Results are in: $0.04 EPS.
FREMONT, Calif., Oct. 28 /PRNewswire/ -- Zitel Corporation (Nasdaq: ZITL)
announced revenue of $4,649,000 for the fourth quarter of fiscal 1996 ended
September 30, 1996 versus revenue of $4,008,000 for the same quarter of the
prior year. Current quarter revenue included $2,558,000 of sales-based
royalty revenue versus a royalty payment of $2,475,000 in the same quarter of
the prior year. The net income for the quarter was $276,000 or $0.04 per
share versus net income of $316,000 or $0.04 per share for the same quarter of
the prior year.
For the twelve months ended September 30, 1996, the Company reported
revenue of $23,066,000 versus $23,714,000 for the prior year and net income of
$4,049,000 or $0.52 per share for the year versus net income of $8,526,000 or
$1.12 per share for the prior year. Included in revenue for the year was
royalty revenue of $14,473,000 versus $15,421,000 for the prior year.
"Sequential revenue growth for the fourth quarter was not at our targeted
levels; however, we made significant progress in gaining acceptance of our
CASD(R) product line in the open systems market segment," commented Jack H.
King, President and CEO. "During the quarter, Zitel was awarded a contract
for over a hundred tower units by one of the five largest U.S. insurance
companies. Shipment and installation of these units began during the fourth
quarter and will continue through the second quarter of fiscal 1997.
Additionally, we received a follow-on order from this insurance company, as
well as an initial order from a major communications company. We are
encouraged by this growing interest in our CASD product line."
Mr. King continued, "Royalties from IBM(R) (NYSE: IBM) were down quarter
to quarter. We are withholding judgment regarding implications for the future
since this is historically a lower quarter for IBM and, if IBM has started
transition shipping of the new RAMAC(R) 3, then the December quarter will give
us a better view of the future.
"During the quarter, we were pleased to announce the formation of the
Zitel Solutions Services Division chartered to implement our reseller
agreement with MatriDigm Corporation. Prior to general product availability
from MatriDigm, we have started staffing and training and we are pleased with
the initial interest generated by our account calls," concluded Mr. King.
This news release contains forward looking statements about MatriDigm and
its services that involve substantial risks and uncertainties, including the
risks that the software in development will not be successfully developed,
will take longer to develop than is currently expected, will not have the
functionality currently planned or will have "bugs" or other problems
rendering its commercial sale more difficult or impossible. Actual general
availability may therefore differ materially from that described in this
release.
Zitel Corporation specializes in the design, manufacture and marketing of
high-performance, enterprise-class, storage subsystems for enterprise-wide,
mission-critical, applications which include relational database, batch and
on-line transaction processing. The Company also develops and markets
single-system and multi-system performance measurement and modeling software
used on a variety of UNIX and proprietary platforms to measure the performance
of Client/Server environments. Additionally, the Company's Solution Service
Division is a certified reseller of the MatriDigm Corporation's Year 2000
compliance products and services. Zitel products are offered through systems
integrators, value added resellers and distributors, OEMs and directly to end
users. The Company is headquartered at 47211 Bayside Parkway, Fremont, CA
94538. Telephone: 510-440-9600 or 800-622-5020. FAX: 510-440-9666.
zitel.com. For information on Year 2000 compliance products and
services, call 800-FIND-FIX.
NOTE: Zitel and CASD are registered trademarks of Zitel Corporation. IBM
and RAMAC are registered trademarks of IBM Corporation. All other product
names and brand names are trademarks or registered trademarks of their
respective holders.
Zitel Corporation
Consolidated Summary of Financial Statements
Consolidated Statements of Operations
(In Thousands Except Per Share Data)
Three Months Ended Twelve Months Ended
9/30/96* 9/30/95* 9/30/96 9/30/95
Net sales $ 2,091 $ 1,533 $ 8,593 $ 8,293
Royalty revenue 2,558 2,475 14,473 15,421
Total revenue 4,649 4,008 23,066 23,714
Cost of goods sold 1,811 1,189 6,630 6,807
Research & development
expenses 1,718 1,378 6,551 5,754
Selling, general and
administrative expenses 2,247 1,448 8,002 6,944
Operating income (loss) (1,127) (7) 1,883 4,209
Other income (1,520) (144) (4,645) (262)
Income before income taxes 393 137 6,528 4,471
Provision (benefit) for
income taxes 117 (179) 2,479 (4,055)
Net income $ 276 $ 316 $ 4,049 $ 8,526
Net income per share $ .04 $ .04 $ .52 $ 1.12
Number of shares used in
per share calculation 7,855 7,702 7,813 7,583
Consolidated Balance Sheets
(In Thousands)
September 30, September 30,
1996 1995
Assets
Current assets
Cash and cash equivalents $ 9,216 $11,265
Short-term investments 2,382 0
Accounts receivable 5,542 4,200
Inventories 4,211 2,987
Deferred and refundable taxes 2,224 4,348
Other current assets 480 418
Total current assets 24,055 23,218
Fixed assets, net 2,253 1,419
Other assets, net 4,391 1,569
Total assets $30,699 $26,206
Liabilities and shareholders' equity
Current liabilities
Current portion of long-term debt $ 0 $ 13
Accounts payable 2,066 1,725
Accrued liabilities 1,544 1,511
Total current liabilities 3,610 3,249
Long-term debt 0 0
Shareholders' equity:
Common stock 20,723 19,916
Retained earnings 6,366 3,041
Total shareholders' equity 27,089 22,957
Total liabilities and
shareholders' equity $30,699 $26,206
* Three months ended 9/30/95 and 9/30/96 are unaudited.
SOURCE Zitel Corp.
CO: Zitel Corp.
ST: California
IN: CPR
SU: ERN
10/28/96 06:31 EST prnewswire.com |
