FastComm (FSCX) reports record revenue for fiscal year 1997
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STERLING, Va.--(BUSINESS WIRE)--June 30, 1997--FastComm Communications Corp. (NASDAQ:FSCX) today reported results for its fiscal year ended April 30, 1997. Revenue set a record at $11.2 million, up 12% from $10.0 million in the previous year with the Company generating a profit in the fourth quarter ($.01 per share). The net loss for the year narrowed to $595,000 ($.06 per share) from $630,000 ($.07 per share) in fiscal year 1996.
``I'm very pleased to report this fiscal year ended with record revenue,'' said Peter Madsen, FastComm president. ``But I am disappointed with the year's operating results. As reported throughout the last twelve months, the Company continues to strive for consistent revenue growth and profitability. This year we strengthened our sales and marketing team, expanded our distribution channels and introduced additional product capabilities to appeal to a wider market. The Company acquired Comstat Datacomm Corporation in January, 1997, which further broadened our Legacy-to-LAN offerings in the banking arena and favorably affected operating results in the fourth quarter. We extended our international presence with the establishment of a sales office in Australia for the Pac Rim, an office in Miami for Latin America and the Caribbean, and we will establish a presence on the European continent this July. To ensure adequate working capital for our expansion plans, the Company raised $5 million through a private placement of convertible debentures.''
Sales & Marketing
The Company enhanced its sales and marketing force significantly during the fiscal year. Several seasoned executive managers were recruited to lead the worldwide sales and marketing push. A core team of successful sales and marketing professionals were hired to fill key positions in Major Accounts, Product Marketing, and as Regional and International Sales Directors. Each new person brought at least a decade of industry experience and contacts in the North American and International arenas. Two of these new people were focused on the fast-growing markets in Latin America and the Pacific Rim. After the end of the fiscal year, a third experienced professional was hired to head up the company's European sales and marketing.
Distribution Channels
The Company signed a flagship distribution agreement with Alcatel Data Networks in July 1996. ADN has worldwide distribution rights for FastComm products under the ADN label. ADN finished its internal training and product roll-out in December 1996, and since that time has bid FastComm product valued in excess of $20 million to various existing and new prospective customers. Initial orders received from ADN shipped during fiscal 1997.
Additional distributors were signed during the year for the individual markets in countries around the world. Key alliances and partnerships were signed or renewed, such as with Diebold, the leading maker of automated teller machines, and a systems integrator for banks and financial institutions. Other ongoing alliances and partnerships include GTE, Unisys, and Nynex. The company continues to recruit new alliances and partnerships and expects to make additional announcements in the coming months, similar to those announced recently: Garnet of Korea ($3.5M multi-year agreement) and ETEK for Central and South America, and the Caribbean.
Increased Market Share
Expanding distribution has contributed to expanded market share, as reported by the Yankee Group. For the second year, FastComm ranked second worldwide in Frame Relay Access Device (FRAD) ports shipped, with its share increasing by 2%, from 16% to 18%.
New Product Features
The Company introduced a number of industry leading features during the fiscal year, receiving coverage in major industry publications.
FastComm was first to demonstrate a FRAD with an integral HDSL interface, demonstrating the viability of Frame Relay and other services over Digital Subscriber Line technology. The Company's VoiceFRAD( product began volume shipments; the product received an Editor's Choice designation from Teleconnect Magazine for exemplary voice quality. The Company's new MaximumPRIORITY(TM) and FastRATE(TM) software features were released to provide the best performance for multiple application/multiple traffic stream network access, a necessity for businesses today. These features, along with managed DSU/CSU options, cement the Company's products as the ``best of breed'' for Managed Network Services. Enhancements in SNA support shipped during the year brought FastComm FRADs to a leading position in the market for dedicated access to IBM mainframes and AS/400 computers. Dial up and Dial Backup options based on V.35/56K modems and ISDN were introduced, with resulted in volume orders. WEB.router( Internet access product targeted to business and the SOHO market. Shipments are scheduled to begin in the first quarter of fiscal 1998.
Acquisition
Comstat Datacomm Corp. was acquired in January, 1997, and will operate as a product division, based in the Atlanta, Georgia area. This acquisition will add Legacy-to-LAN router technology to FastComm's existing product line, as well as provide additional protocol expertise. Comstat has an existing customer base of banking, financial services and manufacturing customers.
Financing
A private placement of convertible debentures brought $5 million in cash onto the balance sheet of which $3 million closed as of April 30, 1997 and $2 million closed in May, 1997, subsequent to year end. The Company will convert the debentures to preferred stock when this new class of stock is approved at the next annual shareholders meeting. Holders of the preferred shares will have the option to convert to common stock.
For more information, or to request a data sheet of any FastComm product, phone the Company at 703-318-7750; fax to 703-787- 4625; E-mail to info@fastcomm.com; or visit FastComm on the World Wide Web at fastcomm.com.
Forward looking statements are made in this release pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward looking statements are subject to risks and uncertainties, including, without limitation, the timing of new announcements or introductions by the Company and its competitors, the hiring and retention of key employees, competitive pricing pressures, dependence on third party for components and products, and general economic conditions in the United States and international markets and the risk factors detailed from time to time in the Company's periodic reports and registration statements filed with the Securities and Exchange Commission.
FastComm Communications Corp. (FSCX, NASDAQ) designs, manufactures, and sells access products for public and private digital networks. Its products include Packet and Frame Relay concentrators, FRADs, and WEB.router(tm) Internet access routers; T-1/E-1 ATM network access equipment; Frame Relay testers to speed installations; leased line and Switched 56 CSU/DSUs; SuperView(tm) data switches for managing multiple remote devices; and a family of high speed data compressors. FastComm, stylized logo, WEB.router, and SuperView are trademarks of FastComm Communications Corp. All rights reserved. All other trademarks are property of their respective owners. |
