Randi,
Scruggs one of the founders of the company/ Glen West Inventor.
Is this the press release you mean?
Sandra
Monday August 17, 11:50 am Eastern Time
Company Press Release
Celerity Systems Announces Second Quarter
Results
Focuses on New Digital Set Top Box
KNOXVILLE, Tenn.--(BUSINESS WIRE)--Aug. 17, 1998--Celerity Systems Inc. (Nasdaq:CLRT - news)
today announced its results for its second quarter ending June 30, 1998.
The Company reported sales of $0 for the quarter and $723,000 year to date of its Interactive Video Services
products, while the CD ROM software business, formerly reported as an operating division but now accounted
for as a discontinued operation, had sales of $280,000 for the quarter and $327,000 year to date.
The Company also announced a second quarter loss of $1,754,000 or, $0.43 per share, and a net loss of
$3,583,000 for the six months year-to-date, or $0.87 per share. This was compared to a new loss of
$2,613,000 for the second quarter of 1997, $1.44 per share, and a net loss of $3,964,000 for the six month
period ended June 30, 1997, or $2.18 per share.
''Although we are disappointed with our second quarter sales results, Jim Fultz, our VP of Sales and Marketing,
and his team have done a great job filling the pipeline,'' said Ken Van Meter, president and CEO of Celerity.
''We all knew selling leading edge products and services to large companies in our key markets--international,
telcos, cable companies, hospitals, universities, and the hospitality industry--would require some solid ground
work, which takes time. But we are also confident that our hard work and persistence will pay off, and soon
expect to see the results.''
Van Meter added that he is particularly pleased with the strong marketplace acceptance of Celerity's new T
6000 digital set top box, whose fast processor, extensive interfaces and robust graphics make it one of the
premier set top boxes available today. Development of the T 6000 is in its final stages, Van Meter said, and all
activities are on track to begin assembly line production on September 30 at the Taylor-White plant in
Greeneville, Tennessee.
''We have pushed hard to make the T 6000 the most robust product on the market, and the customers are
recognizing that added value,'' Van Meter said. ''We believe this recognition and response will accelerate the
sale of our servers, and in fact any standards-compliant servers made.''
Commenting on the overall status of the Company at year's mid point, Van Meter said, ''We continue to make
excellent progress. In addition to the introduction of the T 6000 we have made additional improvements to our
CTL 9000 digital video server, increasing its capacity by 50 percent per node, as well as dramatically improving
its stability, which was already excellent. Probably the only area where we are seriously behind is hiring key staff,
and that has been placed on hold pending revenues from anticipated upcoming sales.''
The Company also announced that a founder and Director of the Company, Dr. Fenton Scruggs, has made
available a personal line of credit of up to $600,000 to assist the Company in short term cash requirements. The
funds, if required, are to be repaid upon collection of receivables from new sales.
''The keys to our success are continuing to press hard to close new sales and to introduce the T 6000 digital set
top box on time and with all the planned functionality,'' said Van Meter, ''and we have the right people to do it.''
Celerity is a leading worldwide manufacturer of digital video servers and digital set top boxes for the interactive
video services industry, and has 14 systems deployed in Korea, China, Taiwan and Israel. Through strategic
relationships with companies including Nortel, Cisco, Fore Systems, and Minerva, the Company also offers
end-to-end interactive video systems, including services such as system integration, digital encoding, and digital
authoring. The Company is headquartered in Knoxville, Tennessee, USA.
Contact:
Janel Lanahan, 423/584-0550 |
