Alanco Reports Transition FY 2000 Results; Announces Completion of Business Repositioning Strategy.Business Editors/High-Tech Writers SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Sept. 25, 2000 Alanco Technologies Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ALAN), Monday announced the effective completion of its strategy to reposition the company as a provider of data storage networking products and services. Alanco also reported financial results for its fiscal year 2000, ending June 30. Reflecting the company's business transition during fiscal year 2000, reported sales revenues include only those contributed by the company's data storage businesses, Arraid Inc., and Excel/Meridian Data Inc., acquired in October 1999 and June 2000, respectively. Eliminated entirely from stated fiscal year 2000 revenue is the $5.6 million generated by the Company's previous business segments that have been classified as "discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. ." In accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting , the Company reported data storage sales revenues for fiscal year 2000 of $2.8 million compared to zero in the prior year since the Company was not engaged in the data storage business in fiscal year 1999. The company reported a net loss for the fiscal year of $1.35 million, or ($0.23) per share, which is not comparable to the prior year results. The fiscal year 2000 net loss was attributable to planned investments related to implementation of the Arraid subsidiary's SanOne Storage Area Network (SAN) initiative. During fiscal year 2000 the company completed its strategic repositioning repositioning Laparoscopic surgery The changing of a Pt's position during a procedure to improve access or visualization of the operative field, which may be linked to complications, as it changes anatomic planes of operation. Cf Laparoscopic surgery. into the rapidly expanding data storage networking market. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Dataquest, storage-related spending will increase to 75 percent of total IT budgets by 2002. Storage networking technologies, predominately 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 ) and Storage Area Network (SAN), are experiencing exponential growth Extremely fast growth. On a chart, the line curves up rather than being straight. Contrast with linear. rates. The NAS market is projected to grow to $6.7 billion by 2003, a 75.2 percent Compound Annual Growth Rate (CAGR CAGR See: Compound Annual Growth Rate ), while International Data Corp. projects SAN systems revenues to grow to $11.4 billion by 2002, a CAGR of 47 percent. Robert R. Kauffman, Alanco chairman and chief executive officer, commented, "The 'new' Alanco Technologies, as an emerging leader in several exciting high-growth segments of the data storage industry, is now positioned to begin achieving management's objective of restoring shareholder value. "We will begin generating substantially improved results in our fiscal year 2001 first quarter, ending Sept. 30, 2000, projecting sales of approximately $2.5 million. Anticipating further significant quarterly sales increases, we expect to post 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 or profitable results by our fiscal year third quarter ending March 31, 2001." Alanco Technologies Inc., headquartered 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. 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
For the 12 months ended June 30,
2000 1999
---- ----
Total Sales $ 2,828,600 $ 0
Operating Expenses (4,612,600) (669,500)
Operating Loss (1,784,000) (669,500)
Other Expense (41,600) (13,900)
Loss from Continuing Operations $(1,825,600) $ (683,400)
Discontinued Operations:
Income from Discontinued
Operations 56,700 804,700
Asset Impairment charge -
Discontinued operations (400,000) 0
Gain on sale of Pollution
Control Products assets 815,100 0
Total Income from Discontinued
Operations 471,800 804,700
Net Income (Loss) $(1,353,800) $ 121,300
Loss Per Share from Continuing
Operations
Basic $ (0.31) $ (0.14)
Diluted n/a $ (0.11)
Income Per Share from Discontinued
Operations
Basic $ 0.08 $ 0.16
Diluted n/a $ 0.13
Net Income (Loss) Per Share
Basic $ (0.23) $ 0.02
Diluted n/a $ 0.02
Weighted Average Common Shares
& Equivalents Outstanding:
Basic 5,906,305 5,016,085
Diluted n/a 6,143,118
The Consolidated Statement of Operations for the 12 months ended
June 30, 1999 has been restated, according to Generally Accepted
Accounting Principles, for comparison purposes.
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