Racom Announces Results for '98 Third Quarter, Nine Months
Company Incurs Restructuring Charges, One-Time Write-Offs as It Realigns Business
DENVER--(BUSINESS WIRE)--Nov. 16, 1998--Racom Systems Inc. (Nasdaq:RCOM - news), a leading provider of contactless smart card technology solutions, today announced results for its third quarter and nine months ended Sept. 30, 1998.
Revenues for the quarter were $21,202, compared to $69,218 for the third quarter of 1997. Net income for the period was a loss of $885,883, or seven cents per share, versus a loss of $791,701, or six cents per share, one year earlier. For the nine-month reporting period, revenues increased 145 percent to $1.7 million in 1998, compared to revenues of $677,867 for the same nine-month period of 1997. Net income for the first nine months of 1998 was a loss of $938,382, or seven cents per share, an improvement of 61 percent over a loss of $2.4 million, or 19 cents per share, reported for the comparable period in 1997.
''While revenue for the third quarter was behind plan, we expect development and licensing fees, along with smart card product sales, to pick up in the fourth quarter and beyond,'' explained Art Rancis, president and chief executive officer. ''We have taken significant measures to reduce and realign staff and cut expenses where prudent, as reflected in higher operating expenses for the third quarter. These actions were necessary to streamline and refocus the business.'' |
