Electronic Retailing Systems International, Inc. Reports Year-End and Fourth Quarter Results.NORWALK Norwalk (nôr`wôk'). 1 City (1990 pop. 94,279), Los Angeles co., S Calif.; settled in the 1850s, inc. 1957. With the arrival (1875) of the Southern Pacific RR, it became a center for the dairy and logging industries, but , Conn.--(BUSINESS WIRE)--March 6, 1998--Electronic Retailing Systems International, Inc. ("ERS ERS, n.pr See extended rotated side-bent. ") (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 :ERSI ERSI Environment Remote Sensing Institute ) today reported financial results for the year and for the quarter ended December December: see month. 31, 1997. Total revenues for the year ended December 31, 1997 were $1,972,000 as compared to $5,002,000 for 1996. Net loss for the year was $26,873,000 or $1.27 per share, compared to a net loss of $9,412,000 or $.60 per share, for the previous year. Earnings per share for the years 1997 and 1996 are based on 21,096,000 and 16,169,000 weighted average common shares outstanding, respectively. Per share amounts do not reflect securities that are anti-dilutive. Revenues for the fourth quarter of 1997 totaled $415,000 compared to $732,000 for the same period last year. The net loss was $8,776,000 for the quarter ended December 31, 1997, or $.42 per share as compared to a net loss of $2,884,000 or $.14 per share for the same period in 1996, including $.04 per share for the special provision related to the new product introduction. Per share amounts for the 1997 and 1996 periods are based on 21,138,000 and 21,038,000 weighted average common shares outstanding, respectively. "Clearly, we did not meet our original installation targets," said Bruce Bruce, Scottish royal family descended from an 11th-century Norman duke, Robert de Brus. He aided William I in his conquest of England (1066) and was given lands in England. F. Failing, Jr., Chief Executive Officer of ERS. "We encountered difficulties transitioning from our second generation to our third generation wireless product, which delayed installations. However, we believe we have been able to overcome the principal issues and have already completed successful field trials of our system. "With those issues behind us, 1998 has already started strong," continued Failing. "We have five installations in progress within the state of Connecticut Connecticut, state, United States Connecticut (kənĕt`ĭkət), southernmost of the New England states of the NE United States. It is bordered by Massachusetts (N), Rhode Island (E), Long Island Sound (S), and New York (W). , an installation scheduled this month in Georgia Georgia, country, Asia Georgia (jôr`jə), Georgian Sakartvelo, Rus. Gruziya, officially Republic of Georgia, republic (2005 est. pop. 4,677,000), c.26,900 sq mi (69,700 sq km), in W Transcaucasia. and a 3,000-label pilot in Brazil Brazil (brəzĭl`), Port. Brasil, officially Federative Republic of Brazil, republic (2005 est. pop. 186,113,000), 3,286,470 sq mi (8,511,965 sq km), E South America. , our first third-generation store outside North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . "We believe 1998 will be the year for Electronic Shelf Labels Electronic Shelf Label is a system used by Retailers for displaying price on shelves. Automating the price change process enhances in-store merchandising and store compliance. These features add up to increased sales and reduced overall operational costs. (ESLs), especially given two recent events," said Failing. "A Supermarket News survey (February February: see month. 16, 1998) reported that 42 percent of senior information technology executives in the grocery industry plan to test or launch an ESL (1) An earlier family of client/server development tools for Windows and OS/2 from Ardent Software (formerly VMARK). It was originally developed by Easel Corporation, which was acquired by VMARK. program in 1998, which ERS believes positions ESLs as the most important in-store technology of the year. And, at Marketechnics'98, the annual technology tradeshow sponsored by the Food Marketing Institute, we experienced first hand the tremendous interest in ESLs. Representatives from most major retail chains inquired about our third-generation product." ERS is a leading developer and supplier of electronic shelf labeling systems designed to improve retailer productivity. The ERS ShelfNet(TM) system is designed to assist retailers