ARI Reports Record Second Quarter Sales; Firm Logs 16 Straight Quarters of Year-Over-Year Revenue Increases.Business Editors MILWAUKEE--(BUSINESS WIRE)--March 16, 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 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 second quarter of fiscal 2000 ended January January: see month. 31, 2000. The Milwaukee-based firm reported revenues of $3.8 million for the second quarter of fiscal 2000, compared to $3.1 million for the same quarter in the previous fiscal year, a 26% increase. The second quarter represented the 16th consecutive quarter of year-over-year revenue growth for the firm and a record for second quarter revenue. For the first six months of fiscal 2000, ARI's revenues totaled $7.2 million, up 29% over the first six months of last fiscal year. 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:
"Our revenue increase in the second quarter came from a combination of acquisitions and internal growth," commented Dearing. "While revenue growth was healthy, and ahead of both last year's actual and last year's pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma revenue for the combined ARI, POWERCOM and NDI NDI National Death Index, see there businesses, we had hoped to do even better." POWERCOM 2000 and Network Dynamics Incorporated (NDI) were both acquired in fiscal 1999. "While revenue growth was at a good pace, our results reflect the effects of the Y2K See Y2K problem and Y2K compliant. Y2K - Year 2000 change-over. In addition, delays in the release of newly developed software resulted in customers postponing purchases until development issues were worked out. Today, we believe these concerns are behind us," Dearing said. 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.
n. 1. The capacity to live, grow, or develop. 2. Physical or intellectual vigor; energy. of ARI's underlying business," Dearing said. ARI had a net loss of $1.6 million or $0.26 per share in the second quarter of fiscal 2000, compared to a net loss of $1.1 million or $0.21 per share in the previous year's second quarter. ARI reported a net loss of $2.9 million or $0.50 per share compared to a net loss of $2.0 million or $0.41 per share in the first six months of fiscal 1999. "More than half of the increase in net loss for fiscal 2000 is attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. for amortization of new software products and goodwill and intangibles from acquisitions," Dearing said. "Our second quarter net loss was also affected by increases in costs related to NDI operations," Dearing said. "Acquisitions like these are strategic opportunities for us. 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, but growth is extremely important for us and we cannot pass up these opportunities. I expect that net income should improve again beginning in the fourth quarter of the fiscal year." Dearing indicated that improved revenues came from continued strong performance of the firm's software and services in the equipment industry, particularly in outdoor power, which had strong direct sales to outdoor power manufacturers, distributors and dealers. "We also continued to develop strong 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 from the equipment industry during the second quarter, up 83% from the second quarter of the prior year," Dearing said. "As we move into the second half of the year, we believe that businesses in our target markets will focus on implementing new and improved dealer communications and e-commerce systems. As a result, we believe that we will continue to show sustainable revenue growth and begin to show earning improvements in the fourth quarter of fiscal 2000." 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 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. provide 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 sales reports, product orders, warranty registrations and other transactions between manufacturers and their networks of sales and service points. ARI also builds and manages electronic commerce databases, including 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" and industry-common directories of products, companies and locations. 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 England, the largest and most populous portion of the United Kingdom of Great Britain and Northern Ireland (1991 pop. 46,382,050), 50,334 sq mi (130,365 sq km). It is bounded by Wales and the Irish Sea on the west and Scotland on the north. , France and Italy Italy (ĭt`əlē), Ital. Italia, officially Italian Republic, republic (2005 est. pop. 58,103,000), 116,303 sq mi (301,225 sq km), S Europe. 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. This press release contains Year 2000 readiness disclosures under the Year 2000 Information and Readiness Disclosure Act.
ARI Network Services, Inc.
Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three months ended Six months ended
January 31 January 31
2000 1999 2000 1999
--------- --------- --------- --------
Net revenues:
Network and other
services $ 2,577 $ 2,472 $ 5,192 $ 4,548
Software 734 277 1,161 561
Development 538 307 881 497
--------- --------- --------- --------
3,849 3,056 7,234 5,606
Operating expenses:
Variable cost of products
and services sold (exclusive of
depreciation and amortization
shown separately below):
Network and other
services 479 346 831 728
Software 161 147 318 232
Development 332 366 662 504
--------- --------- --------- --------
972 859 1,811 1,464
Depreciation and
amortization 1,232 950 2,431 1,713
Network operations 541 189 1,025 373
Selling, general and
administrative 2,115 1,787 3,920 3,413
Network construction
and expansion 822 708 1,478 1,509
--------- --------- --------- --------
Operating expenses before
amounts capitalized 5,682 4,493 10,665 8,472
Less capitalized
portion (447) (426) (819) (1,008)
--------- --------- --------- --------
Net operating expenses 5,235 4,067 9,846 7,464
--------- --------- --------- --------
Operating loss (1,386) (1,011) (2,612) (1,858)
Other expense:
Interest expense (180) (78) (278) (140)
Other, net (2) - (6) -
--------- --------- --------- --------
Total other expense (182) (78) (284) (140)
--------- --------- --------- --------
Net loss $ (1,568) $ (1,089) $ (2,896) $ (1,998)
========= ========= ======== ========
Average common shares
outstanding 5,974 5,090 5,843 4,879
Basic and diluted net
loss per share $ (0.26) $ (0.21) $ (0.50) $ (0.41)
========= ========= ========= ========
See notes to unaudited condensed financial statements.
Editor's Note: In accordance with FASB 86, includes a portion of
network and product development expense and other operating expenses
directly related to the development process.
ARI Network Services, Inc.
Balance Sheets
(In thousands, except share and per share data)
January 31 July 31
2000 1999
ASSETS (Unaudited) (Audited)
----------------------------
Current Assets:
Cash and cash equivalents $ 396 $ 127
Trade receivables, less allowance
for doubtful accounts of $300
at January 31, 2000 and $278 at
July 31, 1999 3,304 3,175
Prepaid expenses 47 126
------------ ------------
Total Current Assets 3,747 3,428
Equipment & leasehold improvements:
Network system hardware 4,274 4,246
Leasehold improvements 239 239
Furniture and equipment 525 513
------------ ------------
5,038 4,998
Less accumulated depreciation and
amortization 4,755 4,574
------------ ------------
Net equipment and leasehold
improvements 283 424
Intangibles 3,289 3,289
Less accumulated amortization 1,082 755
------------ ------------
Net intangibles 2,207 2,534
Network system:
Network platform 11,467 11,467
Industry-specific applications 28,407 27,588
------------ ------------
39,874 39,055
Less accumulated amortization 26,926 25,003
------------ ------------
Net network system 12,948 14,052
------------ ------------
Total Assets $ 19,185 $ 20,438
============ ============
LIABILITIES & SHAREHOLDERS' EQUITY
Current liabilities:
Line of credit payable to
shareholder $ 500 $ 246
Current portion of notes payable 684 385
Accounts payable 1,062 1,204
Unearned income 3,008 3,307
Other accrued liabilities 2,538 1,680
Current portion of capital lease
obligations 28 82
------------ ------------
Total Current Liabilities 7,820 6,904
Line of credit payable to shareholder 1,000 2,754
Notes payable 1,105 734
Unearned income 115 267
Capital lease obligations 21 23
Shareholders' equity:
Cummulative preferred stock, par
value $.001 per share,
1,000,000 shares authorized;
20,350 shares issued and
outstanding at both January 31,
2000 and July 31, 1999 0 0
Common stock, par value $.001 per
share, 25,000,000 shares
authorized; 6,146,145 and
5,097,432 shares issued and
outstanding at January 31, 2000
and July 31, 1999, respectively 6 5
Common stock to be issued - 2,406
Additional paid-in-capital 91,499 86,830
Accumulated deficit (82,381) (79,485)
------------ ------------
Total Shareholders' Equity 9,124 9,756
------------ ------------
Total Liabilities &
Shareholders' Equity $ 19,185 $ 20,438
============ ============
See notes to unaudited condensed financial statements.
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