Tricord Systems Inc. Reports Fourth Quarter and 1999 Financial Results.Business Editors/High-Tech Writers PLYMOUTH Plymouth, city, England Plymouth, city (1991 pop. 238,583) and district, Devon, SW England, on Plymouth Sound. The three towns that Plymouth has comprised since 1914 are Plymouth, Stonehouse, and Devonport. , Minn.--(BUSINESS WIRE)--March 3, 2000 Tricord Systems Inc. (Nasdaq:TRCD TRCD Time Ras to Cas Delay ), today announced financial results for the fourth quarter and year ended December December: see month. 31, 1999. Loss 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 fourth quarter was $2,076,000, or 10 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , compared to loss from continuing operations of $832,000, or 5 cents per share, for the fourth quarter of 1998. Loss from continuing operations for the year ended December 31, 1999 was $7,707,000, or 39 cents per share, compared to a loss from continuing operations of $3,854,000, or 26 cents per share, for the same period in 1998. The losses from continuing operations relate to the continuing development of the company's Tricord Storage Management Software (TSMS TSMS Turkish State Meteorological Service TSMS The Sky Moves Sideways (Porcupine Tree music album) TSMS Tucson Stormwater Management Study TSMS Time-Shared Monitor System (also seen as TMS) ). The fourth quarter net loss, which includes the discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: legacy server business, was $2,027,000 or 10 cents per share, compared to a net loss of $630,000, or 4 cents per share, in the fourth quarter of 1998. Net loss for 1999 was $7,637,000 or 39 cents per share, compared to a net loss of $2,111,000, or 14 cents per share, for 1998. Cash at December 31, 1999 was $3,082,000, a decrease of $1,006,000 compared to $4,088,000 at September September: see month. 30, 1999. Tricord co-CEO John Mitcham Mitcham: see Merton. commented, "During the quarter, we continued to invest in the development and marketing efforts for the company's Tricord Storage Management Software (TSMS)." "Because of the demand spurred by a rapidly growing Internet, the Internet, the, international computer network linking together thousands of individual networks at military and government agencies, educational institutions, nonprofit organizations, industrial and financial corporations of all sizes, and commercial enterprises storage marketplace is drawing increasing interest from businesses, from the press, and from investors," noted co-CEO Rod Canion Rod Canion co-founded Compaq with Jim Harris and Bill Murto in 1982, investing $1000 in the company. Before co-founding Compaq Canion worked at Texas Instruments. Canion led Compaq as Chief Executive Officer through a decade of unprecedented growth. . "Tricord has a significant opportunity to participate in this marketplace with its TSMS technology," he said. Tricord Systems Inc. develops and markets storage system management software. Tricord Storage Management Software (TSMS) facilitates the transparent (1) Refers to a change in hardware or software that, after installation, causes no noticeable change in operation. Also known as "feature transparency." Contrast with "seamless integration," which means that an additional component to the system can be added without incurring any sharing of data on network-attached storage See NAS. devices, enabling organizations to centralize cen·tral·ize v. cen·tral·ized, cen·tral·iz·ing, cen·tral·iz·es v.tr. 1. To draw into or toward a center; consolidate. 2. data storage functions and reduce the costs associated with management and storage. Tricord is based in Plymouth, Minn., USA. For more information, please call 1-800-TRICORD or 612/557-9005, or visit the company at http://www.tricord.com. "Safe-Harbor" Statement Under Private Securities Act of 1995: The statements contained herein that are not historical facts contain forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. information with respect to plans, projections or future performance of the Company. There is no guarantee or assurance that these plans, projections or future performance of the Company as indicated will be achieved, and actual results could differ materially. Factors, certain risks and uncertainties that could impact the Company's future results include, without limitation, the ability of Tricord to secure financing to fund development and marketing of its software and future products, the ability to complete development and release commercially its storage system products, the ability to enter into OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and relationships or otherwise develop distribution capabilities, the market acceptance of Tricord-enabled products, the ability of the Company to maintain its cost structure in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with its operating plan, and other risks and uncertainties detailed in the Company's filings with the Securities and Exchange Commission, including the Company's Form 10K for fiscal 1998. Tricord, Tricord Storage Management Software, TSMS, and Network Storage Made Simple are all trademarks, registered trademarks, or service marks of Tricord Systems Inc. All other names mentioned are trademarks, registered trademarks, or service marks of their respective companies.
TRICORD SYSTEMS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Twelve Months Ended
December 31, December 31,
1999 (a) 1998 1999 (a) 1998
----------- ----------- ----------- -----------
(unaudited) (unaudited) (unaudited) (unaudited)
Operating Expenses:
Research & development 1,210 557 3,442 2,473
Sales and marketing 466 282 2,645 905
General &
administrative 483 40 1,890 856
-------- -------- -------- --------
Total operating
expenses 2,159 879 7,977 4,234
-------- -------- -------- --------
Operating loss (2,159) (879) (7,977) (4,234)
-------- -------- -------- --------
Other income (expense):
Interest, net 52 47 216 193
Other, net 31 -- 54 187
-------- -------- -------- --------
83 47 270 380
-------- -------- -------- --------
Loss from continuing
operations (2,076) (832) (7,707) (3,854)
-------- -------- -------- --------
Discontinued operations:
Income from
operations of
legacy server
business -- 202 228 1,743
Gain (loss) on
disposal of
legacy server
business 49 -- (158) --
-------- -------- -------- --------
Income from
discontinued
operations 49 202 70 1,743
-------- -------- -------- --------
Net loss $(2,027) (630) (7,637) (2,111)
======== ======== ======== ========
Net loss per share
from continuing
operations $(0.10) (0.05) (0.39) (0.26)
======== ======== ======== ========
Net income per
share from
discontinued
operations $ -- 0.01 -- 0.12
======== ======== ======== ========
Net loss per share $(0.10) (0.04) (0.39) (0.14)
======== ======== ======== ========
Weighted average
common shares
outstanding 20,083 15,545 19,472 14,573
======== ======== ======== ========
(a) Loss from continuing operations includes fourth quarter 1999
and full year 1999 charges for non-cash stock compensation expense of
$677 and $1,993 respectively. These amounts do not affect the net
stockholders' equity of the Company. These non-cash expenses increased
net loss per share for the fourth quarter and year to date 1999 by
$0.03 and $0.10, respectively.
TRICORD SYSTEMS, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
ASSETS
(In thousands) December 31, December 31,
1999 1998
(unaudited)
Current assets:
Cash and cash equivalents $3,082 6,215
Accounts receivable, net -- 162
Inventories, net -- 637
Other current assets 73 96
-------- --------
Total current assets 3,155 7,110
Equipment and improvements, net 277 243
-------- --------
Total Assets $3,432 7,353
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities $530 1,511
-------- --------
Stockholders' equity
Common stock 202 190
Additional paid-in capital 86,604 81,919
Accumulated deficit (83,904) (76,267)
-------- --------
Total stockholders' equity 2,902 5,842
-------- --------
Total Liabilities and
Stockholders' Equity $3,432 7,353
======== ========
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