Here are the year end result. Read it and we will all weep...
Proteon, Inc. Reports Fourth Quarter and Full-Year 1997 Financial Results
Company's OpenROUTE(R) Networks Subsidiary Continues to Focus on Growing Market for Internet/Intranet Access Products
February 12, 1998 04:15 PM
WESTBORO, Mass., Feb. 12 /PRNewswire/ -- Proteon, Inc. PTON today reported a net loss for the fourth quarter ended December 31, 1997, of $3,507,000 or $0.23 per share, compared with a net loss of $8,047,000, or $0.52 per share, for the fourth quarter of 1996. The fourth quarter 1997 loss reflects approximately $880,000, or $0.06 per share, of certain adjustments and accruals relating to business operations in the Asia-Pacific region, as well as certain employee incentive retention programs. Net sales for the fourth quarter of 1997 were $5,065,000 compared with $10,043,000 for the fourth quarter of 1996.
For the year ended December 31, 1997, Proteon reported a net loss of $7,847,000, or $0.51 per share, compared with a net loss of $12,014,000, or $0.77 per share, for the year ended December, 31, 1996. Net sales for 1997 were $26,944,000 compared with $45,296,000 for 1996. The balance sheet remains strong with $17,760,000 in cash and no debt.
Daniel J. Capone, Jr., president and chief executive officer, said, "During 1997, we experienced significant growth in OpenROUTE Networks' GlobeTrotter Internet Access products. However, revenue from these products was not yet sufficient to offset the anticipated revenue decline in Proteon's historical business lines.
"During the second half of 1997, we have made significant strides in realigning and strengthening our channel sales strategy to focus on service providers; attracting new sales and marketing executives with experience in these markets; and keeping tight controls on our operating costs. With the future of network computing centered around Internet and Intranet based solutions, our award-winning GT, GTX and Dragon product lines -- coupled with our powerful OpenROUTE software -- position us well to take advantage of this growth opportunity."
In this announcement, under the provisions of the "safe harbor" section of the Private Securities Litigation Reform Act of 1995, Proteon, Inc. makes forward-looking statements that involve a number of risks and uncertainties. Among the factors that could cause actual future results to differ materially are the level of acceptance of Proteon's and OpenROUTE Networks' products in the marketplace; the company's ability to generate revenue across all existing product lines; future revenues generated by the licensing of OpenROUTE software; general competitive pressures in the marketplace; the company's ability to sign agreements with reseller partners including both Premier Access Partner VARs, telcos, and Internet Service Providers (ISPs); the ability to sign OEM agreements; and continued overall growth in the networking industry. Risk factors are listed in the company's annual report, Form 10-K, Forms 10-Q, and other filings with the Securities and Exchange Commission.
About Proteon/OpenROUTE Networks
Products from OpenROUTE Networks, Inc., a Proteon subsidiary, feature the best price performance in their class. Single unit prices for Internet Protocol (IP) connectivity start at only $249 per unit, which includes hardware and software. All Internet Access products come standard with OpenROUTE Networks' data compression functionality. The Company's "ALLWays.Secure"(TM) network security portfolio provides the widest range of integrated network security features for Internet and corporate Intranet applications.
All products also feature OpenROUTE, the company's interoperable, standards-based routing software. This means that Internet Access devices from OpenROUTE Networks are compatible with networking devices from such leading vendors as IBM, Digital, Ascend Communications and Motorola, who have licensed OpenROUTE. All products come standard with the company's "ALLWays.Connected(TM) Guarantee," which means that they are guaranteed to connect to products from Cisco and Ascend and all other suppliers; carry a lifetime warranty; and are offered with a "trade up" support program to provide investment protection. OpenROUTE Networks products can be installed in minutes and are easily maintained and managed from central network sites. For more information, contact OpenROUTE Networks, Inc. at 800-545-7464 or on the World Wide Web at openroute.com or proteon.com.
OpenROUTE, IBM, Digital, Motorola, Cisco Systems, and Ascend Communications are trademarks of their respective organizations.
PROTEON, INC
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three months ended Twelve months ended
Dec. 31, Dec. 31, Dec. 31, Dec. 3l,
1997 1996 1997 1996
Sales:
Product $4,019 $6,818 $22,248 $32,175
Software licensing 139 1,900 895 7,530
Service and other 907 1,325 3,801 5,591
Net sales 5,065 10,043 26,944 45,296
Cost of sales:
Product 2,449 6,368 12,722 20,825
Software licensing --- 260 --- 538
Service and other 770 1,071 2,618 4,307
Cost of sales 3,219 7,699 15,340 25,670
Gross profit 1,846 2,344 11,604 19,626
Operating expenses:
Research and development1,386 2,227 5,987 9,353
Selling and marketing 2,711 3,847 10,703 15,486
General and
administrative 1,418 1,082 3,870 4,590
Restructure Costs --- 3,312 (241) 3,312
Total operating
expenses 5,515 10,468 20,319 32,741
Loss from operations (3,669) (8,124) (8,715) (13,115)
Interest income, net 262 237 1,052 1,261
Loss before income
taxes (3,407) (7,887) (7,663) (11,854)
Provision for
income taxes 100 160 184 160
Net loss $(3,507) $(8,047) $(7,847) $(12,014)
Net loss per common
and common
equivalent share $(0.23) $(0.52) $(0.51) $(0.77)
Weighted average
number of
common shares
outstanding 15,268 15,560 15,301 15,630
PROTEON, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31, December 31,
1997 1996
ASSETS
Current assets:
Cash and cash equivalents $17,760 $23,530
Accounts receivable, net 6,224 7,625
Inventories 5,710 8,737
Deposits and other assets 437 1,085
Total current assets 30,131 40,977
Property and equipment, net 3,272 4,594
Total assets $33,403 $45,571
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $2,292 $3,010
Accrued expenses 4,219 7,370
Total current liabilities 6,511 10,380
Stockholders' equity 26,892 35,191
Total liabilities
and stockholders' equity $33,403 $45,571
SOURCE Proteon, Inc. |
