Wednesday July 15, 5:51 pm Eastern Time
Company Press Release
SOURCE: RomTech, Inc.
RomTech Announces Unaudited Fiscal 1998 Fourth Quarter and Year-End
Results
- Revenues Increase 112% for the Year -
LANGHORNE, Pa., July 15 /PRNewswire/ -- RomTech, Inc. (Nasdaq: ROMT - news) today announced unaudited results for its fourth quarter and year ended June 30, 1998.
Revenues for the fourth quarter increased 28% to $1,931,000 from $1,507,000 reported for the 1997 quarter. The net loss for the fourth quarter was $(134,000), or $(0.01) per share, versus a net loss of $(294,000), or $(0.05) per share, for the 1997 fourth quarter.
Revenues for fiscal 1998 increased to $9,276,000 from $4,383,000 for fiscal 1997, a 112% increase. Net income for the most recent year was $1,135,000, or $0.12 per share, versus a net loss of $(2,210,000), or $(0.35) per share, for fiscal 1997.
Gerald Klein, President and Chief Executive Officer of RomTech, said, ''We successfully achieved our fiscal 1998 objectives -- doubling revenues and achieving profitability by gaining market share with our Galaxy Series product line. According to PC Data, our market share in the value line segment of the consumer software market increased from 1.6% to 3.6% during fiscal 1998, a 125% increase. Today we are focused on leveraging our 'family friendly' software branding strategy toward increasing worldwide retail and internet sales growth. Our focused business strategy is achieving the financial objectives we established
and, as of today, we believe that we can increase revenues by 50% in fiscal 1999 and double earnings. Additionally, we believe that our new, proprietary Game Master(TM) products should enable us to achieve significant gains in volume and market share in the value-priced segment of the consumer software market in fiscal 1999. In fiscal 1998 we shipped 2,272,000 units of Galaxy Software products generating $8.4 million in revenues versus 515,000 units shipped in fiscal 1997 totaling $1.8 million in revenues which represents an increase of 341% in units and 367% in revenues. In fiscal 1999 our projections are to ship over 4,000,000 Galaxy Software units.'' Mr. Klein added that, ''Every Galaxy Software unit shipped provides customers easy
access to our website, www.romt.com. Our business strategy includes sound tactics for using the Internet to effectively leverage this ability to communicate directly with our customers.''
Mr. Klein said further, ''By all financial measures, fiscal 1998 was a very successful year but it was not without its difficulties. During the fiscal fourth quarter, Joseph A. Falsetti, our former Chairman and Chief Executive Officer, left to pursue other interests and a charge of $225,000 was recognized during the fourth quarter related to his separation costs. We are grateful to Joe for his many contributions to RomTech and we wish him well in all his future endeavors.'' Mr. Klein added that, ''During fiscal 1998 we also recognized charges of approximately $255,000 related to the settlement of the FileABC matter, $75,000 related to the termination of prior marketing agreements and $45,000 related to the shutdown of the company's former San Luis Obispo, CA operations. As we begin fiscal 1999 we currently have over $1 million in cash, $2.6 million in equity and we
are in a much stronger financial position than last year at this time.''
RomTech, headquartered in Langhorne, PA, develops, publishes, markets and resells a diversified line of personal computer (''PC'') software primarily for consumer entertainment and business applications. The Company promotes the Galaxy of Games(TM), Galaxy of Home Office Help(TM) and Game Master(TM) brand names (the ''Galaxy Series'') in order to generate customer loyalty, encourage repeat purchases and differentiate the Galaxy Software products to retailers and
consumers. The Company targets the market of home and small business personal computer users. The Company's sales are primarily made through a large national distributor that sells to large national retail chain stores and on the Internet.
This press release contains certain forward-looking statements, including without limitation, statements regarding the success of
RomTech's Galaxy branding strategy, RomTech's expected revenues and earnings for the 1999 fiscal year, and the success of
RomTech's Game Master products. The actual results achieved by RomTech, and the factors that could cause actual results to
differ materially from those indicated by the forward-looking statements, are in many ways beyond RomTech's control.
RomTech cautions readers that the following important factors, among others, could affect RomTech's actual results and could
cause RomTech's actual results for the 1999 fiscal year, the success of the Galaxy branding strategy and the success of the
Game Master products to differ materially from those expressed in this press release: the allocation of adequate shelf space for
RomTech's products in major chain retail stores; successful sell-through results for RomTech's products at retail stores; the
inability to obtain and/or develop content for its products in a cost effective manner; the continued success of the relationship of
RomTech with its main distributor; the continued expansion of the computer in homes in North America; the ability to deliver
products in response to orders within a commercially acceptable time frame; downward pricing pressure; the timeliness and
success of developing and selling products; the acceptance by the market of the Game Master and other Galaxy products; the
costs of developing, producing and marketing such products; access to distribution channels; consumers' continuing demand for
value-priced software; the renewal of licenses for key software products; competition; and various other factors, many of which
are beyond the Company's control.
RomTech, Inc. Financial Results Table:
Quarter Ended: June 30
Unaudited
1998 1997
Sales $1,931,162 $1,506,975
Net income (loss) $(134,428) $36,705
Accretion of preferred
stock dividend -0- (331,147)
Net loss attributable
to common stock $(134,428) $(294,442)
Weighted average
shares outstanding:
- basic 9,371,200 6,416,863
- diluted 9,371,200 6,416,863
Net loss per share:
- basic $(0.01) $(0.05)
- diluted $(0.01) $(0.05)
Year Ended: June 30,
Unaudited
1998 1997
Sales $9,275,889 $4,382,693
Net income (loss) $1,252,630 $(1,650,925)
Accretion of
preferred stock dividend (117,991) (559,434)
Net income (loss)
attributable
to common stock $1,134,639 $(2,210,359)
Weighted average shares
outstanding:
- basic 8,716,756 6,380,517
- diluted 9,654,606 6,380,517
Net income (loss)
per share:
- basic $0.13 $(0.35)
- diluted $0.12 $(0.35)
SOURCE: RomTech, Inc. |
