Celerity Solutions Reports a 72% Revenue Increase for Fiscal 1999 Third Quarter.DEDHAM, Mass.--(BUSINESS WIRE)--Feb. 16, 1999--Celerity Solutions, Inc. (Celerity ce·ler·i·ty n. Swiftness of action or motion; speed. See Synonyms at haste. [French célérité, from Old French, from Latin celerit ; 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 :CLTY), a leading single source solution provider of supply chain planning and execution software for the middle market, announced today its results for the fiscal third quarter ended December 31, 1998 by reporting revenues of $2.6 million, a 72% increase over the fiscal 1998 third quarter, and a net loss of $230,500, or ($0.03) per share, compared to a net loss of $3.3 million, or ($0.50) per share loss for the fiscal 1998 third quarter. The fiscal 1998 third quarter net loss included a write-off of $3.1 million related to the acquisition of Somerset Automation, Inc. (SAI). The Company reported fiscal 1999 year-to-date revenues of $9.0 million, an increase of $5.5 million, or 154% from fiscal 1998 year-to-date revenues, and a fiscal 1999 year-to-date net loss of $506,000 or ($0.06) per share, a reduction from fiscal 1998's year-to-date net loss of $1.7 million, or ($0.29) per share. The fiscal 1998 net loss included a $2.0 million gain on the sale of selected multimedia assets to Davidison & Associates, Inc., in addition to the write-off associated with the SAI acquisition. For the nine months ended December 31, 1998, cash and cash equivalents decreased to $825,000, due to cash used in operating activities, capital expenditures, and capitalized software costs. One of the contributors to this decrease was a 64% increase in accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying and a slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in the collection of certain receivables. The Company is in negotiations with these accounts and is also in the process of establishing an asset secured line of credit to supplement its on-going working capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. . Please refer to the Company's December 31, 1998 Form 10-QSB filing with the SEC for additional information. The attached schedule provides comparative financial highlights for the quarter and year-to-date. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Luda Kopeikina, 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. and President of Celerity, "The revenue and net loss for the quarter are in line with our expectations. Our sales backlog continues to be strong. Revenues for the third quarter reflect some delay in ramping up several projects, including the Distribution Dynamics, Inc. project. We expect the fiscal 1999 fourth quarter revenues to increase significantly over the fiscal 1999 third quarter, and our gross margin to improve as our professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. resources are more fully deployed on several projects. 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. as a percent of sales continue to improve this quarter and will continue to improve, in spite of our continued investment in sales and marketing and research and development. We remain confident about our expectations for fiscal 1999 revenues in the $13 million range." Celerity Solutions, Inc., provides a unique broad-based offering of supply chain planning and execution products for the manufacturing and distribution industries ranging from Supply Chain Planning through Warehouse Management software products. Celerity, which means "with swiftness of movement", is focused on accelerating customers' materials and products through their supply chains, while optimizing their inventory investment and improving customer service. Celerity's software is designed to integrate planning and transaction-based systems, and to provide real-time visibility to inventory movement throughout the supply chain. Founded in 1982, Celerity has offices in Dedham, Massachusetts Dedham /ˈdɛdəm/ is a town in the Commonwealth of Massachusetts and the county seat of Norfolk County, Massachusetts. The population was 23,464 at the 2000 census. It is located on Boston's southwest border. ; Newark, New Jersey; Chicago, Illinois; Irvine, California Irvine is an incorporated city in Orange County, California, United States. It is a planned city, mainly developed by the Irvine Company since the 1960s. Formally incorporated on December 28 1971, the 69.7 square mile (180.5 km²) city has a population of 202,079 (as of 2007). ; and St. Petersburg, Russia. Some of Celerity's customers include Distribution Dynamics, United Liquors Limited, Corporate Express, Nortel, Pleasant Company, Honeywell, Wesley Jessen, Champion Paper, Image Entertainment, and Methanex Methanol methanol, methyl alcohol, or wood alcohol, CH3OH, a colorless, flammable liquid that is miscible with water in all proportions. Methanol is a monohydric alcohol. It melts at −97. . Additional information is available through the company's Web sites: www.celeritysolutions.com and www.somersetwms.com. 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. , e.g. "expects", "project", "projected", "will allow", 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 statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those presently anticipated or projected. Celerity cautions readers not to place undue reliance on any forward looking statements, which speak only as to management's expectations on the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . Please refer to Celerity's 1998 Annual Report and quarterly SEC filings for a description of the risks and uncertainties prepared by Celerity. Celerity does not undertake - and specifically declines any obligation - to publicly release the result of any revision which may be made to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of anticipated or unanticipated events. -0-
Celerity Solutions, Inc.
Financial Highlights
Unaudited
In thousands, except share Quarter Ended Nine Months
and per share data December December
1998 1997 1998 1997
Net Sales $2,585 $1,499 $9,021 $3,557
Cost of Sales 1,477 820 5,427 1,943
Operating Expenses 1,382 3,900 4,160 5,331
Loss Before Gain on Sale
of Assets and Taxes (274) (3,221) (566) (3,717)
Gain on Sale of Assets 2,037
Net (Loss) $(231) $(3,271) (506) (1,766)
Loss Per Common Share:
Loss Per Share $(0.03) $(0.50) $(0.06) $(0.29)
Weighted Average Number
of Shares Outstanding 8,035,189 6,545,599 8,023,616 6,203,243
31-Dec-98 31-Mar-98
Cash and Equivalents $ 825 $ 2,342
Current Assets 4,835 5,812
Total Assets 7,505 8,446
Current Liabilities 3,823 3,391
Total Liabilities 4,186 4,640
Shareholders' Equity $ 3,319 $ 3,806
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