TELS Corporation Announces Results for Second Quarter
PR Newswire - August 26, 1998 13:59
AMERICAN FORK, Utah, Aug. 26 /PRNewswire/ -- Stephen M. Nelson, President of TELS Corporation (Nasdaq: TELS), announced today reported financial results for the quarter ended June 30, 1998.
For the most recent three-month period ended June 30, 1998, TELS Corporation reported a net loss of $150,503 or $0.04 per share (3,891,819 weighted average shares outstanding) on revenues of $1.3 million. In comparison, results for the three-month period ended June 30, 1997, showed a net income of $21,104 or $0.01 per share (3,891,819 weighted average shares outstanding) on revenues of $1.6 million. Gross profit for the quarter decreased $166,792, or 23% when compared to the same three-month period in 1997. Net working capital increased $242,783 when compared to December 31, 1997.
Comments From Stephen M. Nelson, President
"The reported net loss is primarily due to economic factors affecting the electronics industry where sales in our contract manufacturing division have been negatively impacted. Additionally, selling, general and administrative (SG&A) expenses were up due to increased legal expenses associated with the defense of the Neuenswander lawsuit, costs associated with acquisition and related financing activities, and Nasdaq listing issues. Sales of our telephone call accounting products remained consistent compared to the second quarter of 1997. The WIN-SENSE product sales continue to grow and are up 52% over last year."
TELS Corporation through its subsidiaries, designs, builds, assembles, sells and services call accounting and other telecommunications systems. The Company also assembles electronic systems on a contract basis, as well as designs, sells and services computer software products. For additional information contact TELS Corporation at 705 East Main Street, American Fork, UT 84003, Phone: (801) 756-9606, FAX: (801) 756-9135, website: telscorp.com.
Summary Statements of Operations
Three months ended June 30,
1998 1997
Net sales $1,313,640 $1,628,804
Cost of goods sold 678,223 736,541
Gross profit 635,418 802,210
Research and development
expenses 36,774 44,040
Selling, general and
administrative expenses 809,975 717,164
Operating income (loss) (211,301) 41,006
Net Other (6,421) (15,801)
Income (loss) before income
tax (provision) benefit (217,722) 25,205
Income tax benefit,
(provision) (67,250) (4,101)
Net income (loss) $(150,503) $21,104
Net income (loss) per common
and common equivalent share $(.04) $.01
Condensed Consolidated Balance Sheets
June 30, December 31,
1998 1997
Total current assets $2,004,880 $2,024,186
Total current liabilities 1,210,007 1,472,096
Long-term debt, less current
portions 438,145 19,683
Net stockholders' equity 2,345,764 2,468,457
SOURCE TELS Corporation
/CONTACT: Stephen M. Nelson, President, 801-756-9606, or Jana
Christensen, Investor Relations, 801-756-9606, Ext. 3303, or fax,
801-756-3750, both of TELS Corporation/ |
