Celerity Systems Inc. Corrects and Replaces Previous Earnings Release, BW1319, CELERITY-SYSTEMS.KNOXVILLE, Tenn.--(BUSINESS WIRE)--Aug. 17, 1998--Celerity Systems Inc. (Nasdaq:CLRT CLRT Continuous Lateral Rotation Therapy CLRT Command Logistics Review Team CLRT Cranial Laser Release Technique ) today announced its results for its second quarter ending June 30, 1998. The Company reported sales of $0 for the quarter and $723,000 year to date of its Interactive Video Services products, while the CD ROM CD ROM Compact Disk Read Only Memory software business, formerly reported as an operating division but now accounted for as a discontinued operation discontinued operation A segment of a business that has been abandoned or sold or for which plans for one or another of these actions have been approved. See also continuing operations. , had sales of $280,000 for the quarter and $327,000 year to date. The Company also announced a second quarter loss of $1,754,000 or, $0.43 per share, and a net loss of $3,583,000 for the six months year-to-date, or $0.87 per share. This was compared to a new loss of $2,613,000 for the second quarter of 1997, $1.44 per share, and a net loss of $3,964,000 for the six month period ended June 30, 1997, or $2.18 per share. "Although we are disappointed with our second quarter sales results, Jim Fultz, our VP of Sales and Marketing, and his team have done a great job filling the pipeline," said Ken Van Meter Van Meter may refer to:
n. Swiftness of action or motion; speed. See Synonyms at haste. [French célérité, from Old French, from Latin celerit . "We all knew selling leading edge products and services to large companies in our key markets--international, telcos, cable companies, hospitals, universities, and the hospitality industry--would require some solid ground work, which takes time. But we are also confident that our hard work and persistence will pay off, and soon expect to see the results." Van Meter added that he is particularly pleased with the strong marketplace acceptance of Celerity's new T 6000 digital set top box, whose fast processor, extensive interfaces and robust graphics make it one of the premier set top boxes available today. Development of the T 6000 is in its final stages, Van Meter said, and all activities are on track to begin assembly line production on September 30 at the Taylor-White plant in Greeneville, Tennessee Greeneville is a town in Greene County, Tennessee, United States. The population was 15,198 at the 2000 census. It is the county seat of Greene CountyGR6. The town was named in honor of Revolutionary War hero Nathanael Greene. . "We have pushed hard to make the T 6000 the most robust product on the market, and the customers are recognizing that added value Added value in financial analysis of shares is to be distinguished from value added. Used as a measure of shareholder value, calculated using the formula:
Commenting on the overall status of the Company at year's mid point, Van Meter said, "We continue to make excellent progress. In addition to the introduction of the T 6000 we have made additional improvements to our CTL See control key. 1. CTL - Checkout Test language. 2. CTL - Compiler Target Language. 3. CTL - Computational Tree Logic 9000 digital video server, increasing its capacity by 50 percent per node, as well as dramatically improving its stability, which was already excellent. Probably the only area where we are seriously behind is hiring key staff, and that has been placed on hold pending revenues from anticipated upcoming sales." The Company also announced that a founder and Director of the Company, Dr. Fenton Scruggs, has made available a personal line of credit of up to $600,000 to assist the Company in short term cash requirements. The funds, if required, are to be repaid upon collection of receivables from new sales. "The keys to our success are continuing to press hard to close new sales and to introduce the T 6000 digital set top box on time and with all the planned functionality," said Van Meter, "and we have the right people to do it." Celerity is a leading worldwide manufacturer of digital video servers and digital set top boxes for the interactive video services industry, and has 14 systems deployed in Korea, China, Taiwan and Israel. Through strategic relationships with companies including Cisco, Fore Systems See Marconi. , and Minerva, the Company also offers end-to-end interactive video systems, including services such as system integration, digital encoding, and digital authoring. The Company is headquartered in Knoxville, Tennessee, USA. This press release contains forward-looking statements. Such statements involve various risks that may cause actual results to differ materially from those expressed in such forward-looking statements. These risks and uncertainties include, but are not limited to: market demand for the Company's products, successful implementation of the Company's products, competitive factors, the ability to manage the Company's growth and the ability to recruit additional personnel and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission, including but not limited to, those described under the caption "Description of Business -- Risk Factors" in the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended December 31, 1997. CONTACT: Celerity Systems Inc., Knoxville Bill Chambers, 423/539-5300 or Ackermann Public Relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most Cindy McConkey, 423/584-0550 |
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