Base Ten Reports Third Quarter Results; Revenues up over 73% from Prior Quarter.TRENTON Trenton, town, Canada Trenton, town (1991 pop. 16,908), SE Ont., Canada, on the Bay of Quinte at the mouth of the Trent River and at the south end of the Trent Canal. Its manufactures include textiles, electronic components, and paper and steel products. , N.J.--(BW HealthWire)--Nov. 16, 1999-- Base Ten Systems, Inc. (NasdaqSC: BASEA BASEA Boston Area Solar Energy Association ) released results today for the third quarter ended September September: see month. 30, 1999. Revenues for the period totaled $1.8 million, approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 73% ahead of revenues for the prior quarter, but 35% behind revenues for the comparable year ago period. Additional orders for software licenses In computing, software that is copyrighted and licensed under a software license is done under a variety of licensing schemes. For end-users there are proprietary licenses and there are free software licenses, and there are proprietary Within these schemes are further classifications. and services of approximately $3.0 million were received during the quarter, but were not recognized as revenue, consistent with revenue recognition accounting policy. These revenues will be recognized upon execution of contracts currently expected during the fourth quarter of this year. Expenses totaled $5.1 million for the quarter, with $0.8 million being non-cash items including amortization of capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. software development costs, acquisition costs and depreciation. The increase over second quarter 1999 expenses of $0.1 million was due to the impact of the Almedica Technology Group acquisition which took place in June June: see month. . Expenses for the comparable quarter in 1998 totaled $5.9 million. The decrease in expenses compared to the prior year is primarily due to staff reductions which occurred during the first half of 1999. The loss from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the quarter ended September 30, 1999 was $3.4 million. This is a 14% reduction in the loss from continuing operations of $3.9 million in the second quarter of this year, but 4% higher than the $3.2 million loss for the comparable period in 1998. This improvement from the prior quarter is primarily due to increased revenues noted above. The comparison to the third quarter of 1998 was affected by the reduction in both revenue and expenses in 1999. The Company's loss from continuing operations was $0.75 per share for the three months ending September 30, 1999 as compared to $1.81 per share in the same period of 1998, after considering the reverse stock split in September 1999, the issuance of common shares in the Almedica acquisition in June 1999 and the conversion of debt in March 1999. About Base Ten Base Ten Systems is a software technology development company focused on manufacturing execution and clinical supply systems and services for the pharmaceutical, chemicals and medical products industries. Through installation of BASE10(R) software, the Company's customers around the world can enjoy more cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. compliance, improved manufacturing flexibility and reduced production cycle time. BASE10(R) solutions are readily integrated with complementary software partners as manufacturers consolidate Consolidate To combine the assets, liabilities, and other financial items of two or more entities into one. Notes: This term is generally used in the context of consolidated financial statements. their operations into global supply chain processes. Learn more about Base Ten Systems by visiting its web site at www.base10.com. 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. Regarding Base Ten The foregoing contains "forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. information" within the meaning of 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. Such forward-looking statements may be identified by the letter ("a") or by such forward-looking terminology The terminology used in the computer and telecommunications field adds tremendous confusion not only for the lay person, but for the technicians themselves. What many do not realize is that terms are made up by anybody and everybody in a nonchalant, casual manner without any regard or as "may," "will," "believe," "anticipate," "expect," or similar words or variations thereof. Such forward-looking statements involve certain significant risks and uncertainties. Important factors that Base Ten believes may cause actual results to differ materially from such forward-looking statements are discussed in the "Risk Factors," "Business" and "MD&A" sections of the Company's current S-3 registration statements and annual and quarterly reports on file with the Securities and Exchange Commission. Additional risk factors include the effectiveness of software and the ability of software to operate without "bugs" in the technology and acceptance of the release by customers and actual rollout. In assessing such forward-looking statements, investors are urged to read carefully those reports and other filings. Base Ten does not undertake to publicly update or revise its forward-looking statements, even if experience or future changes indicate that any such results or event (expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. ) will not be realized. -0-
Base Ten Systems, Inc.
Condensed Consolidated Balance Sheet
Unaudited
(in thousands)
September 30 December 31
1999 1998
------------ -----------
Current Assets:
Cash and cash equivalents $ 8,539 $ 17,437
Accounts receivable, net 2,285 2,372
Other current assets 513 639
---------------------------
Total Current Assets 11,337 20,448
Property, plant and equipment, net 4,753 5,026
Note receivable 1,975 1,975
Other assets 7,854 6,372
===========================
Total Assets $ 25,919 $ 33,821
===========================
Current Liabilities:
Accounts payable $ 446 $ 984
Accrued expenses 2,250 3,152
Deferred revenue 1,382 756
Current portion of financing
obligation 126 74
----------------------------
Total Current Liabilities 4,204 4,966
Long Term Liabilities:
Long term debt - 10,000
Financing obligation 3,246 3,341
Other long term liabilities 223 228
----------------------------
Total Long Term Liabilities 3,469 13,569
Redeemable Convertible Preferred Stock:
Series A Preferred Stock - 12,914
Series B Preferred Stock 13,032 -
Shareholders' Equity:
Class A Common Stock 25,203 18,660
Class B Common Stock 71 71
Additional paid-in capital 63,774 52,885
Accumulated deficit (83,284) (68,767)
--------------------------
5,764 2,849
Accumulated other comprehensive
income (loss) (269) (196)
Treasury Stock, 100,000
Class A Common Shares, at cost (281) (281)
--------------------------
Total Shareholders' Equity 5,214 2,372
--------------------------
Total Liabilities, Redeemable
Convertible Preferred Stock,
and Stockholders' Equity $ 25,919 $ 33,821
==========================
Base Ten Systems, Inc.
Condensed Consolidated Statements of Operations
Unaudited
(in thousands, except per share amounts)
Three months ended Nine months ended
Sept. 30, Sept. 30, % Sept. 30, Sept. 30, %
1999 1998 change 1999 1998 change
--------------------------- --------------------------
License and
related
revenue $ 245 $ 1,451 -83% $ 1,015 $ 2,419 -58%
Services and
related
revenue 1,509 1,257 20% 3,424 3,251 5%
--------------------------- ---------------------------
1,754 2,708 -35% 4,439 5,670 -22%
Cost of
revenues 1,374 2,490 -45% 4,139 8,540 -52%
Research and
development 340 186 83% 1,235 520 138%
Selling and
marketing 1,794 1,543 16% 4,753 3,725 28%
General and
administrative 1,683 1,527 10% 5,732 4,773 20%
Non-cash debt
conversion
charge - - - 3,506 - -
--------------------------- --------------------------
5,191 5,746 -10% 19,365 17,558 10%
--------------------------- --------------------------
Loss before
other income
(expense) (3,437) (3,038) 13% (14,926) (11,888) 26%
Other income
(expense), net 57 (202) -128% 141 (645) -122%
--------------------------- --------------------------
Net loss from
continuing
operations (3,380) (3,240) 4% (14,785) (12,533) 18%
Discontinued Operations:
Gain from sale of
discontinued
operations - - - 1,044 - -
--------------------------- -------------------------
Net loss (3,380) (3,240) 4% (13,741) (12,533) 10%
Less:
Dividends on
Redeemable
Convertible
Preferred Stock - (443) - (262) (1,376) -
Accretion on
Redeemable
Convertible
Preferred
Stock (396) - - (960) - -
Credit on
Exchange of
Redeemable
Convertible
Preferred Stock - - - 445 - -
------------------------- -------------------------
Net loss available
for common
shareholders $(3,776) $(3,683) 3% $(14,518) $(13,909) 4%
=========================== ==========================
Basic and diluted net
gain (loss) per share
Continuing
Operations $(0.75) $(1.81) -59% $(3.48) $(7.56) -54%
Discontinued
Operations - - 0.23 -
--------------------------- --------------------------
$(0.75) $(1.81) -59% $(3.25) $(7.56) -57%
=========================== =========================
Weighted average
common shares
outstanding -
basic and
diluted 5,054,000 2,030,000 149% 4,463,000 1,841,000 142%
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