ECCS releases 1996 results and announces $3.0M order.TINTON FALLS, N.J.--(BUSINESS WIRE)--February 27, 1997--ECCS Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on SmallCap: ECCS ECCS abbr. emergency core cooling system ) today announced the December December: see month. 31, 1996 year end and fourth quarter results. The net loss for 1996 was $.769 million or $.23 per share, versus the preceding year's net loss of $3.7 million or $.88 per share, an improvement of approximately $2.9 million or $.65 per share, and net loss for the quarter was $.239 million or $.07 per share compared to a net loss of $1.7 million or $.41 per share reported in the fourth quarter of 1995. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for 1996 totaled $22.6 million, a decrease of $8.6 million or 28% from the prior year's net sales of $31.2 million. Net sales for the fourth quarter were $4.5 million compared to $6.1 million for the prior year. The company's effort to reduce its reliance on the low margin resale resale n. selling again, particularly at retail. In many states a "resale license" or "resale number" is required so that the state can monitor the collection of sales tax on retail sales. RESALE. of AT&T NCR-based hardware systems primarily to AT&T, has for the most part been accomplished. The reduced revenue in 1996 compared to 1995 reflects the company's decrease in NCR (NCR Corporation, Dayton, OH, www.ncr.com) A technology company specializing in financial terminal transactions, retail systems and data warehousing. Until the late 1990s, NCR was heavily invested in the hardware side of the industry, known worldwide as a major manufacturer of computers sales to multiple AT&T units, which was not entirely offset by the increase in the company's storage products sales. As a result of this effort, the company's overall gross margin percentage has been favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impacted. Gross margin for 1996 totaled $7.4 million and was 32.9% of total net sales versus the 1995 gross margin of $7.9 million or only 25.4% of net sales. The increase in gross margin percentage of 7.5% is mainly attributable to changes in product mix and higher gross margins on the sale of the company's own products. ECCS reported that it received late in the fourth quarter a $3.0 million U.S. Air Force order through a Federal Integrator (1) In electronics, a device that combines an input with a variable, such as time, and provides an analog output; for example, a watt-hour meter. (2) See systems integrator. . The company had planned on shipping in the fourth quarter, however, due to this order being received late in the quarter, the company was not able to make the shipment before year end. The entire order shipped in the first quarter of 1997. Accordingly, the revenue from such contract was not recognized until the first quarter of 1997. Gregg Gregg can refer to:
The Company's new Synchronix(TM)-Storage Management System is being well received in the marketplace. The Company is continuing to focus its attention on new and improved technologies. These new areas remain true to the Company's core storage product expertise, with focus on both host and new network-based storage technologies. Many of the new technologies the company is working on build upon the existing Synchronix(TM) Storage System. The company is planning additional product announcements for the first quarter of 1997. The company recently announced a new relationship (see press release dated January January: see month. 15, 1997) with Tandem Computers (company) Tandem Computers - A US computer manufacturer. Quarterly sales $544M, profits $49M (Aug 1994). for a ServerNet A clustering technology from Tandem that provides a high-speed interconnect architecture between subsystems. ServerNet I uses switching technology to transfer data at 50 Mbytes/sec in both directions between CPUs, between I/O devices and between CPU and I/O, but not CPU to memory. (TM) based, fault tolerant The ability to continue non-stop when a hardware failure occurs. A fault-tolerant system is designed from the ground up for reliability by building multiples of all critical components, such as CPUs, memories, disks and power supplies into the same computer. , high performance, network storage system. The company does not expect this effort to have any revenue associated with it in the first two quarters of 1997. It is too early to accurately determine the impact this new Systems Area Network (SAN) technology will have on the company's revenues for 1997 and beyond. During 1996, the company raised $3.0 million of equity and has materially reduced its operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. . The company is in a strong financial position with solid relationships with its lenders and financiers, and with a solid balance sheet. The company continues to focus on maintaining and improving the cost controls established for the business, while significantly increasing its Research and Development efforts. The company believes that 1997 will be a year of additional progress with increased revenue and margin generation through sales of current and new products, and of focus and execution from the company and that of its Partners. However, no guarantee can be made that such progress will be achieved, as such, the statements contained in this release that are not historical facts may contain forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. information with respect to plans, projections or future performance of the company, the occurrence of which involves certain risks and uncertainties that could cause actual results to differ materially. ECCS Inc. is a developer and manufacturer of high performance and fault tolerant RAID storage controllers and related storage system management for open systems and network storage needs led by the Synchronix(TM) family of outstanding storage products. The company features mass storage subsystems The part of a computer system that provides the storage. It includes the controller and disk drives. See storage system. and other mass storage enhancements and related services. ECCS is headquartered in New Jersey. For more information on the Synchronix(TM) family and other ECCS products, contact the company at 1-800-322-7462 or www.eccs.com. -0-
ECCS INC.
CONDENSED STATEMENT OF OPERATION
(In thousands, except per share data)
Year Ended December 31,
1996 1995
Net sales $ 22,604 $ 31,174
Gross profit 7,439 7,918
Loss from operations (495) (3,172)
Net loss (769) (3,659)
Net loss per share ($0.23) ($0.88)
Weighted average common
shares outstanding 4,346 4,232
Three Months Ended Three Months Ended
December 31,
1996 1995
Net sales $ 4,536 $ 6,063
Gross profit 1,557 1,326
Loss from operations (187) (1,625)
Net loss (239) (1,719)
Net loss per share ($0.07) ($0.41)
Weighted average common
shares outstanding 4,399 4,252
SELECTED BALANCE SHEET DATA
(In thousands)
December 31,
1996 1995
Cash and cash equivalents $4,393 $1,514
Accounts receivable 3,162 2,767
Inventories 4,680 4,854
Working capital 4,279 1,134
Total assets 14,552 12,435
Short-term debt 1,917 3,683
Long-term debt 163 215
Redeemable convertible
preferred stock 0 1,794
Shareholders' equity $6,176 $2,122
CONTACT: ECCS Inc., Tinton Falls Louis J. Altieri 908/747-6995 |
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