Network Imaging Reports Quarterly Results; Sales Increase from $5.5 Million to $6.2 Million
HERNDON, Va., April 22 /PRNewswire/ -- Network Imaging Corporation (Nasdaq: IMGX - news) today announced financial results for the quarter ended March 31, 1998. Sales for the first quarter of 1998 were $6.2 million compared to $5.5 million in the first quarter of last year.
According to Jim Leto, chairman and chief executive officer, ''The Company had targeted first quarter revenues to exceed $7.0 million and approach the record sales of $7.4 million generated in the fourth quarter of 1997. We are disappointed that revenues did not meet our expectations as outlined in our year-end conference call with investors in February.
''If the software license agreement with Warga Media of Malaysia, announced earlier today, had been signed prior to March 31, the Company's quarterly revenues would have exceeded $7.0 million and kept us on track with our target,'' he continues. ''Although we did not reach our first quarter goal, I have said before that the timing of a large contract can greatly influence our revenues, and that's exactly what happened here.''
As a result of the contract slippage and revenue shortfall, the net loss for the first quarter of 1998 was below expectations but represented an improvement over last year's first quarter. The net loss was $2.8 million, or $0.10 per share, in the first quarter of 1998 versus a net loss of $3.4 million, or $0.14 per share, for the first quarter of 1997.
''I remain confident in the potential of our market and in the strength and vitality of our core products,'' notes Leto. ''We believe that the recently awarded patent and an imminent patent for our technologies, as well as the launch of our next-generation product suite at the Association for Information and Image Management (AIIM) show next month, will solidify our reputation for product innovation.
''It's clear, however, that while we took numerous actions in 1997 to restructure the company, reduce costs and improve the balance sheet, we need a dramatic concentration on top-line growth and actions to accelerate our revenues and further streamline costs. We are working hard to improve the efficiency of our sales and marketing organization, not only in expanding the backlog of new business opportunities and widening our distribution channels but also in closing the outstanding deals.''
The Company will host a conference call for investors to review the financial and operational highlights for the quarter. The call is scheduled for 11 a.m. Eastern time on Thursday, April 23. The conference call phone number is 703 925-2445.
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