BitWise Designs Announces Its Second Quarter Results; Revenues Improve After Two Quarters and the Company Continues Its Investment in AuthentiDate.Business/Technology Editors SCHENECTADY, N.Y.--(BUSINESS WIRE)--Feb. 14, 2001 BitWise Dealing with bits rather than larger structures such as a byte. For example, each of the eight bits in a byte can be used as an individual flag to signal yes/no, on/off (1 or 0) about some condition. The Boolean operators AND, OR and NOT also deal with individual bits rather than bytes. Designs, Inc. (Nasdaq: BTWS BTWS Blue Tang Web Systems (UK) ), the holding company for AuthentiDate, Inc., DocStar and DJS DJS Dubin-Johnson Syndrome DJS Def Jam South (record label) DJS Deutsche Journalistenschule eV DJS Dow Jones Spot DJS Director, Joint Staff Marketing, today announced results for its second fiscal quarter and six month period ended December 31, 2000. For the six month period ended December 31, 2000, BitWise net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight were $8.5 million, a 9.3% increase over $7.8 million in net sales for the comparable year ago period. The net loss for the first six months of fiscal 2001 was $3.2 million, or ($0.22) per share, compared to a loss of $1.2 million, or ($0.12) per share for the same period last year. First half fiscal year 2001 losses were primarily due to the company's increased investment in the AuthentiDate subsidiary. AuthentiDate is still in the development stage and is incurring in·cur tr.v. in·curred, in·cur·ring, in·curs 1. To acquire or come into (something usually undesirable); sustain: incurred substantial losses during the stock market crash. 2. expenses from significant product development, quality assurance, testing and general administration including the hiring of a management team. The subsidiary is expected to commence sales after the completion of the beta tests A test of new or revised hardware or software that is performed by users at their facilities under normal operating conditions. Beta testing follows alpha testing. Vendors of packaged software often offer their customers the opportunity of beta testing new releases or versions, and the on its software, in the fiscal fourth quarter. Gross profit for the first six month period was 29.1% of sales, an improvement over gross profit of 25.2% for the same prior year period. Net sales for the quarter were $4.0 million, compared to $4.7 million for the same period last year. The year-over-year decline in the second quarter was due to the timing of DocStar shipments between the first and second quarter of 1999. Net loss for the quarter was $1.6 million, or ($0.11) per share, compared to a loss of approximately $127,000, or ($0.01) per share for the comparable year ago quarter. Gross profit for the quarter was 29% of sales, which essentially was the same as the prior year's quarter. The cash balance was $6.8 million at December 31, 2000. "Revenues increased for the first six months of this year compared to the same period last year," commented John Botti Raphael Jose Botti (born February 23, 1981) simply known as Botti, is a Brazilian professional footballer. He plays as a midfilder for Vissel Kobe. Botti is a hard-working and talented player who may not get on the scoresheet too often – just 14 times in his five years , Chief Executive Officer of BitWise Designs. "We are pleased with the increased efficiencies we achieved throughout the quarter, which have enabled us to maintain healthy margins. In addition, our strong balance sheet and cash position provides us with the necessary flexibility to build our high-growth AuthentiDate subsidiary, which is our strategic focus." The increase in net loss for the six month period ended December 31, 2000 was due to the company's continued investment in the AuthentiDate subsidiary. AuthentiDate, which is positioning itself as the Trusted Content Authority, has proprietary technology that addresses the need for the verification of digital information in all business processes. The AuthentiDate solution ensures that the content of digital information has not been altered. Initially, AuthentiDate will target markets that have a critical need to verify (1) To prove the correctness of data. (2) In data entry operations, to compare the keystrokes of a second operator with the data entered by the first operator to ensure that the data were typed in accurately. See validate. the authenticity The correct attribution of origin such as the authorship of an e-mail message or the correct description of information such as a data field that is properly named. Authenticity is one of the six fundamental components of information security (see Parkerian Hexad). and originality o·rig·i·nal·i·ty n. pl. o·rig·i·nal·i·ties 1. The quality of being original. 2. The capacity to act or think independently. 3. Something original. Noun 1. of content included in documents, spreadsheets The following is a list of spreadsheets. Freeware/open source software Online spreadsheets
(In thousands, except per share data)
December 31
Six Months Ended Three Months Ended
2000 1999 2000 1999
---- ---- ---- ----
Sales $8,518 $7,792 $4,035 $4,720
Gross Profit 2,475 1,962 1,168 1,372
Net Income (Loss) (3,199) (1,234) (1,623) (127)
Per share ($0.22) ($0.12) ($0.11) ($0.01)
Business Segment Results DocStar DocStar sales decreased for the second quarter ended December 31, 2000 compared to the second quarter of 1999 due to unusually high sales for the year ago quarter as several large dealer orders were delayed from the first quarter of 1999 and shipped in the second quarter of 1999. Sales for the six months ended December 31, 2000 were approximately $3.2 million, an increase of 8.2% compared to approximately $3.0 million for the year ago period. For the six month period ended December 31, 2000, DocStar incurred a small loss which was a significant improvement over the prior year when the segment loss was nearly $500,000. The improvement was due in part to increased demand from its dealer network. DocStar realized a gross profit margin 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. of 41.3% for the six months ended December 31, 2000 compared to 34.6% for the same period last year. DJS Marketing DJS Marketing sales for the six months ended December 31, 2000 were $5.3 million, an increase of 10% compared to $4.8 million for the six month period ended a year ago. The improvement was primarily due to increased service revenue and hardware sales. The subsidiary's profits for the first six months of Fiscal 2001 were approximately $210,000 or a 63% increase compared to profits of approximately $129,000 for the first six month period in Fiscal 2000. Gross profit margins for the subsidiary also increased to 22.2% over the six month period ended December 31, 2000 compared to 20.2% for the six months ended December 31, 1999. Highlights of the Quarter 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). To Reflect New Focus On January 8, 2001, BitWise announced a restructuring plan that will focus the company's strategy on AuthentiDate and the rapidly growing digital content authentication (1) Verifying the integrity of a transmitted message. See message integrity, e-mail authentication and MAC. (2) Verifying the identity of a user logging into a network. market. As part of the plan, BitWise intends to change its name to AuthentiDate Holding Corp. (AHC AHC Appalachian Hardwood Center AHC American Heritage Center (University of Wyoming, Laramie, WY) AHC American Horse Council AHC Association for History and Computing AHC Australian Heritage Commission AHC Assault Helicopter Company ). AHC will acquire all minority shares of AuthentiDate, Inc., which will become a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of AHC. Both DocStar and DJS Marketing Group will continue as separate business units. Upon completion of the restructuring, AHC will trade under the Nasdaq symbol ADAT (Alesis Digital Audio Tape) A digital audio recording technology from Alesis, LLC, Cumberland, RI (www.alesis.com). In 1992, Alesis introduced the first 8-track digital tape recording system. . The restructuring, which is subject to shareholder approval, is expected to be completed by the fourth quarter. AuthentiDate Highlights Expanding Alliance Base - AuthentiDate announced that it has joined the Entrust Alliance Developer Program - a testing and co-marketing program that provides vendors with a complete framework for developing and promoting security solutions with Entrust Technologies. The newly recognized relationship with Entrust Technologies will enhance the AuthentiDate solution as the company sets the standard as the trusted repository for non-repudiation and authentication of digital data. - AuthentiDate joined AT&T's Ecosystem for ASPs, an award-winning program that provides a foundation for ASPs to deliver high-performing and reliable network-based applications to business customers. Membership in the AT&T Ecosystem for ASPs provides AuthentiDate with a secure environment to bring the company's solutions to the many businesses and organizations looking to assure the originality of any form of digital content. Implementing Management Team AuthentiDate announced a series of key executive appointments to its management team. These executives will focus on expanding the proprietary AuthentiDate technology and pursuing market leadership in the high growth e-business security marketplace. The team is composed of five key executives: Nick Themelis as Chief Technology Officer; Patrick Lang Lang language LANG Louisiana Army National Guard Lang Langobardian (linguistics) LANG Los Angeles Newspaper Guild as Vice President of Finance and Administration, Chief Financial Officer; Barry Bergman as Vice President of Worldwide Sales; Alex Cooper as Vice President of Business Development; and Richard Reichgut as Vice President of Marketing. The members of the management team report to AuthentiDate's 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. Robert Van Naarden. Conference call: The management of BitWise will hold a conference call this morning at 11:30 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy to further discuss the company's results. To access the conference call, please dial 888-243-1745, or you can access a live Webcast by going to the BitWise investor relations Investor relations The process by which the corporation communicates with its investors. site at http://www.bitwisedesigns.com/bitwise/invest/. A replay will also be available beginning 1:30 p.m. ET on Wednesday and continuing through Friday. To access the replay, dial 1-800-633-8284, reservation #17938797. About the Company BitWise Designs, Inc. (Nasdaq: BTWS), which will be known as AuthentiDate Holding Corp. (AHC) once the restructuring has been approved, is the parent company of three divisions: AuthentiDate Inc., DocStar, and DJS Marketing Group/Computer Professionals International. AuthentiDate, Inc. has received patent-pending status for its innovative technology that can verify the authenticity of digital data with virtual certainty. AuthentiDate's solution addresses the need for strong legally binding content verification of digital information in all business processes. DocSTAR is a complete, turnkey See turnkey system. solution for storing and retrieving paper files electronically. DJS Marketing Group/Computer Professionals International performs computer integration services and sells computer products. This press release contains certain 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. When used in this release, the words "believe," "anticipate," "think," "intend," "plan," "will be," "expect," and similar expressions identify such forward-looking statements. Such statements regarding future events and/or the future financial performance of The Company are subject to certain risks and uncertainties, which could cause actual events or the actual future results of The Company to differ materially from any forward-looking statement. Such risks and uncertainties include, among other things, the availability of any needed financing, The Company's 0ability to implement its business plan for various applications of its technologies, the impact of competition, the management of growth, and the other risks and uncertainties that may be detailed from time to time in The Company's reports filed with The Securities and Exchange Commission. In light of the significant risks and uncertainties inherent in the forward-looking statements included herein, the inclusion of such statements should not be regarded as a representation by The Company or any other person that the objectives and plans of The Company will be achieved. |
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