News Release
Nuvo Reports FY2000 Q1 Results
Revenues Increase 51% Q1 00 over Q1 99
Managed Networks Increase 30% Q1 00 over Q4 99
OTTAWA, ONTARIO, February 11, 2000 - Nuvo Network Management Inc.
(CDNX:NNM), a leading remote network management services provider, is
pleased to announce its results for the first quarter of fiscal 2000 ended
December 31, 1999.
Revenues for the quarter ended December 31, 1999 were $1,750,667, a 51%
increase over the same period of fiscal 1999 and a 6% increase over the
fourth quarter of fiscal 1999. Nuvo has now recorded nine sequential
quarters of revenue growth since the business was refocused to network
management services in 1997. Recurring revenues represented 78% of sales, up
from 74% in fiscal 1999. Consistent with management's expectations, the
Company experienced a net loss of $296,974 or $(0.004) per share in the
first quarter of fiscal 2000, as compared with a profit of $138,712 in the
same period of fiscal 1999.
"We are very pleased with our financial performance given our objectives of
investing in building infrastructure for rapid growth," said Kevin Vachon,
Chairman and CEO. With our clients and client prospects beyond their Y2K
concerns, we are very excited about accelerated growth for the balance of
fiscal 2000 and beyond."
In addition to meeting its financial targets, Nuvo attained important
operational accomplishments during the quarter, including:
* Increase during the quarter in the number of networks managed from
30 to 39;
* Continued blue-chip customer development from our main channel
partners;
* Focused R&D spending being 6% of sales, resulting in the launch on
January 26th, 2000 of webCenter (being the complete webification of
Nuvo's rNMS Series core services) and new engineering services launched
February 7, 2000;
* Expansion of sales and marketing, with key new hires in the areas of
direct sales, product management, marketing and channel management.
During the quarter, market awareness of remote network management services
continued to grow. In addition to expanded industry coverage, the following
recent statistics further highlight the market opportunity for Nuvo:
* The worldwide market for Managed Network Services (a component of
Nuvo's market) is growing faster than originally projected with
network operations representing the fastest growth portion of MNS, at
58% of a total MNS market of US$4.5 billion by 2002 (Yankee Group
12/99);
* Internet traffic is growing at a rate of 100% every 3 months and
other packet data traffic is growing by 70% annually (AT&T 2/00).
With the explosive growth in corporate data network traffic and the trend to
outsourcing continuing, Nuvo, with its scaleable network management
infrastructure in place, is ideally positioned to exploit this opportunity
in the remainder of fiscal 2000 and beyond.
Nuvo provides remote network management services to enterprises requiring
mission-critical solutions for their complex network infrastructures.
Employing over 80 industry professionals, Nuvo delivers web-enabled, end to
end services for LAN/WAN-based networks and networks of the new Internet
economy. Through channel partners including Cisco, Sprint and IBM, Nuvo
delivers services to Fortune 500 corporations and government departments
located in Canada and the United States requiring global network management
solutions.
For additional information, contact:
Doug Carwardine
Vice President, Business Development
Nuvo Network Management Inc.
Tel: (613) 721-6886, Ext. 117
e-mail: dcarwardine@nuvo.com
www.nuvo.com
The Canadian Venture Exchange has neither approved nor disapproved the
content of this press release.
NOTE: PLEASE SEE OUR WEBSITE FOR FINANCIAL STATEMENTS |
