Datapoint Reports Fiscal 1998 Results.SAN ANTONIO San Antonio (săn ăntō`nēō, əntōn`), city (1990 pop. 935,933), seat of Bexar co., S central Tex., at the source of the San Antonio River; inc. 1837. , Texas--(BUSINESS WIRE)--Oct. 30, 1998--Datapoint Corporation (EBB: DTPT) today released results for the fiscal year ended Aug. 1, 1998. For the 12 months ended Aug. 1, 1998, Datapoint (company) DataPoint - An early minicomputer manufacturer which also developed ARCnet. Corporation reported $5.1 million of operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. from $151.4 million in total revenues, more than double the $2.0 million in operating income from $142.1 million in revenues in fiscal 1997, ended Aug. 2, 1997. Taking into account the effect of non-cash foreign currency transaction gains and losses, interest expense and extraordinary items, net income for the year was negative $669,000, compared to a net income of $2.4 million in fiscal 1997. Net income per common share was negative $0.08 in fiscal 1998, basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. , including the extraordinary credit and accumulated dividends Accumulated dividend A dividend that has reached its due date, but is not paid out. See: Cumulative preferred stock. accumulated dividend See dividends in arrears. due preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. . In fiscal 1997, net income per common share was $0.32, basic and diluted, including the extraordinary credit, accumulated dividends due preferred shares, and the gain on the exchange and the retirement of preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. . In the fourth quarter of fiscal 1998, the three months ended Aug. 1, 1998, the Company posted $39.8 million in total revenues, up from $37.1 million during the previous fiscal fourth quarter. Operating income for the quarter was $1 million, compared to $2.5 million in the fourth quarter of 1997, and net income was negative $743,000, compared to $2.6 million net income a year earlier. Net income per common share was negative $0.05 in the fourth quarter 1998, basic and diluted, compared to $0.14 per basic share and $0.13 per diluted share in the previous fourth quarter. The company noted that in fiscal 1997 and in previous years, non-operating income and expense included transaction gains or losses resulting from the strengthening or weakening weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. of the U.S. dollar against
foreign currencies. These exchange gains or losses related to short-term Short-termAny investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. intercompany notes and international subsidiary U.S. dollar-denominated cash, and they were offset by translation adjustment to Stockholders' Deficit. Therefore, these gains and losses had no impact on the Company's financial position. In the fourth quarter of fiscal 1997 and the year, non-operating income was increased by $1.3 million and $6.2 million, respectively, as a result of these gains. During fiscal year 1998, management reassessed the characteristics of its intercompany notes with international subsidiaries (payable by the U.S. parent) and determined that a substantial portion are now long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. in nature and not payable in the foreseeable fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. future. As a result, in fiscal 1998, the transaction gains and losses were included in the foreign currency translation adjustment to Stockholders' Deficit in the amount of $57,000, rather than in non-operating income. With its U.S. headquarters in San Antonio, TX, and international headquarters in Paris, France, Datapoint specializes in the design, integration, and maintenance of data, voice, and video communication solutions, and the Company markets products and services in 40 countries worldwide. Datapoint has a rich history of developing, designing and implementing leading-edge communications technologies Noun 1. communications technology - the activity of designing and constructing and maintaining communication systems engineering, technology - the practical application of science to commerce or industry , including call center, computer-telephony integration (CTI (Computer Telephone Integration) Combining data with voice systems in order to enhance telephone services. For example, automatic number identification (ANI) allows a caller's records to be retrieved from the database while the call is routed to the appropriate party. ) and distributed video conferencing See videoconferencing. (communications) video conferencing - A discussion between two or more groups of people who are in different places but can see and hear each other using electronic communications. products and services. This press release contains 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 uncertainties, including, but not limited to, risks and uncertainties related to foreign currency translations, the competitive environment and other risks. Future trends and results may differ materially from disclosures contained in this release.
