Ciprico Reports First Quarter Fiscal 2008 Results.MINNEAPOLIS -- Ciprico 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 : CPCI See CompactPCI. ) (the "Company") today reported revenue for the first quarter of the fiscal year 2008 ended December 31, 2007 of $2.0 million, down $0.2 million, or 9% from the prior quarter, and $0.8 million, or 27% from the first quarter of fiscal 2007. Gross margins improved sequentially from 26.1% last quarter to 41.8% this quarter compared to 43% in the first quarter of the prior year. 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. increased 12% from the prior quarter and increased $1.7 million from the quarter a year ago resulting in a net loss of $3 million for this quarter compared to a loss of $838,000 in the prior year first quarter. While current revenues were disappointing the company made substantial progress in building our software platform and customer potential while strengthening our balance sheet. Ciprico continued to focus on bringing its industry leading RAIDCore technology to market, and we have only begun to have any significant penetration into the market. We have shipped over 40,000 licenses of RAIDCore by Ciprico and we currently have well over 100 companies evaluating the RAIDCore software with over 30 customers who have purchased RAIDCore from Ciprico. We have received strong response from them that ultimately the ability to offer silicon agnostic ag·nos·tic n. 1. a. One who believes that it is impossible to know whether there is a God. b. One who is skeptical about the existence of God but does not profess true atheism. 2. storage protection software vs. a hardware solution is a strategic imperative. We remain highly optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that the overall transition from hardware to virtualized software data protection in the mainstream server IT and media workstation markets will continue but while testing and OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and consideration has met plan, adoption rates, efforts to provide security for the software from piracy piracy, robbery committed or attempted on the high seas. It is distinguished from privateering in that the pirate holds no commission from and receives the protection of no nation but usually attacks vessels of all nations. and the shipments of products incorporating the platform have taken longer than expected. Revenues for the quarter were adversely affected by the overall decline in the economy evidenced in other storage vendor sales as well as the on-going entertainment writers' strike, the latter which greatly affected our MediaVault[TM] product revenues. During the quarter we did record significant revenue related to work done on a military contract that flows through Boeing as prime contractor. We had previously announced that we had been awarded this contract and that we expected approximately $1 million in revenue on the initial phase of the contract. Boeing has since indicated that due to military requested cost reductions it is suspending further work on this phase of the contract. We have recorded approximately $650,000 in revenue to date related to this contract. We continue to pursue engagement on the long term aspects of this opportunity and a number of addition military opportunities, particularly in light of the favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. customer feedback regarding our technology and solution. Operating expenses increased as we continue to aggressively invest in our engineering team and our first full quarter of some sales and marketing teams hired late in the previous quarter. General and administrative expenses increased over the previous quarter due to additional accounting and audit costs related to our year-end, as well as non-capitalizable debt acquisition costs incurred in the first quarter of fiscal 2008. These investments in research and development, sales and marketing, and balance sheet strength resulted in a net loss for the first quarter of $3.0 million, compared to a net loss of $2.8 million in the previous quarter. We ended the quarter with cash and investment balances of $6.8 million, $2.2 million higher than the prior quarter end balance of $4.6 million. During the quarter we issued $5.2 million of convertible notes and warrants, which produced net cash proceeds of $5.0 million. Net cash used in operations was $2.5 million during the first quarter, which includes our net loss of $3.0 million for the quarter adjusted for $0.3 million of non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. (depreciation and stock compensation) and $0.2 million of changes in operating assets Operating Assets Another term for working capital. and liabilities. We also had $0.3 million in capital expenditures. "The first quarter was an exciting quarter for us in terms of customer reception to a software storage protection platform but not for sales, but early feedback has us confident in our strategy said Steve Merrifield Mer·ri·field , R(obert) Bruce Born 1921. American biochemist. He won a 1984 Nobel Prize for developing a method of synthesizing peptides and proteins from amino acids. , chief executive officer. "Despite our challenges we do believe we made significant progress last quarter," noting the following highlights: * Since taking over RAIDCore Ciprico has shipped a total of over 40,000 software licenses In computing, software that is copyrighted and licensed under a software license is done under a variety of licensing schemes. For end-users there are proprietary licenses and there are free software licenses, and there are proprietary Within these schemes are further classifications. and controller boards * Now have well over 100 system builders  This article's grammar usage needs improvement. Please edit this article in accordance with Wikipedia's . & OEMs evaluating over
