Applied Digital Solutions Reports First Quarter 2004 Results; First Quarter Results Yield Revenue Growth of 7.2% and Net Income of $0.03 Per Share.Business Editors/High-Tech Writers PALM BEACH, Fla.--(BUSINESS WIRE)--May 5, 2004 Applied Digital Solutions, Inc. (Nasdaq: ADSX ADSX Applied Digital Solutions, Inc. (stock symbol) ), an advanced technology development company, today released its financial results for the first-quarter ended March 31, 2004. The Company's consolidated financial results include the financial condition, operating results and cash flows of its majority-owned subsidiaries majority-owned subsidiary A firm in which more than 50% of outstanding voting stock is owned by the parent company. , Digital Angel Corporation (AMEX AMEX See: American Stock Exchange : DOC See doc file and docs. 1. Doc - Directed Oc 2. doc - /dok/ Common spoken and written shorthand for "documentation". Often used in the plural "docs" and in the construction "doc file" (i.e. documentation available on-line). ), and InfoTech USA, Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). : IFTH IFTH Institut Français Textile-Habillement (French Textile and Apparel Institute) ). Revenue for the first quarter of 2004 was $26.9 million, a 7.2% increase from the $25.1 million in revenue in the first quarter of 2003. The increase in comparative quarterly revenue was attributable to an increase in revenue from InfoTech USA, Inc., as well as the Company's wholly-owned subsidiary Government Telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. , Inc. Net Income for the first quarter of 2004 was $1.5 million, or $0.03 per share, compared to a net loss of ($26.9 million), or ($0.95) per share in the first quarter of 2003. Included in the results for the first quarter of 2003 was a non-recurring non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. in the amount of $22.0 million. "In 2003, we emphasized elimination of debt, balance sheet strengthening and building a 'foundation'. This initial phase was completed with our recent reverse stock split that right-sized our capital structure for future growth. With the first quarter results, it is clear that the accomplishments of the past year have positioned Applied Digital for success and value-building moving forward," said Scott R. Silverman Silverman is the surname of:
abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. is in the final review of our 510k application for the medical applications of VeriChip. Since there is no 'predicate device' for VeriChip, we expect to move to a 'de novo' (new product) review process that should take no longer than 60 days." Some of the highlights of the first quarter included: Progress in livestock-tracking opportunities. Digital Angel Corporation announced that it will begin marketing a broad range of radio-frequency identification Radio-frequency identification (RFID) is an automatic identification method, relying on storing and remotely retrieving data using devices called RFID tags or transponders. (RFID (Radio Frequency IDentification) A data collection technology that uses electronic tags for storing data. The tag, also known as an "electronic label," "transponder" or "code plate," is made up of an RFID chip attached to an antenna. ) cattle-tracking system products in Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of under its distribution arrangement with Compass Animal Health Inc. Growing VeriChip distribution. VeriChip Corporation VeriChip Corporation, a wholly owned subsidiary of Applied Digital (Nasdaq: ADSX), markets a line of Radio Frequency Identification (RFID) Devices (including VeriChip) used in security, financial, emergency identification, and other applications. has awarded the exclusive rights to distribute VeriChip in three states, including Florida Florida, state, United States Florida (flôr`ĭdə, flŏr`–), state in the extreme SE United States. A long, low peninsula between the Atlantic Ocean (E) and the Gulf of Mexico (W), Florida is bordered by Georgia and , Georgia Georgia, country, Asia Georgia (jôr`jə), Georgian Sakartvelo, Rus. Gruziya, officially Republic of Georgia, republic (2005 est. pop. 4,677,000), c.26,900 sq mi (69,700 sq km), in W Transcaucasia. and Tennessee Tennessee, state, United States Tennessee (tĕn`əsē', tĕn'əsē`), state in the south-central United States. . The company has also awarded territories to distributors in Puerto Rico Puerto Rico (pwār`tō rē`kō), island (2005 est. pop. 3,917,000), 3,508 sq mi (9,086 sq km), West Indies, c.1,000 mi (1,610 km) SE of Miami, Fla. and Central America Central America, narrow, southernmost region (c.202,200 sq mi/523,698 sq km) of North America, linked to South America at Colombia. It separates the Caribbean from the Pacific. . The distributors have collectively agreed to quotas (to retain their exclusivity) to purchase 66,763 VeriChips and 4,945 scanners over the terms of the agreements. Each of the distributor's plans call for using VeriChip for security-related and emergency identification applications. Significant government telecommunications contract work. Government Telecommunications, Inc. is on schedule to complete telecommunications network A telecommunications network is a of telecommunications links and nodes arranged so that messages may be passed from one part of the network to another over multiple links and through various nodes. upgrades at 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. Postal Service postal service, arrangements made by a government for the transmission of letters, packages, and periodicals, and for related services. Early courier systems for government use were organized in the Persian Empire under Cyrus, in the Roman Empire, and in medieval (USPS (1) (Uninterruptible Switching Power Supply) A power supply for a computer that contains its own battery and uninterruptible power supply (UPS) circuitry. See power supply and UPS. ) mail processing facilities under a $15 million contract. The project is expected to be completed in May, when a total of 62 USPS sites will have been upgraded in less than 1 year. Strengthened balance sheet. The Company ended the first quarter with $10.3 million in cash and restricted cash. Subsequent to the end of the first quarter, the Company completed a private placement with Satellite Asset Management, raising a total of $5.5 million. The Company will hold a conference call today at 8:30 a.m. ET. Scott R. Silverman, Chief Executive Officer, Evan McKeown McKeown is a surname. People
Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. Krawitz, Executive Vice President and General Counsel will host the call. Interested participants should call 800-472-8309 when calling within the United States or 706-643-9561 when calling internationally. Please reference Conference I.D. Number 7044579. There will be a playback Playback could mean:
About Applied Digital Solutions, Inc. Applied Digital Solutions is an advanced 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 web site at http://www.adsx.com.
