Are we about to be rewarded for our patience??
Wednesday October 21, 8:33 am Eastern Time
Company Press Release
Citadel Technology Reports 212% Increase in Sales
for Second Quarter
Company Projects Record Results for Current Fiscal Year
DALLAS--(BUSINESS WIRE)--Oct. 21, 1998-- Citadel Technology, Inc. (OTCBB: CITN - news) today announced results
for the second ended August 31, 1998.
Gross sales for the quarter were $1,129,078 an increase of $779,008 or 212% over gross sales of $350,070 for the quarter
ended August 31, 1997. The Company reported net sales of $2,111,563 for the six month period ended August 31, 1998, an
increase of $1,273,145 or 151.9% over net sales for the same period last year. The Company reported an operating loss after
depreciation, amortization and extraordinary expenses of $704,184 or (0.03) per share for the quarter ended August 31, 1998
versus an operating loss after depreciation, amortization and extraordinary expenses of $935,236 or (0.06) per share for the
quarter ended August 31, 1997. The Company reported an operating loss after depreciation, amortization and extraordinary
items of $548,186 or (0.02) per share for the sixth month period ended August 31, 1998 versus an operating loss after
depreciation, amortization and extraordinary items of $1,796,355 or (0.12) per share for the sixth month period ending August
31, 1997.
President and CEO Steven B. Solomon said, ''Our sales and product recognition in the marketplace continue to develop. The
necessity for the technology that Citadel has developed is growing as awareness increases. Citadel products target needs in the
marketplace that we feel no other company is addressing. We continue tracking for a record year.''
Solomon continued, ''As recently as last week, the Company announced the agreement with Miami Dade County Schools, the
fourth largest school district in the country. Our products are starting to become the standard in education. We are now
expanding this awareness to corporate America.''
Citadel Technology Inc. is a developer and marketer of computer software products including security and management utilities
for networks and personal computers. The Company's products are designed to secure and manage personal computers (PCs)
and local area networks (LANs) and enable network administrators to more efficiently manage the networks. Company
products are designed to reduce client costs, improve the accuracy of clients' information, maintain the operation of the
network, secure the network from fraud or unauthorized use, and generally enable the administrator to devote more time to
improving service to the network rather than focusing on operational details.
For more information on Citadel Technology products, visit the Company's homepage at citadel.com. For
information on purchasing products, contact the Company directly by writing or calling: Citadel Technology, 3811 Turtle Creek
Blvd., Ste. 600, Dallas, TX 75219; phone 214/520-9292, fax 214/520-9293. For media or investor relations contact: The
Investor Relations Group at 212.664.8489.
The above statements are not strictly historical facts and include forward looking statements that involve a number of risks and
uncertainties. The actual results of the future events described in such forward-looking statements could differ materially as a
result of, among other things, the following: integration of acquired technology and companies, transition of selling and
distribution methods, the availability of capital on terms acceptable to the Company, general economic conditions, competition,
the market for the network software products, software development costs and possible future litigation, as well as the risks and
uncertainties discussed in the Company's public reports and filings and public statements.
Citadel Technology Inc.
Consolidated Statement of Operations
Three months ended Six months ended
August 31 August 31
1998 1997 1998 1997
Gross Sales $1,129,078 $350,070 $2,205,504 $ 848,138
Less returns 51,760 3,976 93,991 9,770
and allowances
Net Sales 1,077,318 346,094 2,111,513 838,368
Cost of Sales 60,912 14,375 131,243 23,786
Gross profit 1,016,406 331,719 1,980,270 814,582
Operating Expenses
Research and 146,609 67,215 251,333 217,737
development expenses
Selling and 958,904 303,760 1,430,298 611,387
marketing expenses
General and 426,152 426,570 781,491 1,010,408
administrative expenses
1,531,665 797,545 2,463,122 1,839,532
Operating income (loss)
before depreciation
and amortization (515,259)(465,826) (482,852) (1,024,950)
Depreciation and 371,491 348,152 723,917 622,328
amortization expense
Operating income (loss) (886,750)(813,978) (1,206,769) (1,647,278)
Other income
(expense)
Interest expense (30,847) (29,502) (82,051) (50,728)
Other 7,566 107,916 7,566 101,323
Loss on -- (199,672) -- (199,672)
marketable securities
(23,281)(121,258) (74,485) (149,077)
Net loss (910,031)(935,236) (1,281,254) (1,796,355)
before extraordinary
Extraordinary item - 205,847 - 733,068 -
gain on settlement
of debt
Net income (loss) $(704,184) $(935,236) $(548,186) $(1,796,355)
Basic and diluted earnings
(loss) per share data
Net loss before (0.04) (0.06) (0.05) (0.12)
extraordinary item
Extraordinary item 0.01 -- 0.03 --
Net income (loss) (0.03) (0.06) (0.02) (0.12)
per share
Shares used in computing
earnings (loss) share
Basic and diluted 25,699,532 14,427,452 23,844,644 14,424,452
The accompanying notes are an integral part of these statements
Contact:
Citadel Technology, Inc., Dallas
Steve Solomon, President & CEO, 214/520-9292
or
The Investor Relations Group, Inc., New York
Dian Griesel, Ph.D. & John Antiaris, 212.664.8489
It's a good start!!! Maybe I'll be able to retire after all!
Good luck y'all!
-pam
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