RAIDCore solution
* Over 30 customers have purchased RAIDCore from Ciprico * Achieved a Vanguard Vanguard Any of three unmanned U.S. experimental satellites. Vanguard I (1958), the second U.S. satellite placed in orbit around Earth (after Explorer 1), was a tiny 3.25-lb (1.47-kg) sphere with two radio transmitters. award for our first RAIDCore based appliance, the MV5108 and delivered first production units * Introduced RAIDCore technology running on Intel platforms and began qualification work with leading motherboard Also called the "system board," it is the main printed circuit board in an electronic device, which contains sockets that accept additional boards. In a desktop computer, the motherboard contains the CPU, chipset, PCI bus slots, AGP slot, memory sockets and controller circuits for the vendors * Demonstrated industry leading performance at SuperComputing '07 conference "Potential customer discussions have convinced us of the value of the core strategy said Merrifield. As we move into our second quarter we are focused on execution and believe we are building momentum with our unique, virtual RAID technology. We will begin shipments this quarter to a number of new customers running on multiple silicon solutions as a result of the dramatic growth in evaluations being conducted over the past two quarters. Also over the next 90-120 days we expect to announce multiple strategic partnerships that will accelerate RAIDCore's market acceptance. In addition, we will release new MediaVault and DiMeda[TM] products utilizing our RAIDCore Technology. With the slower than expected adoption rates we are taking action to evaluate strategic options and will reduce expenses to insure Insure can mean:
"We are confident we are making progress with our customers and partners that will allow Ciprico to be successful. As we have said in the past our revenues will be erratic er·rat·ic adj. 1. Having no fixed or regular course; wandering. 2. Lacking consistency, regularity, or uniformity: an erratic heartbeat. 3. near term and our profitability will continue to be impacted by the investments we are making to enable RAIDCore to be the solution of the future. We will measure our progress in terms of design in wins, announcing key partnerships and revenue growth. If we can gain additional short term traction Traction Definition Traction is the use of a pulling force to treat muscle and skeleton disorders. Purpose Traction is usually applied to the arms and legs, the neck, the backbone, or the pelvis. and reduce the time to revenue, we continue to believe a target of doubling our revenue in fiscal 2008 may be achievable. We remain confident Ciprico will return to profitability in fiscal 2009." The Company will host a conference call on February 8, 2008 at 10:00 a.m. Eastern Time and 9:00 a.m. Central Time, to discuss this release. The conference call will be broadcast live via the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at www.ciprico.com. The conference call will also be available live via telephone at 800-218-4007. A replay will be available through February 18, 2008 at 800-405-2236, using the passcode 11107922, or on the company's web site. 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 Securities Reform Act of 1995 This press release includes 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. that involve risk and uncertainties that could cause actual results to differ materially from the forward-looking statements. Such forward-looking statements, which reflect our current view of expected growth in software licensing revenues, quarterly sales growth, revenue growth in fiscal 2008, our ability to build sustainable growth and return to profitability in fiscal 2009, product development efforts and impact on new product introductions, and other future events and financial performance, involve known and unknown risks that could cause actual results and facts to differ materially from those expressed in the forward-looking statements for a variety of reasons. These risks and uncertainties include but are not limited to: delays in product development; market acceptance of Ciprico's products and services; technological change in the storage and related industries; competition in the storage software market; the potential failure of Ciprico's partners to introduce products incorporating Ciprico's products; intellectual property issues; and other risk factors discussed in Ciprico's reports on Forms 10-KSB, 10-QSB and other reports filed with the Securities and Exchange Commission. Investors should take such risks into account when making investment decisions. Forward-looking statements speak only as of the date on which they were made, and except as required by law; we assume no obligation to update any forward-looking statements. We do not intend to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. About Ciprico Ciprico Inc. (NASDAQ: CPCI) is a leading provider of intelligent storage software, solutions and appliances for enterprise class IT servers, professional workstations and digital media workflows. Ciprico is headquartered in Minneapolis, MN. More information about Ciprico is available at www.ciprico.com [TABLE OMITTED] |
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