AXCESS Inc. Announces Third Quarter Results.Business Editors & High Tech Writers DALLAS--(BUSINESS WIRE)--Nov. 10, 2000 AXCESS Inc. (Nasdaq:AXSI), a leading provider of asset management products and solutions, today reported results for the third quarter ending September September: see month. 30, 2000. Revenues for the quarter increased to $585,279 compared to $422,749 for the same period in 1999. Revenues for the nine months ending September 30, 2000 increased to $2,044,150 versus $545,953 for the comparable period last year. During the third quarter, AXCESS completed the first full system installation of its ActiveTag(TM) RFID (Radio Frequency IDentification) A data collection technology that uses electronic tags for storing data. The tag, also known as an "electronic label," "transponder" or "code plate," is made up of an RFID chip attached to an antenna. control point architecture and "beaconing (1) A continuous signaling of error conditions on a LAN. In a token ring network, a beacon frame is sent by the adapter if a failure in the line is detected. See beacon removal. " inventory asset tag introduced last quarter. The system is being used to track and protect IT assets and control access in an 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 "co-location" data center operated by a telecommunications company See telecom company. . This company plans to develop the "co-location" business by opening multiple centers around the country. Additionally, the Company completed installations of its networked-based digital video solution, LANconnect(TM) and LANcorder(TM), in several schools. The Company is continuing its push into other markets with applications that may achieve significant operational benefits using AXCESS' wireless network appliances (1) A specialized device for use on a network. For example, Web servers, cache servers and file servers can be implemented as general-purpose computers with the appropriate software or as network appliances, which are computers dedicated to a single function and cannot do anything . These markets include corporate IT departments, data centers, healthcare, education, retail, and warehouse management. "This quarter was highlighted by the rollout of our new network-based wireless and streaming video A one-way video transmission over a data network. It is widely used on the Web as well as company networks to play video clips and video broadcasts. Computers in home networks stream video to digital media hubs connected to a home theater. products into new and dramatic vertical markets. We remain very excited by our ability to build on our proprietary technologies and to position the Company in these new markets. By offering full system solutions, we offer a more compelling value proposition to our customers and provide AXCESS with larger transaction potential and 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. revenue models. These sales have a longer sales cycle but help to create the foundation for 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. success of AXCESS. Our products provide virtually any organization an economic way to manage assets and people," said Allan Griebenow, 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. of AXCESS. During the quarter, AXCESS announced several distribution partnerships, including agreements with Data Recognition, Inc.; ProTag Systems, Inc.; and Cypress Cypress, city, United States Cypress (sī`prəs), city (1990 pop. 42,655), Orange co., S Calif. near Long Beach; inc. 1956. Forest Lawn–Cypress, a branch of the famous cemetery in Glendale, Calif. Computer Systems. "These new relationships give us the opportunity to reach a number of different vertical markets with our network-based solutions," commented CFO See Chief Financial Officer. James Craig James Craig may refer to:
An add-on may be covered by a clause in an installment payment contract that allows the seller to hold a security interest in the earlier goods until full payment is made on the later goods. products, distributors and integrators are able to quickly assimilate as·sim·i·late v. 1. To consume and incorporate nutrients into the body after digestion. 2. To transform food into living tissue by the process of anabolism. our products into their service offerings." Net loss from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the quarter ending September 30, 2000 totaled $3.4 million or $0.99 per basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. common share, excluding a $1.4 million charge for the beneficial conversion on preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. issued and a warranty charge of $0.3 million. This compared to a net loss of $2.7 million or $0.86 per basic and diluted common share for the same quarter a year ago. Net loss from continuing operations, excluding a $6.4 million charge for beneficial conversion and a warranty charge of $0.3 million, for the nine months ending September 30, 2000 was $9.1 million or $2.73 per basic and diluted common share compared to a net loss of $5.4 million or $1.74 per basic and diluted common share for the same period in 1999. For more information on AXCESS Inc.'s products and solutions, see the Company's Web site at www.axcessinc.com. AXCESS Inc., headquartered in Dallas, provides network-based system solutions to the enterprise using patented technologies in wireless, automatic identification and multi-media for improving operations productivity, physical security, asset and inventory management, and ERP (Enterprise Resource Planning) An integrated information system that serves all departments within an enterprise. Evolving out of the manufacturing industry, ERP implies the use of packaged software rather than proprietary software written by or for one customer. . Products include hands-free, long range RFID (radio frequency identification See RFID. ) technology used to track and monitor people, assets, inventory and vehicles as well as patented digital video compression Encoding digital video to take up less storage space and transmission bandwidth. See video codec and data compression. video compression - Compression of sequences of images. technology for enterprise multi-media transmission and digital recording. AXCESS is an incuVest LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control partner company. This news release includes "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 "safe-harbor" provisions 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 of 1995. Such statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to differ materially from the results expressed or implied by such statements, including general economic and business conditions, conditions affecting the industries served by the Company and its subsidiaries, conditions affecting the Company's customers and suppliers, competitor responses to the Company's products and services, the overall market acceptance of such products and services, access to capital and other factors disclosed in the Company's Annual Report on Form 10KSB KSB Kogod School of Business (American University) KSB Kelley School of Business (Indiana University) KSB Kantonsschule Am Brühl St. for the year ended Dec. 31, 1999 and all of the Company's subsequent Quarterly Reports on Form 10QSB QSB Fading QSB Qualified Small Business (IRS category) QSB Queen Street Backpackers (Auckland, New Zealand) QSB Quality System Basics QSB Qualified Supplemental Benefit QSB Quantum Singleton Bound , especially in the "risk factors" sections of these annual and quarterly reports. Accordingly, although the Company believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. The Company has no obligation to update the forward-looking information contained in this news release.
