American TeleSource Reports First Quarter Results.Business Editors & High-Tech high-tech also hi-tech adj. Informal Of, relating to, or resembling high technology. high-tech Adjective same as hi-tech Adj. 1. Writers SAN ANTONIO--(BUSINESS WIRE)--Dec. 15, 2000 GlobalSCAPE GlobalSCAPE, Inc. is a company that makes products for transferring data over computer networks such as the Internet. GlobalSCAPE is the maker of products such as CuteFTP and CuteHTML. Revenues Advance 82% Over Prior Year Company Recognizes $950,000 of 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). and Non-Recurring Charges ATSI ATSI Aboriginal and Torres Strait Islander (Australia) ATSI Association of Thai Software Industry ATSI Association of TeleServices International ATSI American Transmission Systems, Inc. to Hold Earnings Conference Call Monday Monday: see week. , Dec. 18, 2000 at 10:00 a.m. Central Time Zone (see details below) American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of TeleSource International Inc. "ATSI" (AMEX AMEX See: American Stock Exchange :AI) today reported results for the first quarter ended Oct. 31, 2000, as well as unaudited pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma results for the quarter related to its pending acquisition of Genesis Communications International Inc. A table summarizing these results is included at the end of this release. Arthur L. Smith, ATSI's chairman and chief executive officer, stated, "We have taken a number of decisive steps over the last several months, which we expect will reduce expenditures and improve cash flow in the near term, creating a more efficient entity. Some of these cost-cutting measures have resulted in significant payroll-related savings and a 50% reduction in our fixed satellite costs from August levels. "These measures are continuing well into the current quarter. It is important to note that we are not waiting on the closing of the Genesis acquisition to make improvements. We are in the process of upgrading our network under our long distance concession to allow for additional network capacity and enhanced routing capabilities in Mexico in an effort to produce more revenues and reduce our cost of services. Improvements to our network should only provide further benefits once the ATSI and Genesis operations are combined." For the quarter ended Oct. 31, 2000, ATSI produced revenues of $7.5 million, compared to revenues of $9.5 million in the first quarter in the prior year. The company's primary provider of network services temporarily suspended sus·pend v. sus·pend·ed, sus·pend·ing, sus·pends v.tr. 1. To bar for a period from a privilege, office, or position, usually as a punishment: suspend a student from school. services to the Company during the quarter due to a payment dispute. Although service was restored within a 15-day period in October, the Company's major customers did not begin routing network traffic to the Company until November. Based on average daily revenues prior to the interruption INTERRUPTION. The effect of some act or circumstance which stops the course of a prescription or act of limitation's. 2. Interruption of the use of a thing is natural or civil. , this resulted in a decrease in carrier services revenues during the period of approximately $900,000. The Company has resolved its differences with its primary carrier, traffic volumes have returned to prior levels as of December, and the Company does not anticipate further service interruptions. ATSI's Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the software subsidiary, GlobalSCAPE Inc., produced record revenues of $1.4 million for the first quarter ended Oct. 31, 2000; an increase of 82% over the $782,000 produced in the first quarter of the prior year. Downloads and registrations during the quarter were 2.7 million and 42,000, respectively, compared to 2.2 million and 28,000 in last year's quarter. ATSI's results for the quarter included non-recurring expenses of approximately $950,000 consisting of approximately $530,000 in severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when costs for employees no longer employed by the Company, approximately $270,000 in professional fees related to the pending Genesis transaction and the GlobalSCAPE share distribution to ATSI shareholders in September, and approximately $150,000 of non-cash compensation expense associated with the granting of GlobalSCAPE stock options during the quarter. ATSI produced an EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become loss of approximately $3.3 million for the first quarter, compared to an EBITDA loss of $557,000 for the same period in the prior year. On a pro forma basis, ATSI and Genesis would have produced an EBITDA loss of $3.2 million for the first quarter ended Oct. 31, 2000. Exclusive of the non-recurring expenses, ATSI's stand-alone EBITDA loss would have been approximately $2.4 million during the quarter. The net loss for ATSI for the first quarter before preferred dividends preferred dividend n. a payment of a corporation's profits to holders of preferred shares of stock. (See: preferred stock) was $4.7 million, compared to $1.9 million in the prior year. On a pro forma basis, the net loss before preferred dividends would have been approximately $4.9 million in the first quarter ended Oct. 31, 2000 and $1.9 million in the corresponding quarter from the previous year. The pro forma results include increased costs related to Genesis' expanded sales and marketing initiatives in anticipation of the closing of its acquisition by ATSI as well as a non-recurring expense of approximately $350,000 related to the settlement of disputed network costs from previous periods. The net loss to common shareholders after preferred