Alanco Reports Second Quarter Results; Projected February Close for TSI Acquisition.Business Editors SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Feb. 15, 2002 Alanco Technologies Inc. (Nasdaq: ALAN) Friday announced financial results for its second fiscal quarter ended Dec. 31, 2001. Second quarter sales were $1,475,400, compared to $2,562,700 for the comparable quarter of the prior year. The company reported a net loss for the quarter of $805,400, or $.09 per share, compared to a loss of $606,200, or $.09 per share, in the prior year second quarter. The reduction in revenues and the quarterly loss is directly attributable to the dramatic slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. affecting the technology sector following Sept. 11, which resulted in deferred and cancelled purchase orders in each of our subsidiary businesses. Alanco chairman and chief executive officer, Robert R. Kauffman, stated, "We are beginning to experience a 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 activity in our storage businesses, which, in concert with our previous quarter's expense reduction program, should bring our storage businesses close to breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations operating results in the third fiscal quarter with anticipation of a return to profitability by the fourth quarter. "Relative to our pending acquisition of Technology Systems International Inc. ("TSI TSI Total Solar Irradiance (sum solar light in energy per unit of time) TSI Trading Standards Institute (UK) TSI Transportation Safety Institute (US DOT) "), we plan to close this transaction in late February. Since our acquisition announcement on Dec. 13, 2001, TSI has maintained their sales development progress, and our further due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. has reinforced our confidence in TSI management's sales and financial performance forecast." Alanco Technologies Inc., headquartered in Scottsdale, is a publicly owned Publicly owned can refer to:
(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 ) from Excel/Meridian Data and NetZerver; and storage upgrade solutions for legacy computer systems from Arraid. 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 press 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, unanticipated revisions to the preliminary quarterly results discussed above; reduced demand for information technology equipment; competitive pricing and difficulty managing product costs; development of new technologies which make the company's products obsolete; 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
3 Months Ended 6 Months Ended
Dec. 31, Dec. 31,
2001 2000 2001 2000
Net sales $ 1,475,400 $ 2,562,700 $ 3,614,000 $ 5,309,100
Cost of sales (938,800) (1,559,500) (2,186,200) (3,135,300)
Gross profit 536,600 1,003,200 1,427,800 2,173,800
Other expenses (1,354,000) (1,774,400) (2,625,000) (3,249,500)
Loss from
continuing
operations (817,400) (771,200) (1,197,200) (1,075,700)
Discontinued
operations 12,000 221,500 10,600 258,500
Net loss before
preferred stock
dividend (805,400) (549,700) (1,186,600) (817,200)
Preferred stock
dividend -- (56,500) -- (56,500)
Net loss
attributable
to common
stockholders $ (805,400) $ (606,200) $(1,186,600) $ (873,700)
Earnings per share
- basic & diluted $ (0.09) $ (0.09) $ (0.14) $ (0.13)
Weighted average
common shares &
equivalents
outstanding 8,738,700 6,767,000 8,738,700 6,772,400
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