AXCESS INC.
BALANCE SHEETS
(Unaudited)
September 30, December 31,
Assets 2000 1999
------ ------------- -------------
Current assets:
Cash and cash equivalents $ 457,694 $ 69,450
Accounts receivable, net 621,448 459,654
Inventory 769,143 845,400
Prepaid expenses and other 528,211 695,334
------------- -------------
Total current assets 2,376,496 2,069,838
Property, plant and equipment, net 513,869 544,441
Long-term note receivable
- stockholder 3,902,375 3,902,375
Purchased technologies and
intellectual property, net 5,186,678 6,043,142
------------- -------------
Total assets $ 11,979,418 $ 12,559,796
============= =============
Liabilities and Stockholders' Equity
------------------------------------
Current liabilities:
Notes payable to stockholders $ 1,902,850 $ 980,000
Other -- 22,309
Accounts payable 643,973 447,889
Other accrued liabilities 1,298,543 1,242,098
------------- -------------
Total current liabilities 3,845,366 2,692,296
Non-current notes payable
to stockholders 5,989,741 5,921,999
------------- -------------
Total liabilities 9,835,107 8,614,295
------------- -------------
Stockholders' equity:
Convertible preferred stock 40,867,666 33,598,919
Common stock 34,083 32,984
Nonvoting convertible common stock 1,125 1,125
Additional paid-in capital 68,148,435 61,387,968
Accumulated deficit (106,906,998) (91,075,495)
------------- -------------
Total stockholders' equity 2,144,311 3,945,501
------------- -------------
Total liabilities and
stockholders' equity $ 11,979,418 $ 12,559,796
============= =============
AXCESS INC.
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------- --------------------------
2000 1999 2000 1999
---- ---- ---- ----
Sales $ 585,279 $ 422,749 $ 2,044,150 $ 545,953
Cost of sales 727,344 213,751 1,515,680 279,501
------------ ------------ ------------- ------------
Gross profit
(loss) (142,065) 208,998 528,470 266,452
------------ ------------ ------------- ------------
Operating expenses:
Research and
development 656,715 526,895 1,867,100 1,167,488
General and
administrative 675,525 725,486 1,864,676 2,151,637
Selling and
marketing 801,219 723,994 2,194,728 1,937,149
Depreciation and
amortization 400,220 219,443 1,188,035 489,626
------------ ------------ ------------- ------------
Operating
expenses 2,533,679 2,195,818 7,114,539 5,745,900
------------ ------------ ------------- ------------
Loss from
operations (2,675,744) (1,986,820) (6,586,069) (5,479,448)
------------ ------------ ------------- ------------
Other income (expense):
Interest income 90,371 81,621 288,058 149,571
Interest expense (223,108) (235,119) (786,560) (394,480)
Other (3,673) (1,167) 7,197 2,039,688
------------ ------------ ------------- ------------
Other income
(expense), net (136,410) (154,665) (491,305) 1,794,779
------------ ------------ ------------- ------------
Loss from
continuing
operations (2,812,154) (2,141,485) (7,077,374) (3,684,669)
------------ ------------ ------------- ------------
Discontinued operations:
Gain on disposal
of discontinued
operations -- -- -- 1,856,625
------------ ------------ ------------- ------------
Net loss (2,812,154) (2,141,485) (7,077,374) (1,828,044)
Preferred stock
dividend
requirements (2,247,309) (595,578) (8,754,129) (1,736,072)
------------ ------------ ------------- ------------
Net loss
applicable to
common stock $(5,059,463) $(2,737,063) $(15,831,503) $(3,564,116)
============ ============ ============= ============
Basic and diluted net income (loss) per common share:
Continuing
operations $ (1.49) $ (0.86) $ (4.73) $ (1.74)
Discontinued
operations $ -- $ -- $ -- $ 0.60
Net income
(loss) $ (1.49) $ (0.86) $ (4.73) $ (1.14)
Weighted average
shares of common
stock outstanding 3,389,885 3,179,368 3,346,163 3,115,632
============ ============ ============= ============
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