Base Ten Systems Announces First-quarter Results.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)--May 18, 1999-- -- Revenue Up 83% from Comparable 1998 Quarter -- Base Ten Systems Inc. (Nasdaq:BASEA BASEA Boston Area Solar Energy Association )(the "Company") released results for the first quarter ended March 31, 1999. Revenues for the period totaled $1.7 million, approximately 83% ahead of revenues for the comparable quarter in 1998, and approximately 11% lower than revenues from the prior quarter. Revenues on a certain $1.2 million order received during the third quarter of 1998 are being recognized on the percentage completion basis, and as such, have only been partially recognized in the first quarter of 1999. The balance of revenue from this order is expected to be recognized during 1999. Net loss for the period ended March 31, 1999, exclusive of the $3.5 million non-cash accounting charges related to debt conversion and exchange of 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. , was $4.0 million, or $0.23 per share, compared to a net loss of $4.4 million, or $0.58 per share, in the comparable 1998 period, and $6.5 million, or $ 0.57 per share, in the prior quarter. The net loss for the period was $7.5 million, or $0.39 per share. The net loss decrease (excluding debt conversion and exchange of preferred stock charges) is primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to increased revenues in 1999 versus the 1998 period. In comparison to the prior quarter, the decrease in net loss reflects the 1998 financial 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 operational expense reductions. Separately, the Company announced that it is filing an appeal with The Nasdaq Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. in connection with a notification, contained in a letter from Nasdaq dated May 14, of a possible de-listing action. The Company said that its appeal will be based on the fact that it continues to meet all Nasdaq listing requirements Listing requirements Requirements, including minimum shares outstanding, market value, and income, that are laid down by an exchange for any stock to be listed for trading. and that it is taking the steps necessary to ensure continued compliance with those requirements. Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs E. Gardner Gardner, city (1990 pop. 20,125), Worcester co., N central Mass.; settled 1764, inc. as a city 1921. Its furniture and lumber industries date from c.1805. Diversified metal and electronics manufactures add to the city's economic base. A state prison is there. , chairman and chief executive officer, said, "While we are not satisfied with the operating results for the first quarter, we are encouraged by our year-over-year progress in revenue generation. We remain focused on managing costs and developing growth opportunities to better meet customer needs and build value for shareholders, customers and employees." Expenses totaled $9.1 million for the quarter, with $4.2 million, or 46%, being non-cash items including debt conversion and exchange of preferred stock charges, 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 and depreciation. Expenses, net of the debt conversion and exchange of preferred stock charges, totaled $5.6 million, as compared to $5.3 million in the 1998 period and $8.4 million in the prior quarter. Expenses in the first quarter of 1999 were substantially lower than in the fourth quarter of 1998, primarily reflecting reduced costs associated with the 1998 financial restructuring combined with reduced 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. in the 1999 period as a result of cost containment cost containment, n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan. activities. The debt conversion cost refers to a non-cash accounting charge of $3.5 million related to the repricing Repricing To change the price of an asset. In derivatives, it sometimes refers to the exchange of options of with different strike prices. repricing and subsequent conversion of the $10 million 9.01% convertible debenture Convertible Debenture Any type of debenture that can be converted into some other security. Notes: For example, a convertible bond can be converted into stock. in March 1999. The debenture debenture (dəbĕn`chər), document acknowledging indebtedness. In Great Britain a debenture is practically the same as a bond, and debenture stock is similar to preferred stock. was issued in August 1996 to Jesse Jesse (jĕs`ē), in the Bible, the descendant of Rahab, the grandson of Boaz and Ruth, and the father of David. Referring to the restoration of the Davidic monarchy, the Book of Isaiah speaks of a shoot coming from the "stump of Jesse. L. Upchurch, who is currently a principal shareholder of the Company. The conversion, as a result of the modification in the conversion price from $12.50 per share to $4.00 per share, resulted in the issuance of 2,500,000 shares of Class A common stock, as compared to 800,000 shares that could have been issued under the old conversion price. The amount of the non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. is determined by assigning as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. a fair value to the incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. 1,700,000 shares issued as a result of the modification of the conversion price. There was also a non-cash charge to equity of $0.1 million in March 1999 relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the repricing of warrants issued to the agent of the debenture holder. Base Ten Systems is a software technology development company, focused on manufacturing execution systems – Manufacturing execution system (MES) describes a set of integrated functions within a packaged software system or it can also describe the accumulated functionality within the production management infrastructure of a manufacturing or production company. and services for the pharmaceutical, chemicals and medical products industries. Through installation of BASE10(tm) software, the Company's customers around the world can enjoy more effective 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(tm) execution systems are readily integrated with complementary software partners as manufacturers consolidate 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 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 a letter 'a' in parenthesis parenthesis: see punctuation. The left parenthesis "(" and right parenthesis ")" are used to delineate one expression from another. For example, in the query list for size="34" and (color = "red" or color ="green") ("a") or by such forward-looking terminology as "may", "will", "believe", "anticipate", "expect", or similar words or variations thereof. Such 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. involve certain significant risks and uncertainties. Important factors that the Company 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. The Company 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) will not be realized. -0-
Base Ten Systems, Inc.
