Here it is:
Global Intellicom's 1997 Revenue Rose 83% On Return To Core Business
Dow Jones Online News, Thursday, April 16, 1998 at 15:39
By Nancy Beiles, Staff Reporter
NEW YORK -(Dow Jones)- A return to its core business helped Global
Intellicom Inc.'s revenue increase 83% last year.
Global Intellicom (GBIT) President and Chief Operating Officer David
Mortman said the company will report 1997 revenue of $51.2 million,
compared with $28.1 million in 1996.
Mortman said discontinuing the company's Nevcor and Speech Solutions
units, which focused on the remote-wireless and speech-recognition
areas, has fostered a leaner and stronger business. Now the company, he
said, has returned to its core strength of providing computer hardware
and software systems and services to a variety of commercial and
government entities.
Exiting the remote-wireless and speech-recognition businesses,
Mortman said, has helped the company reduce overhead and expenses. As a
smaller-sized concern - its market capitalization is about $18 million -
he said it just doesn't make sense for Global Intellicom to move into
businesses that haven't yet matured.
"The question for us became when should we explore that opportunity,
and our belief is that we should only explore those opportunities when
the market is developed," Mortman said.
Although in the longer term, the paring down of its operations is
expected to boost earnings, right now the company is expecting a large
loss due to write-offs associated with the divestiture of the two units.
For the year, the company expects to report a loss from continuing
operations of $1.25 million, or 34 cents a share. In 1996, Global
Intellicom posted a loss of $900,000, or 29 cents a share.
The company expects the benefits of Global Intellicom's slimmed
operations to become more apparent as this year continues, particularly,
toward the end of 1998, when the company expects to post a profit.
Before that happens, though, there will likely be some more red ink.
Norman Muller, Global's chief executive, said the company will likely
post an operating loss in the first quarter of this year due to the
seasonality of its business.
Global Intellicom will release its full-quarterly results before market-open Friday.
- Nancy Beiles; 201-938-5393
Copyright (c) 1998 Dow Jones & Company, Inc.
All Rights Reserved.
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