Zitel issues a press release with their year-end results. Commentary to follow.
biz.yahoo.com
Wednesday October 27, 8:29 am Eastern Time
Company Press Release
SOURCE: Zitel Corporation
Zitel Corporation Reports Year-End Results
FREMONT, Calif., Oct. 27 /PRNewswire/ -- For the fiscal year ended September 30, 1999,
Zitel Corporation (Nasdaq: ZITL - news) reported revenue of $20,890,000 and a net loss of
$13,103,000 ($.59 per share) versus revenue of $21,700,000 and a net loss of $43,205,000 ($2.48
per share) for the prior year. Revenue of the Company's Datametrics software business unit was
$17,140,000 versus $13,794,000 in the prior year, an increase of 24%. Prior year revenue
included $5,698,000 from the Company's former storage business unit and related royalty revenue
of $1,541,000. Weighted average shares outstanding for fiscal 1999 were 22,199,000 compared to
17,433,000 for fiscal 1998.
For the quarter ended September 30, 1999, the Company reported revenue of $4,433,000 and a
net loss of $6,424,000 ($.27 per share) versus revenue of $4,022,000 and a net loss of
$14,691,000 ($.74 per share) for the same quarter of the prior year. Revenue from the Company's
Datametrics business unit was $4,105,000 versus $3,662,000 in the prior year quarter. The net
loss for the recently-ended quarter include a charge of $3,586,000 for write-off of advances and
prepayments to MatriDigm Corporation, which filed a voluntary petition in bankruptcy and ceased
operations on October 12, 1999. Weighted average shares outstanding in the 1999 quarter were
23,581,000 compared to 19,923,000 in the 1998 quarter.
``The Company's investment in and relationship with MatriDigm had consumed a significant
amount of the Company's resources and management attention over the past two years,' stated
Asa W. Lanum, President and CEO. ``While the technology was sound and the prospects for Y2K
code remediation and legacy code maintenance were exciting, the market developed much more
slowly than expected and was difficult to penetrate. With the termination of the proposed
acquisition of the balance of MatriDigm and the write-off of the remaining assets relating to that
relationship, the Company has suspended its operations in the Y2K marketplace. Zitel is now in a
position to focus its resources on its Datametrics business unit,' Mr. Lanum continued.
``The Company continues to improve its performance in the Datametrics business unit.
Year-to-year, software license revenue has grown 29% and we are optimistic that this growth
will continue on an upward trend. Our strategy to offer end-to-end e-business service level
management capability, with our new product and service offerings, is beginning to experience a
positive response,' stated Mr. Lanum.
``During the fourth quarter, the remaining balance of $4,924,000 of the 3% Subordinated
Debentures were fully converted into 2,949,241 shares of common stock of the Company,'
concluded Mr. Lanum.
This press release contains projections and other forward-looking statements regarding future
events or the future financial performance. These statements are only predictions and actual events
or results may differ materially. Refer to the documents Zitel Corporation files from time to time
with the Securities and Exchange Commission. These documents contain and identify important
factors that could cause the actual results to differ materially from those contained in the
projections or forward-looking statements in this press release.
Zitel Corporation is an information technology company. Its Datametrics business unit specializes
in automated performance analysis and correlation software. Zitel's headquarters are located at
47211 Bayside Parkway, Fremont, Calif. 94538. Telephone: 510-440-9600 or 800-622-5020.
FAX: 510-440-9696. Visit Zitel's web site at www.zitel.com for information and instructions to
receive press releases via e-mail.
NOTE: Zitel is a registered trademark of Zitel Corporation. Datametrics is a registered trademark
of Datametrics Systems Corporation. MatriDigm is a registered trademark of MatriDigm, Inc. All
other product names and brand names are trademarks or registered trademarks of their respective
holders.
Zitel Corporation
CONSOLIDATED SUMMARY OF FINANCIAL STATEMENTS
Consolidated Statements of Operations
(In Thousands Except Per Share Data)
Three Months Ended Twelve Months Ended
9/30/99* 9/30/98* 9/30/99 9/30/98
Net sales $ 4,433 $ 4,022 $ 20,890 $ 20,159
Royalty revenue -- -- -- 1,541
Total revenue 4,433 4,022 20,890 21,700
Cost of goods sold 2,187 1,915 9,287 12,155
Research & development expenses 1,005 851 3,022 6,419
Selling, general and
administrative expenses 4,004 4,538 15,474 24,012
Loss on impairment of assets -- 105 -- 2,061
Loss from unconsolidated company 3,586 10,616 5,098 10,616
Operating loss (6,349) (14,003) (11,991) (33,563)
Other expense 75 735 1,112 3,142
Loss before income taxes (6,424) (14,738) (13,103) (36,705)
Provision (benefit) for
income taxes -- (47) -- 6,500
Net loss $ (6,424) $(14,691) $(13,103) $(43,205)
Net loss per share $ (.27) $ (.74) $ (.59) $ (2.48)
Number of shares used in
per share calculation 23,581 19,923 22,199 17,433
Consolidated Balance Sheets
(In Thousands)
September 30, September 30,
1999 1998
Assets
Current assets
Cash and cash equivalents $ 1,670 $ 6,589
Accounts receivable 3,719 3,579
Deferred and refundable taxes 205 208
Other current assets 1,218 749
Total current assets 6,812 11,125
Fixed assets, net 738 1,311
Other assets, net 4,102 5,634
Total assets $ 11,652 $ 18,070
Liabilities and shareholders' equity
Current liabilities
Accounts payable $ 2,568 $ 3,585
Accrued liabilities 1,114 1,527
Deferred revenue 2,073 2,139
Total current liabilities 5,755 7,251
Convertible subordinated debenture -- 4,585
Total liabilities 5,755 11,836
Shareholders' equity:
Common stock 73,340 60,574
Accumulated deficit (67,443) (54,340)
Total shareholders' equity 5,897 6,234
Total liabilities and
shareholders' equity $ 11,652 $ 18,070
* Three months ended 9/30/98 and 9/30/99 are unaudited.
SOURCE: Zitel Corporation
- Daniel |
