Accent Color Sciences Reports Profitable Third Quarter But Pursues Review of Its Strategic Options.Business Editors 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. 13, 2000 Accent Color Sciences, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :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 high-speed adj. 1. Operated or designed for operation at high speed: a high-speed food processor. 2. Taking place at high speed: a high-speed chase. 3. 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 reported a net profit for the third quarter of 2000 but announced that because of uncertainties in its core markets for 2001 it is cutting its costs and reviewing its strategic options. For the third quarter of 2000, sales were $4,377,615 versus sales of $1,475,004 for the comparable 1999 quarter. The net profit was $138,958, or $0.01 per basic common share and $0.00 per fully 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) in the 1999 third quarter of ($732,001), or ($0.04) per basic and diluted common share. For the nine-month period ending September September: see month. 30, 2000, sales were $9,566,454 compared to sales of $6,328,909 for the comparable 1999 nine-month period. The net (loss) applicable to common stock for the 2000 nine-month period was ($1,443,166) or ($0.06) per common share, compared to ($4,753,999) or ($0.30) per common share for the 1999 period. Commenting on the results of the quarter, Charles Charles, archduke of Austria Charles, 1771–1847, archduke of Austria; brother of Holy Roman Emperor Francis II. Despite his epilepsy, he was the ablest Austrian commander in the French Revolutionary and Napoleonic wars; however, he was handicapped by Buchheit, President and Chief Executive Officer, said: "We have remained profitable since we launched the cost-reduced version of our Truecolor System in April of this year, but we have found some uncertainties for the fourth quarter -- traditionally the production printing industry's strongest quarter, with up to 50% or more of sales occurring in the final three months of each year. This year, however, our sales partners, 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, are unwilling at this time to commit to volumes for 2001 beyond their existing inventories because of economic uncertainties for the fourth quarter and the coming year. "In response, we feel we must take action and make plans to further reduce our cost structure. In addition, we have secured the services of advisors to assist us in our evaluation of alternative strategies. As part of this effort, we are shifting our technical focus to industrial printing market opportunities and we are working with I.T. Strategies, a leading consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a specializing in digital printing opportunities in emerging markets. We believe we are uniquely positioned for these markets with our leadership in high-speed ink jet See inkjet printer. integration. "We are fortunate to have a broad-based broad-based Of or relating to an index or average that provides a good representation of the overall market. The S&P 500 and NYSE Composite are generally regarded as broad-based stock indexes, while the popular Dow Jones Industrial Average is biased technical capability that has value across industries, as demonstrated by our recently announced relationship with Philip Morris. We will build on the knowledge and expertise gained during the development of the TruecolorTM System, and leverage those skills to provide contract ink jet integration and manufacturing services to the market. This move has the potential to provide our company a leadership role in bringing the benefits of high quality ink jet printing to the industrial printing market. As always, we will continue to manage our business in a manner that promotes growth, maximizes revenue opportunities, and minimizes expenses." Accent Color Sciences, Inc. designs, manufactures and sells innovative, high-speed ink jet printing systems, such as its Truecolor(TM) System for the production printing and production publishing segments of the printing industry, and other custom systems for industrial printing. 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, including billing statements, account statements, invoices, check in-filling, 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, including any redirection Diverting data from their normal destination to another; for example, to a disk file instead of the printer, or to a server's disk instead of the local disk. See virtual directory, symbolic link, shortcut, redirector and DOS redirection. 1. of the company's business, 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 need to secure strategic relationships and/or additional capital to pursue industrial printing opportunities while supporting current programs; (ii) the need to reach an accommodation with our secured lender (IBM) concerning indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. of $2.7 million due December 31, 2000, (iii) the level of customer acceptance of the company's products and the dependence of the company on additional orders from current customers; (iv) 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. ; (v) problems faced by the company's principal customers in their own businesses which may impact their ability or willingness to support their programs with the company; (vi) the dependence of the company on third-party suppliers for certain key technology elements, and (vii) 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 1999, 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. ACCENT COLOR SCIENCES, INC. Results of Operations (Unaudited)
Three months ended Nine months ended
Sept. 30, Sept.30,
2000 1999 2000 1999
---- ---- ---- ----
Sales $4,377,615 $ 1,475,004 $ 9,566,454 $ 6,328,909
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Costs and
expenses:
Costs of
production 2,790,118 1,318,789 6,587,081 5,824,721
Research and
development 566,242 538,612 1,852,963 2,152,184
Marketing,
general and
administrative 791,012 631,321 2,316,431 2,024,641
----------------------------------------------------------------------
4,147,372 2,488,722 10,756,475 10,001,546
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Profit (loss)
from operations 230,243 (1,013,718) (1,190,021) (3,672,637)
----------------------------------------------------------------------
Other (income)
expense:
Interest
expense 98,070 118,040 292,704 312,823
Interest income (6,785) (3,748) (39,559) (11,606)
----------------------------------------------------------------------
91,285 114,292 253,145 301,217
Income (loss) before accretion to redemption value
on mandatorily redeemable convertible preferred
stock 138,958 (1,128,010) (1,443,166) (3,973,854)
----------------------------------------------------------------------
Accretion to redemption value on mandatorily
redeemable convertible preferred stock
- 396,009 - (780,145)
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Net income
(loss) 138,958 $ (732,001) (1,443,166) (4,753,999)
----------------------------------------------------------------------
Basic earnings
(loss) per share 0.01 $ (.04) (.06) $ (.30)
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Diluted earnings
per share 0.00 N/A N/A
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Balance Sheet Data (Unaudited)
September 30, 2000 December 31, 1999
----------------------------------------------------------------------
Cash and cash equivalents 482,369 $ 2,573,764
Total assets 4,871,325 5,848,055
Deferred revenue 334,000 874,000
Total liabilities 5,869,108 5,685,189
Mandatorily redeemable
convertible
preferred stock 2,599,171 4,313,367
Total shareholder's
equity (deficit) (3,596,954) (4,150,501)
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