OTCBB FTEL
For Immediate Release
February 14, 1996
Franklin Announces Restructuring and Six Month Financial Results
Westlake Village, CA: Franklin Telecom (FTEL) announced today results for the six
months ending Dec. 31, 1995. Sales were $232,000 down from $894,000 for the same
period last year. Losses were $531,000 for the six months compared to a profit of
$115,000 during the same time last year. For the year end results as of June 30, 1995
sales were $1,481,000 up from a year ago of $1,241,000 and a loss of $160,000 down
from the same period last year of $485,000.
Frank W. Peters, Franklin's President & CEO said, "I am very disappointed by these
results. During 1995, we have invested heavily in new product development, merged the
operations of LAN Performance Labs, and increased the size of the work force. Despite
these expenditures, we have not realized the increase in sales we expected. However,
we have incurred no new debt but this loss did reduce the available funds we raised last
September which were marked for expansion and new marketing programs."
Peters continued, "Our first half results were caused, in part, by several of our larger
customers over stocking certain products in the prior period. We expect the inventory at
Hughes, Quotron, Citibank and Reuters to be depleted soon but earlier in the year we
realized that we needed a contingency plan to guard against shortfalls in revenue from
our major customers. To this end, we have formed an Internet Division, announced last
December that will use the company's products to provide Internet service to
customers. Franklin Telecom has accordingly added new financial structures and
equipment to support the new division and there will be an additional news item released
this week concerning mergers, acquisitions and partnering in this respect."
More information can be obtained by contacting Frank Peters, or Rebecca Scully,
Shareholder Relations at 805/373-8688, 800/372-6556, by fax at 805/373-7373, Internet:
hq@ftel.com, or on the WEB ftel.com or by writing to Franklin at 733
Lakefield Road, Westlake Village, CA 91361. Franklin Telecom has been in business
since 1981 and designs and manufactures communications devices, high speed LAN &
WAN access cards and software. Franklin has an installed base of over 100,000 nodes.
Franklin is traded Over The Counter Market as "FTEL". |