in cost savings and pricing accuracy by using a wireless network to link a store's central computer both to its check-out Check-Out is a pricing game on the American television game show The Price Is Right. Debuting on January 28, 1982, it is played for a four-digit prize, usually valued between $2,000 and $10,000, and uses grocery items. scanner (1) See also antivirus program. (2) An optical device that reads a printed page or transparency and converts it into a graphics image for the computer. The scanner does not recognize or differentiate in any manner the content of the material it is scanning. and to the Electronic Shelf Labels (ESLs) that display pricing information at the shelf edge. With ShelfNet, this pricing information is updated automatically on the ESLs when prices in the point-of-sale (POS (1) See point of sale and packet over SONET. (2) "Parent over shoulder." See digispeak. POS - point of sale ) scanner are changed. This provides price integrity between the shelf edge and the POS scanners. ShelfNet uses spread spectrum RF technology, which is the most widely used wireless communication in retail today. In addition, ShelfNet uses a suite of patented software applications designed to communicate merchandising merchandising Element of marketing concerned especially with the sale of goods and services to customers. One aspect of merchandising is advertising, which aims to capture the interest of the segment of the population most likely to buy the product. information to and from store personnel in the aisle. These applications are designed to provide value-added benefits to retailers in the areas of shelf-edge merchandising, space and inventory management, and strategic pricing. -0- This press release contains forward looking statements that involve risks and uncertainties. ERS' actual results may vary from those anticipated due to a number of factors, including, without limitation, the timely availability and acceptance of new products, the rate of development of the emerging market for electronic shelf label systems, the impact of competitive products and pricing, the management of growth, and other factors set forth in reports and other documents filed by ERS and the Securities and Exchange Commission from time to time. -0-
Electronic Retailing Systems International, Inc.
Condensed Consolidated Statement of Operations
(in thousands, except per share amounts)
Three Months Twelve Months
Ended Ended
December 31, December 31,
1997 1996 1997 1996
Revenues
Product sales $ 243 $ 431 $ 1,147 $ 4,106
Maintenance 172 301 825 896
Total revenues 415 732 1,972 5,002
Cost of goods sold
Product sales 1,050 1,283 2,941 5,238
Maintenance 143 248 758 966
Total cost of 1,193 1,531 3,699 6,204
goods sold
Gross profit (loss) (778) (799) (1,727) (1,202)
Operating expenses
Selling, general and
administrative 4,535 1,727 13,378 6,807
Research and
development 689 331 2,425 1,117
Depreciation and
amortization 110 39 301 162
Stock Option Compensation
Expense (Income) -- 12 -- 44
Total operating
expenses 5,334 2,109 16,104 8,130
Loss from operations (6,112) (2,908) (17,831) (9,332)
Other income (expenses)
Interest income 1,211 123 4,982 302
Interest expense (3,875) (99) (14,024) (382)
Total other income
(expenses) (2,664) 24 (9,042) (80)
Net loss $ (8,776) $ (2,884) $ (26,873) $ (9,412)
Earnings (loss) per Share
Weighted average
common shares
outstanding 21,138 21,038 21,096 16,169
Earnings (loss) per
common share $ (0.42) $ (0.14) $ (1.27) $ (0.60)
-0-
Electronic Retailing Systems International Inc.
Condensed Consolidated Balance Sheet
(in thousands)
December 31, December 31,
1997 1996
Assets
Current assets
Cash and cash equivalents $ 82,400 $ 8,198
Other current assets 8,454 2,114
Total current assets 90,854 10,312
Equipment, net 3,302 646
Other non-current assets 6,052 1,302
Total assets $ 100,208 $ 12,260
Liabilities and Stockholders' Equity
Current liabilities $ 2,482 $ 1,548
Long-term debt 113,102 4,989
Common stock purchase warrants 5,100 --
Stockholders' (deficit) equity (20,476) 5,723
Total liabilities and
stockholders' equity $ 100,208 $ 12,260
-0- CONTACT: Electronic Retailing Systems International, Inc. Bruce F. Failing, Jr., 203/849-2500 Tina Horne, 203/849-2500 or Kekst and Company Roanne Kulakoff, 212/521-4800 or Lois Paul & Partners Leslie Fletcher Fletcher may refer to one of the following: Ideas and companies
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion