Printer Friendly


 BOCA RATON, Fla., Aug. 4 /PRNewswire/ -- Modami Services (NASDAQ: MDMI) headquartered here, said today it lost ($399,312), or ($.13) per share, on sales of $139,185 for the third fiscal quarter ended May 31, 1993. This compares with a loss of ($241,603), or ($.14) per share, for the like year-ago quarter, when the company was still in the development stage and without sales. Weighted shares outstanding increased to 2,962,476 from 1,709,296 over the period.
 For the nine month period ended May 31, 1993, the company reported a loss of ($329,374), or ($.45) per share, on sales of $245,589. This compares with a loss of ($607,804) or ($.36) per share for the nine month period ended May 31, 1992, when the company was still in the development stage and had no sales. Weighted average shares outstanding increased to 2,962,195 from 1,709,296.
 The company said its strategy of focusing sales efforts on major national accounts with multi-center locations was taking longer to execute than originally anticipated.
 According to Dr. Michael Salit, Modami chairman and CEO, "We have been operational, with instant yogurt and tomato flakes ready to sell, since early February. Approximately 25 really large organizations responded with genuine enthusiasm for these products, but have not thus far developed the confidence in Modami operations necessary to make the type of commitment that translates into significant revenues and profits.
 "Consequently," Dr. Salit said, "the company made several important additions and changes to its marketing and operations team, raised substantial new capital, and tightened its focus on a limited number of key accounts. We now expect losses to narrow during the fourth quarter ending Aug. 31, and we also expect to achieve a profitable run rate exceeding $400,000 per month before the end of the 1993 calendar year."
 The company accepted the resignations of David Lobel and Michael Bagley. Lobel had served as secretary-treasurer and chief financial officer, while Bagley served as the company's vice president of sales and marketing.
 Modami has hired John Boone as vice president of operations. Boone formerly served as president and chief executive officer of STP Products, and also served as president of Boyle Midway, a division of American Home Products.
 Dr. Salit said that Justin Dimmacchia, formerly a senior auditor with Arthur Anderson, and a CFO for several successful public companies, has also been recruited to serve as vice president, finance, and that Ted Barash, who joined Modami in October 1992 after having been chiefly responsible for the marketing success of Weight Watchers and Pritikin, has broadened his responsibilities as vice president of marketing, and made key additions to his professional staff.
 According to Dr. Salit, "I know of no one who has questioned the claim that our dehydration-rehydration technology works, and that our initial lines of instant yogurt and tomato products taste great. We have assembled a remarkable group of experienced, successful executives to bring these products to market, and we have learned first hand what the major food distributors and fast food chains want from us. My commitment to the new team is to provide whatever resources they need to get the job done."
 The company recently announced that it had raised an additional $2.88 million through a private placement of preferred shares by Michigan Securities. The preferred shares are convertible into 1,041,000 common shares after a minimum holding period of three years, and 346,000 warrants, each of which can be converted into one additional common share at an exercise price of $8.00.
 -0- 8/4/93
 /CONTACT: Dr. Michael Salit, chairman and CEO of Modami Services, 407-995-0605; or Ira Weingarten of Equity Communications, 602-323-6787, for Modami Services/

CO: Modami Services, Inc. ST: Florida IN: FOD SU: ERN

AW-RC -- FL007 -- 9296 08/04/93 10:50 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Aug 4, 1993

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters