Accelr8 Technology Earns $.01 per Share for Quarter Ending January 31, 1999
PR Newswire - March 04, 1999 06:15
DENVER, March 4 /PRNewswire/ -- Accelr8 Technology Corporation (Nasdaq: ACLY), the leading provider of Year 2000 conversion tools and legacy systems modernization solutions for the Digital Equipment Corporation (DEC-Compaq) market, announced earnings for the quarter ending January 1, 1999:
Total
revenues: $705,191 as of 1/31/99 vs $2,604,721 as of 1/31/98
Net income
after tax: $69,722 as of 1/31/99 vs $1,138,498 as of 1/31/98
Earnings per
share (diluted) $.01 as of 1/31/99 vs $.14 as of 1/31/98
The company's chairman, Thomas Geimer, acknowledged the difficult market environment for year 2000 tools, but said, "As 1999 progresses, CEOs and investors seem to be more concerned about the potential for business interruptions caused by year 2000 non-compliance." Geimer noted that quarter-to-quarter revenues are difficult to forecast, but the company anticipates a demand for easy to use multiple platform and language capable tools by corporations, government and services providers as shortages of qualified, affordable programmers push organizations towards higher productivity from existing resources. "The need to assess, fix and test large quantities of mission-critical applications code will force the need for user- friendly, efficient Y2K tools," Geimer said.
While the company experienced decreases in product license revenue and consulting fees compared to a year ago, the quarterly results of $.01 per share as of January 1, 1999 reflected maintenance renewal of Y2K tools by many of last years' customers, thus supporting ongoing year 2000 efforts at these sites. Companies such as Ford Motor Co., Arrow Electronics, and Corning all received the latest release of Navig8 2000 as part of their purchases.
New Y2K customers during the quarter included Tandem Computers, Maher Terminals, operator of the New York City Port Authority, Evolving Systems, NILS Publishing, division of ABC/Capital Communications group, and U.S. Department of Transportation.
While systems modernization projects seemingly are being delayed until year 2000 efforts are completed, the Company sees evidence of migration tools and services being in demand by third-party software developers, such as Lordacs Software Inc., a provider of business management tools for residential and commercial contractors, as well as Union Carbide and Daimler Benz-Germany, that need to provide their solutions on NT and purchased Accelr8 tools and consulting for this purpose.
The revenue from Digital (DEC-Compaq) Y2K factories was negligible this past quarter. However, Accelr8's announcement on 1/14/99 of Y2K services being available over the company's website has resulted in hundreds of inquiries from potentially qualified buyers of Y2K tools and services. No engagements have been finalized as of this date.
Accelr8's IV&V solution, Navig8 2000 Enterprise, is in the final stages of evaluation by a large government contractor that intends to use NAVIG8 to support a contract with a large Federal agency. Other evaluations of Navig8 2000 Enterprise for IV&V are proceeding with positive results.
The company continues to position its Y2K and legacy code modernization solutions as a means of maintaining account control to hardware venders such as Compaq and Sun Microsystems. Additionally, large systems integrators will ultimately consider deployment of tools to their services providers as a means of growing their outsourcing businesses. The company's website, www.accelr8.com, will offer the latest 10Q filing.
This press release contains projections and other forward-looking statements regarding future events or future financial performance. These statements are only predictions and actual events or results may differ materially. Documents filed with the Securities and Exchange Commission contain and identify important factors that could cause the actual results to differ materially from those contained in projections or forward-looking statements.
SOURCE Accelr8 Technology Corporation
/CONTACT: Leigh Anne Sutton of Accelr8 Technology Corporation,
303-863-8088, leighanne.sutton@accelr8.com/
/Company News On-Call: prnewswire.com or fax,
800-758-5804, ext. 124139/
/Web site: accelr8.com
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