NEWS;
Tuesday February 1, 8:10 am Eastern Time
Company Press Release
DISC, Inc. Announces Fourth Quarter and Twelve Months Results
MILPITAS, Calif.--(BUSINESS WIRE)--Feb. 1, 2000--DISC, INC. (NASDAQ Symbol: DCSR - news) today announced financial results for the fourth quarter and twelve months ended December 31, 1999.
For the fourth quarter ended December 31, 1999, net sales decreased 10% to $2,505,000 compared to net sales of $2,773,000 reported for the same quarter in the previous year. For the fourth quarter of 1999, the Company reported a net loss of $(495,000), or $(0.13) per share, compared to a net loss of $(296,000), or $(0.08) per share, for the comparable 1998 quarter.
For the twelve months ended December 31, 1999, net sales increased 7% to $9,746,000 compared to net sales of $9,145,000 reported for the twelve months of 1998. The net loss for 1999 was $(2,059,000), or $(0.56) per share, compared to a net loss of $(2,235,000), or $(0.64) per share for 1998.
Commenting on the results, J. Richard Ellis, President and Chief Executive Officer of DISC, Inc., stated, ''During the fourth quarter we continued to see a deferral of spending on new information storage systems by banking customers completing their year 2000 testing activities. With the testing behind us, we expect sales to that market segment to turn around. We anticipate demand for near line storage archive products to experience strong growth this year and we are pursuing opportunities in several additional vertical markets.''
DISC is an industry leader in high capacity automated 5.25-inch and CD optical disk storage libraries. DISC manufactures products ranging in capacity from approximately 150 to over 1,450 cartridges in several models, many of which are field upgradeable to higher capacities. All models share a common architecture and modular design oriented toward high performance and reliability. DISC libraries are sold with system solutions by OEMs, Systems Integrators, VARs and Distributors in North and South America, Europe and the Asia.
With the exception of the actual reported financial results, statements made in this news release are forward looking statements including statements concerning the Company's product leadership and the potential market for the Company's products. The Company's future operating results are uncertain and may be affected by the following factors, among others: the Company's ability to obtain additional financing which we anticipate will be required to continue to finance its operations, rapid technological change affecting the Company's products and markets, dependence on government funding, the existence of significant competition in the markets served by the Company, the inability of the Company to successfully market its products, risks related to the growth prospects of the markets that the Company serves, the Company's dependence on successfully developing, introducing and commercializing new products and developing enhancements to existing products and a number of factors that can introduce variability in the Company's operating results, including the timing of product orders and shipments. Further information on these and other factors is provided in the Company's Annual Report on Form 10-K for the year ended December 31, 1998. All forward looking statements are based on information available to the Company on the date hereof, and the Company assumes no obligation to update such statements.
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DISC INC.
STATEMENT OF OPERATIONS
(unaudited)
Three months ended Twelve months ended
Dec. 31, Dec. 31,
1999 1998 1999 1998
---- ---- ---- ----
Net sales $ 2,505,000 2,773,000 $ 9,746,000 $ 9,145,000
--------- --------- --------- ---------
Cost and expenses:
Cost of sales 1,917,000 1,951,000 7,317,000 6,924,000
Research and
development 257,000 298,000 1,111,000 1,290,000
Marketing and sales 531,000 521,000 2,166,000 2,011,000
General and
administrative 267,000 266,000 1,086,000 1,030,000
------- ------- --------- ---------
2,972,000 3,036,000 11,680,000 11,255,000
--------- --------- ---------- ----------
Loss from operations (467,000) (263,000) (1,934,000) (2,110,000)
Interest expense (28,000) (33,000) (125,000) (125,000)
-------- --------- ---------- ----------
Net loss $(495,000) $(296,000) $(2,059,000) $(2,235,000)
========= ========= =========== ===========
Net loss per share, basic and
fully diluted $ (0.13) $ (0.08) $ (0.56) $ (0.64)
========= ======== ========= =========
Weighted average common
shares 3,702,000 3,695,000 3,700,000 3,515,000
========= ========= ========= ==========
--------------------------------------------------------------------------------
Contact:
Lippert/Heilshorn & Associates
John Nesbett - Investor Relations Contact
212/838-3777, ext. 121
e-mail: jgn@lhai.com
or
DISC, INC.
J. Richard Ellis
President & CEO
408/934-7000
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