Alanco FY 2001 Results/FY 2002 Outlook; FY 2001 Loss Primarily Attributed to SanOne Start-Up Investments and Restructuring Costs; FY 2002 Outlook For Profitable Sales Growth.Business Editors & High-Tech Writers SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Oct. 1, 2001 Alanco Technologies Inc. (Nasdaq:ALAN) Monday announced results for the company's fiscal year ended June 30, 2001 and provided forward guidance for fiscal year 2002. Sales revenues for fiscal year 2001 were $9,135,300, compared with $2,828,600 in the prior year reflecting additional sales contributed by Excel/Meridian Data Inc., acquired in June 2000, and SanOne Inc., established in December 2000. The company incurred a net loss attributable to common stockholders in fiscal year 2001 of $3,136,600, or ($0.46) per share, compared with a net loss of $1,353,800, or ($0.23) per share, in the prior year. The year's loss was primarily attributable to operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. at subsidiary SanOne, reflecting start-up market development expenses and fourth quarter restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). costs. Robert R. Kauffman, chairman 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. , stated, "Our disappointing FY 2001 performance primarily resulted from an ill-timed entry into the Storage Area Network (SAN) market with start-up SanOne Inc. We commenced an aggressive SanOne market development program just as the tech market weakened weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. in mid-2000, which rapidly spread to the
data storage market segment.
"The company committed over $2 million for SanOne market development investments in the fiscal year, including approximately $600,000 for advertising and promotion. However, SanOne generated sales of only $1.8 million for the year, versus original plan expectations in the $8-$10,000,000 range." "SanOne was restructured in the FY fourth quarter, including new management, a 50% operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. reduction, and a refocused business plan. We expect the new SanOne organization to provide a positive return in the current year on the company's significant investment in the SAN market, which remains an exciting, albeit longer term, business opportunity for Alanco." "We anticipate that our other data storage businesses will each contribute profitable sales growth in FY 2002: the new FileZerver NAS (1) See network access server. (2) (Network Attached Storage) A specialized file server that connects to the network. A NAS device contains a slimmed-down operating system and a file system and processes only I/O requests by supporting the popular business acquired in August 2001, now operating as subsidiary company NetZerver Inc.; Arraid's new defense-related storage products utilizing the recently developed ESP-1 single board computer technology; Excel/Meridian Data's recent 35% operating expense reduction and an anticipated gradual resumption RESUMPTION. To reassume; to promise again; as, the resumption of payment of specie by the banks is general. It also signifies to take things back; as the government has resumed the possession of all the lands which have not been paid for according to the requisitions of the law, and the of sales growth for Excel's mid-range NAS products." "With due respect for the current challenging environment, we have taken the necessary actions in our present portfolio of storage businesses to achieve profitable levels of sales growth by the second or third quarter of the current fiscal year. We also plan to continue our strategic business acquisition program focusing on those opportunities that complement our current businesses and market segments." Alanco Technologies, with headquarters in Scottsdale, is a publicly owned Publicly owned can refer to:
Alanco's common stock is traded on the Nasdaq stock market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. under the symbol ALAN. Except for historical information, the statements contained in this news release are 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. made pursuant to the 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. 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. All such forward-looking statements are subject to, and are qualified by, risks and uncertainties that could cause actual results to differ materially from those expressed or implied by those statements. These risks and uncertainties include, but are not limited to, reduced demand for information technology equipment; competitive pricing and difficulty managing product costs; development of new technologies which make the company's products obsolete OBSOLETE. This term is applied to those laws which have lost their efficacy, without being repealed, 2. A positive statute, unrepealed, can never be repealed by non-user alone. 4 Yeates, Rep. 181; Id. 215; 1 Browne's Rep. Appx. 28; 13 Serg. & Rawle, 447. ; rapid industry changes; failure of an acquired business to further the company's strategies; the ability to maintain satisfactory relationships with lenders and to remain in compliance with financial loan covenants A loan covenant is a condition in a commercial loan or bond issue that requires the borrower to fulfill certain conditions or forbids the borrower from undertaking certain actions, or possibly restricts certain activities to circumstances when other conditions are met. and other requirements under current banking agreements; and the ability to secure and maintain key contracts and relationships.
Alanco Technologies Inc.
Condensed Consolidated Statement of Operations
For the twelve months ended June 30,
2001 2000
Net Sales $ 9,135,300 $ 2,828,600
Cost of Sales (5,426,800) (1,661,400)
Gross Profit 3,708,500 1,167,200
Other Expenses (6,945,300) (2,992,800)
Loss -- Continuing Operations (3,236,800) (1,825,600)
Income from Discontinued
Operations 242,300 471,800
Net Loss (2,994,500) (1,353,800)
Preferred Stock Dividends (142,100) --
Net loss Attributable to
Common Stockholders $ (3,136,600) $ (1,353,800)
Earnings Per Share -- Basic & Diluted
- Continuing Operations $ (0.48) $ (0.31)
- Discontinued Operations $ 0.04 $ 0.08
- Net Loss $ (0.46) $ (0.23)
Weighted Average Common Shares
& Equivalents Outstanding 6,800,600 5,906,300
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