Datatec Systems Awarded $6 Million Deployment Contract and Affirms Positive Cash-Flow in Second Quarter FY2002.Business Editors FAIRFIELD, N.J.--(BUSINESS WIRE)--Nov. 16, 2001 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 ), the leader in deployment services automation, expects to report positive cash-flow in the second quarter FY2002 and remains on target to achieve year over year growth and profitability by the fourth quarter of FY2002. Isaac Gaon, Chairman and 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. said, "Business conditions appear to be improving and the number and value of opportunities we are working on today are greater that at any time over the past 12 months. Following our move into a cash-flow positive position in Q1, we continue to see improvements at the EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become level in Q2, which increases our confidence that we will not be seeking additional capital. The Company is also now providing deployment offerings in IP Telephony The two-way transmission of voice over a packet-switched IP network, which is part of the TCP/IP protocol suite. The terms "IP telephony" and "voice over IP" (VoIP) are synonymous. , wireless and other leading edge convergent technologies (company) Convergent Technologies - A company formed by a small group of people who left Intel Corporation in 1979. Convergent Technologies' first product was the IWS (Integrated Workstation) based on the Intel 8086, which ran Convergent Technologies Operating System - their first , which it believes will provide significant near-term and long-term growth opportunities." Mr. Gaon continued, "In addition to a $6,000,000 contract that commences in January 2002, Datatec is completing pilots on two other multi-million dollar opportunities, that subject to final contract negotiations, should also start to generate revenue in January 2002. We expect these new contract opportunities to provide double-digit year over year growth in Q4 and solid profitability. Quarterly SG&A expenses, excluding depreciation and amortization, are now in the mid six million dollar range and capable of coping with a 2 to 3 times revenue scale up without a significant increase. The Company is extraordinarily well positioned to profit from anticipated future growth throughout calendar 2002." Datatec will announce final results for the second quarter of fiscal 2002 after the market close on Thursday, December 6, 2001. Management will discuss second quarter results in an investor conference call the same day at 4:30 p.m. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. . Conference call details are:
US & Canada Toll Free 877-675-5901
International 415-228-4995
Password Q2
Conference Leader Bob Engelberg
About Datatec Systems, Inc. Fairfield, NJ-based Datatec Systems specializes in the rapid, large-scale market absorption 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 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 http://www.datatec.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. |
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