Datapoint Corporation
SUMMARY OPERATING STATEMENTS
(In thousands, except per share data)
Quarter Ended
Aug. 1, 1998 Aug. 2, 1997
Revenue:
Sales $ 23,931 $ 20,845
Service and other 15,893 16,255
Total revenue $ 39,824 $ 37,100
Operating costs and expenses:
Cost of sales 18,863 15,578
Cost of service and other 10,675 9,970
Research and development 619 628
Selling, general and administrative 8,574 8,380
Reorganization/restructuring costs 44 12
Total operating costs and expenses 38,775 34,568
Operating income $ 1,049 $ 2,532
Non-operating income (expense):
Interest expense (1,538) (1,777)
Other, net 75 1,307
Income (loss) before income taxes
and extraordinary credit (414) 2,062
Income taxes (benefit) 329 (504)
Income (loss) before
extraordinary credit (743) 2,566
Extraordinary credit -
debt extinguishment -- 54
Net income (loss) $ (743) $ 2,620
Net income (loss) applicable to common
shareholders:
Net income (loss) $(743) $ 2,620
Preferred stock dividends accumulated (181) (181)
Net income (loss) applicable
to common shareholders $ (924) $ 2,439
Basic Earnings (Loss) Per
Common Share:
Income (loss) before extraordinary credit $ (.05) $ .13
Extraordinary credit -- .01
Net income (loss) per
common share $ (.05) $ .14
Diluted Earnings (Loss) Per
Common Share:
Income (loss) before
extraordinary credit $ (.05) $ .13
Extraordinary credit -- --
Net income (loss)
per common share $ (.05) $ .13
Average common shares outstanding:
Basic 18,036,443 17,682,364
Diluted 18,036,443 19,642,504
SUMMARY OPERATING STATEMENTS
(In thousands, except per share data)
12 Months Ended
Aug. 1, 1998 Aug. 2, 1997
Revenue:
Sales $ 88,924 $ 78,368
Service and other 62,521 63,753
Total revenue $ 151,445 $ 142,121
Operating costs and expenses:
Cost of sales 70,029 58,060
Cost of service and other 40,480 42,120
Research and development 2,466 2,146
Selling, general and
administrative 33,300 35,337
Reorganization/restructuring costs 96 2,425
Total operating costs and
expenses 146,371 140,088
Operating income $ 5,074 $ 2,033
Non-operating income (expense):
Interest expense (6,148) (6,776)
Other, net 1,195 5,924
Income before income taxes
and extraordinary credit 121 1,181
Income taxes 1,345 8
Income (loss) before
extraordinary credit (1,224) 1,173
Extraordinary credit - debt extinguishment 555 1,210
Net income (loss) $ (669) $ 2,383
Net income (loss) applicable to common shareholders:
Net income (loss) $ (669) $ 2,383
Preferred stock dividends accumulated (722) (1,009)
Gain on the exchange and retirement of
preferred stock -- 3,810
Net income (loss) applicable
to common shareholders $(1,391) $ 5,184
Basic and Diluted Earnings (Loss) Per
Common Share:
Income (loss) before extraordinary
credit $ (.11) $ .01
Gain on the exchange and retirement
of preferred stock -- .24
Extraordinary credit .03 .07
Net income (loss)
per common share $ (.08) $ .32
Average common shares outstanding:
Basic 17,967,924 16,109,774
Diluted 17,967,924 16,337,163
SUMMARY BALANCE SHEETS
(In thousands)
Aug. 1, 1998 Aug. 2, 1997
Current assets:
Cash and cash equivalents $ 12,453 $ 15,644
Accounts receivable, net 32,138 22,731
Inventories 2,957 3,962
Other current assets 3,259 3,003
Total current assets 50,807 45,340
Fixed assets, net 9,468 11,764
Other assets, net 6,541 5,284
Total Assets $ 66,816 $ 62,388
Current liabilities $ 61,376 $ 53,679
Long-term debt and other 69,877 72,793
Stockholders' deficit (64,437) (64,084)
Total Liabilities and
Stockholders' deficit $ 66,816 $ 62,388
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