Aspeon Reports Preliminary Results for Second Quarter Ended Dec. 31, 2001.Business Editors & High-Tech Writers IRVINE, Calif.--(BUSINESS WIRE)--March 11, 2002 Aspeon Inc. today announced a $2.9 million net loss for the quarter ended Dec. 31, 2001. Revenues for the quarter were $9.5 million. These compared with a net loss of $6.9 million on sales of $16.1 million in the same quarter in 2001. For the 6 months ended Dec. 31, 2001 the company reported a net loss of $5.3 million on sales of $21.2 million as compared with a net loss of $31.6 million on sales of $35.8 million during the same period the previous year. In announcing the results, Robert Nichols Robert Nichols may refer to:
(2) "Parent over shoulder." See digispeak. POS - point of sale (Point-Of-Sale) products because of our inability to purchase sufficient inventory to meet the demand. "Cash resources are limited and we do not have a line of credit for U.S. operations. The company has faced a number of major challenges that have impaired its ability to secure necessary financing. "We have been devoting most of our attention to the resolution of these problems in order that financing may be obtained and we can then concentrate on the regrowth Re`growth´ n. 1. The act of regrowing; a second or new growth. The regrowth of limbs which had been cut off. - A. B. Buckley. of the Javelin POS business which is where the strength of our company lies. During this period we have also significantly reduced the cost structure of the company." Included in the current year loss for the quarter is an amount of $554,500 accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. for default interest on preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. ($1.1 million for the 6 months). Shown as extraordinary income in both the quarter ($15,100) and the year to date ($520,100) are amounts reflecting gains on settlement of accounts payable pursuant to debt restructuring Debt Restructuring A method used by companies with outstanding debt obligations to alter the terms of the debt agreements in order to achieve some advantage. Notes: agreements. On the balance sheet included as a current liability is an amount of $15,372,900 representing the balance owing under the preferred share agreement (in default). In the event that a settlement is reached with the holder, this amount may be significantly reduced. Included in long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. at Dec. 31, 2001 is approximately $1.1 million representing long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. settlements of accounts payable pursuant to debt restructuring agreements. As previously reported, the company's auditors AUDITORS, practice. Persons lawfully appointed to examine and digest accounts referred to them, take down the evidence in writing, which may be lawfully offered in relation to such accounts, and prepare materials on which a decree or judgment may be made; and to report the whole, together , BDO Seidman BDO Seidman, LLP is the United States arm of BDO International, one of the largest accounting firms outside of the Big Four. History BDO Seidman, LLP was founded as Seidman and Seidman in New York City in 1910 by Maximillian L. Seidman. LLP LLP - Lower Layer Protocol , have not had access to the working papers working papers pl.n. Legal documents certifying the right to employment of a minor or alien. Noun 1. working papers of the company's auditors for prior fiscal years, and therefore BDO Seidman was not able to complete its audit of the company's financial statements for the fiscal year ended June 30, 2001. Until such time as the company's auditors are able to complete their audit of the company's financial statements for the fiscal year ended June 30, 2001, the company will face certain consequences, including that the company will not be able to file its Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and its Quarterly Reports for the three months ended Sept. 30, 2001 and Dec. 31, 2001 on Form 10-Q Form 10-Q See 10-Q. with the Securities and Exchange Commission, the company will not be able to hold its annual stockholder meeting, and stockholders of the company will not be able to rely upon Rule 144 or 145 of the Securities Act of 1933 for the resale resale n. selling again, particularly at retail. In many states a "resale license" or "resale number" is required so that the state can monitor the collection of sales tax on retail sales. RESALE. of restricted securities. The company continues to explore alternatives as to how it might be possible to proceed, however no assurances can be made that the company's auditors will be able to complete their audit of the company's financial statements for the fiscal year ended June 30, 2001. About Aspeon Inc. Aspeon is a leading manufacturer and provider of point-of-sale (POS) systems, services and enterprise technology solutions for the retail and foodservice markets. Visit Aspeon at www.aspeon.com. Except for historical information contained herein, the statements made in this release constitute 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. within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve certain risks and uncertainties, including statements regarding the intent, belief or current expectations of Aspeon and its management regarding the company's strategic directions, prospects and future results. Certain factors may cause actual results to differ materially from those contained in the forward-looking statements, including, Aspeon's ability to return to profitability, the continued forbearance Refraining from doing something that one has a legal right to do. Giving of further time for repayment of an obligation or agreement; not to enforce claim at its due date. A delay in enforcing a legal right. of Aspeon's lenders and creditors, Aspeon's ability to meet its reporting obligations with the Securities and Exchange Commission, the successful 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). of Aspeon's Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. , the outcome of 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 Aspeon and Aspeon's ability to raise funds from additional debt and/or capital, and our competitive environment, economic and other conditions in the markets in which we operate, changes in laws, changes to or clarifications of accounting rules or approaches and/or their applications, the size and timing of customer orders, delays in new product enhancements and new product and/or service introductions, quality control difficulties, changes in market demand, and other risks discussed in the company's filings with the SEC, which discussions are incorporated herein by reference. Such forward-looking statements represent management's current expectations and are inherently uncertain. The company's actual results and performance may differ materially. The company undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect 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 after the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" or to reflect the occurrence of unanticipated events.
ASPEON INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
Unaudited
Unaudited
Dec. 31, 2001 June 30, 2001
ASSETS
Current assets:
Cash and short-term investments $ 371,200 $ 1,179,100
Accounts receivable - net 4,524,100 6,502,900
Inventories, net 3,540,500 7,184,600
Other current assets 266,200 1,073,500
Total current assets 8,702,000 15,940,100
Property and equipment, net 2,296,900 3,136,400
Goodwill 11,112,400 11,224,900
Other assets, net 390,300 330,900
Total assets $22,501,600 $30,632,300
LIABILITIES, MANDATORILY REDEEMABLE SECURITIES
AND STOCKHOLDERS' EQUITY
Current liabilities:
Line of credit $ 281,100 $ 967,800
Mandatorily redeemable preferred stock
(in default) 15,372,900 13,969,200
Accounts payable and accrued
expenses 10,337,300 13,910,600
Current maturities of long-term
debt 520,900 590,100
Other current liabilities 1,241,500 2,261,900
27,753,700 31,699,600
Long-term debt, net of current portion 1,936,300 857,300
Other 40,200 35,300
Total liabilities 29,730,200 32,592,200
Mandatorily redeemable preferred
warrants 3,426,600 3,426,600
Stockholders' equity:
Preferred stock, $0.01 par value, 990,000
shares authorized (1,000,000 authorized
net of 10,000 designated as mandatorily
redeemable stock); no shares issued and
outstanding - -
Common stock and additional
paid-in capital 65,178,000 65,178,000
Accumulated deficit and
comprehensive loss (75,833,200) (70,564,500)
Total stockholders' equity (10,655,200) (5,386,500)
Total liabilities, mandatorily
redeemable securities and
stockholders' equity $22,501,600 $30,632,300
ASPEON INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED DEC. 31, 2001 AND 2000
Unaudited
Three Months Ended Six Months Ended
Dec. 31 Dec. 31
2001 2000 2001 2000
Revenues $ 9,451,300 $16,147,900 $21,168,600 $35,773,000
Cost of revenues 8,350,500 14,901,800 18,607,800 31,941,300
Gross profit $ 1,100,800 $ 1,246,100 $ 2,560,800 $ 3,831,700
Operating expenses:
Research and
development 193,000 312,100 455,200 645,500
Selling and
marketing 880,800 1,838,900 1,877,100 3,815,200
General and
administrative 2,353,100 5,477,900 4,922,100 13,785,300
Impairment charge - - - 17,366,000
Total operating
expenses 3,426,900 7,628,900 7,254,400 35,612,000
Loss from
operations $(2,326,100) $(6,382,800) $(4,693,600)$(31,780,300)
Interest expense
(net) (571,400) (522,600) (1,145,500) (639,000)
Loss before income
taxes $(2,897,500) $(6,905,400) $(5,839,100)$(32,419,300)
Income taxes
(expense) benefit 24,500 13,300 (5,400) (44,200)
Loss before
extraordinary item
and cumulative
effect of accounting
change $(2,873,000) $(6,892,100) $(5,844,500)$(32,463,500)
Extraordinary item,
debt restructuring 15,100 - 520,100 -
Cumulative effect of
accounting change - - - 817,600
Net loss $(2,857,900) $(6,892,100) $(5,324,400)$(31,645,900)
Accretion of
mandatorily
redeemable
preferred stock
dividends (147,800) (6,211,000) (295,500) (6,896,500)
Net loss available
to common
stockholders $(3,005,700)$(13,103,100) $(5,619,900)$(38,542,400)
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