Artisoft, Inc. Releases Results for Third Quarter of Fiscal Year 2001; TeleVantage Revenues Remain Steady; Company Announces Expense Reduction.Business/Technology Editors CAMBRIDGE, Mass.--(BUSINESS WIRE)--April 26, 2001 Artisoft(R) 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 : ASFT ASFT Airport Surface Friction Tester ), a leading developer of software-based phone systems, today reported its financial results for the third quarter of fiscal year 2001, ended March 31, 2001. Despite the economic slowdown in the telecom industry, revenues for the company's core product, TeleVantage, remained steady. For the third quarter of fiscal year 2001, Artisoft reported net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of $1.7 million and a net loss of $3.4 million or $.22 per share. These results compare to net sales of $2.0 million and a net loss of $3.8 million, or $.24 per share for the second quarter of fiscal year 2001. Gross margin percentage increased to 80% for the third fiscal quarter of 2001 from 77% during the second fiscal quarter of 2001. Revenues from TeleVantage were consistent at $1.6 million during the quarter ended March 31, 2001. Artisoft also announced it is lowering its overall cost structure, including reducing expenses through a 14% workforce reduction. "With two major product releases planned for this summer and the continuing momentum of our partnerships, we anticipate strong growth," said Steve Manson, president 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 Artisoft. "Meanwhile, we are managing expenses prudently in order to position ourselves to fully capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. these high-growth opportunities." Artisoft recently shipped its TeleVantage 4.0 beta release See beta version. , and debuted the beta version A pre-shipping release of hardware or software that has gone through alpha test. A beta version of software is supposed to be very close to the final product, but, in practice, it is more a way of getting users to test the software in the first place under real conditions. of TeleVantage CTM CTM Continuum (gaming) CTM Community Trade Mark (Europe) CTM Cisco Transport Manager CTM Confederacion de Trabajadores de Mexico (Spanish: Confederation of Mexican Workers) Suite, to be bundled on the Intel Converged Communications Platform, at CT Expo in March. Artisoft also announced the availability of a TeleVantage/Hewlett-Packard bundled solution based on HP's NetServer platform, and rolled out TeleVantage Add-On Solutions, a line of products that expands the capabilities of the TeleVantage software PBX (Private Branch eXchange) An inhouse telephone switching system that interconnects telephone extensions to each other as well as to the outside telephone network (PSTN). and began shipping on March 6. In addition to the HP agreement, which will distribute TeleVantage through HP resellers worldwide, Artisoft also signed a distribution agreement with national reseller CDW CDW - data warehouse . During this quarter CDW began actively marketing and distributing a turnkey bundled solution that combines TeleVantage on Compaq ProLiant servers. Membership in Artisoft's recently introduced Open Communications Alliance program gained substantial momentum in the third quarter. The Open Communications Alliance is an industry-wide initiative designed to accelerate the delivery of complete, integrated multi-vendor computer telephony See CTI, VoIP and IP telephony. Computer Telephony - Computer Telephone Integration solutions with TeleVantage as the focal point focal point n. See focus. . Sound Advantage, Coactive co·ac·tion n. 1. An impelling or restraining force; a compulsion. 2. Joint action. 3. Ecology Any of the reciprocal actions or effects, such as symbiosis, that can occur in a community. Systems, Unimax, Interactive Northwest, and Onset now offer interoperable The ability for one system to communicate or work with another. See interoperability. solutions with the TeleVantage system. With these marketing partnerships, the TeleVantage solution set now includes a speech-activated auto attendant The part of an interactive voice response (IVR) system that replaces the human operator and directs callers to the appropriate extensions or voice mailboxes. See IVR. ; the unification of browser-based Web transactions with the contact center, fax conversion to editable emails; and applications designed specifically for K-12 public and private schools. Artisoft will be holding a conference call at 4:45PM EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT today to discuss the third quarter fiscal year 2001 results. A live Webcast will be available