DataWorld Solutions Reports Earnings.Business Editors/Hi Tech Writers FARMINGDALE, N.Y.--(BUSINESS WIRE)--June 28, 2001 DataWorld Solutions, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). : DWLD.BB) (Frankfurt - VRX VRX Virtual Resources Executive VRX Voice Receive Mode ) announced that revenues for its fiscal 3rd quarter ending March 31, 2001 declined 33.6 percent to $2,402,000 compared to the same period last year. Gross profit for the quarter was $520,000 or 21.6 percent compared with $801,000 or 22.2 percent for the same period last year. The Company reported a net loss of $318,000 for the quarter ended March 31, 2001 as compared to net earnings of $18,000 for the quarter ended March 31, 2000. "The downturn in the economy and, in particular, the telecommunications industry, has had a dramatic effect on our operations," said Dan McPhee, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of DataWorld Solutions. "We feel, however, that the worst is over and that we should begin to see a recovery in the fourth quarter of this calendar year. Regardless of any recovery, we are well into a restructuring initiative that has resulted in significant cost reductions and a new corporate direction," added McPhee. McPhee continues; "To date, we have reduced payroll by over 50 percent, including the elimination of three senior managers. We have streamlined manufacturing and have consolidated production into our Farmingdale headquarters facility. These actions alone will result in a cost savings of over $2 million per year. In addition, the management team has made the decision to begin phasing out of the day-to-day distribution and logistics business. We determined that this portion of our business burdened our cash flow and generated very small profit in return. Instead, we felt we should focus our resources on developing our fiber optic and copper assembly and harnessing businesses. These actions better position DataWorld to penetrate the contract manufacturing and assembly industry, especially once we have completed our anticipated merger with American Access Technologies (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 : AATK AATK Always At the Keyboard )." About DataWorld: DataWorld Solutions, Inc. is a multi-regional manufacturer of electronic cable assemblies used in providing connectivity solutions, which includes systems integration, for customers operating a wide range of data systems. This includes linking or connecting standard or proprietary electronic devices and peripheral components from different vendors to provide solutions for various customer requirements. DataWorld adds value by providing connectivity solutions, which may include distributed sales for passive components such as electronic connectors, electronic wire and cable, cabinets and racks and patch panels A group of sockets used to connect incoming and outgoing lines in communications and electronic systems. Patch panels allow for manually wiring the connections with small cables (patch cords), rather than automatic switching. , and active components, including hubs, bridges, routers, gateways and modems. DataWorld recently announced its plan to merge with American Access Technologies (NASDAQ: AATK), which manufactures proprietary "Zone Cabling" products. The merger is subject to stockholder approval and other customary conditions. DataWorld currently has an assembly plant in Farmingdale, New York Farmingdale is a village in Nassau County, New York in the United States. The population was 8,399 at the 2000 census. The 'Village of Farmingdale is inside the Town of Oyster Bay. Farmingdale School District includes parts of both Nassau County and Suffolk County. on Long Island and sales and engineering offices in San Jose, California San Jose (IPA: /ˌsænhoʊˈzeɪ/) is the third-largest city in California, and the tenth-largest in the United States. It is the county seat of Santa Clara County. . DataWorld currently has over 50 employees system wide. Except for historical matter, the matters in this press release are forward-looking statements and are made pursuant to the 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. provisions of 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. The forward-looking statements reflect assumptions, and involve risks and uncertainties, which might affect DataWorld's business and prospects and cause actual results to differ materially from these forward-looking statements, which are detailed in DataWorld's public filings with the SEC. |
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