Dauphin Technology, Inc., Reports Third Quarter Gross Profit.Business Editors, High-Tech high-tech also hi-tech adj. Informal Of, relating to, or resembling high technology. high-tech Adjective same as hi-tech Adj. 1. Writers PALATINE Palatine, hill, Rome Palatine, hill: see Rome before Augustus and Roman Empire under Rome. Palatine, village, United States Palatine (păl`ətīn), village (1990 pop. , Ill.--(BUSINESS WIRE)--Nov. 10, 2000 Dauphin Dauphin, town, Canada Dauphin (dô`fĭn), town (1991 pop. 8,453), SW Man., Canada, on the Vermilion River. It is the retail and distribution center for an agricultural, lumbering, and fishing area. Technology, Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). .BB: DNTK) today announced gross profit of $28,000 for the third quarter of 2000 on revenues of $345,000. The Company experienced a gross loss of ($1.9 million) on revenues of $158,000 for the same period in 1999. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for the third quarter of 2000 was ($883,000), compared to a pro forma operating loss of ($2,653,000) in the third quarter of 1999. Third-quarter pro forma net loss was ($.02) per share, an improvement over the pro forma net loss of ($.05). "For the first time in recent history, Dauphin has shown a gross profit," said Luke Luke early Christian; the “beloved physician.” [N.T.: Luke] See : Evangelism Lukens, Chief Financial Officer. "We have built a strong balance sheet and have gotten our expenses under control. We are anticipating improved operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: in the fourth quarter." Revenues for the three months ended September September: see month. 30, 2000 consisted primarily of consulting fees from the Company's design engineering subsidiary. The majority of the revenues for 1999 were generated from contract manufacturing. The Company shifted away from its unprofitable contract manufacturing and began focusing on the development of its set-top box The cable TV box that sits on "top" of the TV "set," although it is often located several feet away in an equipment rack. The set-top box descrambles the premium channels and provides a tuner for the higher cable numbers that very old TVs did not support. during the third quarter of 1999. Selling, general and administrative expenses increased to $2.655 million for the three months ended September 30, 2000 as compared to $1.532 million for 1999. The increase in professional fees and financial service expenses related to the private placement, common stock purchase agreement and the costs associated with exercising the drawdown Drawdown The peak to trough decline during a specific record period of an investment or fund. It is usually quoted as the percentage between the peak to the trough. Notes: were partially offset by staff reductions and other cost cutting measures implemented by management. Research and Development costs increased to approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $222,000 in the third quarter of 2000 as compared to $19,000 in 1999. R&D in 2000 consisted of costs associated with the development of the set-top box, whereas in 1999, these costs were for the continued development of the Orasis(R). Third quarter GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). net loss was ($.12) per share in 2000, compared to a ($.18) per share loss in 1999. Historical results of operations are preliminary and unaudited. Financial results are prepared in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with U.S. generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting . Pro forma financial results exclude stock-based compensation, amortization of goodwill, costs associated with the common stock purchase agreement, issuance of warrants as placement fees and fees associated with exercising the drawdown. Dauphin Technology, Inc., a Palatine, Illinois
Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). communication products and hand-held hand-held also hand·held adj. Compact enough to be used or operated while being held in the hand or hands: a hand-held video camera. Adj. 1. , pen based computers, including its flagship product A primary product of a company, which is typically why the company was founded and/or what made it well known. For example, MS-DOS, Windows and the Microsoft Office suite have been flagship products of Microsoft. CorelDRAW is a flagship product of Corel Corporation. , the Orasis(R). Certain matters discussed in this news release are forward-looking statement 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. involving certain risks and uncertainties including, without limitations, changes in product demand, the availability of products, change in competition, economic conditions, various risks due to changes in market conditions and other risks detailed in the Company's Securities and Exchange Commission filings and reports.