dividends for the quarter ending Oct. 31, 2000, is $5.6 million or $0.08 per share, compared to a loss of $3.2 million, or $0.07 per share, for the same time period in the prior year. American TeleSource International Inc. is an emerging international carrier serving the rapidly expanding niche markets A niche market also known as a target market is a focused, targetable portion (subset) of a market sector. By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers. in and between Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. and the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . The Company's borderless strategy includes the deployment of a "next generation" network for more efficient and cost effective service offerings of domestic and international voice and data. ATSI has clear advantages over the competition through its corporate framework consisting of unique licenses, interconnection in·ter·con·nect v. in·ter·con·nect·ed, in·ter·con·nect·ing, in·ter·con·nects v.intr. To be connected with each other: The two buildings interconnect. v.tr. and service agreements, network footprint The amount of geographic space covered by an object. A computer footprint is the desk or floor surface it occupies. A satellite's footprint is the earth area covered by its downlink. See form factor. 1. , and extensive retail distribution. ATSI's Internet software subsidiary, GlobalSCAPE Inc. (www.globalscape.com), is a leader in the development, marketing, distribution and support of award winning Internet-based software in a broad array of categories including file management, multimedia utilities and Web site development tools. This news release contains 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. . These statements describe management's beliefs and expectations about the future. We have identified forward-looking statements by using words such as "expect," "believe" and "should." Although we believe our expectations are reasonable, our operations involve a number of risks and uncertainties, and the following table presents summarized results for ATSI for the quarters ended, Oct. 31, 2000, and Oct. 31, 1999, as well as unaudited pro forma results for the same quarters related to the pending acquisition of Genesis. Although the Company believes the pending transaction may qualify for treatment as a pooling-of-interests, 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 following pro forma results were prepared assuming the transaction was accounted for as a purchase. ATSI Earnings Conference Call The conference call will be held on Monday, Dec. 18, 2000 at 10:00 a.m. CST CST abbr. 1. Central Standard Time 2. convulsive shock treatment CST Central Standard Time Noun 1. . To participate in the conference call dial 800/275-3210 (Domestic callers) or 973/633-1010 (International callers). For your convenience, you may listen to the replay of the discussion by dialing 402/220-0463. This service will be available beginning at 12:00 noon CST, Monday, Dec. 18, through 5:00 p.m. CST, Tuesday, Dec. 19. A transcript A generic term for any kind of copy, particularly an official or certified representation of the record of what took place in a court during a trial or other legal proceeding. A transcript of record of the call will be also available on the ATSI Web site at www.atsi.net beginning at 12:00 noon CST, Monday, Dec. 18, 2000.
American TeleSource International Inc.
And Subsidiaries
(in thousands, except per share amounts)
Consolidated Pro Forma Statements
Statements of of Operations
Operations for ATSI/Genesis
For the Three Months For the Three Months
Ended October 31 Ended October 31
-------------------- --------------------
2000 1999 2000 1999
---- ---- ---- ----
(unaudited) (unaudited)
Network services
Carrier $ 3,769 $ 5,368 $ 3,672(a) $ 5,225(a)
Private network 583 737 583 737
Call services
Integrated prepaid 1,390 1,401 1,390 1,401
Postpaid 335 1,175 335 1,175
Genesis -- -- 6,099 6,169
Internet e-commerce 1,422 782 1,422 782
-------- -------- -------- -------
Total operating
revenues 7,499 9,463 13,501 15,489
Cost of services 5,528 6,526 9,746(a) 9,854(a)
-------- -------- -------- -------
Gross margin 1,971 2,937 3,755 5,635
Selling, general and
administrative 5,272 3,494 7,000(b) 5,690(b)
-------- -------- -------- -------
EBITDA (3,301) (557) (3,245) (55)
Depreciation and
amortization 1,150 908 1,461(c) 1,226(c)
-------- -------- -------- -------
Operating loss (4,451) (1,465) (4,706) (1,281)
Other expense, net (208) (482) (198) (656)
-------- -------- -------- -------
Income tax expense (66) -- (66) --
Minority interest 41 -- 41 --
Net loss ($ 4,684) ($ 1,947) ($ 4,929) ($ 1,937)
Less: preferred
dividends (887) (1,260) (887) (1,260)
-------- -------- -------- -------
Net loss to
common shareholders ($ 5,571) ($ 3,207) ($ 5,816) ($3,197)
======== ======== ======== =======
Basic and diluted
loss per share ($ 0.08) ($ 0.07) ($ 0.07) ($ 0.05)
======== ======== ======== =======
Weighted average
common shares
outstanding 67,703 48,687 86,703(d) 67,687(d)
======== ======== ======== =======
Notes: (a) Reflects the elimination of approximately $97,000 and $143,000 of ATSI carrier services revenues and Genesis costs in fiscal 2001 and fiscal 2000, respectively. (b) Reflects the elimination of approximately $729,000 and $221,000 of payroll related reductions due to planned reductions in fiscal 2001 and 2000, respectively and professional fees of approximately $164,000 associated with the merger in fiscal 2001. (c) Reflects amortization expense of approximately $209,000 related to goodwill for both fiscal 2001 and 2000. (d) Assumes the issuance of approximately 19,000,000 common shares for the acquisition of Genesis. |
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