ChatCom Announces Results For the June 30 Quarter.CHATSWORTH, Calif.--(BUSINESS WIRE)--Aug. 16, 1996--ChatCom Inc. (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 : CHAT), announced that the company recorded a net loss of $630,081, or $0.08 per share, on revenues of $2,684,316 for its first fiscal quarter, ending June 30, 1996, as compared to net income of $123,910, or $0.01 per share, on revenues of $4,483,656 for the fiscal quarter ended June 30, 1995. The company reported that the loss was attributable primarily to a decrease in revenues that was at least in part caused by decreased sales and marketing efforts from October 1995 through March 1996. The decreased sales and marketing efforts were necessitated by liquidity constraints, which were alleviated with the successful completion of private placements of preferred stocks in March and May, 1996. The company also reported that the loss included approximately $60,000 in severance expenses relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the elimination of thirteen positions, which will allow the company to operate in a more efficient manner. The elimination of positions was in part in connection with the implementation of the company's plans to outsource a greater portion of certain manufacturing processes. The company believes that this plan will result in lower materials costs due to the purchasing power Purchasing Power 1. The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Purchasing power is important because, all else being equal, inflation decreases the amount of goods or services you'd be able to purchase. 2. of the subcontractors and will increase the company's ability to withstand fluctuations in revenues through the decrease in fixed costs fixed costs, n.pl the costs that do not change to meet fluctuations in enrollment or in use of services (e.g., salaries, rent, business license fees, and depreciation). . James B. Mariner, president and chief executive officer of ChatCom Inc., stated, "The Company is in the process of penetrating new and rapidly expanding markets for its products, including the Internet server and the network server market. We are confident that the processing density, manageability and maintainability that the Company's products allow are better than that offered by any other product on the market and will be very attractive to significant segments of those markets," Mariner added, "The Company is not certain exactly how long it will take to make significant inroads inroads Noun, pl make inroads into to start affecting or reducing: my gambling has made great inroads into my savings inroads npl to make inroads into [+ into these markets, but we are fortunate to possess a substantial presence in the remote access market and improved capital resources to allow the devotion of greater resources to the marketing efforts." Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement under 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: Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties, including but not limited to economic, competitive, governmental and technological factors affecting the Company's operations, markets, products and prices, and other factors discussed in the Company's various filings with the Securities and Exchange Commission, including without limitation the Registration Statement on Form S-3 (Registration No. 333-3792), which was declared effective by the Securities and Exchange Commission on June 7, 1996. Founded in 1982, ChatCom Inc. is a leading supplier of consolidated server A multiprocessor computer system consisting of several rack-mounted or modularized CPU boards that use fault tolerant components and share disk storage. SMP versions share a common memory pool. systems to Fortune 1000 companies. Its ChatterBox(TM) family of products has won numerous prestigious awards, including: PC Magazine's `Editor's Choice', LAN (Local Area Network) A communications network that serves users within a confined geographical area. The "clients" are the user's workstations typically running Windows, although Mac and Linux clients are also used. Magazine's `Product of the Year', and the LAN Times `Best of Times'. -0-
Three Months Ended
June 30,
1996 1995
Revenues $ 2,684,316 $ 4,483,656 Net (loss) income $ (630,081) $ 123,910 (Loss) income per share $(0.08) $ 0.01 CONTACT: ChatCom Inc. John Grady ''For the author, see John Grady (Author) John Grady (June 18, 1860 - July 15, 1893) played one year of professional baseball for the 1884 Altoona Mountain Citys. Mainly an outfielder, Grady played in 9 games, getting 36 at bats. His batting average was .306. , 818/709-1778 or Strategic Growth International Inc. Richard Cooper/Stanley Altschuler 516/829-7111 |
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