Dauphin Technology, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Nine Months Three Months
Ended September 30, Ended September 30,
------------------ ------------------
2000 1999 2000 1999
------------ ------------- ------------ ------------
NET REVENUE $ 361,016 $ 2,185,623 $ 344,975 $ 157,680
COST OF REVENUE 440,639 4,657,302 317,228 2,105,016
------------ ------------- ------------ ------------
Gross Profit
(Loss) (79,623) (2,471,679) 27,747 (1,947,336)
SELLING,GENERAL
AND ADMINISTRATIVE
EXPENSE 4,474,963 3,172,411 2,654,914 1,532,179
RESEARCH AND
DEVELOPMENT
EXPENSE 473,113 454,918 222,255 18,889
------------ ------------- ------------ ------------
Loss from
Operations (5,027,699) (6,099,008) (2,849,422) (3,498,404)
INTEREST EXPENSE 1,826,522 1,975,573 9,381 92,702
INTEREST INCOME 53,025 18,210 39,215 6,628
------------ ------------- ------------ ------------
Loss before
Income Taxes (6,801,196) (8,056,371) (2,819,588) (3,584,478)
INCOME TAXES - - - -
------------ ------------- ------------ ------------
NET LOSS $(6,801,196) $ (8,056,371) $(2,819,588) $(3,584,478)
============ ============= ============ ============
BASIC AND
DILUTED LOSS PER
SHARE $ (0.12) $ (0.18) $ (0.05) $ (0.07)
============ ============= ============ ============
WEIGHTED AVERAGE
NUMBER OF COMMON
SHARES
OUTSTANDING 57,725,768 44,823,498 59,166,582 48,419,719
============ ============= ============ ============
PRO FORMA RESULTS
(Note 1)
Pro forma loss
from Operations $(3,012,302) $(5,359,008) $ (834,025) $(2,566,615)
============ ============= ============ ============
Pro forma net
loss $(4,785,799) $ (5,376,371) $ (882,621) $(2,652,689)
============ ============= ============ ============
Pro forma basic
and diluted loss
per share $ (.08) $ (.12) $ (.02) $ (.05)
============ ============= ============ ============
Shares used in
computation of
pro forma basic
and diluted loss
per share 57,725,768 44,823,498 59,166,582 48,419,719
============ ============= ============ ============
Note 1 - Pro forma results for the 9 month and 3 month periods
ended September 30, 2000 and 1999 are presented for informational
purposes only and are not prepared in accordance with generally
accepted accounting principles. These results present operating
results of Dauphin, excluding $2,015,000 and $2,680,000 for the 9
month periods, and $2,015,000 and $740,000 for the 3 months periods
ended September 30, 2000 and 1999, respectively, related to
amortization of goodwill, stock based compensation, costs associated
with the common stock purchase agreement, issuance of warrants as
placement fees and fees associated with exercising the drawdown.
Dauphin Technology, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
September 30, 2000 December 31, 1999
----------------------- -----------------
CURRENT ASSETS:
Cash $ 2,260,913 $ 31,087
Accounts receivable-
Trade, net of allowance
for bad debt of $428,599
at September 30, 2000
and December 31, 1999 462,501 124,844
Employee receivables 678 118
Inventory, net of reserve
for obsolescence of $1,945,296
at September 30, 2000
and December 31, 1999 1,807,949 1,521,886
Prepaid expenses 34,151 38,779
----------------------- -----------------
Total current assets 4,566,192 1,716,714
INVESTMENT IN RELATED PARTY 290,000 290,000
PROPERTY AND EQUIPMENT,
net of accumulated depreciation
of $1,017,040 at
September 30, 2000 and $712,192
at December 31, 1999 1,587,787 1,365,440
GOODWILL, net of accumulated
amortization of $137,500 at
September 30, 2000 5,362,500 -
----------------------- -----------------
Total assets $ 11,806,479 $ 3,372,154
======================= =================
CURRENT LIABILITIES:
Accounts payable $ 325,171 $ 1,894,663
Accrued expenses 73,743 26,719
Current portion of
long-term debt 104,031 127,249
Customer Deposits 49,644 -
Short-term borrowings - 286,000
Other payables - 300,000
----------------------- -----------------
Total current liabilities 552,589 2,634,631
LONG-TERM DEBT 148,862 185,179
COMMITMENTS AND CONTINGENCIES - -
----------------------- -----------------
Total liabilities 701,451 2,819,810
SHAREHOLDERS' EQUITY:
Preferred stock, $0.01 par value,
10,000,000 shares authorized but
unissued - -
Common stock, $0.001 par value,
100,000,000 shares authorized;
60,140,454 and 51,671,582 issued
and outstanding at
September 30, 2000 and at
December 31, 1999 60,141 51,671
Warrants 3,045,447 1,238,089
Pain-in capital 53,627,372 38,089,320
Accumulated deficit (45,627,932) (38,826,736)
----------------------- -----------------
Total shareholders'
equity 11,105,028 552,334
----------------------- -----------------
Total liabilities and
shareholders'
equity $ 11,806,479 $3,372,154
======================= =================
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