ARI Reports Record Revenues For Fiscal 2000; ARI Reports Record Revenues for Fiscal 2000 Recurring Revenue Stream Boosts Top Line.Business Editors MILWAUKEE--(BUSINESS WIRE)--Sept. 29, 2000 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 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, today reported record revenues of $14.6 million for the fiscal year ended July July: see month. 31, 2000, up 13% from $12.9 million in the previous fiscal year. 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.
"While we are somewhat pleased with our revenue growth for the year, we are disappointed that a number of one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. factors affected our results," 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:
Dearing attributed the slower-than-expected revenue growth and the decline in EBITDA to acquisition integration, Y2K See Y2K problem and Y2K compliant. Y2K - Year 2000 compliance efforts and delays in development. "Rationalizing our product line and getting all of our customers through Y2K without a hitch hitch to fasten by a knot, usually used to describe tying a horse to a post. took valuable time away from our development efforts on new software that is in great demand," Dearing said. "Today, our product lines have been combined, Y2K is successfully behind us and we just recently deployed production versions of our new software in the field. We accomplished that by dramatically increasing our development staff, by concentrating those activities in Colorado Springs Colorado Springs, city (1990 pop. 281,140), seat of El Paso co., central Colo., on Monument and Fountain creeks, at the foot of Pikes Peak; inc. 1886. It is a year-round resort and a booming military, technological, and commercial city. and by creating a new product management function. Unfortunately, however, all of these remedies create increased expense before they generate new sales, so the bottom line was affected. When we raised capital in April, we said we would spend the money investing in our future. That's exactly what we have done, but that decision has 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. consequences along with the 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. benefits we are anticipating." Dearing indicated that while new sales slowed during fiscal 2000 due to delays in development, 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 grew by 28% and accounted for 71% of annual revenues. "This indicates a solid base for the future and a predictable revenue stream. We also continued our strong penetration of the manufactured equipment markets; this business now accounts for more than two-thirds of our revenues," Dearing said. "The majority of our future growth will come from the equipment market, where revenues are growing faster than our overall business." For the fourth quarter of fiscal 2000, revenues totaled $3.9 million, compared to revenues of $4.3 million in the fourth quarter of the previous fiscal year. EBITDA for the fourth quarter of fiscal 2000 was negative $288,000 compared to EBITDA of $813,000 in the prior fourth quarter. ARI's fourth quarter net loss was $1.9 million or $0.30 per share, compared with a loss of $528,000, or $0.10 per share in the fourth quarter of the previous fiscal year. Dearing said that with the improvements in the Company's software development operations, he believes the firm is positioned for further growth both internally and through the development of strategic alliances. "The conversion of our products to the Web is going very well and our Web 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. offering is receiving excellent customer acceptance. We have already sold our recently introduced EMPARTweb(TM) catalog to six accounts and have a very strong pipeline of prospects," Dearing said. "I also believe that ARI has some very powerful assets that can be leveraged through strategic alliances with other e-Commerce players. We have a `Blue Chip' customer base of more than 100 manufacturers and 22,000 dealers worldwide, solid relationships with over 100 dealer business management system providers though our COMPASS compass. 1 In mathematics, an instrument for making circles and measuring distances. Frequently called a pair of compasses, it consists of two metal legs with one end of each attached to a pivot to form a V-shaped device. Partners(TM) program and a suite of electronic catalog offerings that is second to none. And we have expanding opportunities in world markets, as evidenced by the fact that our international business grew by nearly 60% last year." Looking at the operations side of the business, Dearing indicated that ARI expects to fund both its operations and selected investment activities without recourse A phrase used by an endorser (a signer other than the original maker) of a negotiable instrument (for example, a check or promissory note) to mean that if payment of the instrument is refused, the endorser will not be responsible. to additional capital. "We do not anticipate any need for additional cash beyond our existing cash and credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities ," Dearing said. "Though last year was a challenging year for us, we believe we have addressed the issues that held us back and are now well-positioned to have a good year in fiscal 2001." ARI's 4th Quarter Fiscal Year 2000 conference call will be Webcast at 4:30pm EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT today and be available for replay for one month. More information and notes on the call will be available on ARI's website www.arinet.com(TM). ARI Network Services, Inc. is 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. (B2B (Business to Business) Refers to one business communicating with or selling to another. See B2B e-commerce, B2C and B2G. B2B - business to business ) Internet e-Commerce solutions for sales, service and life-cycle product support in the manufactured equipment market. ARI currently serves 12 segments of the worldwide manufactured equipment market including outdoor power, recreation vehicle, floor maintenance, marine and construction. The Company builds and supports a full suite of multi-media electronic catalog software including publishing software to 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" that are distributed via the Web, CD or DVD DVD: see digital versatile disc. DVD in full digital video disc or digital versatile disc Type of optical disc. The DVD represents the second generation of compact-disc (CD) technology. . ARI 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. provide a global electronic 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 sales reports, product orders, warranty registrations and other transactions between manufacturers and their networks of sales and service points. 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, England, France, Germany and Italy providing marketing and support of its dealer communications and electronic catalog 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 risk and uncertainties include those factors described under "Risk Factors" in the Company's Registration Statement on Form S-3 filed on May 12, 2000, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. . 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.
