Norstan Announces Fiscal Third Quarter 2002 Results.Business Editors MINNEAPOLIS--(BUSINESS WIRE)--March 5, 2002 Norstan, Inc. (Nasdaq:NRRD NRRD National Royal Rangers Department (international ministry) ), a leading provider of communications technology Noun 1. communications technology - the activity of designing and constructing and maintaining communication systems engineering, technology - the practical application of science to commerce or industry solutions, today reported revenues of $67.3 million for the third fiscal quarter ending January January: see month. 26, 2002. Net income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the quarter totaled $160,000, or $0.01 per 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. share, compared to a net loss of $5.7 million, or $0.50 loss per diluted share, in the third quarter of fiscal 2001. Revenue in the quarter decreased 4.1% relative to the $70.2 million in the comparable quarter of 2001. Revenue decreased 1.5% from second quarter 2002 revenues of $68.4 million. Gross margin for the third quarter improved to 28.9% versus 27.8% in the same period last year. Sequentially, margins declined compared to the 31.6% in the second quarter of fiscal 2002, primarily due to two large sales that, while good business for Norstan, did carry lower margins and diluted the overall result. 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. increased to $1.0 million compared to a loss of $3.6 million in the same period last year. Earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
"I am pleased with Norstan's third quarter performance, despite this continued period of economic weakness, " said James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. (Jim) C. Granger, Norstan's president and chief executive officer. "With three consecutive quarters of stable revenue and earnings, Norstan continues to move forward on its goal to return the company to sustained profitability and a return to historical growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. ." Norstan's Solution Uses Nortel Networks (Nortel Networks Limited, Brampton, Ontario, www.nortelnetworks.com) A world leader in telecommunications products, which includes switching, wireless and broadband systems for service providers and carriers, telephones and systems for residential and business users, computer telephony Technology The First National Bank of Sioux Falls, South Dakota Sioux Falls (IPA: [su fɑlz]) is the largest city in the U.S. state of South Dakota, and the county seat of Minnehaha County.GR6 The 2007 city population is 148,000. , chose Norstan to redesign re·de·sign tr.v. re·de·signed, re·de·sign·ing, re·de·signs To make a revision in the appearance or function of. re and replace its voice and data networks with a new solution built on Nortel See Nortel Networks. Networks' technology. This is the first systems development project since the announcement of Norstan's new relationship with Nortel. In November November: see month. , 2001, communications networking The transmission channels interconnecting all client and server stations as well as all supporting hardware and software. leader Nortel Networks selected Norstan as a Premium Sales Partner, allowing Norstan to sell and support a wide range of Nortel Networks' voice and data products throughout 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. and Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of . Other recent highlights included: -- Norstan has added five new strategic relationships into its channels organization over the past year. Also, the Alcatel relationship has expanded through agreements with 16 Alcatel business partners. Norstan's channels organization provides implementation services, technical support and professional services to customers through a network of service providers and resellers. -- Oklahoma State University chose Norstan to design a new voice communications solution. The new solution gives OSU the freedom to add integrated cordless, cellular and VoIP functionality at a pace it chooses. -- InLight Risk Management selected Norstan to design and install a leading-edge unified communications system. Norstan replaced the company's limited voice mail system with a new PBX and unified messaging system that combines voice, e-mail and fax transmissions into a single, manageable entity. The new unified messaging platform allows users to access information from remote locations and respond immediately. -- Aspect Communications and Norstan extended their longstanding relationship to provide end-to-end contact center solutions to its clients in North America. The relationship extends Norstan's rights to sell and support the family of Aspect(R) products. -- Liberty Health, one of Canada's pre-eminent health benefit management companies, selected Norstan to provide a state-of-the-art Interactive Voice Response (IVR) solution. The contact center solution allows Liberty Health customers to access their personalized information through multiple communications channels, fulfilling Liberty Health's commitment to excellent customer service. 2002 Year-to-Date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. Results Revenues for the nine months ended January 26, 2002 decreased 10.9% to $201.8 million compared to $226.4 million in the nine-month period of fiscal 2001. During this period, gross margin improved to 30.5% as compared to 26.8% in the comparable period of fiscal 2001. Operating income increased to $3.7 million for the nine months of 2002 compared to a nine-month operating loss 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 $7.9 million in fiscal 2001. Net income from continuing operations increased to $648,000, or $0.05 per diluted share, in this year's nine-month period compared to a loss of $15.2 million, or $1.36 loss per diluted share, in the comparable period of 2001. Conference Call and Webcast Norstan will discuss its third quarter 2002 results and current outlook on a conference call scheduled today, March 5, at 5 p.m. Eastern time. The conference call can be accessed toll-free by callers at (888) 433-9986 or on the 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 at www.norstan.com. Starting today at approximately 7:00 p.m. Eastern, the replay of the call can be accessed toll-free until March 12 by dialing (800) 648-1687 (conference ID number is 3215659) or on the Internet at www.norstan.com/company. Cautionary Statement Under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 This 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. within the meaning of the Private 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. Acts of 1995. A number of factors should be considered in conjunction with the above forward-looking statements, including changes in economic and market conditions, factors related to the development of new technologies, product pricing, industry regulation, management of growth, integration of acquisitions, and other factors set forth in cautionary statements included in Norstan's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and other documents as filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on forward-looking statements, which reflect management's analysis only as of the date of this release. The company undertakes no obligation to update these forward-looking statements to reflect events and circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or that may arise after the date of this release. About Norstan, Inc., www.norstan.com Norstan, Inc. (Nasdaq:NRRD) - ...the technology services people who improve the way their customers communicate. A full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. solutions company that delivers voice and data technologies and services, and remanufactured equipment to select corporate end-users and channel partners. Norstan also offers a full range of technologies for call center design, messaging, infrastructure, conferencing See teleconferencing. and mobility. Headquartered in the Twin Cities, Norstan, a company small enough to care, yet big enough to serve, has offices located throughout 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. . To learn more, visit the Norstan website at www.norstan.com. Norstan and associated product In the context of fuels and lubricants, a petroleum or chemical product used as a hydraulic fluid, corrosion preventive, liquid propellant, or specialized product, required for the operation, maintenance, or storage of military equipment. names are trademarks or registered trademarks of Norstan, Inc. in the United States and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. other countries. All other products and services mentioned in this document may be trademarks of the companies with which they are associated.
NORSTAN, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
For the For the
Quarter Ended Nine Months Ended
----------------- -------------------
Jan. 26, Jan. 27, Jan. 26, Jan. 27,
2002 2001 2002 2001
-------- -------- --------- ---------
Revenues
Communication Technology:
Solutions and Services $53,811 $54,472 $158,355 $177,673
Resale 7,672 6,227 22,758 19,823
Network Services 4,768 7,085 16,332 22,065
Financial Services 1,084 2,458 4,341 6,885
------- ------- -------- --------
Total revenues 67,335 70,242 201,786 226,446
------- ------- -------- --------
Cost of sales 47,861 50,696 140,262 165,764
------- ------- -------- --------
Gross margin
Communication Technology:
Solutions and Services 14,301 13,976 45,075 42,874
Resale 2,654 2,138 8,286 7,604
Network Services 1,568 1,896 4,693 5,406
Financial Services 951 1,536 3,470 4,798
------- ------- -------- --------
Total gross margin 19,474 19,546 61,524 60,682
------- ------- -------- --------
SG and A expenses 18,460 23,176 57,803 68,592
------- ------- -------- --------
Operating income (loss) 1,014 (3,630) 3,721 (7,910)
Interest expense (1,127) (2,084) (3,823) (6,279)
Other income (expense), net 273 (5) 750 (1,032)
------- ------- -------- --------
Net income (loss) from
continuing operations 160 (5,719) 648 (15,221)
Discontinued operations (net of
tax):
Loss from discontinued
operations -- (2,585) -- (8,354)
------- ------- -------- --------
Net income (loss) $160 $(8,304) $648 $(23,575)
======= ======= ======== ========
Net inccome (loss) per share -
Continuing operations $0.01 $(0.50) $0.05 $(1.36)
Net income (loss) per share -
Discontinued operations -- (0.23) -- (0.74)
------- ------- -------- --------
Net income (loss) per share $0.01 $(0.73) $0.05 $(2.10)
======= ======= ======== ========
Weighted average shares
outstanding 12,769 11,425 12,633 11,222
======= ======= ======== ========
NORSTAN, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share Amounts)
Jan. 26, April 30,
2002 2001
--------- ---------
ASSETS
------
CURRENT ASSETS
Cash $3,039 $2,434
Accounts receivable, net 45,627 37,592
Current lease receivables 13,539 25,292
Inventories 4,532 6,197
Costs and estimated earnings in excess of billings 4,894 8,231
Prepaid expenses, deposits and other 6,894 5,594
Net current assets of discontinued operations 2,833 320
-------- --------
Total current assets 81,358 85,660
-------- --------
PROPERTY AND EQUIPMENT
Property and equipment 98,002 96,146
Less accumulated depreciation and amortization (74,924) (66,492)
-------- --------
Net property and equipment 23,078 29,654
-------- --------
OTHER ASSETS
Lease receivables, net 18,308 30,635
Goodwill, net 3,857 3,896
Deferred income taxes 12,246 12,039
Other assets, net 202 406
Net non-current assets of discontinued operations 4,318 7,549
-------- --------
Total other assets 38,931 54,525
-------- --------
$143,367 $169,839
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES
Current maturities of long-term debt $42,612 $21,015
Current maturities of discounted lease rentals 9,527 13,242
Accounts payable 22,913 31,219
Deferred revenue 24,032 22,105
Accrued liabilities 18,118 14,145
Billings in excess of costs and estimated earnings 8,989 8,276
-------- --------
Total current liabilities 126,191 110,002
-------- --------
LONG-TERM DEBT, NET 55 38,200
DISCOUNTED LEASE RENTALS, NET 7,557 13,552
-------- --------
Total liabilities 133,803 161,754
-------- --------
SHAREHOLDERS' EQUITY
Common stock - $0.10 par value: 40,000,000
authorized shares: 12,378,101 and 12,220,907
shares issued and outstanding 1,238 1,222
Capital in excess of par value 55,769 55,298
Accumulated deficit (44,303) (44,952)
Unamortized cost of stock (880) (1,438)
Accumulated other comprehensive loss (2,260) (2,045)
-------- --------
Total shareholders' equity 9,564 8,085
-------- --------
$143,367 $169,839
======== ========
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion