groups of nerve cells or between the central nervous system and an organ or muscle. for product orders, warranty registrations and other transactions. ARI also provides software to publish and view electronic parts catalogs Noun 1. parts catalog - a list advertising parts for machinery along with prices parts catalogue catalogue, catalog - a complete list of things; usually arranged systematically; "it does not pretend to be a catalog of his achievements" on CD-ROM CD-ROM: see compact disc. CD-ROM in full compact disc read-only memory Type of computer storage medium that is read optically (e.g., by a laser). and the World-Wide Web (World-Wide Web, networking, hypertext) World-Wide Web - (WWW, W3, The Web) An Internet client-server hypertext distributed information retrieval system which originated from the CERN High-Energy Physics laboratories in Geneva, Switzerland. . ARI currently operates three offices 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. and has sales and service agents in Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. , England, France and Italy providing marketing and support of its dealer communications and electronic catalog catalog, descriptive list, on cards or in a book, of the contents of a library. Assurbanipal's library at Nineveh was cataloged on shelves of slate. The first known subject catalog was compiled by Callimachus at the Alexandrian Library in the 3d cent. B.C. products. Statements in this news release include "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and . The forward-looking statements can generally be identified by words such as "believes," "anticipates," "expects" or words of similar meaning. Forward-looking statements also include statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Company's future performance, such as future prospects, revenues, profits and cash flows. The forward-looking statements are subject to risks and uncertainties, which may cause actual results to be materially different from any future performance suggested in the forward-looking statements. Such risks and uncertainties include those factors described under "Forward Looking Statements" in the Company's most recent annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. or quarterly report on Form 10-Q Form 10-Q See 10-Q. filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements are made only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" , and the Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements. For more information, please refer to the Company's filings with the Securities and Exchange Commission.
Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three months ended
October 31
1999 1998
---------- -----------
Net revenues:
Network and other services $ 2,615 $ 2,076
Software 427 284
Development 343 190
---------- -----------
3,385 2,550
Operating expenses:
Variable cost of products and services
sold (exclusive of depreciation and
amortization shown separately below):
Network and other services 352 382
Software 157 85
Development 330 138
---------- -----------
839 605
Depreciation and amortization 1,199 763
Network operations 484 184
Selling, general and administrative 1,805 1,626
Network construction and expansion 656 801
---------- -----------
Operating expenses before amounts
capitalized 4,983 3,979
Less capitalized portion (372) (582)
---------- -----------
Net operating expenses 4,611 3,397
---------- -----------
Operating loss (1,226) (847)
Other income (expense):
Interest expense (98) (62)
Other, net (4) -
---------- -----------
Total other income (expense) (102) (62)
---------- -----------
Net loss $ (1,328) $ (909)
========== ===========
Average common shares outstanding 5,712 4,667
Basic and diluted net loss per share $ (0.23) $ (0.19)
========== ===========
ARI Network Services, Inc.
Balance Sheets
(In thousands, except share and per share data)
October 31 July 31
1999 1999
ASSETS (Unaudited) (Audited)
-----------------------------
Current Assets:
Cash and cash equivalents $ 652 $ 127
Trade receivables, less allowance for
doubtful accounts of $278 in 1999 and
$185 in 1998, respectively 1,694 3,175
Prepaid expenses 118 126
--------- ---------
Total Current Assets 2,464 3,428
Equipment & leasehold improvements:
Network system hardware 4,252 4,246
Leasehold improvements 239 239
Furniture and equipment 513 513
--------- ---------
5,004 4,998
Less accumulated depreciation and
amortization 4,681 4,574
--------- ---------
Net equipment and leasehold improvements 323 424
Intangibles 8,677 8,722
Less accumulated amortization 1,413 980
--------- ---------
Net intangibles 7,264 7,742
Network system:
Network platform 11,467 11,467
Industry-specific applications 22,528 22,155
--------- ---------
33,995 33,622
Less accumulated amortization 25,437 24,778
--------- ---------
Net network system 8,558 8,844
Total Assets $18,609 $20,438
========= =========
LIABILITIES & SHAREHOLDERS' EQUITY
Current liabilities:
Line of credit payable to shareholder $ 246 $ 246
Current portion of notes payable 385 385
Accounts payable 1,431 1,204
Unearned income 2,794 3,307
Other accrued liabilities 1,709 1,680
Current portion of capital lease
obligations 50 82
--------- ---------
Total Current Liabilities 6,615 6,904
Line of credit payable to shareholder 1,552 2,754
Notes payable 724 734
Unearned income 267 267
Capital lease obligations 22 23
Shareholders' equity:
Cummulative preferred stock, par value
$.001 per share, 1,000,000 shares
authorized; 20,350 and 20,000 shares
issued and outstanding at October 31,
1999 and July 31, 1998, respectvely 0 0
Common stock, par value $.001 per share,
25,000,000 shares authorized;
5,842,569 and 5,097,432 shares issued
and outstanding at October 31, 1999
and July 31, 1998, respectively 6 5
Common stock to be issued - 2,406
Additional paid-in-capital 90,235 86,830
Accumulated deficit (80,813) (79,485)
--------- ---------
Total Shareholders' Equity 9,428 9,756
--------- ---------
Total Liabilities & Shareholders' Equity $18,608 $20,438
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