Alanco Reports Second Quarter Results; Reaffirms Projected Third Quarter Turnaround.Business Editors SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Feb. 8, 2001 Alanco Technologies Inc. (Nasdaq: ALAN) Thursday reported financial results for its fiscal year 2001 second quarter, ended Dec. 31, 2000. Reflecting the company's prior year transition into the data storage industry, the quarterly sales comparisons represent only those sales contributed by the company's data storage businesses. Second quarter sales were $2,562,700, compared to $645,400 in the prior year period ending Dec. 31, 1999, contributed solely by subsidiary Arraid Inc., including its SanOne division (now SanOne Inc.), acquired in October 1999. The company reported a net loss for the quarter of $606,200, or $0.09 per share, compared to a net loss of $235,000, or $0.04 per share, in the prior year's second quarter. The quarterly loss, which included net income of $221,500 from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. , is attributable primarily to significant SanOne staff additions required to implement the subsidiary's Storage Area Network (SAN) market entry, as well as related advertising and tradeshow expenses for the quarter in excess of $200,000. Sales for the six-month period ended Dec. 31, 2000 were $5,309,100, compared to $645,400 (all of which occurred in the second quarter) for the comparable period a year earlier. The net loss for the period amounted to $873,700, or $0.13 per share, compared to $354,800, or $0.06 per share for the same prior year period. Robert R. Kauffman, Alanco chairman and chief executive officer, commented, "In September 2000, we projected achieving profitable, or at least 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 , results by our fiscal year 2001 third quarter, ending March 31, 2001. We entered the third quarter posting record December SanOne sales to major new clients, such as 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) , Intel, Los Angeles Times Los Angeles Times Morning daily newspaper. Established in 1881, it was purchased and incorporated in 1884 by Harrison Gray Otis (1837–1917) under The Times-Mirror Co. (the hyphen was later dropped from the name). , Cox Communications Cox Communications is a privately owned subsidiary of Cox Enterprises providing digital cable television and telecommunications services in the United States. It is the third-largest[2] cable television provider in the United States, serving more than 6. , and LSI LSI: see integrated circuit. (Large Scale Integration) Between 3,000 and 100,000 transistors on a chip. See SSI, MSI, VLSI and ULSI. Logic. "At Jan. 1, our total sales backlog exceeded $1 million, and we are confidently reaffirming our projected third quarter turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. with consolidated sales revenue estimated to be in the range of $4,250,000." Alanco Technologies Inc., headquartered in Scottsdale, is a publicly owned Publicly owned can refer to:
Alanco Technologies companies provide comprehensive Storage Area Network (SAN) solutions from SanOne; complementary Network Attached Storage (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 ) from Excel/Meridian Data; 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. This press release contains statements that may be considered 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 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 forward-looking statements are inherently uncertain, and the actual results may differ from management's expectations.
Alanco Technologies Inc.
Condensed Consolidated Statement of Operations
Three Months Ended Six Months Ended
Dec. 31, Dec. 31,
2000 1999 2000 1999
Net Sales $ 2,562,700 $ 645,400 $ 5,309,100 $ 645,400
Cost of
Sales (1,559,500) (290,300) (3,135,300) (290,300)
Gross Profit 1,003,200 355,100 2,173,800 355,100
Other
Expenses (1,774,400) (671,100) (3,249,500) (828,500)
Loss before
Preferred
Dividends (771,200) (316,000) (1,075,700) (473,400)
Preferred
Stock
Dividend (56,500) -- (56,500) --
Loss -
Continuing
Operations (827,700) (316,000) (1,132,200) (473,400)
Income -
Discontinued
Operations 221,500 81,000 258,500 118,600
Net Loss $(606,200) $(235,000) $(873,700) $(354,800)
Earnings per
share -
Basic &
Diluted
- Continuing
Operations $(0.12) $(0.06) $(0.17) $(0.08)
- Discontinued
Operations $0.03 $0.01 $0.04 $0.02
- Net Loss $(0.09) $(0.04) $(0.13) $(0.06)
Weighted Average
Common Shares
& Equivalents
Outstanding 6,777,900 5,616,700 6,772,400 5,616,700
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