Applied Digital Records 32% Year-To-Date Revenue Gain in 2001.Business Editors/High Tech Writers PALM BEACH, Fla.--(BUSINESS WIRE)--Nov. 15, 2001 Company is "making solid progress" in cutting costs and executing its new business plan as an advanced digital technology development company Applied Digital Solutions, Inc. (Nasdaq: ADSX ADSX Applied Digital Solutions, Inc. (stock symbol) ), an advanced digital technology development company, today announced that revenues for the nine months ended September September: see month. 30, 2001 were $128.6 million, an increase of 32% over the $97.5 million for the same period in 2000. For the three months ended September 30, 2001, revenues increased to $41.4 million versus $41 million for the year-ago quarter and $39.9 million for the three-month period ending June June: see month. 30, 2001. For the quarter ended September 30, 2001, Applied Digital Solutions reported a 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 net loss from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of $18.1 million or $0.09 per share, compared with a pro forma loss from continuing operations of $1.5 million, or $0.02 per share, and $23.7 million or $0.17 per share for the periods ending September 30, 2000 and June 30, 2001, respectively. Pro Forma net income or loss excludes asset impairments, goodwill amortization and amortization of stock based compensation charges. As previously announced in a Letter to Shareholders, the Company has taken a one time third quarter charge of $84 million related to its 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). as an advanced digital technology development company. The majority of the charge relates to a write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of its IT infrastructure assets. As a result, on a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis, the net loss from continuing operations for the quarter ended September 30, 2001, was $109.3 million or $0.56 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , compared with a loss from continuing operations of $3.2 million or $0.05 cents per share in the year ago period. "We have made solid progress in cutting costs and executing the business strategy that we envisioned when the company purchased the patent that began the development of our breakthrough Digital Angel technology," commented Richard Ri·chard , Joseph Henri Maurice Known as "Rocket." 1921-2000. Canadian hockey player. A right wing for the Montreal Canadiens (1942-1960), he led his team to eight Stanley Cup championships and was the first player to score 50 goals in a J. Sullivan, 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. of Applied Digital Solutions. "The previously announced merger of Digital Angel and Medical Advisory Systems will be the first `value event' from this new strategy for Applied Digital and its shareholders. We are looking forward to seizing our first-mover advantage First-mover advantage is the advantage gained by the initial occupant of a market segment. This advantage may stem from the fact that the first entrant can gain control of resources that followers may not be able to match. when we launch Digital Angel on November November: see month. 26. In addition, we anticipate that other proprietary technology currently under development, such as Thermo Life(TM), will create comparable value in the months and years ahead." Mr. Sullivan concluded: "Execution of our new business model, along with our continuing reduction in operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , already has begun to address our liquidity and debt challenges. Continued execution of this model positions the Company to return to positive cashflow in 2002 (exclusive of debt service), to reduce our debt position, and to deliver value to our shareholders as a leading advanced digital technology development company." About Digital Angel(TM) Digital Angel represents the first-ever combination of advanced biosensor A device that detects and analyzes body movement, temperature or fluids and turns it into an electronic signal. See lab on a chip and data glove. Biosensor technology and Web-enabled wireless telecommunications linked Uplink For other uses, see Uplink (computer game) and . An uplink (UL or U/L) is the portion of a communications link used for the transmission of signals from an Earth terminal to a satellite or to an airborne platform. An uplink is the inverse of a downlink. to Global Positioning Systems Global Positioning System: see navigation satellite. Global Positioning System (GPS) Precise satellite-based navigation and location system originally developed for U.S. military use. (GPS (1) (General Print Server) An IBM mainframe feature that lets TN3270 clients access LPD/LPR printers via the SNA/VTAM network. See TN3270 and VTAM. (2) (Global Positioning S ). By utilizing advanced biosensor capabilities, Digital Angel will be able to monitor key body functions - such as temperature and pulse - and transmit To send data over a communications line. See transfer. that data, along with accurate location information, to a ground station or monitoring facility. Applied Digital Solutions is exploring a wide range of potential applications for Digital Angel, including: monitoring the location and medical condition of at-risk at-risk adj. Being endangered, as from exposure to disease or from a lack of parental or familial guidance and proper health care: efforts to make the vaccine available to at-risk groups of children. patients; locating lost or missing individuals; locating missing or stolen household pets; monitoring the location of certain parolees; managing livestock livestock Farm animals, with the exception of poultry. In Western countries the category encompasses primarily cattle, sheep, pigs, goats, horses, donkeys, and mules; other animals (e.g., buffalo, oxen, or camels) may predominate in other areas. and other farm-related animals; pinpointing the location of valuable stolen property; managing the commodity supply chain; preventing the unauthorized use of firearms This is an extensive list of small arms — pistol, machine gun, grenade launcher, anti-tank rifle — that includes variants. : Top - 0–9 A B C D E F G H I J K L M N O P Q R S T U V W X Y Z A
abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. compliant
About Advanced Power Solutions Inc. In November of 2001, Applied Digital Solutions created a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. called Advanced Power Solutions, Inc. (APSI APSI Association of Plastic Surgeons of India APSI Agence de Promotion, de Soutien et de Suivi des Investissements (French) APSI Aircraft Propulsion Subsystem Integration APSI Associazione Prevenzione Studio Infezioni ). This new unit will further develop, market and license Thermo Life(TM), a proprietary, thermoelectric ther·mo·e·lec·tric also ther·mo·e·lec·tri·cal adj. Characteristic of, resulting from, or using electrical phenomena occurring in conjunction with a flow of heat. generator generator, in electricity, machine used to change mechanical energy into electrical energy. It operates on the principle of electromagnetic induction, discovered (1831) by Michael Faraday. powered by body heat. Thermo Life is intended to provide a miniaturized power source for a wide range of consumer electronic devices, including attachable at·tach v. at·tached, at·tach·ing, at·tach·es v.tr. 1. To fasten, secure, or join: attached the wires to the post. 2. or implanted im·plant v. im·plant·ed, im·plant·ing, im·plants v.tr. 1. To set in firmly, as into the ground: implant fence posts. 2. medical devices, wristwatches and other consumer devices. The Company estimates that the potential marketplace for Thermo Life exceeds $30 billion. About Applied Digital Solutions, Inc. Applied Digital Solutions is an advanced digital technology development company that focuses on a range of early warning alert, miniaturized power sources and security monitoring systems combined with the comprehensive data management services required to support them. Through its Advanced Wireless unit, the Company specializes in security-related data collection, value-added val·ue-add·ed adj. Of or relating to the estimated value that is added to a product or material at each stage of its manufacture or distribution: data intelligence and complex data delivery systems for a wide variety of end users including commercial operations, government agencies and consumers. For more information, visit the company's website at http://www.adsx.com. Statements about the Company's future expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act of 1995. The Company intends that such 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. involve risks and uncertainties and are subject to change at any time, and the Company's actual results could differ materially from expected results. The Company undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or .
APPLIED DIGITAL SOLUTIONS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
For the Three Months For The Nine Months
Ended Sept. 30, Ended Sept. 30,
----------------------------------------
2001 2000 2001 2000
----------------------------------------
Product revenue $ 30,834 $ 29,485 $ 92,265 $ 67,840
Service revenue 10,532 11,488 36,381 29,703
----------------------------------------------------------------------
Total revenue 41,366 40,973 128,646 97,543
Cost of products sold 28,377 20,679 71,536 44,809
Cost of services sold 6,467 5,460 18,930 14,291
Gross profit 6,522 14,834 38,180 38,443
Selling, general and
administrative expenses 26,732 14,118 61,308 40,739
Research and development 1,653 406 4,741 719
Asset impairment 68,764 - 68,764 -
Loss on disposition of
assets 3,967 - 4,052 -
Non-cash compensation
expense 1,231 - 1,231 -
Depreciation and
amortization 7,638 2,072 21,553 4,466
Interest income (481) (110) (1,568) (676)
Interest expense 2,359 1,591 6,043 3,966
----------------------------------------------------------------------
Loss from continuing
operations before taxes,
minority interest and
and equity in net loss
of affiliate (105,341) (3,243) (127,944) (10,771)
Provision (benefit) for
income taxes 3,666 (60) 21,718 (1,436)
----------------------------------------------------------------------
Loss from continuing operations
before minority interest,
and equity in net loss of
affiliate (109,007) (3,183) (149,662) (9,335)
Minority interest (58) 50 (504) 145
Equity in net loss of
affiliate 400 - 931 -
----------------------------------------------------------------------
Loss from continuing
operations (109,349) (3,233) (150,089) (9,480)
(Loss) income from
discontinued operations,
net of income taxes of
$0 in 2001 and $334
in 2000 - 1,493 213 (11,160)
Change in estimate on loss
on disposal and operating
losses during the phase
out period (748) - (22,537) -
----------------------------------------------------------------------
Loss before extraordinary
gain (110,097) (1,740) (172,413) (20,640)
Extraordinary gain - - 9,465 -
Net loss (110,097) (1,740) (162,948) (20,640)
----------------------------------------------------------------------
Preferred stock dividends
and other (82) - (1,143) -
Accretion of beneficial
conversion feature of
redeemable preferred stock -
series C - - (9,392) -
----------------------------------------------------------------------
Net loss available to
common stockholders $(110,179) $(1,740) $(173,483) $(20,640)
======================================================================
Loss per common share - basic
Loss from continuing
operations $ (0.56) $(0.05) $ (1.09) $ (0.17)
(Loss) income from
discontinued operations - 0.02 (0.15) (0.21)
Extraordinary gain - - 0.06 -
----------------------------------------------------------------------
Net loss per common share
- basic $ (0.56) $ (0.03) $ (1.18) $ (0.38)
======================================================================
Loss per common share
- diluted
Loss from continuing
operations $ (0.56) $ (0.05) $ (1.09) $ (0.17)
(Loss) income from
discontinued operations - 0.02 (0.15) (0.21)
Extraordinary gain - - 0.06 -
----------------------------------------------------------------------
Net loss per common share
- diluted $ (0.56) $ (0.03) $ (1.18) $ (0.38)
======================================================================
Weighted average number
of common shares
outstanding - basic 197,520 63,862 146,890 54,623
Weighted average number of
common shares outstanding
- diluted 197,520 63,862 146,890 54,623
APPLIED DIGITAL SOLUTIONS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except par value)
(Unaudited)
Assets
September 30, December 31,
2001 2000
----------------------------
Current Assets
Cash and cash equivalents $ 3,133 $ 8,039
Accounts receivable and unbilled
receivables (net of allowance for
doubtful accounts of $2,526 in 2001 and
$1,681 in 2000) 37,610 43,890
Inventories 6,668 12,311
Notes receivable 3,049 5,711
Current deferred tax asset - 10,001
Other current assets 5,995 6,040
----------------------------------------------------------------------
Total Current Assets 56,455 85,992
Net Assets Of Discontinued Operations - 8,076
Property And Equipment, net 21,444 21,368
Notes Receivable 4,819 12,898
Goodwill, net 98,686 166,024
Investment In Affiliate 7,345 -
Other Assets 7,139 25,093
----------------------------------------------------------------------
$ 195,888 $ 319,451
======================================================================
Liabilities and Stockholders' Equity
Current Liabilities
Notes payable and current maturities of
long-term debt $ 83,410 $ 5,228
Accounts payable 20,787 16,945
Accrued expenses 11,236 16,361
Due to sellers of acquired subsidiary - 9,465
Earnout and put accruals 200 18,245
----------------------------------------------------------------------
Total Current Liabilities 115,633 66,244
Net Liabilities Of Discontinued Operations 11,892 -
Long-Term Debt And Notes Payable 3,627 69,146
----------------------------------------------------------------------
Total Liabilities 131,152 135,390
----------------------------------------------------------------------
Commitments And Contingencies - -
----------------------------------------------------------------------
Minority Interest 4,611 4,879
----------------------------------------------------------------------
Redeemable Preferred Stock - Series C 2,240 13,440
----------------------------------------------------------------------
Redeemable Preferred Stock Options -
Series C 5,180 5,180
----------------------------------------------------------------------
Preferred Stock, Common Stock and Other
Stockholders' Equity
Preferred shares: Authorized 5,000 shares
in 2001 and 2000 of $10 par value; special
voting, no shares issued or outstanding in
2001 and 2000, Class B voting, no shares
issued or outstanding in 2001 and 2000
Common shares: Authorized 345,000 shares in
2001 and 245,000 in 2000, of $.001 par
value; 223,050 shares issued and 222,115
shares outstanding in 2001 and 103,063
shares issued and 101,847 shares
outstanding in 2000 223 103
Common and preferred additional paid-in
capital 334,690 266,573
Accumulated deficit (262,426) (99,478)
Common stock warrants 3,293 1,406
Treasury stock (carried at cost, 935
shares in 2001 and 1,216 shares in 2000) (1,777) (2,803)
Accumulated other comprehensive loss (1,788) (729)
Notes and stock subscriptions received
for shares issued (19,510) (4,510)
----------------------------------------------------------------------
Total Preferred Stock, Common Stock, and
Other Stockholders' Equity 52,705 160,562
----------------------------------------------------------------------
$ 195,888 $ 319,451
======================================================================
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