I/NET Reports Record Third-Quarter
Earnings
KALAMAZOO, Mich., Nov. 2 /PRNewswire/ -- I/NET, Inc. (OTC Bulletin Board: INNI - news) today announced its best-ever third quarter results, driven by strong sales of its web-based software products and growth in e-commerce consulting revenues.
The Kalamazoo, Mich.-based software and solutions provider for the mid-range computing market posted net earnings of $136,287, or $0.01 per share, on net sales of $487,325 in the third quarter of 1999, compared with net earnings of $112,997, or $0.01 per share, on net sales of $455,724 in the same period last year. Net earnings grew 21% versus the year-ago third quarter, reflecting higher revenues and the Company's continued cost- management efforts.
''I am pleased with our results, which represent the second-best quarter of profitability in our six-year history as a public company,'' said Stephen J. Markee, president and chief executive officer of I/NET. ''As expected, our e-commerce consulting assignments made a positive contribution to profitability in the quarter, and we are on track to show steady growth in the consulting area during
the fourth quarter. More importantly, we had our best quarter of software sales this year, due primarily to strong orders for our Webulator software, which translates IBM AS/400 legacy products for transportability over the Internet. This sales momentum has put us in strong position to maximize the recent launch of our new software for web-enabling AS/400 reports: the Net Print/400.''
In September, I/NET announced the release of Net Print/400, a new server- based software package that allows AS/400 users to view, download and print files at workstations over intranets, extranets and the Internet. A 30-day trial version of Net Print/400 can be downloaded from the I/NET website (www.inetmi.com ).
Markee continued: ''Initial customer response to the Net Print/400 software has been good, and we expect this new product will make a modest contribution to revenues in the fourth quarter. Additionally, Net Print/400 is re-energizing our distributors by giving them an opportunity to sell new and existing customers other web-based products such as the Webulator, Commerce Server and Merchant programs.''
Markee added that I/NET had recently reached an agreement with General Business Services Co., Ltd. to distribute its software products in Japan. GBS's managing director is Hiroaki Ogura.
''Our relationship with General Business Services, Ltd. provides I/NET with increased presence in Japan, which represents approximately 12 percent of the installed base of AS/400 computers worldwide,'' Markee said.
Commenting on the progress of the Cayman Islands' SEGOES project, I/NET Founder and Chairman James C. Knapp said: ''The growth rate in trading has been increasing steadily since the launch in March. Each month sets a new record for executions using the SEGOES system. The average trading account balances are higher than we expected and much higher than many onshore trading systems. The addition of real time pricing for fixed income products, due in December, and two new sales representatives to increase the rate of bringing on new accounts, will only add to the positive reaction the system is receiving. As stated earlier, the system should begin to contribute to earnings in the fourth quarter.''
Established in 1982 as a contract software development firm, I/NET has been a pioneer in the areas of digital imaging, voice recognition and multimedia. The Company currently develops Internet computer systems and software for the IBM AS/400 midrange computers. The Company also
provides web site consulting as well as services to deliver secure financial transactions over the Internet.
This news release contains forward-looking statements that are made pursuant to the ''safe harbor''provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, and actual results may differ substantially from these statements.
THREE MONTHS ENDED
9/30/1999 9/30/1998
REVENUES $487,325 $455,724
COST OF REVENUES $180,021 $168,335
GROSS PROFIT $307,304 $287,389
S,G&A $159,519 $156,754
EARNINGS FROM OPERATIONS $147,785 $130,635
INTEREST EXPENSE $11,498 $17,638
NET EARNINGS $136,287 $112,997
EARNINGS PER SHARE $0.01 $0.01
NINE MONTHS ENDED
9/30/1999 9/30/1998
REVENUES $1,381,874 $1,338,856
COST OF REVENUES $635,188 $652,740
GROSS PROFIT $746,686 $686,116
S,G&A $458,815 $391,797
EARNINGS FROM OPERATIONS $287,871 $294,319
INTEREST EXPENSE $40,555 $58,696
NET EARNINGS $247,316 $235,623
EARNINGS PER SHARE $0.01 $0.01
SOURCE: I/NET, Inc. |
