Dynacore Holdings Corporation Reports Second Quarter Results.Business Editors & Technology Writers SAN ANTONIO--(BUSINESS WIRE)--Aug. 21, 2000 Dynacore Holdings Corporation (formerly known as Datapoint (company) DataPoint - An early minicomputer manufacturer which also developed ARCnet. Corporation) (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :DYHGQ.OB) today reported net income of $48.1 million on revenue of $33.2 million for the Company's second quarter, ended June June: see month. 30, 2000. This compares with a net loss of $983 thousand on revenue of $33.6 million for the same period in the prior year. As previously reported, on June 30, 2000, the Company completed the sale of its European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. Operations to Datapoint Newco NewCo is a generic name used to refer to corporate spin-offs and startups before they are assigned a final name. Examples
v. af·fil·i·at·ed, af·fil·i·at·ing, af·fil·i·ates v.tr. 1. To adopt or accept as a member, subordinate associate, or branch: with the European based CallCentric Ltd. The Company recorded a gain of $49.2 million from the sale. The European Operations represented 99% of the Company's total revenue for the quarter and six months ended June 30, 2000, and 98% and 99%, respectively, for the same periods of the prior year. For the second quarter of 2000, net income per common share, 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. , was $2.61 and $2.14, respectively, including 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. and the gain on the exchange and 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. . For the second quarter of 1999, net loss per common share was $0.05, basic and diluted, including accumulated dividends due preferred shares and the gain on the exchange and retirement of preferred stock. For the first six months of 2000, the Company reported net income of $47.6 million on revenue of $62.9 million, compared with a net loss of $1.8 million on revenue of $68.2 million for the same period a year ago. For the first six months of 2000, net income per common share, basic and diluted, was $2.58 and $2.17, respectively, including accumulated dividends due preferred shares and the gain on the exchange and retirement of preferred stock. For the first six months of 1999, net loss per common share was $0.11, basic and diluted, including the extraordinary credit, accumulated dividends due preferred shares and the gain on the exchange and retirement of preferred stock. The Company had operating losses 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. of $763 thousand and $1.5 million, respectively, for the second quarter of 2000 and the first six months of 2000, compared to 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. of $329 thousand and an operating loss of $125 thousand, respectively, for the same periods of the prior year. The sale of its European Operations is consistent with the direction of the Corporation to focus its efforts and resources on acquiring, developing and marketing products with Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the and 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. applications. The previously acquired Corebyte Networks(tm) product family (www.corebyte.com), highlights this effort. The Corebyte subsidiary has developed an intelligent browser-based communications networking The transmission channels interconnecting all client and server stations as well as all supporting hardware and software. system. With a single interface, users of Corebyte Networks(tm) products directly access every application necessary to manage their enterprise from basic E-mail to advanced group computing computing - computer tools. Corebyte Networks(tm) products users seamlessly share and exchange valuable information, selectively and securely, within their networked community and across enterprises via the Internet. Companies that standardize stan·dard·ize v. 1. To cause to conform to a standard. 2. To evaluate by comparing with a standard. their network on Corebyte Networks(tm) products gain all the benefits of the Internet and eliminate the fear of obsolescence ob·so·les·cent adj. 1. Being in the process of passing out of use or usefulness; becoming obsolete. 2. Biology Gradually disappearing; imperfectly or only slightly developed. . 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.
SUMMARY OPERATING STATEMENTS
(In thousands, except per share data)
(Unaudited)
Quarter Ended
June 30, 2000 June 30, 1999
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Revenue:
Sales $21,028 $18,407
Service and other 12,217 15,199
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Total revenue $33,245 $33,606
Operating costs and expenses:
Cost of sales 16,268 14,222
Cost of service and other 9,636 10,439
Research and development 242 395
Selling, general and administrative 7,862 8,046
Reorganization/restructuring costs -- 175
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Total operating costs and expenses 34,008 33,277
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Operating income (loss) $(763) $329
Non-operating income (expense):
Interest expense (302) (1,983)
Other, net (662) 857
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Loss before income taxes,
extraordinary credit and
reorganization items (1,727) (797)
Income taxes (benefit) (703) 186
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Loss before reorganization item
and extraordinary credit (1,024) (983)
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Reorganization item - gain on sale of
European Operations 49,164 --
Extraordinary credit - debt extinguishment -- --
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Net income (loss) $48,140 $(983)
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Net income (loss), adjusted for preferred
stock dividends paid or accumulated plus
gain on exchange and retirement of
preferred stock - Net income
(loss) applicable to common $48,026 $(994)
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Basic Earnings (Loss) Per Common Share:
Loss before extraordinary credit $2.61 $(.06)
Gain on exchange of preferred stock -- .01
Extraordinary credit -- --
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Net income (loss) per common share $2.61 $(.05)
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Diluted Earnings (Loss) Per Common Share:
Loss before extraordinary credit $2.14 $(.06)
Gain on exchange of preferred stock -- .01
Extraordinary credit -- --
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Net income (loss) per common share $2.14 $(.05)
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Average Common Shares Outstanding:
Basic 18,417,383 18,318,343
Diluted 22,735,771 18,318,343
SUMMARY OPERATING STATEMENTS
(In thousands, except per share data)
(Unaudited)
Six Months Ended
June 30, 2000 June 30, 1999
------------- -------------
Revenue:
Sales $37,799 $38,562
Service and other 25,126 29,643
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Total revenue $62,925 $68,205
Operating costs and expenses:
Cost of sales 28,817 29,947
Cost of service and other 19,502 21,099
Research and development 491 881
Selling, general and administrative 15,576 15,590
Reorganization/restructuring costs -- 813
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Total operating costs and expenses 64,386 68,330
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Operating loss $(1,461) $(125)
Non-operating income (expense):
Interest expense (1,993) (3,642)
Other, net 210 1,981
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Income (loss) before income taxes,
extraordinary credit and
reorganization items (3,244) (1,786)
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Income taxes (benefit) (1,712) 419
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Loss before reorganization item
and extraordinary credit (1,532) (2,205)
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Reorganization item - gain on sale of
European Operations 49,164 --
Extraordinary credit - debt extinguishment -- 423
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Net income (loss) $47,632 $(1,782)
=======================================================================
Net income (loss), adjusted for preferred stock
dividends paid or accumulated plus gain on
exchange and retirement of preferred stock -
Net income (loss) applicable to common $47,411 $(1,910)
=======================================================================
Basic Earnings (Loss) Per Common Share:
Loss before extraordinary credit $2.57 $(.14)
Gain on exchange of preferred stock .01 .01
Extraordinary credit -- .02
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Net income (loss) per common share $2.58 $(.11)
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Diluted Earnings (Loss) Per Common Share:
Loss before extraordinary credit $2.17 $(.14)
Gain on exchange of preferred stock -- .01
Extraordinary credit -- .02
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Net income (loss) per common share $2.17 $(.11)
=======================================================================
Average Common Shares Outstanding:
Basic 18,393,662 18,286,164
Diluted 22,712,050 18,286,164
SUMMARY BALANCE SHEETS
(In thousands)
(unaudited)
June 30, 2000 Dec. 31, 1999
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Current assets:
Cash and cash equivalents $258 $2,387
Accounts receivable, net 44,594 29,780
Inventories -- 1,563
Other current assets 210 2,363
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Total current assets 45,062 36,093
Fixed assets, net 337 5,872
Other assets, net 561 2,089
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Total Assets $45,960 $44,054
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Current liabilities $69,693 $60,444
Long-term debt and other 4,841 60,166
Stockholders' deficit (28,574) (76,556)
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Total Liabilities and Stockholders'
deficit $45,960 $44,054
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