Datatec Systems Announces Q4 Loss of 32 Cents and FY2001 Loss of 63 Cents on Flat Annual Revenues.Business Editors FAIRFIELD Fairfield. 1 City (1990 pop. 12,200), Jefferson co., N central Ala., an industrial suburb of Birmingham; inc. 1919. Founded (1910) by the United States Steel Corp., its steel industry has greatly declined, negatively affecting the city's economy. , N.J.--(BUSINESS WIRE)--July 26, 2001 Company Sees Significantly Improved Operating Trend in Its Current Quarter and Beyond Datatec Systems, Inc. (Nasdaq: DATC DATC Davis Applied Technology College (Kaysville, Utah) DATC Days After Test Completion DATC Deferred Adverse Tax Consequence DATC Direct Assistance & Training Command DATC Director of Air Traffic Control ), a provider of deployment services and software tools, today reported results for the quarter and year ended April 30, 2001. Highlights of the report are:
- FY2001 revenues were $94.3 million versus $95.1 million last year
- eDeploy FY2001 revenues increased 124% to $2.5 million
- EBITDA for the 12 months ended April 30, 2001 were ($14.6m) versus
$3.6m in the prior year
- Total backlog now stands at $62.2m, an increase of $3.1m versus
last year
- Indirect backlog now stands at $36.9m, an increase of 23% versus
last year
Commenting on the year and the quarter, Isaac Gaon Gaon may refer to
Mr. Gaon continued, "Moving forward, Datatec's cost of operations will be significantly reduced due to the completion of the initial development phase of our eDeploy software product, and our very successful move to an indirect sales strategy that provides considerable sales leverage at reduced cost. SG&A expenses are currently running more than 40% below what they were on average during the second half of fiscal 2001. Consequently, our cash flow and profit break-even points break-even point - In the process of implementing a new computer language, the point at which the language is sufficiently effective that one can implement the language in itself. have been reduced significantly, and we anticipate further cost savings to emerge during the year as we benefit from the additional elimination of certain fixed costs fixed costs, n.pl the costs that do not change to meet fluctuations in enrollment or in use of services (e.g., salaries, rent, business license fees, and depreciation). . Despite a 26.5% sequential One after the other in some consecutive order such as by name or number. quarterly decline in Q4 revenues versus Q3, losses in the quarter were actually lower excluding one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charges of $2.6 million. This was as a result of improved margins and lower SG&A costs, both of which have continued to improve in Datatec's current fiscal 2002 first quarter." Datatec's quarterly earnings conference call will take place on Thursday Thursday: see week. , July July: see month. 26 at 4:30 p.m. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. . The conference call details are:
US & Canada Toll Free 888-458-9977
International 712-257-2360
Password Year End
Conference Leader Bob Engelberg
About Datatec Systems, Inc. Fairfield, NJ-based Datatec Systems specializes in the rapid, large scale market absorption absorption [Lat.,=sucking from], taking of molecules of one substance directly into another substance. It is contrasted with adsorption, in which the molecules adhere only to the surface of the second substance. of networking technologies. Datatec's deployment services utilize a software-enabled implementation model to configure See configuration. (software) configure - A program by Richard Stallman to discover properties of the current platform and to set up make to compile and install gcc. Cygnus configure was a similar system developed by K. , integrate and roll out new technology solutions using a "best practices" structured process. Its customers include Fortune 1000 companies and world-class world-class adj. 1. Ranking among the foremost in the world; of an international standard of excellence; of the highest order: a world-class figure skater. 2. technology providers. Datatec stock is listed on the Nasdaq Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. (DATC). For more information visit Datatec at http://www.datatec.com/ About eDeploy.com, Inc. eDeploy, a subsidiary of Datatec Systems, Inc., is a recognized leader in the development and delivery of business-to-business  This article or section needs copy editing for grammar, style, cohesion, tone and/or spelling.You can assist by [ editing it] now. e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. tools and processes that allow OEMs, systems integrators An individual or organization that builds systems from a variety of diverse components. With increasing complexity of technology, more customers want complete solutions to information problems, requiring hardware, software and networking expertise in a multivendor environment. and service providers to configure and deploy complex network infrastructure and computing computing - computer technologies faster, more economically ec·o·nom·i·cal adj. 1. Prudent and thrifty in management; not wasteful or extravagant. See Synonyms at sparing. 2. Intended to save money, as by efficient operation or elimination of unnecessary features; economic: and with fewer defects. For more information, visit http://www.edeploy.com 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. within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve risks and uncertainties which may cause the actual results or objectives to be materially different from those expressed or implied by such forward-looking statements.
