Artisoft, Inc. Releases Results for the First Quarter of Fiscal 1999.CAMBRIDGE, Mass.--(BUSINESS WIRE)--Oct. 22, 1998-- Company Strengthens Board of Directors and Senior Management Team 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 ) 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 $5.1 million and a net loss of $332,000 or $.02 per share, for the first quarter of fiscal year 1999 ended September 30, 1998. These results compare to net sales of $5.1 and a net loss of $4.3 million, or $.29 per share, for the prior quarter ended June 30, 1998. The last quarter included 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 other one time charges of $2.9 million, or $.20 per share. During the first quarter of fiscal year 1998, the company reported net sales of $6.7 million and net income of $238,000, or $.02 per share. The gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. for the first quarter of fiscal year 1999 was 73% compared with the gross profit margin of 70% in the last quarter and 78% in the first quarter a year ago. The company's 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. were down to $4.3 million, compared to $4.8 million before restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. in the prior quarter and $5.1 million in the first quarter of fiscal year 1998. "I am pleased with the company's accomplishments this quarter as the computer telephony See CTI, VoIP and IP telephony. Computer Telephony - Computer Telephone Integration revenue increased and achieved the highest revenue quarter since our acquisition three years ago," said 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. T. Paul Thomas Paul Thomas (born Paul Anthony Thomas, 5 October 1980, Waldorf, Maryland, United States) is the bassist of the band, Good Charlotte. He started out on the guitar, but then a friend influenced him to play the bass guitar. . "This is the first quarter that computer telephony revenues more than offset the decline in the communications software (communications, software) communications software - Application programs, operating system components, and probably firmware, forming part of a communication system. These different software components might be classified according to the functions within the Open Systems revenue, thus proving that our business strategy is on target." Artisoft made significant changes to its board of directors during the course of the first quarter of fiscal year 1999 including the appointment of Michael Downey as chairman and the addition of Frank Girard, president and CEO of Comverse Network Systems (formerly Boston Technology), to the board. "We made several important changes to strengthen our board of directors. The appointment of Mike Downey as chairman signals the end of Artisoft's restructuring and the beginning of our growth strategy," said Thomas. "With over 20 years of telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. experience Frank Girard will become a valuable resource to Artisoft as we continue to grow the TeleVantage business and develop future OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and and partner relationships," he added. Artisoft also further strengthened its senior management team with the addition of Sheldon M. Schenkler as vice president and CFO See Chief Financial Officer. and Scott Moule as vice president and general manager of the communications software group. Both senior staff members will play important roles in the future success of Artisoft. About Artisoft Artisoft, Inc. (NASDAQ:ASFT) of Cambridge, Mass., is a recognized leader in providing easy-to-use, affordable computer telephony and communications software solutions for small-to medium-sized businesses. Artisoft's innovative software products have received more than 100 industry awards including "Product of the Year", "Best of Show" and "Editors' Choice" by PC Magazine, VARBusiness, CT 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 in more than 100 countries around the world. For more information, please call Artisoft at 800-914-9985 or visit http://www.artisoft.com. Artisoft, TeleVantage, Visual Voice and LANtastic are registered trademarks of Artisoft, Inc. Infofast, ModemShare, iShare, CoSession, are 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. 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 CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. 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. -0-
Artisoft, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
September 30, June 30,
1998 1998
ASSETS
Current assets:
Cash and
cash equivalents $ 17,558 $ 18,514
Receivables:
Trade accounts, net 2,083 2,813
Other receivables 140 279
Inventories 897 917
Prepaid expenses 270 283
Total current assets 20,948 22,806
Property and
equipment 5,473 5,333
Less accumulated
depreciation and
amortization (4,319) (4,198)
Net property
and equipment 1,154 1,135
Other assets 1,468 1,567
$ 23,570 $ 25,508
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 984 $ 1,598
Accrued liabilities 1,764 1,670
Accrued
restructuring costs 610 1,536
Current portion
of capital lease
obligations 456 464
Total current
liabilities 3,814 5,268
Capital lease
obligations,
net of current
portion 136 289
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 27,980,602
shares at September 30,
1998 and June 30, 1998 279 279
Additional paid-in capital 96,486 96,486
Accumulated deficit (7,361) (7,030)
Less treasury stock,
at cost, 13,320,500
shares at September 30,
1998 and June 30, 1998 (69,784) (69,784)
Total shareholders' equity 19,620 19,951
$ 23,570 $ 25,508
Artisoft, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended
September 30,
1998 1997
Net sales $ 5,094 $ 6,725
Cost of sales 1,356 1,454
Gross profit 3,738 5,271
Operating expenses:
Sales and marketing 2,130 2,698
Product development 1,242 1,791
General and administrative 879 657
Total operating expenses 4,251 5,146
Income (loss) from operations (513) 125
Other income, net 181 113
Net income (loss) $ (332) $ 238
Basic and diluted net
income (loss) per share $ (.02) $ .02
Weighted Average Common
Shares Outstanding 14,664 14,555
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion