Celerex Corp. reports financial results for third-quarter 1994.REDMOND Redmond, city (1990 pop. 35,800), King co., W Wash., a suburb of Seattle, on Lake Sammamish; inc. 1912. Its economy centers around computer software (Microsoft Corp. , Wash.--(BUSINESS WIRE)--Nov. 16, 1994--Celerex Corp. today announced a net loss of $247,340 on revenues of $287,771 for the quarter ended Sept. 30, 1994, vs. a net loss of $325,503 on revenues of $255,564 for the comparable period in 1993. Loss per share was $.003 on 71,501,905 weighted average shares compared to a $.005 loss on 70,119,760 weighted shares in 1993. For the nine month period ended Sept. 30, 1994, Celerex reported a net loss of $723,165, or $.010 loss per share on revenues of $1,073,950 as compared to a net loss of $945,765, or $.014 loss per share on revenues of $753,056 for the same period ended in 1993. Barry Barry, Welsh Barri, town (1991 pop. 45,053) and port, Vale of Glamorgan, S Wales, on the Bristol Channel. Once a major coal-exporting port, its more diversified export products include cement, flour, and steel products. Allen Al·len , Edgar 1892-1943. American anatomist who is noted for his studies of hormones and for the discovery (1923) of estrogen. , president of Celerex, stated that net loss for the third quarter of 1994 decreased 24 percent as compared to the same quarter in 1993 largely due to an increase in revenues and strict 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. measures implemented in 1994. Total revenues increased 13 percent while total cost of revenues decreased 20 percent. Similarly, net loss for the nine month period ended Sept. 30, 1994, decreased 24 percent as compared to 1993 while total revenues increased 43 percent for the comparable periods. The growth in revenues is primarily attributable to software sales and increased monthly service and rental revenues. The company recognized its first software sale during the first quarter of 1994 which is derived from licensing of the company's proprietary software, developing custom software and software maintenance fees. Monthly service and rental revenues increased 28 percent in the third quarter of 1994 from the corresponding quarter in 1993 primarily due to an increase in installed merchant base. For the nine months ended Sept. 30, 1994, the company used approximately $429,000 of its cash for operating activities as compared to approximately $699,000 in 1993, representing a 39 percent reduction in usage of cash for operations. Allen further stated that, although the company's revenues exceeded its cost of revenues during the third quarter and nine months ended Sept. 30, 1994, primarily the result of software sales, licensing of technology and to a lesser extent increased monthly service and rentals, there can be no assurance that this will continue in future periods. The company continues to pursue additional software license agreements. As previously announced, as a result of inadequate cash reserves Cash reserves See: Cash investments cash reserves Investment funds that are held in short-term assets such as Treasury bills and certificates of deposit until more permanent investment opportunities are available. to fund current operations, the company substantially reduced its staff. However, the company expects to continue to incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. and in order to continue in existence must obtain additional capital or increase revenues through licensing of technology, sale of software or contract engineering services. Founded in 1986, Celerex is in the electronic payment systems business specializing in high-speed credit card authorization The right or permission to use a system resource; the process of granting access. See access control. , electronic draft capture, check verification and high-speed data capture and reporting systems for high volume, low dollar ticket applications. The company markets its systems and services through banks, as well as through its own sales force. Celerex stock is traded through OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. , an electronic, screen-based system, under the symbol CEXY. CONTACT: Celerex Corp., Redmond, Wash. Barry Allen, 206/869-7200 |
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