Computone Announces Fourth Quarter & Year-end Results.ROSWELL, Ga.--(BUSINESS WIRE)--June 23, 1995--Computone Corporation (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 :CMPT CMPT Computer Science (course) CMPT Compartment CMPT Compute CMPT Centre for Marine and Petroleum Technology (UK) CMPT Certified Manual Physical Therapist ), a leading designer and manufacturer of data communications data communications, application of telecommunications technology to the problem of transmitting data, especially to, from, or between computers. In popular usage, it is said that data communications make it possible for one computer to "talk" with another. hardware and software, today announced financial results for its fourth quarter and the year ended April 7, 1995. Revenues for the fourth quarter were $3.8 million, up 9% over $3.5 million for the same quarter of the prior year. This revenue increase during the fourth quarter closely matched the industry average growth during this period. Remarkably, this growth was achieved while making several strategic and operational investments. The Sales and Marketing department staff was increased over 27% to better serve customer needs. Additionally, the department was realigned to take advantage of the Company's new, highly successful products -- the IntelliServer and PCI bus multi-port adapters. Computone gained an industry first by supplying the multi-port market with the first PCI bus based serial connectivity products. The Company invested $225,000 in an aggressive marketing campaign to launch these new products. During the quarter, several investments were made in the Company's manufacturing operations. The first phase of production outsourcing was implemented during this time, allowing a majority of the Company's products to be produced by high volume subcontractors. A new manufacturing computer system was installed and brought on line to allow more efficient material planning. Certain components used in the manufacture of the Company's products went on allocation during this time, increasing costs. There was an adjustment to cost of sales resulting from the usage of the gross margin method to estimate cost of sales at interim periods. As a result of the above mentioned investments, realignments, and adjustment, the Company incurred a loss of $792,630, or $0.12 per share. This compares with earnings of $0.04 per share as reported in the fourth quarter of the previous year. Revenues for the year ending April 7, 1995, consisting solely of product sales, totaled $14.6 million. This is an increase of 6.6% from $13.7 million of product sales for the prior fiscal year. During the year, the engineering and support staff was increased by 18%, representing a significant investment in new product development and customer support. The Company depreciated Depreciated may refer to:
Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. rate of $926,000 versus $530,000 during the fiscal year. The Company improved its working capital by over $850,000 during the fiscal year. Royalty revenue from end-of-life contracts for obsolete products totaled $.9 million during the prior fiscal year. There were no royalty revenues for the current fiscal year. Earnings from continuing and extraordinary operations were $.4 million or $0.06 per share for the 1995 fiscal year as compared to $.6 million or $0.12 for the previous year. Earnings for total operations, including discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. , in the previous year were $3.5 million or $0.63 per share. ($0.12 per share for continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the and $0.51 per share for discontinued royalties and discontinued operations.) Tom Anderson, Computone's President and Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , stated, "While increasing sales revenue during this transitional year, Computone made significant investments in people and systems as well as implementations of production outsourcing to position the Company for increased revenue and profits during its 1996 fiscal year." Established in 1984, Computone offers the world's most extensive line of multi-port solutions for ISA (1) (Instruction Set Architecture) See instruction set. (2) (Interactive Services Association) See Internet Alliance. (3) (Internet Security and Acceleration) See .NET. , EISA (Extended ISA) Pronounced "ee-suh." A PC bus standard that extends the 16-bit ISA bus (AT bus) to 32 bits and provides bus mastering. ISA cards can plug into an EISA slot. , MicroChannel, and PCI (1) (Payment Card Industry) See PCI DSS. (2) (Peripheral Component Interconnect) The most widely used I/O bus (peripheral bus). microcomputers; asynchronous communications servers with INTERNET access; and UNIX-to-SNA/X.25 connectivity solutions. Computone was recently awarded Arthur Andersen's prestigious "Fast Tech 50" award for the third consecutive year. Computone is located at 1100 Northmeadow Pkwy, Roswell, GA 30076. Telephone: 1/404/475-2725, Facsimile: 1/404/664-1510. CONTACT: Computone Corporation, Roswell Daphne Shi, 404/475-2725 |
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