at www.artisoft.com. About Artisoft Artisoft, Inc. (NASDAQ: ASFT) of Cambridge, Mass., is a leading developer of software-based phone systems for small- to medium-sized businesses and corporate branch offices. Artisoft's innovative software products have received more than 25 industry awards including "Product of the Year", "Best of Show" and "Editors' Choice" by PC Magazine, Network Magazine, VARBusiness, CT Magazine, Communications Solutions Magazine and CTI (Computer Telephone Integration) Combining data with voice systems in order to enhance telephone services. For example, automatic number identification (ANI) allows a caller's records to be retrieved from the database while the call is routed to the appropriate party. Magazine among others. The company distributes its products worldwide. For more information, please call Artisoft at 800-914-9985 or visit http://www.artisoft.com. Artisoft and TeleVantage are registered trademarks of Artisoft, Inc. All other company and product names mentioned may be trademarks or registered trademarks of the respective companies with which they are associated. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under 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: This release may contain 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. that involve risks and uncertainties. There can be no assurances that the company will achieve a final agreement with Toshiba in the terms as defined in the above press release. Among the important factors which could cause actual results to differ materially from those in the forward-looking statements are the impact of competitive products and pricing, product demand and market acceptance risks, the presence of competitors with greater financial resources, product development and commercialization risks, costs associated with integration and administration of acquired operations, capacity and supply constraints or difficulties, the results of financing efforts and other factors detailed in the Company's filings with the Securities and Exchange Commission including its recent filings on Forms 10-K and 10-Q. Tabular tab·u·lar adj. 1. Having a plane surface; flat. 2. Organized as a table or list. 3. Calculated by means of a table. tabular resembling a table. information follows:
Artisoft, Inc. and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
March 31, June 30,
ASSETS 2001 2000
(unaudited)
Current assets:
Cash and cash equivalents $ 8,078 $ 5,120
Short term investments - 2,490
Receivables:
Trade accounts, net 866 1,511
Other receivables 24 146
Inventories 735 808
Prepaid expenses 527 366
Total current assets 10,230 10,441
Long term investments - 7,797
Property and equipment 3,292 2,353
Less accumulated depreciation and
amortization (1,723) (1,140)
Net property and equipment 1,569 1,213
Other assets 186 179
Net assets from discontinued operations - 1,864
$ 11,985 $ 21,494
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 592 $ 928
Accrued liabilities 1,848 1,937
Deferred revenue 222 41
Total current liabilities 2,662 2,906
Commitments and contingencies - -
Shareholders' equity:
Preferred stock, $1.00 par value.
Authorized 11,433,600 shares; none issued - -
Common stock, $.01 par value.
Authorized 50,000,000 shares; issued
29,045,949 shares at March 31, 2001 and
28,742,744 at June 30, 2000 290 287
Additional paid-in capital 102,304 101,363
Accumulated deficit (23,487) (13,278)
Less treasury stock, at cost, 13,320,500
shares at March 31, 2001 and June 30, 2000 (69,784) (69,784)
Total shareholders' equity 9,323 18,588
$ 11,985 $ 21,494
Artisoft, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
(unaudited)
Three Months Ended Nine Months Ended
March 31, March 31,
2001 2000 2001 2000
Net sales $ 1,689 $ 4,309 $ 5,932 $ 10,683
Cost of sales 331 1,464 1,303 3,973
Gross profit 1,358 2,845 4,629 6,710
Operating Expenses:
Sales and marketing 2,140 4,412 7,297 7,792
Product development 1,480 1,009 4,157 2,664
General and administrative 1,255 755 3,838 2,174
Total operating expenses 4,875 6,176 15,292 12,630
Loss from operations (3,517) (3,331) (10,663) (5,920)
Other income, net 129 184 454 633
Net loss from
continuing operations $ (3,388) $ (3,147) $(10,209) $ (5,287)
Income (loss) from discontinued
operations, net of tax -- (320) -- 1,448
Net loss $ (3,388) $ (3,467) $(10,209) $ (3,839)
Net loss per common share from
continuing operations-
Basic and Diluted $ (0.22) $ (0.21) $ (0.66) $ (0.35)
Net loss per common share-
Basic and Diluted $ (0.22) $ (0.23) $ (0.66) $ (0.26)
Weighted average common shares
outstanding:
Basic and Diluted 15,724 15,158 15,488 15,001
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