Accent Color Sciences, Inc. Reports Tripling of Sales, Halving of Loss for the First Nine Months of 1999.EAST HARTFORD East Hartford, urban town (1990 pop. 50,452), Hartford co., central Conn., on the Connecticut River opposite Hartford; settled c.1640, inc. 1783. East Hartford is a trucking and warehousing center, with bulk oil storage and distribution. , Conn.--(BUSINESS WIRE)--Nov. 15, 1999-- Accent Color Sciences, Inc. (OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. : ACLR ACLR American Criminal Law Review (Georgetown University Law Center publication) ACLR Adjacent Channel Leakage Power Ratio ACLR Anterior Cruciate Ligament Reconstruction ACLR Amateur Cross Link Repeater ACLR Athlétic Club La Roche ), a leading provider of high-speed spot color A color that is printed from one printing plate which contains one matched color of ink. Spot colors are used when only one or two solid colors are needed on a page or when a color has to match perfectly and be consistent such as with a company logo or when colors are the trademark of the printing systems, today announced that sales for the third quarter and first nine months of 1999, ended September 30, 1999, were at least double the year-earlier sales, with reduced net losses, including a reduction of more than half in the net loss for the first nine months of 1999 compared to the loss for the 1998 period. For the third quarter, sales were $1,475,004 versus sales of $664,689 for the 1998 quarter. The net loss was $1,128,010, or $0.04 per 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, compared to a net loss of $2,028,001, or $0.16 per diluted common share, for the third quarter of 1998. At the end of the third quarter, the backlog stood at 57 systems, representing some $8 million of orders, compared with a backlog of 36 systems a year ago. For the nine-month period, sales were $6,328,909, more than triple the $2,002,939 recorded for the year-ago period. The net loss for the nine months was $3,973,854, or less than half the net loss of $8,057,977 recorded for the year-earlier period. Including a one-time non-cash imputed Attributed vicariously. In the legal sense, the term imputed is used to describe an action, fact, or quality, the knowledge of which is charged to an individual based upon the actions of another for whom the individual is responsible rather than on the individual's dividend 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. of $920,000 in 1998 and 1999 additions to and subtractions from the redemption value Redemption Value refers to the value that is placed on a party's head after they wrong you in some way. It is seen as the payment you are willing to make to get justice. of the preferred stock, the net loss for the nine months applicable to common stock was $4,753,999, or $0.30 per diluted common share, compared to $8,977,977, or $0.74 per diluted common share, for the 1998 period. The company's cash position as of September 30, 1999, was $1.457 million, reflecting additional investments in the company received during the third quarter of $1.1 million, less selling expenses, for a combination of $550,000 in common stock, $550,000 in principal amount of short-term convertible subordinated debentures subordinated debenture An unsecured bond with a claim to assets that is subordinate to all existing and future debt. Thus, in the event that the issuer encounters financial difficulties and must be liquidated, all other claims must be satisfied before due February 1, 2000, and warrants. In addition, the holders of the company's preferred stock agreed during the quarter, for a limited time, to convert their preferred stock into a participation in a future equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. or be redeemed re·deem tr.v. re·deemed, re·deem·ing, re·deems 1. To recover ownership of by paying a specified sum. 2. To pay off (a promissory note, for example). 3. for cash, at the company's election. Charles E. Buchheit, president and chief executive officer, said that the most recent quarter included the success of the additional investments and the realization that many potential customers are waiting until next year to implement any new systems because of Year 2000 considerations. "During this waiting, we continue to work on improvements on our systems that will reduce manufacturing costs while increasing the quality and functionality. We know the demand for our product is there because of the large IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) and Xerox order commitments that we have received for next year -- totaling more than $10 million for Year 2000 delivery and exceeding all of our shipments to date. With the Y2K See Y2K problem and Y2K compliant. Y2K - Year 2000 impact and our gearing up to meet the Year 2000 demand, we do not expect our fourth quarter to reflect the year-to-date trends." Accent Color Sciences, Inc. designs, manufactures and sells innovative, high-speed spot color printing systems -- Truecolor(TM) Systems -- for the production printing and production publishing segments of the printing industry. Truecolor(TM) Systems, when integrated with high-speed, digital, black-on-white printers, create a system that prints or highlights critical information in multiple colors for large-volume applications. Such applications include billing statements, account statements, invoices, legal notices, brochures, financial reports and short-run, on-demand publications. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement Under 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: The statements contained in this news release that are forward-looking are based on current expectations that are subject to a number of uncertainties and risks, and actual results may differ materially. Those risks and uncertainties include, but are not limited to: (i) the level of customer acceptance of the Company's products; (ii) the rights of customers of the Company to modify or cancel orders cancel order A customer order to a broker that cancels an earlier, unfilled order given by the customer. under the terms of related product purchase agreements, 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. ; (iii) the dependence of the Company on third-party suppliers for certain key technology elements; and (iv) the potential fluctuations in the Company's quarterly results of operations. Further information on factors that could cause actual results to differ from those anticipated is detailed in the Company's 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. for 1998, quarterly reports on Form 10-Q Form 10-Q See 10-Q. , and other filings with the Securities and Exchange Commission. NOTE: Press releases and other information are available on Accent Color Sciences' World Wide Web site at http://www.accentcolor.com. -0-
ACCENT COLOR SCIENCES, INC.
Results of Operations (Unaudited)
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Three Months Ended Nine Months Ended
September 30, September 30,
1999 1998 1999 1998
Sales $ 1,475,004 $ 664,689 $ 6,328,909 $ 2,002,939
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Costs and expenses:
Costs of
production 1,318,789 861,495 5,824,721 3,638,749
Research and
development 538,612 895,614 2,152,184 3,423,716
Marketing,
general and
administrative 631,321 885,268 2,024,641 3,004,740
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2,488,722 2,642,377 10,001,546 10,067,205
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Profit (loss) from
operations (1,013,718) (1,977,688) (3,672,637) (8,064,266)
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Other (income)
expense:
Interest expense 118,040 81,740 312,823 96,833
Interest income (3,748) (31,427) (11,606) (103,122)
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114,292 50,313 301,217 (6,289)
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Net loss $ (1,128,010) $ (2,028,001) $ (3,973,854) $ (8,057,977)
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One-time
imputed dividend on
preferred stock -- -- -- (920,000)
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Accretion of
redemption value on
mandatorily redeemable
convertible
preferred stock 396,009 -- (780,145) --
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Net loss
applicable to
common
stock $ (732,001) $ (2,028,001) $ (4,753,999) $ (8,977,977)
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Net loss per
common share,
basic and
diluted, applicable
to common
stock $ (0.04) $ (0.16) $ (0.30) $ (0.74)
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Weighted
average common
shares
outstanding 18,021,641 12,440,308 15,688,027 12,212,415
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Balance Sheet Data (Unaudited)
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(In 000s) September 30,December 31,
1999 1998
Cash and cash equivalents $ 1,457 $ 1,048
Total assets 5,335 6,860
Deferred revenue 874 595
Total long-term debt, less discount 2,335 2,236
Total shareholders' equity (deficit) (3,959) (1,307)
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