AXCESS Continues Strong Revenue Growth -- Company Reports Fourth Quarter Results
DALLAS--(BUSINESS WIRE)--March 23, 2000--AXCESS Inc. (Nasdaq:AXSI - news) announced today fourth quarter 1999 revenues rose 66% from the third quarter 1999, increasing from $422,749 to $700,927.
The year 1998 and the first half of 1999 were a development period for the company, following the sale of its laser printing business. For the year ending 1999 revenues totaled $1,246,880. There were no sales from continuing operations in 1998.
With the purchase of Prism Video, Inc.'s digital video technology in July of 1999, AXCESS continues to develop and provide network-based solutions for bettering the utilization of corporate assets to improve operations productivity, physical security, asset management, manufacturing logistics, enterprise resource planning (commonly referred to as ERP), and financial reporting. The company now offers a unique, low cost system to locate and track assets and corporate activity enterprise-wide using the LAN network or the Internet. The system delivers automated time and attendance data collection, hands-free personnel and vehicle access control to gates and facilities, asset protection, remote facility management, and video supervision directly to the desktop.
AXCESS' products include ActiveTag(TM), a multi-use system utilizing hands-free, long-range RFID (radio frequency identification) technology to track and monitor people, assets, inventory and vehicles. The Prism Video family of products uses digital video compression technology for enterprise multi-media transmission and digital recording. AXCESS' products incorporate the company's patented technologies in wireless, automatic identification and multi-media.
On March 3rd, the company announced a strategic investment from incuVest LLC, in part to develop an ``e-supervisor' Internet portal product using its patented technologies and desktop software. The browser application delivers real-time asset and video information from the enterprise to managers, along with on-demand access to stored asset and video data. The investment will also be used to expand the markets for the company's products. The company plans to close the incuVest, LLC investment by March 31, 2000 and anticipates it will continue to rely on outside sources of capital to fund operations and research and development.
``We are very pleased with our continued sales growth. With the recent introduction of our new products, LANcorder(TM), LANconnect(TM) and ActiveTag(TM), we continue to be on the forefront of networked-based solutions for people, asset and inventory management. While serving our core security industry customers with networked-based solutions, our new products give us entry into much larger markets including general management, logistics, and enterprise resource planning,' commented Allan Griebenow, president and ceo of AXCESS Inc.
Net loss for the quarter ending December 31, 1999 totaled $3.9 million or $1.19 per basic and diluted common share, compared to a net loss of $5.5 million or $1.98 per basic and diluted common share, for the same quarter a year ago.
The net loss for the year ending December 31, 1999 totaled $7.4 million or $2.36 per basic and diluted common share, compared to a net loss of $17.0 million or $6.32 per basic and diluted common share, for the same period a year ago.
For more information on AXCESS' products, see the company's web site at www.axcessinc.com.
AXCESS Inc., headquartered in Dallas, Texas, provides network-based system solutions to the enterprise using patented technologies in wireless, automatic identification and multi-media for improving operations productivity, physical security, asset and inventory management, and ERP. Products include hands-free, long range RFID (radio frequency identification) technology used to track and monitor people, assets, inventory and vehicles as well as patented digital video compression technology for enterprise multi-media transmission and digital recording.
Tables to Follow-
This press release includes ``forward-looking statements' within the meaning of the ``safe-harbor' provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the company to differ materially from the results expressed or implied by such statements, including general economic and business conditions, conditions affecting the industries served by the company and its subsidiaries, conditions affecting the company's customers and suppliers, competitor responses to the company's products and services, the overall market acceptance of such products and services, access to capital and other factors disclosed in the company's Annual Report on Form 10KSB for the year ended Dec. 31, 1998 and all of the company's subsequent Quarterly Reports on Form 10QSB through December 31, 1999, especially in the ``risk factors' sections of these annual and quarterly reports. Accordingly, although the company believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct.
AXCESS INC.
CONDENSED BALANCE SHEETS
Assets December 31, 1999 December 31, 1998
------ ----------------- ------------------
Current assets:
Cash and cash equivalents $ 69,450 $ 1,575,429
Note receivable from
stockholder -- 1,030,624
Accounts receivable, net 459,654 30,987
Inventory 845,400 256,216
Prepaid expenses and other 695,334 160,087
----------------- ------------------
Total current assets 2,069,838 3,053,343
----------------- ------------------
Net assets of
discontinued operations -- 3,186,253
Note receivable from
stockholder 3,902,375 --
Property, plant and
equipment, net 544,441 574,499
Purchased technologies 6,043,142 1,714,449
Other noncurrent assets -- 542,804
----------------- ------------------
$ 12,559,796 $ 9,071,348
----------------- ------------------
Liabilities and Stockholders' Equity
------------------------------------
Current liabilities:
Notes payable to
stockholders $ 980,000 $ 1,966,900
Notes payable 22,309 90,882
Accounts payable 447,889 466,940
Accrued liabilities 1,242,098 2,466,341
----------------- ------------------
Total current liabilities 2,692,296 4,991,063
Notes payable, long-term 3,259,027 535,205
Notes payable to
stockholders 2,662,972 1,470,000
----------------- ------------------
Total liabilities 8,614,295 6,996,268
----------------- ------------------
Stockholders' equity:
Convertible preferred stock 33,598,919 27,179,880
Common stock 32,984 28,794
Nonvoting convertible
common stock 1,125 1,125
Paid-in capital 61,387,968 58,515,848
Accumulated deficit (91,075,495) (83,650,567)
----------------- ------------------
Total stockholders' equity 3,945,501 2,075,080
----------------- ------------------
$ 12,559,796 $ 9,071,348
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AXCESS INC.
CONDENSED STATEMENTS OF OPERATIONS
Years ended December 31, 1999 and 1998
December 31, 1999 December 31, 1998
------------------- ------------------
Sales $ 1,246,880 $ 43,146
Cost of sales 756,191 4,298
------------------- ------------------
Gross profit 490,689 38,848
Operating expenses:
Research and development 1,733,119 2,939,107
General and administrative 2,639,166 4,384,513
Selling and Marketing 2,560,739 633,277
Depreciation and
amortization 957,565 781,243
------------------- ------------------
Operating expenses 7,890,589 8,738,140
------------------- ------------------
Loss from operations (7,399,900) (8,699,292)
Other income (expense) 1,291,332 (510,936)
------------------- ------------------
Loss from continuing
operations (6,108,568) (9,210,228)
Income (loss) from
discontinued operations 1,708,545 (6,248,828)
------------------- ------------------
Net loss (4,400,023) (15,459,056)
Preferred stock dividend
requirements (3,024,905) (1,500,422)
------------------- ------------------
Net loss applicable to
common stock $ (7,424,928) $ (16,959,478)
=================== ==================
Basic and diluted net
loss per common share:
Continuing operations $ (2.90) $ (3.43)
Discontinued operations $ 0.54 $ (2.33)
Net loss $ (2.36) $ (6.32)
Weighted average shares 3,146,846 2,681,456
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Contact:
AXCESS Inc., Dallas
James R. Craig, 972/407-6080 |
