ChatCom announces results for the December 31, 1996 quarter.CHATSWORTH, Calif.--(BUSINESS WIRE)--Feb. 12, 1997--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 today that the company recorded a net loss of $597,685, or six cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , on revenues of $2,750,342 for its third fiscal quarter ended Dec. 31, 1996 as compared to a net loss of $136,292, or two cents per share, on revenues of $4,206,683 for the fiscal quarter ended December 31, 1995. The company reported a net loss of $2,315,904, or 27 cents per share, on revenues of $7,643,554 for the nine months ended Dec. 31, 1996 as compared to a net loss of $618,911, or 8 cents per share, on revenues of $12,407,327 for the nine months ended Dec. 31, 1995. The company reported that the loss for the quarter was primarily attributable to a decrease in revenues. With the proliferation of remote access solutions that have low performance and low cost, the company has expended resources toward the development of new markets for its server technology; markets that are not driven by commodity prices. The company believes that the products it currently offers are versatile and can provide networking solutions for a wide range of applications in addition to remote access. The company has been executing a program to develop and market solutions for the server consolidation, network emulation Network emulation is a technique where the properties of an existing, planned and/or non-ideal network are simulated in order assess performance, predict the impact of change, or otherwise optimize technology decision-making. (testing) and internet markets. The company believes that these programs have the potential to increase demand for its products and provide future revenue growth. James B. Mariner, president and chief executive officer of ChatCom Inc. stated, "The company is optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op regarding its efforts to penetrate the network server, internet server and network emulation markets. The revenues reported for the fiscal quarter ended Dec. 31, 1996 represent a 24% increase over those of the prior quarter and our highest quarterly revenue since the quarter ended Dec. 31, 1995. The marketing team that the company has assembled is making 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 new markets and the company hopes to continue to realize the benefits from the renewed marketing efforts." 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'. 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 which involve risks and uncertainties, including but not limited to economic, competitive, governmental, and technological factors affecting the revenues, 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 Current Report on Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. , dated August 29, 1996. -0-
Three Months Ended Nine Months Ended
December 31, December 31,
1996 1995 1996 1995
Revenues $2,750,342 $4,206,683 $7,643,554 $12,407,327
Net Loss $ (597,685) $ (136,292) $(2,315,904) $ (618,911)
Loss Per Share $ (0.06) $ (0.02) $ (0.27) $ (0.08)
CONTACT: ChatCom, Inc. James Mariner 818/709-1778 or Strategic Growth International Richard Cooper/Stan Altschuler 516/829-7111 |
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