Vertex to Change Company Name to Vertex Interactive Inc. to Increase Authorized Shares and Files Transition 10K.
CLIFTON, N.J.--(BUSINESS WIRE)--Jan. 14, 2000
Name to Reflect new e-Commerce and Supply Chain Management Focus
Vertex Industries, Inc. (OTC:VETX), a leading supplier of Supply Chain Management Systems automating mobile workers and web enabling products for legacy systems, today, reported that it has filed a Schedule 14C Information Statement with the Securities and Exchange Commission. The Company's Board of Directors and the holders of a majority of the outstanding shares of Common Stock have approved a change in the name of the Company to Vertex Interactive Inc; an increase in the number of authorized shares of Common Stock of the Company from 20,000,000 shares to 32,000,000 shares; and an increase in the number of shares of Common Stock available for issuance under the Company's Amended Incentive Stock Option Plan from 2,000,000 shares to 4,000,000 shares, effective on or about February 14, 2000.
The Company also filed a Transition Report on form 10K reporting the results for the two month stub period ended September 30, 1999. This Transition report brings the Company in line with the recently announced change in fiscal year end to September 30 and reflects the results of operations of Vertex prior to its recent acquisitions. For the stub period, after various accounting adjustments made in anticipation of the recent acquisitions, the Company reported a net loss of $683,711 or $(0.08) per share on revenues of $508,982. At the end of September, Vertex completed a series of transactions that increased its annual revenue from $7 million to over $40 million on a historical proforma basis. The report also contains the audited balance sheet of the enlarged Vertex as of September 30, 1999 after giving effect to the previously announced equity investment of $10 million and the new acquisitions.
In the Transition 10K, the Company has also restated its financial statements for the fiscal years ending July 31, 1998 and 1999. In conjunction with a review of the accounting principles to be applied to the European acquisitions, to bring them into line with U. S. GAAP, the Company reviewed its software revenue recognition policies in the U. S., which resulted in this restatement. The result of the restatement will be that approximately $200,000 of revenue will be deferred from Fiscal Year 1998 into Fiscal Year 1999 and approximately $400,000 of revenue will be deferred from Fiscal Year 1999 into the two month transition period ending September 30, 1999 and Fiscal Year 2000.
Ron Byer, Vertex President stated: "The new name reflects the Company's transition into an international systems integration and middleware solutions provider which offers mobile computing systems, wireless data capture systems, e-commerce and warehouse management systems across the entire supply chain. The Board of Directors also believes that it is prudent to have the additional shares of common stock available for general corporate purposes, including acquisitions, equity financings, stock dividends, stock splits or other recapitalizations, and the grant of stock options. In order to attract and retain key talent, the Company offers market-competitive, long-term compensation opportunities. Stock options are a key component in recruiting and retaining these employees."
Nicholas Toms, Vertex Joint Chief Executive Officer, stated: "All of these actions are designed to position the new Vertex to exploit its potential to be the premier provider of fulfillment technologies across the whole supply chain to our customers, particularly those of our customers processing transactions over the internet."
Vertex provides systems to automate mobile workers in the areas of customer relations management, enterprise applications integration and logistics. Vertex's systems support a variety of mobile data capture and remote data input functions including integrated Warehouse Management and Route Accounting Systems; Home Service Insurance; and Sales Information, Key Account Management, Merchandising and Sales Order Entry Functions. Vertex also has a strong middleware product range including web-enabling technologies for legacy applications, which compliments these capabilities. Vertex operates in North America, Germany, the United Kingdom, Ireland, France, Italy and Benelux. Vertex can be reached through the World Wide Web at www.vertexindustries.com.