ARI Reports Record Third Quarter Sales; Firm Records 17 Straight Quarters of Year-Over-Year Revenue Increases.Business Editors MILWAUKEE--(BUSINESS WIRE)--June 1, 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. (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 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 and their shared service and distribution networks, today reported results for the third quarter of fiscal 2000 ended April 30, 2000. The Milwaukee-based firm reported record revenues of $3.4 million for the third quarter of fiscal 2000, compared to $3.0 million for the same quarter in the previous fiscal year, a 14% increase. The third quarter represented the 17th consecutive quarter of year-over-year revenue growth for the firm. For the first nine months of fiscal 2000, ARI's revenues totaled $10.6 million, up 24% over the first nine months of the last fiscal year. The firm's trailing 12-month revenues totaled $14.9 million, a 35% increase over the prior trailing 12 months. "While our overall revenue increase in the third quarter was modest at 14%, revenue from software and services provided to the equipment industry grew 40% during the quarter, reflecting the vitality vi·tal·i·ty n. 1. The capacity to live, grow, or develop. 2. Physical or intellectual vigor; energy. of what is now the primary business of our company; the equipment industry now represents approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. two thirds of ARI's total business. The improved revenues came from both internal growth and acquisitions," said 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:
Agriculture operated by business; specifically, that part of a modern national economy devoted to the production, processing, and distribution of food and fibre products and byproducts. and transportation, declined 16% over last year's third quarter. We believe that this trend may well continue, particularly with the consolidation currently taking place in agribusiness. At the same time, we see continued strong growth from the equipment segment of our business. We believe the excellent growth prospects of the equipment sector of our business will far outweigh out·weigh tr.v. out·weighed, out·weigh·ing, out·weighs 1. To weigh more than. 2. To be more significant than; exceed in value or importance: The benefits outweigh the risks. the reductions in non-equipment business. "While revenue growth in the equipment segment was healthy, our results continue to reflect the effects of delays in the release of newly developed software during the first half of the year. We feel these problems are now largely behind us and expect to see steady improvement in future quarters," 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.
ARI had a net loss of $1.6 million or $0.26 per share in the third quarter of fiscal 2000, compared to a net loss of $0.9 million or $0.17 per share in the previous year's third quarter. ARI reported a net loss of $4.5 million or $0.76 per share for the first three quarters of fiscal 2000, compared to a net loss of $2.9 million or $0.58 per share in the first nine months of fiscal 1999. The firm's trailing 12-month net loss is $5.0 million, compared to a net loss of $2.7 million for the prior trailing 12-month period. "Over two-thirds of the increase in net loss for the third quarter and for fiscal 2000 to date is attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to increases in 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 software products, goodwill from acquisitions and other intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. ," Dearing said. "Acquisitions like POWERCOM-2000, Inc. and Network Dynamics Incorporated, both acquired in fiscal 1999, 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, the growth is extremely important for us and we cannot pass up these opportunities. I expect that net income should begin to improve again beginning in the fourth quarter of the fiscal year." 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.
ARI Network Services, Inc.
Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three months ended Nine months ended
April 30 April 30
2000 1999 2000 1999
----- ----- ----- -----
Net revenues:
Network and other
services $ 2,424 $ 1,520 $ 7,616 $ 6,068
Software 624 868 1,785 1,428
Development 358 604 1,239 1,102
------- ------- ------- -------
3,406 2,992 10,640 8,598
Operating expenses:
Variable cost of products and
services sold (exclusive of
depreciation and amortization
shown separately below):
Network and other services 254 372 1,085 1,100
Software 340 107 658 339
Development 224 357 886 861
------- ------- ------- -------
818 836 2,629 2,300
Depreciation and amortization 1,357 873 3,788 2,586
Network operations 515 193 1,540 566
Selling, general and
administrative 1,957 1,791 5,877 5,204
Network construction and
expansion 761 531 2,239 2,040
------- ------- ------- -------
Operating expenses before
amounts capitalized 5,408 4,224 16,074 12,696
Less capitalized portion (569) (418) (1,388) (1,426)
------- ------- ------- -------
Net operating expenses 4,839 3,806 14,685 11,270
------- ------- ------- -------
Operating loss (1,433) (814) (4,045) (2,672)
Other income expense
Interest expense (160) (75) (438) (215)
Other, net - - (6) -
------- ------- ------- -------
Total other expense (160) (75) (444) (215)
------- ------- ------- -------
Net loss $(1,593) $ (889) $(4,489) $(2,887)
======= ======= ======= =======
Average common shares
outstanding 6,156 5,097 5,946 4,950
Basic and diluted net loss
per share ($0.26) ($0.17) ($0.76) ($0.58)
======= ======= ======= =======
See notes to unaudited condensed financial statements.
ARI Network Services, Inc.
Balance Sheets
(In thousands, except share and per share data)
April 30 July 31
2000 1999
ASSETS (Unaudited) (Audited)
----------- ---------
Current Assets:
Cash and cash equivalents $ 1,145 $ 127
Trade receivables, less allowance
for doubtful accounts of $315 at
April 30, 2000 and $278 at
July 31, 1999 3,457 3,175
Prepaid expenses and other 71 126
--------- ---------
Total Current Assets 4,673 3,428
Equipment & leasehold improvements:
Network system hardware 4,283 4,246
Leasehold improvements 239 239
Furniture and equipment 518 513
--------- ---------
5,040 4,998
Less accumulated depreciation and
amortization 4,880 4,574
--------- ---------
Net equipment and leasehold improvements 160 424
Intangibles 3,619 3,289
Less accumulated amortization 1,280 755
--------- ---------
Net intangibles 2,339 2,534
Network system:
Network platform 11,467 11,467
Industry-specific applications 28,976 27,588
-------- ---------
40,443 39,055
Less accumulated amortization 28,009 25,003
-------- ---------
Net network system 12,434 14,052
Total Assets $ 19,606 $ 20,438
======== =========
LIABILITIES & SHAREHOLDERS' EQUITY
Current liabilities:
Line of credit payable to shareholder $ - $ 246
Current portion of notes payable to
shareholder 333 -
Current portion of notes payable other 325 385
Accounts payable 741 1,204
Unearned income 3,295 3,307
Other accrued liabilities 2,652 1,680
Current portion of capital lease
obligations 12 82
-------- ---------
Total Current Liabilities 7,358 6,904
Long term liabilities:
Line of credit payable to shareholder - 2,754
Notes payable to shareholder 472 734
Notes payable other (net of discount) 1,687 -
Unearned income - 267
Capital lease obligations - 23
-------- ---------
Total Long Term Liabilities 2,159 3,778
Shareholders' equity:
Cummulative preferred stock, par value
$.001 per share, 1,000,000 shares
authorized; 20,350 shares issued and
outstanding at both April 30, 2000 and
July 31, 1999 - -
Common stock, par value $.001 per share,
25,000,000 shares authorized; 6,167,776
and 5,097,432 shares issued and
outstanding at April 30, 2000 and
July 31, 1999, respectively 6 5
Common stock to be issued - 2,406
Common stock warrants & options 2,459 -
Additional paid-in-capital 91,598 86,830
Accumulated deficit (83,974) (79,485)
-------- ---------
Total Shareholders' Equity 10,089 9,756
-------- ---------
Total Liabilities & Shareholders'
Equity $ 19,606 $ 20,438
======== =========
See notes to unaudited condensed financial statements.
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