1st Q results -
NEW YORK, May 23 /PRNewswire/ -- Global Intellicom, Inc. (Nasdaq: GBIT), a
growing national provider of total business systems integration services,
recorded a 38 percent increase in revenues for the quarter ended March 31,
1997 when compared with the same period a year earlier.
However, as a result of costs and expenses related to recent acquisitions,
increased expenses incurred from investment in additional sales, marketing and
administrative personnel and increased competition, the Company incurred a
larger net loss in the most recent quarter than it had in the same period last
year.
The Company's first fiscal quarter is traditionally its softest three
month period in the year. A Company spokesperson reiterated management's
confidence that revenues for 1997 could exceed $100 million, "most of which
would come in the third and fourth quarters of the year."
For the most recently completed quarter, Global Intellicom recorded net
revenues of $11.1 million compared with $8.7 million for the like period in
1996. The net loss rose to $1.7 million or 23 cents a share compared with a
net loss of $151,000 or five cents a share the year before.
The Company spokesperson also said that management expected that for the
year as a whole, Global Intellicom would be profitable.
The upbeat tone of management stemmed, in part from several recent
agreements reached with major systems manufactures.
The Company's recently acquired Speech Solutions, Inc. subsidiary, which
makes tools for voice recognition application, has entered into a joint
marketing agreement with IBM Corp. as the exclusive provider of voice tools to
be used to develop speech related applications using IBM voice-type speech
engine.
Indeed, IBM has publicly suggested that within five years most computer
users will speak into their PC's rather than using a keyboard.
The other major development giving impetus to Global Intellicom's business
outlook is the recently announced deal with Sun MicroSystems. Part of the
agreement makes Global Intellicom's Nevcor subsidiary an authorized Sun
workstations distributor. The second part of the agreement names Global
Intellicom as one of four companies authorized to build Sun's new
technologically advanced work stations that will be sold with Sun support, but
under private label.
Another Global Intellicom subsidiary, Natcom, has also received
certification to be a value-added reseller of Sun's Solaris and Java Work
Stations systems. The addition of Sun products to Natcom, which already has
strategic reseller relationships with such companies as NCR, Hewlett Packard,
IBM and AT&T Paradyne, gives it an opportunity to become a complete Sun
solutions provider.
Both the IBM and Sun transactions will contribute to 1997 results.
Global Intellicom provides total business solutions through its five
wholly owned subsidiaries that manufacture, develop and distribute computer
software, hardware and wireless technology to corporate, government and
educational accounts throughout the United States.
It is also a provider of departmental, company and enterprise wide
client-server computer systems, horizontal and vertical software solutions and
consulting, network and integration systems. Additionally, GBIT provides and
markets speech recognition technologies in the form of tools and software
applications/solutions to both developers, manufacturers and end users and is
a leading supplier of 'any to any' voice data and image solutions to
industries, government and institutions.
All projections are couched by caveats regarding forecasts such as the
general state of the economy, continuing relationships with key vendors,
customers and personnel, technological developments, price competition and
credit availability.
GOBAL INTELLICOM, INC., AND SUBSIDIARIES
Consolidated Statement of Operations
(Unaudited)
For three months ended March 31 1997 1996
Net sales $11,106,730 $8,701,661
Net income (loss) $(1,669,007) $(150,863)
Earnings per share (loss) (23 cents) (5 cents)
Shares Outstanding 7,335,524 3,143,203 |
