Third quarter financials ...
PLYMOUTH, Minn.--(BUSINESS WIRE)--Oct. 21, 1997--Tricord Systems, Inc. (Nasdaq: TRCD), today announced financial results for the third quarter ended September 30, 1997. Revenues for the third quarter were $2,582,000 compared to revenues of $10,571,000 in the third quarter of 1996. Revenues for the nine months ended September 30, 1997 were $10,766,000 compared to the revenues of $41,033,000 for the same period in 1996. Third quarter net loss was $1,014,000 or 8 cents per share compared to a net loss of $6,316,000 or 47 cents per share in the third quarter of 1996. Net loss for the first nine months of 1997 was $10,726,000 or 80 cents per share compared to net loss of $13,597,000 or $1.02 per share or the same period in 1996.
Included in the third quarter net loss is a $350,000 or 3 cents per share charge to general and administrative for the settlement of the Memorex Telex bankruptcy preferential payment claim; a $224,000 or 2 cents per share charge (non-cash) to provision for income taxes for the write-down of a deferred tax asset related to the Company's alternative minimum tax credit carryforwards; and a credit to general and administrative of $367,000 or 3 cents per share for the decrease in the Company's allowance for doubtful accounts related to the Memorex Telex bankruptcy filing.
"Third quarter results are consistent with the Company's expectations and objectives set forth in its transition plan," said John Mitcham, Tricord president and CEO. "We are pleased with the progress made to-date in fiscal management and product development, and we have confidence in our ability to play an important role in the exciting, rapidly-developing market for network-attached storage."
Tricord Systems, Inc. (Nasdaq: TRCD) develops and markets file- intelligent software for the network-attached storage market that facilitates the transparent sharing of data and enables IS organizations to centralize data storage functions and reduce the associated costs.
Tricord is based in Plymouth, MN USA. For more information, call 1-800-TRICORD or 612/557- 9005, or visit us at www.tricord.com.
TRICORD SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
ASSETS
(In thousands) September 30, December 31,
1997 1996
(unaudited)
Current assets:
Cash and cash equivalents $ 3,164 5,711
Accounts receivable, net 1,529 4,636
Inventories 1,917 4,984
Other current assets 229 572
Total current assets 6,839 15,903
Equipment and improvements, net 868 5,717
Other assets 130 318
Total Assets $ 7,837 21,938
LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities $ 3,968 7,763
Stockholders' equity
Common stock 135 134
Additional paid-in capital 77,607 77,522
Cumulative translation
adjustments 78 (256)
Accumulated deficit (73,951) (63,225)
Total stockholders' equity 3,869 14,175
Total Liabilities and
Stockholders' Equity $ 7,837 21,938
TRICORD SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(In thousands,
except per share data) Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
1997(a) 1996(c) 1997(a)(b) 1996(c)(d)
Revenues $ 2,582 10,571 10,766 41,033
Cost of goods sold 1,920 7,543 11,326 29,403
Gross margin 662 3,028 (560) 11,630
Operating expenses:
Research and
development 698 1,885 3,309 5,649
Sales and marketing 530 4,944 4,022 14,787
General and
administrative 386 2,575 1,711 4,977
Nonrecurring items,
net -- -- 864 --
1,614 9,404 9,906 25,413
Operating loss (952) (6,376) (10,466) (13,783)
Other income (expense):
Interest income 45 83 144 319
Interest expense (3) (1) (3) (1)
Other, net 120 (22) (177) (132)
162 60 (36) 186
Loss before income
taxes (790) (6,316) (10,502) (13,597)
Provision for income
taxes 224 -- 224 --
Net loss $ (1,014) (6,316) (10,726) (13,597)
Net loss per share $ ($0.08) ($0.47) ($0.80) ($1.02)
Average common shares
outstanding 13,460 13,392 13,442 13,342
(a) Includes a charge to general and administrative of $350, or
$.03 per share, for the settlement of the Memorex Telex bankruptcy
preferential claim; a charge (non-cash) to provision for income
taxes of $224, or $.02 per share, for the write-down of a deferred
tax asset related to the Company's alternative minimum tax credit
carryforwards; and a credit to general and administrative of $367,
or $.03 per share, for the decrease in the allowance for doubtful
accounts related to the Memorex Telex bankruptcy filing.
(b) Includes a second quarter charge to cost of goods sold of $1,332, or
$.10 per share, for the write-down of obsolete and excess inventory
due to an updated review by the Company of its forecasted usage; a
charge to other expense of $975, or $.07 per share, for the net
value of leasehold improvements written off due to the termination
of the Company's lease at its headquarters facility; a charge to
other expense of $764, or $.06 per share, for the write-off of
equipment based on the Company's updated review of the equipment
required to support the Company's operations; and other income of
$1,000, or $.07 per share, for a server-related software license fee
granted to an OEM.
Includes a first quarter 1997 charge to other expense of $247 or
$.02 per share, for the disposal of certain assets that, due to the
new business model, are no longer required.
(c) Includes a charge to general and administrative of $1,700, or $.13
per share, for an increase in the allowance for doubtful accounts
relating to the Chapter 11 bankruptcy filing by Memorex Telex and a
charge to research and development of $310, or $.02 per share,
related to the acquisition of the assets of RDI Corporation.
(d) Includes a charge to general and administrative of $400, or $.03 per
share, for the expected resolution of an outstanding securities
class action matter.
CONTACT: Tricord Systems Inc., Minneapolis
Jeff Stewart, 612/557-9005
or
Liz Hersey, 612/551-6609
lhersey@tricord.com
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