Syncronys Softcorp Announces ThirdQuarter Results
May 15, 1998 06:52 PM
CULVER CITY, Calif.--(BUSINESS WIRE)--May 15, 1998--Syncronys Softcorp SYCR Thursday announced its operating results for the third fiscal quarter ended March 31, 1998.
For the quarter ended March 31, 1998, the company reported a net loss of $2.4 million, or $0.09 per share, on revenues of ($0.3) million. This compares with net income of $0.4 million, or $0.02 per share, on revenues of $3.2 million during the same quarter of the previous year.
For the nine months ended March 31, 1998, the company reported a net loss of $5.8 million, or $0.23 per share, on revenues of $0.7 million. This compares with a net loss of $3.4 million, or $0.18 per share, on revenues of $4.0 million during the same period the previous year.
During the quarter the company recognized substantial sales returns, allowances and price protection due to lower than anticipated sell-through of the company's products to consumers and its OEM partners. This reduced revenues for the quarter by approximately $0.8 million.
The company also noted that as of March 31, 1998 there was an outstanding balance of $0.1 million remaining from the approximately $15 million convertible debenture issue completed in August 1996.
Daniel G. Taylor, chairman, said: "We have announced UpgradeAID 98, a focused utility which eliminates anxiety of upgrading to Windows 98, and Rewind, a completely automatic data safety utility which also supports Windows 98 and NT. These are the second and third products from the line of products we have in development that derive from our proprietary SFS - Smart Files System technology.
"We believe that both of these products have a great upside -- our focus this quarter is in launching UpgradeAID 98 and Rewind to realize this upside".
Concurrently with the above, management continues to focus on expanding the company's international re-publishing sales model, expediting the implementation of its marketing plans for the new product launches and continuing to refine the cost-control measures it recently has put in place.
The company plans a conference call for registered brokers and analysts only on Monday, May 18 at 7:30 a.m. Pacific Daylight Time. Call H&N Financial Communications, Jim Kaufman at 805/493-9273 to register for the conference.
With headquarters in Culver City, Syncronys Softcorp, whose mission is to create software to "synchronize man and machine," is the exclusive publisher of the SFS - Smart Files System technology. For more information on Syncronys, or to receive future news releases electronically, visit Syncronys' Web site at www.syncronys.com.
Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in such forward-looking statements, including, but not limited to, the company's dependence on the timely development, introduction and customer acceptance of products, the impact of competition and downward pricing pressures, the ability of the company to reduce its operating expenses and raise any needed capital, the effect of changing economic conditions, risk in technology development, and the effects of outstanding litigation.
SYNCRONYS SOFTCORP
Statements of Operations
(unaudited)
Three Months Ended
March 31,
1997 1998
Net revenues $ 3,231,415 $ (309,106)
Cost of revenues 881,083 58,693
Gross profit (loss) 2,350,332 (367,799)
Operating expenses:
Research and development 527,367 135,638
Marketing and selling 878,145 1,072,270
General and administrative 705,215 788,176
Total operating expenses 2,110,727 1,996,084
Operating profit (loss) 239,605 (2,363,883)
Other income (expense):
Interest income 39,042 9,394
Interest expense (178,201) (34,344)
Amortization of discount on
convertible debentures charged to
interest expense -- (31,110)
Other 290,422 1,524
Total other income (expense) 151,263 (54,536)
Income (loss) before income taxes 390,868 (2,418,419)
Income taxes -- --
Net income (loss) $ 390,868 $ (2,418,419)
Basic and diluted net earnings
(loss) per share $ .02 $ (.09)
Number of common shares used in
computation of net earnings
(loss) per share 19,307,892 25,360,768
-0-
SYNCRONYS SOFTCORP
Statements of Operations
(unaudited)
Nine Months Ended
March 31,
1997 1998
Net revenues $ 3,964,627 $ 714,674
Cost of revenues 1,026,661 473,707
Gross profit 2,937,966 240,967
Operating expenses:
Research and development 1,736,752 562,386
Marketing and selling 2,410,777 2,650,977
General and administrative 1,906,421 1,819,958
Total operating expenses 6,053,950 5,033,321
Operating loss (3,115,984) (4,792,354)
Other income (expense):
Interest income 193,457 42,913
Interest expense (771,885) (140,304)
Amortization of discount
on convertible debentures
charged to interest expense (621,862) (464,208)
Income from insurance settlement 750,000 --
Write-off of investment in Veritas
Technology Solutions Ltd. -- (456,771)
Other 154,578 1,524
Total other expense (295,712) (1,016,846)
Loss before income taxes (3,411,696) (5,809,200)
Income taxes -- --
Net loss $ (3,411,696) $ (5,809,200)
Basic and diluted net loss per share $ (.18) $ (.23)
Number of common shares used in
computation of net loss per share 19,307,892 25,360,768
-0-
SYNCRONYS SOFTCORP
Balance Sheet
(unaudited)
March 31, 1998
Assets
Current assets:
Cash and cash equivalents $ 542,014
Trade accounts receivable, net 231,637
Inventories, net 250,372
Other receivables, net 296,060
Prepaid expenses and other current assets 199,115
Total current assets 1,519,198
Property and equipment, at cost, net 118,785
Amounts due from related
parties, principally officers 79,500
$1,717,483
Liabilities and Stockholders' Deficit
Current liabilities:
Trade accounts payable $ 2,580,876
Accrued expenses 1,195,401
Loan payable 1,043,521
Total current liabilities 4,819,798
Convertible debentures 120,077
Stockholders' deficit:
Preferred stock, $.001 par value.
Authorized 10 million shares;
2,000 shares of Series A Convertible
issued and outstanding 2
Common stock, $.0001 par value.
Authorized 75 million shares;
25,360,768 shares issued and outstanding 2,536
Additional paid in capital 21,050,756
Accumulated deficit (24,275,686)
Total stockholders' deficit (3,222,392)
$1,717,483
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