ARI Network Services, Inc.
Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three months ended Twelve months ended
July 31 July 31
2000 1999 2000 1999
------- ------- ------- -------
Net revenues:
Network and other services $ 2,756 $ 2,548 $ 10,372 $ 8,616
Software 760 1,394 2,545 2,822
Development 404 348 1,643 1,450
------- ------- ------- -------
3,920 4,290 14,560 12,888
Operating expenses:
Variable cost of products and
services sold (exclusive of
depreciation and amortization
shown separately below):
Network and other services 681 331 2,089 1,431
Software 55 147 390 486
Development 405 373 1,291 1,234
------- ------- ------- -------
1,141 851 3,770 3,151
Depreciation and amortization 1,214 1,244 5,002 3,830
Network operations 508 451 2,048 1,017
Selling, general and
administrative 2,337 1,791 8,214 6,995
Network construction and
expansion 540 746 2,779 2,786
------- ------- ------- -------
Operating expenses before amounts
capitalized 5,740 5,083 21,813 17,779
Less capitalized portion (341) (376) (1,729) (1,802)
------- ------- ------- -------
Net operating expenses 5,399 4,707 20,084 15,977
------- ------- ------- -------
Operating loss (1,479) (417) (5,524) (3,089)
Other income expense
Interest expense (355) (97) (793) (312)
Other, net (23) (14) (29) (14)
------- ------- ------- -------
Total other expense (378) (111) (822) (326)
------- ------- ------- -------
Net loss $(1,857) $(528) $(6,346)$(3,415)
======= ======= ======= =======
Average common shares outstanding 6,168 5,391 6,002 5,061
Basic and diluted net loss per share ($0.30) ($0.10) ($1.06) ($0.67)
======= ======= ======= =======
See notes to unaudited condensed financial statements.
ARI Network Services, Inc.
Balance Sheets
(In thousands, except share and per share data)
July 31 July 31
2000 1999
ASSETS (Unaudited)(Audited)
--------------------
Current Assets:
Cash and cash equivalents $ 563 $ 127
Trade receivables, less allowance for
doubtful accounts of $697 and $278 at
July 31, 2000 and 1999, respectively 3,282 3,175
Prepaid expenses and other 109 126
-------------------
Total Current Assets 3,954 3,428
Equipment & leasehold improvements:
Network system hardware 4,389 4,246
Leasehold improvements 239 239
Furniture and equipment 846 513
-------------------
5,474 4,998
Less accumulated depreciation and amortization 5,038 4,574
-------------------
Net equipment and leasehold improvements 436 424
Intangibles 3,669 3,289
Less accumulated amortization 1,472 755
-------------------
Net intangibles 2,197 2,534
Network system:
Network platform 11,467 11,467
Industry-specific applications 29,317 27,588
-------------------
40,784 39,055
Less accumulated amortization 28,883 25,003
-------------------
Net network system 11,901 14,052
-------------------
Total Assets $ 18,488 $ 20,438
===================
LIABILITIES & SHAREHOLDERS' EQUITY
Current liabilities:
Line of credit payable to shareholder $ - $ 246
Current portion of notes payable to shareholder 361 -
Current portion of notes payable 461 385
Accounts payable 836 1,204
Unearned income 3,117 3,307
Other accrued liabilities 2,492 1,680
Current portion of capital lease obligations 111 82
-------------------
Total Current Liabilities 7,378 6,904
Long term liabilities:
Line of credit payable to shareholder - 2,754
Notes payable to shareholder 389 734
Notes payable (net of discount) 2,092 -
Unearned income - 267
Capital lease obligations 214 23
-------------------
Total Long Term Liabilities 2,695 3,778
Shareholders' equity:
Cumulative preferred stock, par value $.001
per share, 1,000,000 shares authorized; 20,350
shares issued and outstanding at July 31, 2000
and 1999 - -
Common stock, par value $.001 per share,
25,000,000 shares authorized; 6,168,270 and
5,097,432 shares issued and outstanding at
July 31, 2000 and 1999, respectively 6 5
Common stock to be issued - 2,406
Common stock warrants and options 2,459 -
Additional paid-in-capital 91,781 86,830
Accumulated deficit (85,831) (79,485)
-------------------
Total Shareholders' Equity 8,415 9,756
-------------------
Total Liabilities & Shareholders' Equity $ 18,488 $ 20,438
===================
See notes to unaudited condensed financial statements.
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