FiberChem Announces Third-Quarter Results
LAS VEGAS--(BUSINESS WIRE)--Aug. 26, 1999--FiberChem Inc. (OTC BB:FOCS), announced results for its Fiscal Third Quarter ended June 30, 1999.
Revenues for the nine-month period ended June 30, 1999, increased by 31% to $1,318,907 from revenues of $1,004,889, for the same period of 1998. Revenues for the third quarter 1999 were $264,074 compared with revenues of $538,017 for the same quarter of 1998.
A net loss of $1,609,121 or a loss of $0.05 per share for the nine-month period of 1999 compared with a net loss of $1,619,259 or a loss of $0.06 per share for the same period in 1998. Net loss for the third quarter was $712,026 or a loss of $0.02 per share compared with a loss of $455,197 or a loss of $0.02 per share for the same period in 1998.
Geoff Hewitt, chairman and chief executive officer, said: "We reported last quarter that there may be delays in expected revenues from the Florida Aboveground Storage Tank market due to the normal tendency for a regulated community to wait until the last minute to comply. However, there were also unexpected delays from a restructuring at Whessoe Varec, the Company's former alliance partner for the AST market.
"As a result of this restructuring, FCI took back the commercial market and now sells direct into Florida. One result of this is that the Company will recognize gross product and installation revenues which are significantly greater than OEM product only revenues.
"During the quarter, at a series of meetings for the regulated community, Florida Department of Environmental Protection (Florida DEP) confirmed that the December 31, 1999, compliance date was firm and would not be extended. The Florida DEP has now defined 'compliance' as having placed orders rather than having an installation completed.
"This stance resulted in a change from 'wait and see' to 'time is running out' on the part of potential customers and resulted in the order activity reported earlier this week. The level of future orders is expected to increase as the Florida deadline approaches, and to continue into Calendar Year 2000 for at least one or two quarters. We are also pleased to see activity coming from other states already, with potential projects in Maine, New York and New Jersey.
"Activity in the offshore market has also improved with the recent sales to CNG. This market has been thrown into turmoil by reports that n-hexane, recently chosen by competitors and the USEPA as a replacement solvent for freon, may be associated with an incidence of brain cancer in staff at a research laboratory belonging to a major oil company. The PetroSense(R) technology used in the Company's products is solvent free and therefore contributes to a safe working environment.
"During the third quarter, the Company also made its first commercial shipment of Sensor-on-a-Chip to Industrial Scientific Corporation, a leading health and safety instrument supplier. Other sensor projects continue their satisfactory progress.
"The recently announced intent to merge the Company with Intrex Data Communications Group is ongoing as legal and taxation issues associated with the fact that Intrex is a Canadian company are addressed and resolved. The two companies are jointly pursuing opportunities in the offshore and utility markets.
"Our program to control expenses without detracting from our ability to push forward in those markets where we are active continues to pay dividends in limiting the loss year-to-date."
Hewitt concluded by expressing his thanks to the Board, management team and employees who continue to support the Company's objectives, financially and otherwise.
This news release includes forward-looking statements that involve risks and uncertainties, including the Company's ability to complete the proposed merger with Intrex, the timely development and acceptance of new products, final promulgation and enforcement of regulations, the impact of competitive products and pricing, the timely funding of customers' projects, customer payments to the Company and the other risks detailed from time to time in the Company's Securities and Exchange Commission reports.
FiberChem develops, manufactures, markets and licenses fiber optic chemical sensors (FOCS(R)) that produce continuous, real-time information on environmental pollutants in the air, water and soil.
CONTACT: Continental Capital & Equity Corporation
Scott A-B Gibson, 407/682-2001
e-mail: scott@insidewallstreet.com
www.insidewallstreet.com (Click on Special Situations)
FIBERCHEM INC - FOCS
Price 0.15
Net Change +0.005
Volume (000) 57
Day High 0.145
Day Low 0.14
as of
08/26/99 12:22 PM EDT
Only $9.99 per trade.
More Info
FOCS
Stocks News
Symbol
Name
Quotes/News
Digest
Real Time Quote
Stock Charts
Analytics
Earnings
MarketGuide
Nelson's
SEC Filings
Baseline
Zacks
First Call
Hoover's
IPO
DJ Pubs Library
Advanced Search
Only $9.99 per trade.
|
