DecisionLink Announces Fiscal 2000 Results
LAS VEGAS--(BUSINESS WIRE)--Jan. 3, 2001--DecisionLink Inc. (OTCBB:DLNK) announced audited results for its fiscal year ended Sept. 30, 2000 (Fiscal 2000).
The accounting for the combination of Intrex Data Communications Corp. (Intrex) and FiberChem Inc. (FCI) which occurred on July 27, 2000, requires that the consolidated financial statements for the period ended Sept. 30, 2000, include the results of operations, capital transactions and cash flows for the nine-month period and the two-month period ended Sept. 30, 2000, for Intrex and FCI, respectively.
Disclosure convention also requires comparison of the 2000 period to financial information for Intrex's 12-month period ended Dec. 31, 1999 (Fiscal 1999).
Historically, sales of DecisionLink's products have been to the environmental monitoring marketplace. During the 12 months ended Sept. 30, 2000, the company generated revenues of $1,290,000 from this market that properly do not appear in the consolidated financial statements.
Geoff Hewitt, chairman and chief executive officer, said, "The accounting for the combination of Intrex and FCI results in consolidated financial statements that are not believed to be indicative of expected future results of operations or financial condition, nor are they comparable with previously reported financial information for FCI or Intrex.
"We are changing to a calendar fiscal year effective Jan. 1, 2001, complicating comparisons with previously reported financial information. Where possible, we have attempted to provide as part of our recent SEC filings, known trends, demands, events, commitments and uncertainties that are reasonably likely to have a material effect on future liquidity, capital resources and results of operations."
Hewitt added: "The combination has been accounted for using the purchase method of accounting which created Goodwill totaling $22 million. In addition, $5.5 million of the acquisition cost represented by purchased in-process R&D was recorded as a one-time expense in the quarter ended Sept. 30, 2000. Goodwill is being amortized on a straight-line basis over 15 years.
"At each future balance sheet date, the company will evaluate the recovery of goodwill using factors such as current operating results, projected future operating results and any other material factors that affect the continuity of the business, which may result in a substantial non-cash charge to earnings.
"Finally, the number of shares used in the financial statements to calculate loss per share is a weighted average of 21,320,000 Intrex and FCI shares outstanding for Fiscal 2000, resulting in a larger loss per share than would otherwise be the case. There were 7,568,000 Intrex shares outstanding for 1999, and there were 68,251,557 common shares of DecisionLink outstanding as of Dec. 21, 2000."
The consolidated financial statements as discussed above compare revenues of $215,000 for the 2000 period with no revenues for the previous year and report operating expenses of $1,909,000 for the 2000 period, compared with $677,000 for Fiscal 1999; and report a net loss of $7,683,000 ($0.36 per share) for the 2000 period, compared with a net loss of $658,000 ($0.09 per share) for Fiscal 1999.
DecisionLink's FCI Environmental Group has introduced small, low-cost sensor and communication products that use satellite communications and the Internet as the backbone for data transfer and control in the pipeline leak detection, aboveground storage tank monitoring, oil production, water quality monitoring and industrial wastewater compliance monitoring and control markets.
DecisionLink's Intrex Data Communications Group has developed a wide range of products for monitoring of propane and fuel oil tank levels, pipeline compressors and many other multi-user remote asset monitoring applications for low-cost volume use of satellite communication pathways and the Internet. For more on DecisionLink, visit www.decisionlinkinc.com. |
