Hemant,
I'm going to post the entire press release, to keep the others from having to look for it elsewhere.
Although these results did not meet my projections, I think that they show the underlying strength of the company's service/outsourcing business; although there was a substantial revenue shortfall, the bottom-line held up quite nicely, and it appears that they will have a strong first quarter, based on their reports on July sales.
Since I have not yet received a copy of the company's 10-K Report I am not yet able to analyze these results in depth. However,the continuation of TransNet's historical growth trend and the high level of orders in July are quite gratifying. I will update my complete analysis as soon as I have the audited financial statements.
TRANSNET ANNOUNCES RECORD REVENUES AND PROFITS IN YEAR END RESULTS
BRANCHBURG, N.J., Aug. 8 /PRNewswire/ - TRANSNET CORPORATION (Nasdaq: TRNT) announced its results for the fiscal year ended June 30, 1996.
For the fiscal year ended June 30, 1996, TransNet reported earnings of
$1,001,640 or $0.19 per share, on record revenues of $64,207,588, as compared with earnings of $882,466 or $0.17 per share on revenues of $56,216,605 for the fiscal year ended June 30, 1995.
Commenting on the results, Steven J. Wilk, TransNet president, said, "We are pleased with our 14% increase in revenue, 38% increase in pre-tax profits, and 14% increase in net income for the fiscal year ended June 30, 1996. During fiscal 1996, we continued the increase of our service, support, network design and training revenues by 25%. As many corporate customers continue to downsize and reduce expenses, they rely on the positive effects of outsourcing personal computer and network-related services. Also, as referenced in previous releases, we are extremely pleased with the initial results of our focus on providing support services to state, local and educational agencies throughout the country. We recently were awarded contracts for many agencies throughout the New Jersey - New York area, and most recently, we were awarded a contract by the Commonwealth of Virginia for a wide array of products. These contracts are usually for twelve month periods. Further, we are in the bidding process for additional large contracts on the east coast, the awards of which should be determined by the end of this calendar year."
"Revenue and profits for the quarter ended June 30, 1996 were negatively impacted by severe product constraints and manufacturers' announcements of price decreases prior to the implementation of the decreases in July. As a result, revenue generation for the month ended July 31, 1996 was one of our best in our 27 year history. As we proceed with internal re-engineering in order to provide higher levels of support to our clients, our goal is to form strategic alliances with major hardware and software manufacturers to further enhance our support capabilities."
TransNet Corporation is a leading dealer of personal computers, peripheral and related equipment, and a leading provider of technical support and service. In addition to the commercial sales and service operations conducted from its Branchburg, New Jersey headquarters, TransNet operates a retail store and service center in Lebanon, New Jersey. |
