BOREALIS ANNOUNCES THIRD QUARTER RESULTS.INCLINE VILLAGE, Nev.--(BUSINESS WIRE)--Oct. 24, 1996--Borealis Technology Corporation (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 :BRLS BRLS Bachelor of Recreation and Leisure Studies ) announced that results for the third quarter and nine months ended September September: see month. 30, 1996 reported today were in line with the Company's expectations. Revenues for the third quarter of 1996 decreased to $28,621, compared with $318,142 in the third quarter of 1995. Net loss for the third quarter of 1996 was $1,910,873, or $(0.61) per share on 3,130,725 weighted average shares outstanding, compared to a net loss of $42,488, or $(0.06) per share on 690,944 weighted average shares outstanding for the same period a year ago. Revenues for the nine months ended September 30, 1996 decreased to $151,681, compared with $659,906 for the same period a year ago. Net loss for the nine months period in 1996 was $3,981,583, or $(2.55) on 1,560,567 weighted average shares outstanding, compared to a net loss of $280,795, or $(0.41) on 690,944 weighted shares outstanding for the same period a year ago. The decrease in revenues and net income for the third quarter and nine months ended September 30, 1996 versus 1995, was primarily due to the Company's ceasing sales of prior products, and focusing its product development and sales and marketing efforts on its new sales force automation Automating the sales activities within an organization. A comprehensive SFA package provides such functions as contact management, note and information sharing, quick proposal and presentation generation, product configurators, calendars and to-do lists. product, Arsenal. In order to facilitate Borealis' development of Arsenal and expansion of the Company's sales and marketing effort, the Company, on June June: see month. 27, 1996, completed the public offering of 2,000,000 shares of its Common Stock and received net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of $8,352,400 from such offering after deducting underwriter's discount Underwriter's discount See: Gross spread and offering expense. In addition, the Company completed the public sale of 291,050 shares of its common stock pursuant to the exercise of an over-allotment option granted by the Company to the underwriter underwriter n. a company or person which/who underwrites an insurance policy, issue of corporate securities, business, or project. (See: underwrite) UNDERWRITER, insurances. One who signs a policy of insurance, by which he becomes an insurer. of its initial public offering. The Company received net proceeds of $1,266,067 from such offering after deducting underwriter's discount and offering expense. The preceding statements may contain forward looking statements which involve risks and uncertainties; actual results could differ materially from those anticipated in such forward looking statements as a result of certain factors including, but not limited to, the successful and timely development of Arsenal, the market acceptance of Arsenal and the Company's ability to achieve profitability. Headquartered in Incline Village, Nevada Nevada (nəvăd`ə, –vä–), far western state of the United States. It is bordered by Utah (E), Arizona (SE), California (SW, W), and Oregon and Idaho (N). , and founded in 1988, Borealis BOREALIS Balloon Outreach, Research, Exploration, and Land Imaging System Technology Corporation is a leading provider of rapidly deployable and customizable sales automation Sales Automation - Sales Force Automation solutions. Borealis has provided technology to Adobe adobe (ədō`bē): see rammed earth. adobe Handmade sun-dried bricks formed from a mixture of heavy clay and straw found in arid regions. , Apple, Philip Philip, tetrarch of Ituraea Philip, d. A.D. 34, tetrarch of Ituraea, son of Herod the Great. He was perhaps the ablest of the Herod dynasty. He is mentioned in the Gospel of St. Luke. Morris, Ernst & Young and Sybase (Sybase Inc., Dublin, CA, www.sybase.com) A software company founded in 1984 that specializes in enterprise infrastructure and integration of platforms, databases and applications. . Major customers include Hartford Insurance, Nortel, Scitex and Synopsys. -0-
TECHNOLOGY CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
1996 1995 1996 1995
Total revenues $ 28,621 $ 318,142 $ 151,681 $ 659,906
Cost of revenues 12,951 96,866 58,573 185,468
Gross profit 15,670 221,276 93,108 474,438
Operating expenses:
Sales and marketing 801,386 51,798 1,667,410 146,634
Research and
development 591,529 126,121 1,327,580 385,175
General and
administrative 579,354 80,258 1,069,963 211,914
Total operating
expenses 1,972,269 258,177 4,064,953 743,723
Loss from
operations (1,956,599) (36,901) (3,971,845) (269,285)
Interest (income)
expense (45,726) 5,587 9,738 11,510
Net loss $ (1,910,873) $ (42,488) $(3,981,583) $(280,795)
Net earnings
(loss)
per common share $ (0.61) $(0.06) $ (2.55) $ (0.41)
Weighted average
number of common
hares outstanding 3,130,725 690,944 1,560,567 690,944
BOREALIS TECHNOLOGY CORPORATION
CONDENSED BALANCE SHEETS
September 30, December 31,
1996 1995
(Unaudited)
Assets
Cash and cash equivalents $ 5,957,401 $ 158,840
Accounts receivable --- 36,188
Other current assets 195,630 7,080
Total current assets 6,153,031 202,108
Long term investments 650,000 ---
Property and equipment,
at cost: 842,584 224,172
Less accumulated
depreciation
and amortization (188,567) (95,183)
1,304,017 128,989
Total assets $ 7,457,048 $ 331,097
Liabilities and stockholders' equity (deficit)
Current liabilities:
Accounts payable $ 123,445 $ 82,310
Accrued employee
compensation 205,880 75,218
Notes payable to stockholders --- 221,311
Other current liabilities 355,643 198,178
Total current liabilities 684,968 577,017
Long-term obligations 735,908 353,628
Stockholders' equity
Preferred stock, $.001 par value
Authorized shares - 5,000,000
Issued and outstanding - none
Common stock, $.001 par value:
Authorized shares - 10,000,000
Issued and outstanding shares - 3,184,506
and 651,658 at September 30, 1996
and December 31, 1995,
respectively 3,185 652
Additional paid-in
capital 10,777,241 162,471
Accumulated deficit (4,744,254) (762,671)
Total stockholders'
equity (deficit) 6,036,172 (599,548)
Total liabilities and
stockholders' equity $ 7,457,048 $ 331,097
CONTACT: Borealis Technology, Incline Village Timothy T. Arnold, (702) 832-0300 or Wolfe Axelrod Ax·el·rod , Julius 1912-2004. American biochemist and pharmacologist. He shared a 1970 Nobel Prize for studies of the ways in which different substances affect neural impulses. Associates, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Susan T. Bolen (Media) 212-370-4500, 212-370-4500 fax e-mail: 76015.440@compuserve.com |
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