DATATEC SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
April 30,
2000 2001
Assets
Current Assets
Cash & Cash Equivalents $ 10,077,000 $ 571,000
Accounts Receivable 23,849,000 22,990,000
Inventory 5,129,000 5,273,000
Prepaid Expenses & Other 1,301,000 792,000
Total Current Assets 40,356,000 29,626,000
Long Term Assets
Property & Equipment, Net 5,169,000 5,050,000
Goodwill 3,102,000 2,665,000
Other Assets 6,435,000 6,155,000
Total Long Term Assets 14,706,000 13,870,000
Total Assets $55,062,000 $43,496,000
Liabilities & Shareholders' Equity
Current Liabilities
Short Term Debt $ 9,846,000 $14,122,000
Accounts Payable & Accrued
Liabilities 12,960,000 17,400,000
Due To Related Parties 1,390,000 1,414,000
Total Current Liabilities 24,196,000 32,936,000
Long Term Debt 226,000 14,000
Minority Interest 9,593,000 9,675,000
Shareholders' Equity 21,047,000 871,000
Total Liabilities & Shareholders'
Equity $55,062,000 $43,496,000
Datatec Systems, Inc.
Consolidated and Consolidating Statements of Operations
For the Year Ended April 30,
2001
Datatec Datatec
Consolidated Eliminations eDeploy Services
Sales $ 94,285,000 ($532,000) $2,455,000 $92,362,000
Gross profit $ 27,809,000 - $911,000 $26,898,000
SG&A expenses $ 46,157,000 - $8,909,000 $37,248,000
Operating Income ($18,348,000) - ($7,998,000)($10,350,000)
Income before
minority
interest ($20,463,000) 82,000 ($9,170,000)($11,375,000)
Minority interest 682,000 682,000 - -
Net income ($21,145,000) ($600,000) ($9,170,000)($11,375,000)
Earnings per share ($0.63) ($0.02) ($0.27) ($0.34)
Weighted average
shares
outstanding 33,816,000 33,816,000 33,816,000 33,816,000
2000
Datatec Datatec
Consolidated Eliminations eDeploy Services
Sales $ 95,148,000 - $1,097,000 $94,051,000
Gross profit $ 34,767,000 - $1,097,000 $33,670,000
SG&A expenses $ 34,720,000 - $3,051,000 $31,669,000
Operating Income $47,000 - ($1,954,000) $2,001,000
Income before
minority
interest ($1,633,000) - ($3,137,000) $1,504,000
Minority interest
Net income ($1,633,000) - ($3,137,000) $1,504,000
Earnings per share ($0.05) - ($0.10) $0.05
Weighted average
shares
outstanding 31,905,000 31,905,000 31,905,000 31,905,000
Datatec Systems, Inc.
Consolidated and Consolidating Statements of Operations
For the Three Months Ended April 30,
2001
Datatec Datatec
Consolidated Eliminations eDeploy Services
Sales $ 15,647,000 ($123,000) $240,000 $15,530,000
Gross profit $ 2,804,000 - ($213,000) $3,017,000
SG&A expenses $ 12,589,000 - $ 2,979,000 $9,610,000
Operating Income ($ 9,785,000) - ($3,191,000) ($6,594,000)
Income before
minority
interest ($10,722,000) 20,000 ($3,555,000) ($7,187,000)
Minority interest 170,000 170,000 - -
Net income ($10,892,000) ($150,000) ($3,555,000) ($7,187,000)
Earnings per share ($0.32) ($0.00) ($0.11) ($0.21)
Weighted average
shares
outstanding 33,741,000 33,741,000 33,741,000 33,741,000
2000
Datatec Datatec
Consolidated Eliminations eDeploy Services
Sales $ 22,726,000 - $68,000 $22,658,000
Gross profit $ 7,604,000 - $68,000 $ 7,536,000
SG&A expenses $ 9,541,000 - $958,000 $ 8,583,000
Operating Income ($ 1,937,000) - ($890,000) ($1,047,000)
Income before
minority
interest ($ 2,269,000) - ($1,210,000) ($1,059,000)
Minority interest
Net income ($ 2,269,000) - ($1,210,000) ($1,059,000)
Earnings per share ($0.07) - ($0.04) ($0.03)
Weighted average
shares
outstanding 32,777,000 32,777,000 32,777,000 32,777,000
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