INNI to report earnings:
Here is the last quarterly report, this company looks great.
IBM, etc etc.
Monday October 19, 09:41 AM Eastern time
Company Press Release
I/NET Reports Solid Third Quarter Earnings
KALAMAZOO, Mich.--(BUSINESS WIRE)--Oct. 19, 1998--I/NET, Inc. (OTC:INNI) today announced the results of its third quarter and nine-month period ended September 30, 1998, marked by solid gains in sales and net income.
The developer and marketer of Internet- and Intranet-based software applications for mid-range computers recorded net revenues of 455,724 in the third quarter of fiscal 1998, as compared to net revenues of 419,189 in the same period last year. I/NET attributed the nine percent increase to its web site consulting services and to agreements with IBM and Netscape for its Internet products, which are also provided to companies worldwide.
I/NET reported net earnings of 112,997 in the third quarter of fiscal 1998, compared with net earnings of 43,696 in the same period last year. The 159 percent increase in net earnings enabled the Company to post its seventh consecutive quarter of profitability.
"We had another quarter of solid financial performance, a result of our ongoing efforts to bring the full functionality of Netscape's Internet Server to IBM's AS/400," said Stephen J. Markee, president and CEO of I/NET. "Our agreements with IBM and Netscape have continued to contribute to our financial results, enabling us to post top- and bottom-line growth for the third quarter and for the first nine months of the year."
I/NET reported its gross margin (gross profit as a percentage of sales) increased to 63 percent for the third quarter of 1998, compared with 58 percent in the third quarter of 1997. The Company attributed the increase to its ability to maintain costs relative to its higher revenues.
Selling, General and Administrative (SG&A) expense as a percentage of sales decreased to 34 percent in the third quarter 1998 from 41 percent in the comparable period last year. The decline reflects continued cost containment efforts, including the reduction of certain administrative support positions. Operating income for the third quarter ended September 30, 1998 increased to 130,635, compared with 69,425 in the third quarter of the same period a year ago, a result of I/NET's higher revenues.
I/NET is finalizing its development efforts to bring Netscape's products to the mid-range computer marketplace. During the third quarter, I/NET introduced the beta version of its Netscape Server running on the AS/400, which has initially been well received. The Company has scheduled the release of this Internet product at the end of 1998.
"We are excited about our long-term growth opportunities with the planned fourth quarter introduction of our Netscape product for the AS/400," said Markee. "The feedback received from our beta tests have been positive, confirming that our development efforts are paying off. We anticipate these new products will contribute to our financial results starting in the first quarter of fiscal 1999."
"I/NET has developed an exciting product, which will make Netscape's well-known software available on IBM's system," said Dave Brown, technical services manager for International Marketing Strategies Europe Limited, who participated in the beta test. "The beta version operated smoothly and appeared to work reliably. I believe the Company's Internet products should be well received in the marketplace, especially since Netscape's Suite Spot Server has a big following on other platforms." I/NET has a marketing and distribution alliance with International Marketing Strategies.
For the nine-month period ended September 30, 1998, I/NET reported net earnings of 235,623 on net revenues of 1.3 million, compared with net earnings of 168,531 on net revenues of 1.1 million in the same period last year. I/NET attributed its 22 percent increase in net revenues for the first nine months of fiscal 1998 to its expanded agreements with IBM and Netscape, initiated in September 1997. The 1997 results included an extraordinary one-time gain of 97,946 from the elimination of a previously recorded debt.
I/NET's gross margin for the nine-month period ended September 30, 1998 decreased to 51 percent, as compared with 56 percent for the same period a year ago. Costs associated with continued development efforts and other expenses related to its IBM and Netscape agreements contributed to the decline in gross margin for the first nine months ended September 30, 1998.
Operating income advanced to 294,319 for the first nine months of fiscal 1998, compared with 149,711 in the same period a year ago. I/NET attributed the solid operating profitability for the first nine months of 1998 to the significant increase in net revenues and a continued reduction in selling, general and administrative (SG&A) expense.
I/NET's AS/400 server software products allow AS/400 mid-range computers to function as Internet servers, provide encryption for secure financial transactions to occur over the Internet, and perform other Internet- or Intranet-related functions. The AS/400, recognized for its reliability and security, is the standard for back-office operating systems or servers. An estimated 500,000 AS/400s are in use today worldwide, including installations at 98 of Fortune 100 companies. I/NET (http://www.inetmi.com) develops Internet computer systems and software in both public and private sectors, and is a leading research firm specializing in systems planning, development and implementation of Internet security solutions, including services to provide secure financial transactions over the Internet for international banking centers. The Company, established in Kalamazoo, Michigan in 1982, also provides web site consulting and security services.
I/NET, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited)
Three Months Ended
September 30, 1998 September 30, 1997
% of Sales % of Sales
Revenues $455,724 100% $419,189 100%
Cost of Revenues 168,335 37% 176,721 42%
Gross Profit 287,389 63% 242,468 58%Selling, General &
Administrative
Expenses 156,754 34% 173,043 41%
Earnings from
Operations 130,635 29% 69,425 17%Interest Expense 17,638 4% 25,729 6%
Earnings Before
Extraordinary
Item 112,997 25% 43,696 11%Extraordinary
Item 0% 0%
Net Earnings $112,997 25% $ 43,696 11%
Net Earnings
Per Share $ 0.01 $ 0.00
Nine Months Ended
September 30, 1998 September 30, 1997
% of Sales % of Sales
Revenues $ 1,338,856 100% $ 1,094,997 100%
Cost of Revenues 652,740 49% 476,697 44%
Gross Profit 686,116 51% 618,300 56%Selling, General
& Administrative
Expenses 391,797 29% 468,589 43%
Earnings from
Operations 294,319 22% 149,711 13%Interest Expense 58,696 4% 79,126 7%
Earnings Before
Extraordinary
Item 235,623 18% 70,585 6%Extraordinary Item:
Gain on
Extinguishment
of Debt 0% 97,946 9%
Net Earnings $ 235,623 18% $ 168,531 15%
Net Earnings
Per Share $ 0.01 $ 0.00
(a) Weighted Avg.
Shares
Outstanding 31,037,652 30,937,652
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Contact:
I/NET Inc.
Stephen J. Markee, 616/344-3017 ext. 104
smarkee@inetmi.com
or
Seyferth & Associates, Inc.
John Vonder Haar, 800/435-9539
SeyferthPR@aol.com
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