Condensed Consolidated Balance Sheet
Unaudited
(in thousands)
Mar 31 99 Dec 31 98
------------- -------------
Current Assets:
Cash $13,283 $17,437
Accounts receivable 2,753 2,372
Other current assets 1,311 639
------------- -------------
Total current assets 17,347 20,448
Property, plant and equipment 4,876 5,026
Note Receivable 1,975 1,975
Other Assets 5,394 6,372
------------- -------------
Total Assets $29,592 $33,821
============= =============
Current Liabilities:
Accounts payable $ 1,263 $ 984
Accrued expenses 2,452 3,152
Current portion of financing
obligation 92 74
Deferred revenue 1,348 756
------------- -------------
Total current liabilities 5,155 4,966
Long-term liabilities:
Long-term debt - 10,000
Capital lease obligation 3,307 3,341
Other long-term liabilities 223 228
------------- -------------
Total long-term liabilities 3,530 13,569
Redeemable convertible stock
Series A - 12,914
Series B 12,354 -
Shareholders' Equity
Class A Common stock 21,205 18,660
Class B Common stock 71 71
Additional paid-in capital 64,136 52,885
Deficit (76,325) (68,767)
------------- -------------
9,087 2,849
Accumulated other comprehensive
income (loss) (253) (196)
Treasury stock, 100,000 Class
A shares, at cost (281) (281)
------------- -------------
8,553 2,372
------------- -------------
Total liabilities, redeemable
convertible preferred stock
and stockholders' equity $29,592 $33,821
============= =============
Base Ten Systems, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
Three Months Ended
Mar 31 99 Mar 31 98 % change
---------------------------------------------
Revenues
License and
related
revenue $ 616 $ 370 66%
Service and
related
revenue $ 1,053 $ 540 95%
---------- --------- ---------
Total revenue $ 1,669 $ 910 83%
Cost and expenses:
Cost of revenues 1,495 2,407 -38%
Research and
development 459 140 228%
Sales and marketing 1,418 1,165 22%
General and
administrative 2,196 1,354 62%
Non-cash debt
conversion charge 3,506 -
---------- --------- ---------
Total costs and
expenses $ 9,074 $ 5,066 79%
Income (loss) from
operations (7,405) (4,156) 78%
Other income (expense) (54) (239) -77%
---------- --------- ---------
Net income (loss) $ (7,459) $ (4,395) 70%
Less: Dividends on
redeemable convertible
preferred (262) (475) -45%
Accretion on redeemable
convertible preferred (282) -
Gain on exchange of
Series B for Series A 445
Net loss available for
common shareholders $ (7,558) $ (4,870) 55%
========== ========= =========
Loss per common share (0.39) (0.58) -33%
========== ========= =========
Weighted average
common shares 19,525,000 8,340,000 134%
---------- --------- --------
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