APPLIED DIGITAL SOLUTIONS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except par value)
Assets
March 31, December 31,
2004 2003
------------------------
Current Assets (unaudited)
Cash and cash equivalents $9,515 $10,161
Restricted cash 785 765
Accounts receivable and unbilled receivables
(net of allowance for doubtful accounts of
$810 in 2004 and $1,035 in 2003) 15,764 14,531
Inventories 10,208 9,490
Notes receivable 1,245 1,658
Other current assets 2,836 2,803
----------------------------------------------------------------------
Total Current Assets 40,353 39,408
Property And Equipment, net 9,169 9,365
Notes Receivable, net 318 504
Goodwill, net 66,692 63,331
Other Assets, net 6,698 1,654
----------------------------------------------------------------------
$123,230 $114,262
======================================================================
Liabilities and Stockholders' Equity
Current Liabilities
Notes payable and current maturities of
long-term debt $7,324 $6,136
Accounts payable 14,407 13,710
Other accrued expenses 21,262 22,616
Put accrual 200 200
Net liabilities of Discontinued Operations 5,701 9,545
----------------------------------------------------------------------
Total Current Liabilities 48,894 52,207
Long-Term Debt and Notes Payable 2,549 2,860
Other Long-Term Liabilities 3,166 3,430
----------------------------------------------------------------------
Total Liabilities 54,609 58,497
----------------------------------------------------------------------
Commitments And Contingencies - -
----------------------------------------------------------------------
Minority Interest 31,761 23,029
----------------------------------------------------------------------
Stockholders' Equity
Preferred shares: Authorized 5,000 shares in
2004 and 2003 of $10 par value; special
voting, no shares issued or outstanding in
2004 and 2003, Class B voting, no shares
issued or outstanding in 2004 and 2003 - -
Common shares: Authorized 125,000 shares in
2004 and 2003, of $.01 par value; 50,571
shares issued and 49,028 shares outstanding
in 2004 and 41,220 shares issued and 41,126
shares outstanding in 2003 506 412
Common and preferred additional paid-in
capital 449,217 443,099
Accumulated deficit (412,447) (413,923)
Common stock warrants 5,650 5,650
Treasury stock (carried at cost, 1,543 shares
in 2004 and 94 in 2003) (5,690) (1,777)
Accumulated other comprehensive income 227 206
Notes received from shares issued (603) (931)
----------------------------------------------------------------------
Total Stockholders' Equity 36,860 32,736
----------------------------------------------------------------------
$123,230 $114,262
======================================================================
APPLIED DIGITAL SOLUTIONS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
For The Three Months
Ended March 31,
--------------------
2004 2003
--------------------
Product revenue $23,203 $21,023
Service revenue 3,655 4,083
----------------------------------------------------------------------
Total revenue 26,858 25,106
Cost of products sold 16,806 14,328
Cost of services sold 1,860 1,965
----------------------------------------------------------------------
Gross profit 8,192 8,813
Selling, general and administrative expense 8,604 29,468
Research and development 925 1,201
Depreciation and amortization 539 470
Interest and other income (466) (220)
Interest expense (310) 4,631
----------------------------------------------------------------------
Loss from continuing operations before taxes,
minority interest and (gain) loss attributable
to capital transactions of subsidiary (1,100) (26,737)
Provision (benefit) for income taxes 92 (192)
----------------------------------------------------------------------
Loss from continuing operations before minority
interest and (gain) loss attributable to capital
transactions of subsidiary (1,192) (26,545)
Minority interest (379) (139)
Net loss on capital transactions of subsidiary 1,963 171
(Gain) loss attributable to changes in minority
interest as a result of capital transactions of
subsidiary (2,150) 206
----------------------------------------------------------------------
Loss from continuing operations (626) (26,783)
Change in estimate on loss on disposal of
discontinued operations and operating losses
during the phase out period 2,102 (157)
----------------------------------------------------------------------
Net income (loss) $1,476 $(26,940)
======================================================================
Income (loss) per common share - basic
Income (loss) from continuing operations $(0.01) $(0.95)
Income (loss) from discontinued operations 0.04 -
----------------------------------------------------------------------
Net income (loss) per common share - basic $0.03 $(0.95)
======================================================================
Income (loss) per common share - diluted
Income (loss) from continuing operations $(0.01) $(0.95)
Income (loss) from discontinued operations 0.04 -
----------------------------------------------------------------------
Net income (loss) per common share - diluted $0.03 $(0.95)
======================================================================
Weighted average number of common shares
outstanding - basic 48,580 28,233
Weighted average number of common shares
outstanding - diluted 48,580 28,233
======================================================================
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion