Bell Technology Group Ltd. announces first quarter results.NEW YORK--(BUSINESS WIRE)--Feb. 14, 1997--Bell Technology Group Ltd. (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 : BELT, BELTW) today announced results of operations for the three months ended December December: see month. 31, 1996. For the quarter ended December 31, 1996 revenues increased 53% to $3,696,399 million compared with $2,422,261 for the quarter ended December 31, 1995. The revenue increase was primarily attributable to increased sales levels from all aspects of the Company's business. Additionally, the Company experienced increased gross profit margins 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. during the first quarter, primarily due to the increase in sales from the service side of the Company's business rather than sales of products and from increased product sales of more sophisticated computer systems which required greater after market customer assistance, which generate higher profit margins. The net loss for the quarter ended December 31, 1996 was $680,806, or a loss of $0.22 per share on 3,084,339 weighted average shares, as compared to a loss of $190,628 for the quarter ended December 31, 1995, or $0.11 per share on 1,742,855 weighted average shares. The Company's losses were primarily due to increased Selling, General and Administrative (SG&A) costs during the quarter, in the amount of $1.5 million versus $521,000 in the first quarter of fiscal 1996, to support the Company's transition from a value-added reseller A value-added reseller (VAR) is a company that adds some feature(s) to an existing product(s), then resells it (usually to end-users) as an integrated product or complete "turn-key" solution. of computer hardware and software to an Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the solutions provider. A substantial portion of such costs within the SG&A category were related to payroll which increased substantially during the period for sales, engineering and technical staff primarily supporting the Company's newly established Internet sales and engineering departments. To offset these expenditures, the Company commenced an internal cost cutting program and consolidated all of its operations into the 295 Lafayette Lafayette (lä'fēĕt`, lăf'ēĕt`). 1 City (1990 pop. 23,501), Contra Costa co., NW Calif., a residential suburb in the San Francisco–Oakland area; settled 1848, inc. 1968. Street headquarters and surrendered its premises at 611 Broadway Broadway, famous thoroughfare in New York City. It extends from Bowling Green near the foot of Manhattan island N to 262d St. in the Bronx. Throughout its length Broadway is chiefly a commercial street. during the first quarter of fiscal 1997. The Company has also begun to streamline some of its operations and has suspended sus·pend v. sus·pend·ed, sus·pend·ing, sus·pends v.tr. 1. To bar for a period from a privilege, office, or position, usually as a punishment: suspend a student from school. its Internet Wired program. Except for those statements that report the Company's historical results, the statements being made are forward looking statements. Actual results could differ materially from those projected in the forward looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward looking statements is contained under the heading Risk Factors" listed from time to time in Bell Technology Group Ltd.'s SEC reports including Post Effective Amendment No. 1 on Form S-3 to Registration Statement on Form SB-2 dated January January: see month. 30, 1997. Bell Technology Group Ltd. currently provides complete Internet solutions for businesses in the 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 region and is a premier provider for businesses seeking to effectively exploit the Internet by offering high-speed high-speed adj. 1. Operated or designed for operation at high speed: a high-speed food processor. 2. Taking place at high speed: a high-speed chase. 3. connections, web services (1) Loosely, any online service delivered over the Web. Such usage appears in articles from non-technical sources, but not in IT-oriented publications, because definition #2 below describes the correct use of the term. , programming, design and integration. Bell Technology Group also provides training and development to corporate and academic clients at its state-of-the-art computer and Internet training center, and provides development of cutting edge" multimedia technology, including website designs, 2-D and 3-D animation and interactive media. -0-
Bell Technology Group Ltd. and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
Three Months Ended
December 31,
1996 1995
Revenues $ 3,696,399 $ 2,422,261
Costs and expenses:
Cost of revenues 2,835,316 2,013,240
Selling, general and administrative 1,444,795 520,987
Depreciation and amortization
(net of $45,016 included in cost
of revenues) 111,450 54,245
Total costs and expenses 4,391,561 2,588,472
Loss from operations (695,162) (166,211)
Interest income 18,055 --
Interest expense (3,699) (24,417)
Loss before taxes (680,806) (190,628)
(Benefit from) provision for taxes -- --
Net loss $ (680,806) $ (190,628)
Net loss per share ($0.22) ($0.11)
Weighted average shares outstanding 3,084,339 1,742,855
-0-
Bell Technology Group Ltd. and Subsidiaries
Consolidated Balance Sheets
December 31, September 30,
1996 1996
Assets (Unaudited)
Current assets:
Cash and cash equivalents $ 1,463,889 $ 2,742,011
Accounts receivable, net of
allowance for doubtful accounts of
$127,842 and $64,842 as of
December 31, 1996 and
September 30, 1996, respectively 3,125,395 1,847,918
Inventories 1,005,581 758,353
Prepaid expenses and other
current assets 127,334 195,113
Total current assets 5,722,199 5,543,395
Property and equipment, net 2,686,098 2,151,294
Other assets 71,196 115,093
Total assets $ 8,479,493 $ 7,809,782
Liabilities and Stockholders' Equity
Current liabilities:
Short term borrowings $ 779,392 $ --
Current portion of notes payable 27,351 39,152
Accounts payable 1,794,594 1,274,197
Accrued expenses 258,257 240,116
Deferred revenues 199,343 166,617
Total current liabilities 3,058,937 1,720,082
Commitments and contingencies
Stockholders' equity:
Preferred Stock, $.01 par value;
500,000 shares authorized;
no shares issued and outstanding -- --
Common Stock, $.01 par value;
10,000,000 shares authorized;
3,084,877 and 3,083,210 shares
issued and outstanding 30,849 30,832
Additional paid-in capital 8,044,779 8,033,134
Accumulated deficit (2,655,072) (1,974,266)
Total stockholders' equity 5,420,556 6,089,700
Total liabilities and
stockholders' equity $ 8,479,493 $ 7,809,782
CONTACT: Mona J. Walsh Walsh has several meanings: Mathematics
Stephen Stephen, 1097?–1154, king of England (1135–54). The son of Stephen, count of Blois and Chartres, and Adela, daughter of William I of England, he was brought up by his uncle, Henry I of England, who presented him with estates in England and France and D. 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. , CFA (Computer Fraud and Abuse Act of 1986) Signed into law in 1986, the CFA was a significant step forward in criminalizing unauthorized access to computer systems and networks. The Act applies to "federal interest computers" that include any system used by the U.S. Susan T. Bolen (Media) WOLFE AXELROD ASSOCIATES 212-370-4500; 212-370-4505 email: 76015.440@compuserve.com or Marc H. Bell, President & 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. BELL TECHNOLOGY GROUP LTD. 212-334-8501; 212-334-8509 (FAX) (FAX) http://www.belltech.com |
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