Global DataTel Reports Second Quarter/Six Month Results; Company Achieves Full Reporting Status.DELRAY BEACH Delray Beach, resort city (1990 pop. 47,181), Palm Beach co., SE Fla., on the Atlantic coast; settled 1895, inc. 1911. Mostly residential, Delray Beach is also the trade center for a citrus-fruit and vegetable-growing region. , Fla.--(BUSINESS WIRE)--Oct. 4, 1999-- Global DataTel, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). : GDIS GDIS General Dynamics Information Systems GDIS Guam Data Interface System GDIS Global Distribution Images System ) announced today that for the second quarter of 1999, ending June 30, 1999, Global DataTel's Information Systems Division recorded sales of $803,000, with EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become earnings of $427,000. The eHOLA.com Internet division was unprofitable during the quarter as a result of the start-up costs incurred with the launch of the service in April, 1999. Six-month financial information for this division was audited separately by PriceWaterhouse Coopers. For the six-months ending June 30, 1999, eHOLA recorded a loss of $1,364,000. It should be noted that the PriceWaterhouse Coopers audit is of Colombian eHOLA operations only and does not include eHOLA.com expenses paid for in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . On a consolidated basis, Global DataTel, Inc. reported second quarter revenue of $803,000, with a net loss of $1.2 million or $.05 per share. For the six months ending June 30, 1999, Global DataTel reported revenue of $7,303,000, with a loss of $.05 per share on 22,495,623 shares outstanding. Sales in the Information Systems Division declined during the quarter by 28 percent from last year as a result of two factors. "The second quarter is historically the weakest quarter for this business in Latin America," said Richard Baker, President and Chief Executive Officer of Global DataTel. "Furthermore, in light of the economic uncertainty and the troubled political climate that was evident in Colombia during the quarter, we elected to take a conservative approach, whereby our major supplier allowed us to operate on a commission basis, rather than direct sales. In addition, general administrative expenses increased during the quarter for the division due primarily to the hiring of additional sales force to concentrate on the expanding e-business opportunities in Latin America." The company also announced that it has elected not to pursue` its previously announced acquisitions of Tallard Technologies and Grupo Qualita. Instead, Grupo Qualita and eHOLA are working in a business partner relationship. Global DataTel, Inc. (www.globaldatatel.com) is a Latin American leader in medium to large system integration projects. A First Tier IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) Business Partner, Global distributes Compaq, Dell, Hewlett-Packard and Cisco hardware as well. Global is also a Microsoft Solution provider, Lotus Premier Team Provider and a distributor of JBA (JBA International, Inc., Rolling Meadows, IL) A global developer and supplier of enterprise resource planning (ERP) software for AS/400, Unix and NT platforms. Founded in 1981 as Johnston Brown Associates, in 1999, it was acquired by Canadian-based Geac Computer Corporation. International E.R.P. company. eHOLA.com Online Service Network (www.ehola.com) is a division of Global DataTel, and offers integrated Internet access in Spanish or Portuguese to individuals in North, Central and South America, providing consumer and business dial-up and dedicated Internet access to 305 cities throughout Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, El Salvador, Guatemala, Mexico, Paraguay, Peru, the United States and Venezuela. This release contains forward-looking statements that are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Securities Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act of 1995. Forward-looking statements involve the known and unknown risks and uncertainties that may cause the company's actual results in future periods to differ materially from that which is anticipated. These risks are spelled out in the company's filings with the U.S. Securities & Exchange Commission. |
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