Wednesday June 27, 5:56 pm Eastern Time
Press Release
Winfield Capital Corp. Reports Results for the Year Ended March 31, 2001
WHITE PLAINS, N.Y.--(BUSINESS WIRE)--June 27, 2001--Winfield Capital Corp. (WCAP-Nasdaq National Market) announced today a net loss of $70,593,176 or a basic net loss per share of $13.20 for its fiscal year ended March 31, 2001 versus a net gain of $70,576,818 or a basic net gain per share of $13.36 for its fiscal year ended March 31, 2000.
The net loss in fiscal year 2001 was primarily attributable to unrealized depreciation in the value of loans and investments totaling $69,828,667 compared with an increase in fiscal year 2000 in the unrealized appreciation in the value of loans and investments totaling $42,284,344. Unrealized depreciation in 2001 was principally related to the decrease in the market prices of ten investments in publicly traded portfolio companies, the decrease in fair values of six investments in privately held portfolio companies and unrealized appreciation in the market prices of certain investments in publicly traded portfolio companies being converted into realized gain on the sale of these equities. The loss included a realized net gain on investments of $1,282,344 for fiscal year 2001 (largely attributable to long-term gains on equity investments in portfolio companies and, to a lesser extent, short-term gains on equity investments offset by write-offs) compared to a realized gain of $30,851,848 for fiscal year 2000.
The Company's total investment income for fiscal year 2001 versus fiscal year 2000 increased approximately 35.8% to $1,185,799 from $873,445. The increase in investment income was largely attributable to an increase in interest earned from temporarily invested idle funds of $497,160. This increase in temporarily invested funds resulted from the Company's sale of investments (mostly non-income producing equities) and a decreased level of new investment activity that prevailed in 2001. Operating expenses decreased by $429,468 for fiscal year 2001 compared to the prior fiscal year from $1,902,865 to $1,473,397. This decrease was primarily due to decreases in professional fees (legal-related) and stock record and financial printing costs.
Investments originated during fiscal year 2001 totaled $9,637,953 versus investments originated that totaled $18,624,388 for fiscal year 2000. Certain of the larger investments included: Accent Optical Technologies, Inc., a process control systems supplier to the optoelectronics, wireless and silicon semiconductor industries; Engenia Software Inc., a collaborative services software provider; Evoke Software Corporation, a data management software provider; and Silicon Motion, Inc., a semiconductor supplier for the mobile access device market.
Paul A. Perlin, the Company's Chairman and CEO, commenting on fiscal year 2001 said, ``Despite this year's significant unrealized depreciation on loans and investments, results included a net realized long-term capital gain on a tax basis of $1,220,385 that the Company expects to distribute during calendar year 2001. Management believes that the long-term capital gains generated over the past two fiscal years validate the Company's strategy to assemble a portfolio of investments having the potential over time to substantially enhance net asset value for shareholders.'' He added, ``Both the large decline in value of the Company's investments in fiscal year 2001 and the nearly equally large increase in value in the prior fiscal year reflect the significant volatility in the public equity markets in general, and the high technology sector in particular, over the past two years.''
Winfield Capital is a small business investment company that makes equity investments and loans pursuant to funding programs sponsored by the SBA and is a non-diversified, closed-end investment company that is a business development company under the Investment Company Act of 1940. The Company's common stock is traded on the Nasdaq National Market under the symbol ``WCAP''. For more information, visit Winfield Capital's web site at: winfieldcapital.com.
This press release may contain forward-looking statements. For this purpose, any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, words such as ``may,'' ``will,'' ``expect,'' ``believe,'' ``anticipate,'' ``estimate,'' or ``continue'' or comparable terminology are intended to identify forward-looking statements. These statements by their nature involve substantial risks and uncertainties, and actual results may differ materially depending on a variety of factors. Winfield Capital assumes no obligation to update the information contained in this release.
SELECTED FINANCIAL INFORMATION
Years Ended Mar. 31,
2001 2000
---- ----
Total Investment Income $ 1,185,799 $ 873,445
Net (Loss) Gain $ (70,593,176) $ 70,576,818
Net (Loss) Gain Per Share
Basic $ (13.20) $ 13.36
Diluted $ (13.20) $ 12.09
Weighted Average Number
of Shares Outstanding &
Common Stock Equivalents 5,346,084 5,836,559
Total Assets $ 49,031,295 $ 126,867,621
Cash & Short-term Investments $ 17,855,691 $ 23,314,112
Total Shareholders' Equity $ 23,128,930 $ 93,722,106
--------------------------------------------------------------------------------
Contact:
Winfield Capital Corp., White Plains
Paul A. Perlin, 914/949-2600
Chairman and CEO |
