Electronic Retailing Systems International Reports Record Second Quarter Revenues.WILTON Wilton, town, United States Wilton, town (1990 pop. 15,989), Fairfield co., SW Conn.; settled c.1701, inc. 1802. It is a residential and agricultural town. Wilton, town, England Wilton, town (1991 pop. , Conn.--(BUSINESS WIRE)--August 1, 1996--Electronic Retailing Systems International, 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 :ERSI ERSI Environment Remote Sensing Institute ) today reported record quarterly revenues for the quarter ended June June: see month. 30, 1996. This is ERS's fourth consecutive quarter of increased revenues. Total revenues for the second quarter of 1996 increased 259% to $1,426,000 from $397,000 reported for the corresponding quarter in 1995. Net loss for the quarter ended June 30, 1996 was $2,232,000, or $.19 per share. Net loss during the comparable quarter of 1995 was $2,981,000, or $.25 per share. Per share amounts do not reflect common stock equivalents that are anti-dilutive. Commenting on the results, 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., ERS's president and chief executive officer stated, "We are pleased our quarterly results continue to demonstrate our revenue leadership in the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. electronic shelf labeling 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. market. This is our fourth consecutive quarter of revenue growth - quarterly revenues which now more than double the most recently reported quarterly revenues of our nearest North American competitor. These revenues indicate the growing market acceptance of our ERS ERS, n.pr See extended rotated side-bent. ShelfNet(TM) system, which operates using a spread spectrum wireless communication technology. The results also reflect the continuation continuation - continuation passing style of a trend of improving margins." Revenues for the six months ended June 30, 1996 increased 187% to $2,647,000 from $923,000 for the first half of 1995. The net loss for the six months ended June 30, 1996 was $4,559,000, or $.41 per share, compared to a net loss of $5,768,000, or $.49 per share, for the corresponding 1995 period. The net loss for the six months ended June 30, 1995 included non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. for stock compensation expense of $54,000, or $.01 per share. Failing went on to say, "We are also very pleased to have completed our common stock offering in July July: see month. yielding net cash proceeds of $12.0 million. With our increased financial stability combined with our improved operating trends, we believe we are now strongly positioned to continue the penetration The successful unauthorized breach of a security perimeter. See penetration test. of this very large potential market." The ERS ShelfNet(TM) system assists retailers in providing accurate pricing by linking 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 ERS electronic liquid crystal display liquid crystal display (LCD) Optoelectronic device used in displays for watches, calculators, notebook computers, and other electronic devices. Current passed through specific portions of the liquid crystal solution causes the crystals to align, blocking the passage of light. shelf labels at the shelf edge. The ERS system allows for pricing information to be automatically changed on the electronic shelf labels when prices in the point-of-sale point of sale n. pl. points of sale A business or place where a product or service can be purchased. Also called point of purchase. point scanner are changed. This system eliminates the need for paper price tags, which require labor-intensive la·bor-in·ten·sive adj. Requiring or having a large expenditure of labor in comparison to capital: "Intrigue and subversion are labor-intensive undertakings" George F. Kennan. servicing and do not provide the level of pricing accuracy provided by electronic shelf label systems. ERS's system also includes patented software applications that are intended to provide additional 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. , space management, and inventory management benefits to retailers through the ability to communicate additional product information to and from the aisle. -0-
Electronic Retailing Systems International, Inc.
Condensed Consolidated Balance Sheet
(in thousands, except share and per share amounts)
Pro Forma
June 30, Pro-Forma June 30, December 31
1996 Adjustments 1996 1995
(Unaudited) (Unaudited) (Unaudited)
Assets Current asset Cash and cash equivalents $647 $11,957(a) $12,604 $3,210 Other current assets 3,335 3,335 3,839 Total current assets 3,982 11,957 15,939 7,049 Property, plant and equipment, net 613 613 682 Other non-current assets 863 863 585 Total assets $5,458 $11,957 $17,415 $8,316 Liabilities and Stockholders' Equity Current liabilities $1,792 $ $1,792 $1,766 Long-term debt 4,987 4,987 3,335 Stockholders' equity Preferred stock, undesignated, par value $1.00 per share Series A Cumulative Convertible Preferred Stock, par value $1.00 per share (140,000 shares, no shares pro-forma and 140,000 shares authorized; 125,556 shares, no shares pro-forma and 123,246 shares outstanding) 126 (126)(b) -- 123 Common stock (par value $0.01 per share; 25,000,000 shares authorized; 11,800,048 shares, 21,033,062 shares pro-forma and 11,748,232 shares issued and outstanding) 118 92(c) 210 117 Additional paid-in capital 38,724 11,991(d) 50,715 38,474 Accumulated deficit (40,289) (40,289) (35,499) Total stockholders' equity (deficit) (1,321) 11,957 10,636 3,215 Total liabilities and stockholders' equity $5,458 $11,957 $17,415 $8,316 Notes to Pro Forma Balance Sheet The Pro Forma Balance Sheet as of June 30, 1996 reflects the issuance of common stock and the conversion of Series A Cumulative Convertible Preferred Stock completed on July 11, 1996 as if such transaction occurred as of June 30, 1996. The Pro Forma adjustments include:
(a) Net proceeds from issuance of common stock.
(b) Conversion of 125,556 shares of Series A Cumulative Convertible
Preferred Stock, $1.00 par value, into 3,138,900 shares of
common stock, $.01 par value.
(c) Issuance of 9,233,014 shares of common stock, including
conversion of Series A Cumulative Convertible Preferred Stock
into 3,138,900 shares of common stock.
(d) Proceeds from issuance of common stock in excess of $.01 par
value, net of transaction costs of $1,741 (including commission
shares).
-0-
Electronic Retailing Systems International Inc.
Condensed Consolidated Statement of Operations
(in thousands, except per share amounts)
(Unaudited)
Three months ended Six months ended
June 30, June 30,
1996 1995 1996 1995
Revenues Product sales $1,251 $358 $2,299 $853 Maintenance 175 39 348 70 Total revenues 1,426 397 2,647 923 Cost of goods sold 1,527 844 2,971 1,537 Gross profit (loss) (101) (447) (324) (614) Operating expenses Selling, general and administrative 1,746 1,594 3,431 3,239 Research and development 251 807 564 1,704 Depreciation and amortization 40 27 82 54 Stock option expense 11 27 22 54 Total operating expenses 2,048 2,455 4,099 5,051 Loss from operations (2,149) (2,902) (4,423) (5,665) Other income (expense), net (83) (79) (136) (103) Net loss $(2,232) $(2,981) $(4,559) $(5,768) Earnings per share Weighted average common shares outstanding 11,796 11,746 11,782 11,737 Net loss per common share $ (0.19) $ (0.25) $ (0.41) $ (0.49) -0- CONTACT: Electronic Retailing Systems International, Inc. Bruce F. Failing, Jr. President 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. 203/761-7900 |
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