Correct: JETFAX COMMENTS ON INTERNET INITIATIVES AND 1998 EARNINGS RELEASE MENLO PARK, Calif.--(BUSINESS WIRE)--Jan. 13, 1999--JetFax, Inc.
(Nasdaq:JTFX) today commented on the Company's expanding efforts into
Internet document communications. In December 1998, the Company
announced its new HotSend(TM) Internet software which simplifies the
way people share information via email. Going forward, the Company
anticipates further extensions of its software and messaging
technology into broader applications of document communications via
the Internet. The Company plans to introduce its next new Internet
service on Feb. 8, 1999 and coincident with this launch, the Company
intends to change its name to eFax.com.
"The portable document technology embodied in HotSend is the
basis for a range of Internet communications software solutions and
services we are launching this year," said Rudy Prince, CEO. "Email
has been the killer app of the Internet and HotSend now makes it easy
to send all types of documents, particularly those with large amounts
of graphics, as email attachments. We are finding that people want to
send more than just text or Word documents by email and HotSend offers
the ability to easily send such graphical documents as web pages or
presentations. With a single click, a document can be captured with
our small MicroViewer and transmitted by email as a self-viewing
document. The HotSend user base has expanded as recipients of HotSend
email attachments choose to add HotSend software to their own PC.
HotSend is free and can be downloaded from our web site at
HotSend.com."
Noting the recent increase in the Company's stock price, Prince
commented, "Although we can never be sure what is behind movements in
our stock price, we believe our efforts to reposition the Company
toward Internet document communications may have caused the increased
activity in the Company's stock. While it's too early to gauge the
success or the likely financial consequences of our new products, we
believe our new services and software are an excellent way for us to
capitalize on both our software technology and our proven leadership
in fax."
Allen Jones, VP and CFO, noted, "The quarter ended December 31,
1998 is expected to show an increase in sales and a reduction in loss
from the year ago period. However, largely as a result of lower MFP
product sales, fourth quarter revenues are expected to fall from the
preceding quarter to approximately $7 million. The Company expects to
report a loss for the quarter and the year. As we move into 1999, the
Company intends to further increase its investments in Internet
services and software in support of its new products. Earnings for the
quarter and year ended December 31, 1998 will be released on February
8, 1999."
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995
With the exception of historical information, the statements set
forth above include forward-looking statements that involve risk and
uncertainties. The Company wishes to caution readers that a number of
important factors could cause actual results to differ materially from
those in the forward-looking statements.
Those factors include the following: the uncertain performance,
user adoption, and financial results from products integrating fax
technology with the Internet; operating difficulties in successfully
combining the businesses of the Company and DocuMagix; the size and
timing of and fluctuations in end user demand for the Company's
branded products and OEM products incorporating the Company's
technology; the fact that the Company's markets are characterized by
rapidly changing technology, evolving industry standards and frequent
introductions of new products and enhancements, and the Company's
ability to respond to such changes; difficulties which the Company may
experience in completing the development of turnkey designs for OEM
customers, its color technology or other products; the fact that the
multifunction and color markets targeted by the Company are at an
early stage of development; the highly competitive nature of the
markets for the Company's products; the phase-out or early termination
of the Company's branded products or OEM products incorporating the
Company's technology; the Company's ability to attract and retain
skilled personnel; the Company's reliance on third party suppliers for
components used in the Company's products; the quarterly variability
in the Company's bookings and design wins; and the Company's reliance
on a relatively small number of OEM customers for a large percentage
of its revenue.
These and other factors which could cause actual results to
differ materially from those in the forward-looking statements are
also discussed in the Company's filings with the Securities and
Exchange Commission, including its recent filings on Form 10-K, Form
S-8, Form 10-Q, and Form S-1.
Note to Editors: JetFax, JetSuite, PaperMaster, Microviewer,
Documagix, eFax Enabled, efax.com and the JetFax logo are trademarks
or registered trademarks of JetFax, Inc. All other trade names and
marks are the property of their respective companies."
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