Datalex Announces A Review of Recent Corporate Events.NEPEAN, ONTARIO--(BUSINESS WIRE)--Sept. 15, 1999-- Datalex Corp. (ME:DXK) released its Annual Report for the fiscal year ended March 31, 1999.
FOR THE YEAR
1999 1998
Revenue $ - $ -
Income from operations (3,438,612) (1,611,411)
Write down of software 6,469,255 -
Net Income for the period after
software write down (9,907,867) (1,611,411)
Earnings per share from operations (0.39) (0.43)
Earnings per shares after software
write down (1.12) (0.43)
During the year ended March 31, 1999 Datalex reported no revenue. Operations expenditures incurred were mainly the result of research and development to enhance the D2K/Plus(tm) software and marketing efforts to penetrate the U.S. government market for Year 2000 remedial REMEDIAL. That which affords a remedy; as, a remedial statute, or one which is made to supply some defects or abridge some superfluities of the common law. 1 131. Com. 86. The term remedial statute is also applied to those acts which give a new remedy. Esp. Pen. Act. 1. work. During preparation of the final results for the year and subsequent to the release of the last quarter results for fiscal year 1999, management re-assessed the financial value of the D2K/Plus(tm) software. The Company believes that a write-down of the software by 67 percent or $6.5 million more accurately reflects the market potential that existed, and currently exists, for its product subsequent to March 31, 1999. During this period the Company was unable to generate revenue coinciding with a significant reduction in Year 2000 opportunities in the marketplace in general. The change in write-down of the software is therefore based upon management's assessment of the D2K/Plus(tm) core technology's estimated net value and future net cash flow potential of this technology and is more extensive than the $4.8 million or 50 percent write down announced in the press release of May 4th 1999 which presented the last quarter of fiscal year 1999 results. The asset was originally purchased for $9.655 million. The annual financial statements reflect this decision and a remaining value of $3.2 million. The Company plans to amortize amortize To write off gradually and systematically a given amount of money within a specific number of time periods. For example, an accountant amortizes the cost of a long-term asset by deducting a portion of that cost against income in each period. software assets over their expected useful lives, not to exceed five years. Datalex released its results for the first quarter ending June 30th
FOR THE 1ST QUARTER
1999 1998
Revenue $ - $ -
Income from operations (756,239) (967,122)
Write down of software - -
Net Income for the period after
software write down (756,239) (967,122)
Earnings per share from operations (0.07) (0.18)
Earnings per share after software
write down (0.07) (0.18)
During the first quarter of the ending June 30, 1999, Datalex reported no revenue. Total operating expenditures for the first quarter was $756,000 compared with $972,000 for the same quarter last year. The principal source of the reduction was the non-incurrence in 1999 of the software purchase facilitation Facilitation The process of providing a market for a security. Normally, this refers to bids and offers made for large blocks of securities, such as those traded by institutions. fee and interest expense of $518,000 offset by an increase in sales and marketing expenditures of $37,000, depreciation of $15,000 and amortization of the software of $265,000. Current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. at the end of August 31, 1999 totaled approximately $21,000 including approximately $11,000 in cash. The Company has an outstanding agreement with a third party to provide a loan of $300,000 on which $150,000 has been drawn down to date. Datalex announced that negotiations with the developer of EnterpriseView(tm), Vision-R, has resulted in an extension of its current distribution agreement to include exclusive rights for the State of Maryland, Transportation Department for an extended period of 120 days. As a consequence, the Memorandum of Understanding A Memorandum of Understanding (MoU) is a legal document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action and may not imply a legal commitment. entered into with Vision-R to create a combined business plan to outline market opportunities, as disclosed in the 1999 annual report, has been terminated. Trading in the Company's shares have been suspended by the Montreal Exchange Montreal Exchange A Canadian derivatives exchange that facilitates the trading of stock options, interest rate futures and options, as well as index options and futures. Located in Montreal, Quebec, it is the country's main financial derivative market, while the Winnipeg in accordance with section 9076 of Rule Nine based on sustained losses which are substantial in relation to its overall operation and existing financial resources. The Company is examining its position with respect to this suspension and potential resumption RESUMPTION. To reassume; to promise again; as, the resumption of payment of specie by the banks is general. It also signifies to take things back; as the government has resumed the possession of all the lands which have not been paid for according to the requisitions of the law, and the of trading. Datalex announces that it has been awarded a paid pilot for Independent Verification and Validation (testing) Independent Verification and Validation - (IV&V) The verification and validation of a software product by an organisation that is both technically and managerially separate from the organisation responsible for developing the product. (IV&V) by the Comptroller of the Treasury The Comptroller of the Treasury was an official of the United States Department of the Treasury from 1789 to 1817. According to section III of the Act of Congress establishing the Treasury Department, it is the comptroller's duty to Datalex has also commenced work on the MDOT-Y2K-007 contract with CGI CGI in full Common Gateway Interface. Specification by which a Web server passes data between itself and an application program. Typically, a Web user will make a request of the Web server, which in turn passes the request to a CGI application program. , U.S.A. acting as a subcontractor One who takes a portion of a contract from the principal contractor or from another subcontractor. When an individual or a company is involved in a large-scale project, a contractor is often hired to see that the work is done. to Datalex in completing this Department of Transportation contract in a professional and timely fashion. Datalex Corp. is a provider of software solutions targeting enterprise-wide client server and legacy computing computing - computer installations. The Company is currently evolving its business strategy to include applications that deliver corporate and front office solutions designed for client-server environments, Intranets, E-Commerce and ERP (Enterprise Resource Planning) An integrated information system that serves all departments within an enterprise. Evolving out of the manufacturing industry, ERP implies the use of packaged software rather than proprietary software written by or for one customer. systems. For additional information or brochures, contact head office at (613) 723-7820. Information can also be obtained via Datalex' web site at http://www.dlx2000.com/. |
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