Thursday April 17 9:56 AM EDT
Record Revenues Reported by The Network Connection for First Quarter 1997
ATLANTA, April 17 /PRNewswire/ -- The Network Connection, Inc. (Nasdaq:TNCX) (TNCX), an Atlanta-based designer, manufacturer and distributor of
computer networking products that provide digital video/audio on-demand, imaging and multimedia processes, posted a 303% increase in revenues and an 83%
improvement in net loss for the fiscal quarter ended March 31, 1997, over the prior 1996 period. The Company reported revenues of $2,307,816 and a net loss of
$110,528, or 3 cents per share based on 3,185,908 weighted average shares for the fiscal quarter ended March 31, 1997. That compares with revenues of
$571,398 and a net loss of $632,003, or 25 cents per share based on 2,550,000 weighted average shares for 1996.
Wil Riner, Chairman and CEO of TNCX stated, "The Company achieved significant milestones during 1996 and this first quarter of 1997 contributing toward future
revenue growth with: (i) the signing of Siemens AG in September 1996 to a $3 million minimum contract over two years for sales of TrainView(R) and InnView(R)
systems worldwide; (ii) $1.2 million in shipments in 1996 for 80 schools under a South Korean Government School Program with up to 1,700 high schools valued at
up to $25 million to TNCX over 15 months if fully completed and; (iii) an alliance with Lockheed Martin Display Systems to co- produce and market the TNCX
AirView(R) system for interactive In-Flight Entertainment and Cabin Management applications on airplanes.
"In February of this first quarter of 1997, we received and began deliveries on a $2.3 million order to be delivered in 1997 and entered into an OEM agreement with
Advanced Telecommunications Module, Inc ("ATML") for the Cheetah(R) server packaged with asynchronous transfer mode (ATM) switching to be used in
Intranet applications worldwide. We estimate that this alliance will result in orders of $11 million for up to 800 new servers to be delivered over the next 18 months.
In addition we received further orders bringing the firm order value to $5.3 million for the supply of video servers to be used as part of the South Korean
Government School Program for video/audio courseware on demand in all high school media centers. These accomplishments have resulted in firm orders which
exceed our total revenues for 1996 and we believe they will result in higher revenues and earnings for 1997," said Riner.
TNCX, designs, manufactures and distributes the Cheetah(R) family of video server platforms which enable the storage and delivery of video data to local area
networks. Cheetah(R) servers are used to bring interactive, on-demand, full-motion video training, education and entertainment to the networked client computers in
the corporate, home, educational and train, hotel, aircraft, and cruise ship travel related entertainment and transport environments.
Statements in this press release that are not descriptions of historical facts may be forward-looking statements, as that term is defined in the Private Securities
Litigation Reform Act of 1995, that are subject to risks and uncertainties, including economic, competitive and technological factors affecting the Company's
operations, markets, products, services and prices, the failure to execute further definitive orders on favorable terms or at all for the programs identified above, the
failure of the Company to receive sufficient financing to perform under any new contracts, as well as other specific factors discussed in the Company's filings with the
Securities and Exchange Commission. SOURCE Network Connection, Inc. |
