Computone Corporation Reports for Second Quarter of Fiscal 2001; Sales, Backlog Up Sharply from 1st Quarter.Business & Technology Editors ATLANTA--(BUSINESS WIRE)--Nov. 14, 2000 Computone Corporation (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB: CMPT CMPT Computer Science (course) CMPT Compartment CMPT Compute CMPT Centre for Marine and Petroleum Technology (UK) CMPT Certified Manual Physical Therapist ), an IT pioneer and leader in connectivity products and remote access communications
Access Communications Co-operative Ltd. , has reported financial results for the second quarter and six months ended September 30, 2000. Computone reported net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of $2,940,000 for the second quarter, as compared $2,646,000 for the same period a year ago. Net sales increased 11% over the comparable period in the prior year and 137% over the $1,238,000 in net sales reported for the first quarter of the current fiscal year. In addition, Computone reported a loss of $1,135,00 or $.09 per share for the second quarter compared with a loss of $351,000 or $.04 per share for the same period a year ago. The net loss in the current year period includes non-cash expenses of $450,000 related to the amortization of goodwill and financing costs associated with the June 28, 2000 acquisition of Multi-User Solutions Ltd. ("Multi-User"). With the acquisition of Multi-User, Computone currently generates revenue from two lines of business: 1) network connectivity products ("Connectivity Products") and 2) operating systems Operating systems can be categorized by technology, ownership, licensing, working state, usage, and by many other characteristics. In practice, many of these groupings may overlap. support, systems integration and on-site hardware maintenance ("Service and Support"). Multi-User is leading third party provider of service and support specializing in Linux(R), SCO (The SCO Group, Lindon, UT, www.sco.com) A leading vendor of Unix operating systems for the x86 platform. SCO had also offered Linux, but abandoned the line in the spring of 2003. The SCO Group is the combination of two companies: Utah-based Caldera, Inc. (R) UNIX UNIX Operating system for digital computers, developed by Ken Thompson of Bell Laboratories in 1969. It was initially designed for a single user (the name was a pun on the earlier operating system Multics). (R), Windows(R) NT, and other Open Systems. Net sales of Connectivity Products in the second quarter increased 30% over the net sales in the first quarter but were down 42% from the comparable period in the prior fiscal year due to the prior year period including a spike in project-related revenue from large national and multi-national retail customers. The backlog of Connectivity Products orders increased 227% during the second quarter to $900,000. Net sales from Service and Support were $1,404,000 during the Company's second quarter. Perry Pickerign, Computone's president, said the sales improvement over the first quarter, plus the additional revenues generated by Multi-User, was in line with the company's overall business plan. "While the first half of fiscal 2001 was impacted by the industry-wide slowdown due partially to the delay in project startups following the year 2000 changeover, the Company is optimistic that revenues will continue to increase as fiscal year 2001 progresses," he said. Pickerign said that during the third quarter ending December 31, 2000, Computone anticipates increased shipments of its new IntelliServer RAS (1) See network access server. (2) (Remote Access Service) A Windows NT/2000 Server feature that allows remote users access to the network from their Windows laptops or desktops via modem. See RRAS and network access server. 2000 ("RAS2000") product for Remote Console A terminal or workstation in a remote location that is used to monitor and control a local computer. Management. This feature allows system administrators to securely administer, troubleshoot or reboot To reload the operating system, which restarts the computer. See boot. (operating system) reboot - (From boot) A boot with the implication that the computer has not been down for long, or that the boot is a bounce intended to clear some state of wedgitude. See warm boot. any server, router or PBX (Private Branch eXchange) An inhouse telephone switching system that interconnects telephone extensions to each other as well as to the outside telephone network (PSTN). device on their network from remote locations throughout the world. For security, the RAS2000 provides 128-bit encryption for sensitive data. Shipments to a major internet service provider Internet service provider (ISP) Company that provides Internet connections and services to individuals and organizations. For a monthly fee, ISPs provide computer users with a connection to their site (see data transmission), as well as a log-in name and password. and two leading computer manufacturers are anticipated to occur in the third quarter. In addition, Pickerign said that earlier this week Computone introduced two new Remote Console Management servers at COMDEX The former, premier computer trade show in the U.S. Although it grew into an end user event, it was originally created for dealers and distributors (it was the COMputer Dealers EXposition). bringing Computone's Out-Of-Band Management Out-of-band management (sometimes called Lights-out management or LOM) is the use of a dedicated management channel for device maintenance. It allows a system administrator to monitor and manage servers and other network equipment by remote control regardless of solution to small and medium sized businesses. Computone Corporation (OTC BB: CMPT, www.computone.com) has been a pioneer and leader in the worldwide IT industry since 1984. Today, Computone designs, manufactures and markets a comprehensive line of intelligent servers used for secure remote network management, secure E-commerce, and remote access communications for Internet, LAN/WAN LAN/WAN Local Area Network/Wide Area Network and Windows NT/SCO UNIX/Linux and other Open Systems. Computone is also a leading producer of high-speed multiport mul·ti·port adj. Having, relating to, or being a system of multiple ports for injecting fuel separately into each cylinder of an engine. I/O (Input/Output) The transfer of data between the CPU and a peripheral device. Every transfer is an output from one device and an input to another. See PC input/output. I/O - Input/Output boards, serving vertical markets including healthcare, retail/point-of-sale, banking and financial, telecommunications, Internet service providers (ISPs), transportation, hospitality and education. Based in suburban Atlanta, Computone sells through a worldwide network of authorized and certified distributors. Its Multi-User Solutions subsidiary, acquired earlier this year, is a leading third party provider of service and support specializing in Linux(R), SCO(R) UNIX(R), Windows(R) NT, and other Open Systems. This press release contains certain forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. With the exception of historical information contained herein, the matters discussed in this press release involve risk and uncertainties. Actual results could differ materially from those expressed in any forward-looking statement. 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Computone Corporation and Subsidiaries
Condensed Consolidated Financial Information
(In thousands, except per share data)
(Unaudited)
Results From Operations
Three Months Ended Six Months Ended
September 30, September 30,
2000 1999 2000 1999
Revenues:
Net sales $ 2,940 $ 2,646 $ 4,178 $ 7,379
Expenses:
Cost of sales 1,960 1,577 2,887 4,427
Amortization of goodwill 215 - 220 -
Selling, general and
administrative 1,261 946 2,060 1,887
Product development 332 430 689 889
3,768 2,953 5,856 7,203
Operating income (loss) (828) (307) (1,678) 176
Other income (expense):
Other income 7 - 5 -
Interest expense -
affiliates (25) (18) (44) (38)
Loan discount
amortization (206) - (206) -
Interest expense - other (83) (26) (137) (60)
Income (loss) before
income taxes (1,135) (351) (2,060) 78
Provision for income taxes
Net income (loss) $(1,135) $ (351) $(2,060) $ 78
Earnings (loss) per
common share - basic - - - -
and diluted $ (0.09) $ (0.04) $ (0.19) $ 0.01
Weight average shares
outstanding:
Basic 12,116 8,472 11,075 8,468
Diluted 12,116 8,472 11,075 8,487
Selected Financial Information
September 30, March 31,
2000 2000
Cash and cash equivalents $ 153 $ 197
Current assets 4,998 4,102
Current liabilities 4,781 3,947
Working capital 217 155
Total assets 14,578 5,196
Total liabilities 6,159 4,140
Stockholders' equity 8,419 1,056
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