Zitel Reports First Quarter Fiscal Year 2000 Results
Strong Sequential Revenue Growth, Narrowed Loss Reported for the Quarter
January 26, 2000 08:02 AM
FREMONT, Calif., Jan. 26 /PRNewswire/ -- Zitel Corporation ZITL today announced results for the first fiscal quarter ended December 31, 1999. The Company booked revenue of $5,520,000, compared to revenue of $5,900,000 for the same quarter of the prior year. Total revenue increased 25% sequentially in the first fiscal quarter, fueled by a 118% sequential increase in software license revenue. Revenue from Datametrics Systems, a wholly-owned subsidiary, was $5,128,000 during the current quarter compared to the prior year's revenue of $5,422,000. Prior year's revenue from Datametrics Systems included $561,000 not related to current business. Net loss for the quarter was $916,000 or $0.04 per share versus a net loss of $2,776,000 or $0.13 per share for the same quarter of the prior year. Weighted average shares outstanding were 24,915,000 in the first fiscal quarter of 2000 compared to 21,378,000 for the first quarter of fiscal 1999.
"I am pleased with the progress achieved by our Datametrics Systems Group in the enterprise performance management software marketplace," stated Asa W. Lanum, Zitel Corporation President and CEO. "The Company received orders from eight end-user customers in excess of $100,000 each. For the remainder of the year, the Company will focus on expanding its enterprise sales channels worldwide to further leverage the e-business opportunity for our real-time, end-to-end performance management software."
The Company received the largest software order in its history from a North American computer manufacturer, encompassing an enterprise end-user software license, a worldwide resale agreement and engineering services. The agreement is for three years with annual renewal options thereafter, and has an estimated value of approximately $9 million during the initial period. Revenue from this contract will be recognized commencing in the second half of fiscal year 2000. $4.4 million of this amount is included in accounts receivable and deferred revenue at December 31, 1999.
The Company acquired Telemetrics Systems AG, its distributor in Switzerland. Additionally, Mr. Joseph Dellinger, previously Vice President of Sales for a major enterprise software security provider, joined the Company as Vice President - North American Sales.
About Zitel Corporation
Zitel Corporation and its Datametrics Systems subsidiary develop and market leading enterprise e-business performance management software. ViewPoint(R) software automatically correlates e-business performance data across the entire enterprise -- as well as from external influences -- in real-time, with a single management view. VisualRoute(TM) and VisualPulse(TM) automatically analyze Internet service levels, connectivity and performance. Using this knowledge, managers can proactively tune business processes to optimize overall e-business performance and assure end-to-end service levels. Datametrics Systems has been delivering performance solutions to customers in over 25 countries since 1980. Visit The E-Business Performance Experts(TM) at www.datametrics.com or www.itperforms.com. More information on the Zitel Corporation is available at www.zitel.com.
This press release contains projections and other forward-looking statements regarding future events or the future financial performance of the Company. These statements are only predictions and actual events or results may differ materially. Refer to the documents the Company 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.
NOTE: Zitel is a registered trademark of Zitel Corporation. Datametrics and ViewPoint are registered trademarks of Datametrics Systems Corporation. VisualRoute, VisualPulse, and The E-Business Performance Experts are trademarks of Datametrics Systems Corporation. All other product names and brand names are trademarks or registered trademarks of their respective holders.
Zitel Corporation
CONSOLIDATED SUMMARY OF FINANCIAL STATEMENTS
(Thousands except per share amounts)
Consolidated Statements of Operations
(In Thousands Except Per Share Data)
(Unaudited)
Three Months Ended
12/31/99 12/31/98
Net sales $ 5,520 $ 5,900
Cost of goods sold 1,842 2,222
Research & development expenses 651 615
Selling, general and administrative expenses 3,851 3,887
Loss from unconsolidated company -- 1,512
Operating loss (824) (2,336)
Other expense 92 440
Net loss $ (916) $ (2,776)
Net loss per share (.04) (.13)
Number of shares used in per share calculation 24,915 21,378
Consolidated Balance Sheets
(In Thousands)
(Unaudited)
December 31, September 30,
1999 1999
Assets
Current assets
Cash and cash equivalents $ 2,364 $ 1,670
Accounts receivable, net 9,797 3,719
Deferred and refundable taxes 203 205
Other current assets 2,596 1,218
Total current assets 14,960 6,812
Fixed assets, net 712 738
Other assets, net 4,112 4,102
Total assets $ 19 ,784 $ 11,652
Liabilities and shareholders' equity
Current liabilities
Accounts payable $ 4,273 $ 2,568
Accrued liabilities 1,561 1,114
Short-term debt 1,128 --
Deferred revenue 7,789 2,073
Total current liabilities 14,751 5,755
Shareholders' equity:
Preferred stock 2,000 2,000
Common stock 71,392 71,340
Accumulated deficit (68,359) (67,443)
Total shareholders' equity 5,033 5,897
Total liabilities and
shareholders' equity $ 19,784 $ 11,652
SOURCE Zitel Corporation
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