Telesoft Corp. Reports Second Quarter Results.Business EditorsPHOENIX--(BUSINESS WIRE)--Sept. 28, 2001 Telesoft Corp. (Nasdaq:TSFT) (PSE PSE 1. pale soft exudative pork. 2. portosystemic encephalopathy. : TSF TSF Text Services Framework TSF TOE Security Functions TSF Télégraphie Sans Fil (French: former term for radio) TSF Twelve Step Facilitation (counseling intervention) ) Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant reported operating results for the third quarter and the nine months ended Aug. 31, 2001. Revenues for the third fiscal quarter decreased 8% to $2.9 million from $3.1 million in the third quarter of 2000. We realized a net loss of ($314,000), or ($0.22) 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, for the third fiscal quarter of 2001, versus a net loss of ($553,000), or ($0.40) per diluted share, in the third quarter of 2000. Revenues for the nine months ended Aug. 31, 2001 decreased 7.4% to $15.4 million from $16.6 million in the same period of 2000. The company realized net income of $175,000, or $0.12 per diluted share, versus a net loss of ($398,000), or ($0.17) per diluted share, for the nine months ended Aug. 31, 2000. Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. Zerbib, chief executive officer of Telesoft, commented, "As anticipated, we generated a loss for the quarter. The third quarter is our worst quarter because we generate virtually no revenues from our STS (Synchronous Transport Signal) The electrical equivalent of the SONET optical signal. In SDH, the European counterpart of SONET, STS is known as STM (Synchronous Transport Module). business when students are on summer vacation Summer vacation (also called summer holidays or summer break) is a vacation in the summertime between school years in which students are off for 3 months, depending on the country and district. . The 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. for the quarter declined by approximately $500K due to reductions in SG&A. "Our results continue to be adversely impacted by lower Student Telephone Services (STS) revenues. We expect this trend to continue through the 2001-2002 school year. "A combination of improved results in our TelMaster system sales System sales is a business term used in the franchising industry. Franchisors provide supplies, marketing and administration services to franchisees in return for a part of the franchisees' revenues. Some franchisors also operate some outlets directly. division, continued growth in our Recovery Services division and lower SG&A expenses resulting from cost-cutting initiatives early in the fiscal year, contributed to the improved results for the quarter compared to the same period last year." Commenting on the Recovery Services segment, Zerbib said, "TRC's revenue will be negatively impacted in the next one to two quarters due to delays caused by the World Trade Center tragedy. The majority of TRC's revenue is generated from claims approved in offices of the local regional bell operating company The Regional Bell Operating Companies (RBOC) are the result of the U.S. Department of Justice antitrust suit against American Telephone & Telegraph. History located in close proximity to the disaster site." Commenting on new contracts, Zerbib added, "During the third quarter of fiscal 2001, we added the following companies to our roster of TelMaster and Customized Billing Services clients: Harris Harris, Scotland: see Lewis and Harris. , Wellpoint Noun 1. wellpoint - a perforated tube driven into the ground to collect water from the surrounding area well point tube, tubing - conduit consisting of a long hollow object (usually cylindrical) used to hold and conduct objects or liquids or gases Health Networks, GE Financial Assurance, Marist College Marist College is a private liberal arts college of 180 acres (72 ha), located on the east bank of the Hudson River near Poughkeepsie, New York, on US 9. The site was established in 1905, and chartered in 1946. , Virginia State University Virginia State University, at Petersburg; land-grant and state supported; coeducational; chartered 1882 as a normal and collegiate institute, opened 1883, became a normal and industrial institute in 1902. and Radford University Radford University is a medium-size public, state-funded university in the City of Radford, in Southwestern Virginia, founded in 1910 as a women's college and coeducational since 1972. It was granted university status by the Virginia legislature in 1979. ." Telesoft Corp. provides billing and customer care solutions to educational institutions, corporations and government agencies This report 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 Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements including uncertainties regarding the effectiveness of initiatives to sell, introduce and implement the TelMaster product and to maintain our Student Telephone Services customer base. Certain factors which may cause such a difference include, but are not limited to, the following: the impact of increased competition from competitors with significant financial resources and market share; and the amount and rate of growth in general and administrative expenses associated with building a strengthened corporate infrastructure to support operations.
(a)Telesoft Corp. and Subsidiaries Results of Operations
for the Quarters and Nine Months Ended Aug. 31, 2001 and 2000
3 Months Ended 9 Months Ended
August 2001 August 2000 August 2001 August 2000
Sales, net $ 2,867 $ 3,116 $ 15,386 $ 16,623
Cost of sales 766 1,055 6,933 8,489
Gross Profit 2,101 2,061 8,453 8,134
SG&A 2,646 3,113 8,140 9,385
Income from operations (545) (1,052) 313 (1,251)
Other income 1 131 (5) 570
Pretax income (544) (921) 308 (681)
Income tax expense 230 368 (133) 283
Net (Loss) Income (314) (553) 175 (398)
Diluted Net Earnings
Per Share $ (0.22) $ (0.40) $ 0.12 $ (0.17)
(a) In thousands except for per share items
(a)Telesoft Corp. and Subsidiaries Consolidated Balance Sheets
Aug. 31, 2001 and Nov. 30, 2000
ASSETS
8/31/01 11/30/00
-------- --------
Cash and Cash Equivalents $ 743 $ 42
Accounts Receivable $ 4,342 $ 7,737
Inventory $ 127 $ 208
Income Taxes Receivable $ 56 $ 349
Deferred Taxes $ 268 $ 189
Other Current Assets $ 113 $ 94
Total Current Assets $ 5,649 $ 8,619
Property and Equipment $ 1,110 $ 1,407
Computer Software Costs $ 13 $ 54
Other Assets $ 122 $ 142
Total Assets $ 6,894 $ 10,222
LIABILITIES AND STOCKHOLDERS' EQUITY
Related Party Debt(b) $ 300 $ 1,375
Accounts Payable and Accrued
Liabilities $ 3,367 $ 5,199
Income Taxes Payable $ 159 $ 204
Deferred Revenue $ 579 $ 1,130
Total Current Liabilities $ 4,405 $ 7,908
Deferred Taxes $ 124 $ 122
Total Liabilities $ 4,529 $ 8,030
Stockholders' Equity:
Common Stock 1,684,934 issued
and 1,415,833 outstanding at
5/31/2001 $ 957 $ 665
Retained Earnings $ 2,220 $ 2,192
Less Treasury Stock at Cost,
269,101 shares at 2/28/01 ($ 812) ($ 665)
Total Stockholders' Equity $ 2,365 $ 2,192
Total Liabilities and Stockholders'
Equity $ 6,894 $ 10,222
(a) In thousands except for number of shares and per share items.
(b) The notes are between the company and three of its officers.
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion