Applied Digital Solutions Announces Settlement With Former Owners of Bostek.PALM BEACH, Fla.--(BUSINESS WIRE)--Feb. 2, 2001 Settlement releases IntelleSale from $10 million liability and provides impetus Impetus is a stimulus or impulse, a moving force that sparks momentum. Impetus may also refer to:
"difficult chapter in IntelleSale's history" sets stage for improved performance during 2001 Applied Digital Solutions, 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 : ADSX ADSX Applied Digital Solutions, Inc. (stock symbol) ), today announced that its IntelleSale, Inc. subsidiary has settled its legal disputes with the former owners of Bostek. IntelleSale had acquired Bostek in June of 1999. In connection with the settlement, IntelleSale will be able to reverse a $10 million liability that it had recorded in connection with the Bostek acquisition. Additionally, the former owners of Bostek have agreed, under certain 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 , to invest up to $6 million in Applied Digital Solutions, Inc. The settlement is conditioned on the shares being purchased by the former owners of Bostek being registered with the SEC. The former Bostek owners also agreed to indemnify To compensate for loss or damage; to provide security for financial reimbursement to an individual in case of a specified loss incurred by the person. Insurance companies indemnify their policyholders against damage caused by such things as fire, theft, and flooding, which IntelleSale in connection with a different 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. filed against Bostek. Applied Digital Solutions also announced that it expects to take certain reserves and non-recurring charges for the fourth quarter of 2000. Commenting on the developments at IntelleSale, Mercedes Walton, President and COO (Cell Of Origin) See mobile positioning. of Applied Digital Solutions said, "The results at IntelleSale last year were disappointing. This settlement marks the end of a difficult chapter in IntelleSale's history. Although we are pleased at the outcome of the settlement, we recognize that there are residual effects from IntelleSale's recent history. To successfully move IntelleSale forward, we must first address certain issues of the past. The reserves and charges for the fourth quarter will create a baseline at IntelleSale against which we can measure the success of our restructuring efforts." Ms. Walton offered additional insights into the direction for IntelleSale: "Settling the disputes with the former owners of Bostek will allow us to not only enjoy the benefits of this favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. outcome, but to focus on laying the groundwork for IntelleSale's return to the profitable performance that we enjoyed prior to June of 1999. We have already made a number of changes. We are returning IntelleSale to its roots as an asset management, brokerage, and wholesale, business-to-business supplier and abandoning web-based retail sales. Our margins began to suffer when we moved away from the wholesale model and they just never recovered. We have also made the difficult decision to temporarily layoff Layoff 1. When a company eliminates jobs regardless of how good the employees' performance. 2. A risk reduction, made by investment bankers, that minimizes the potential downside associated with a commitment to purchase and sell a stock issue unsubscribed by stockholders holding a large number of employees of IntelleSale and cut executive salaries until the bottom-line at IntelleSale improves significantly. Once IntelleSale is healthy, we can proceed with our plans to sell the remaining assets." About Applied Digital Solutions, Inc. Applied Digital Solutions is a leading, single-source provider of e-business solutions. Applied Digital Solutions grew revenues a remarkable 14,315 percent over the past four years. In recognition of its strong growth record, the company has been ranked in the top tier of the fastest growing technology companies in the "Technology Fast 500" listing compiled annually by Deloitte & Touche. With a ranking of 27 in the listing for the year 2000, Applied Digital was ranked in the Top Ten of the Fast 500 in two of the past four years. 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 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. |
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