Profile On Yahoo and others is wrong!
The earnings is way dang off. It only shows the results from 9/30/98. All of the figures are outdated.
Just for reference, here is how the resluts really are.
Matt
----
Earnings for First Six Months of Fiscal 1999 Exceed Full-Year Fiscal 1998 Results
LANGHORNE, Pa., Jan. 19 /PRNewswire/ -- RomTech, Inc. (Nasdaq: ROMT - news), the leading provider of Family Friendly™, value-priced computer software games for players of all ages, today announced record results for the second fiscal quarter and six months ended December 31, 1998.
Sales for the quarter ended December 31, 1998 increased 26% to $3,611,000 versus sales of $2,856,000 for the same quarter a year ago. This increase is primarily attributable to the continued popularity of the Company's family friendly, value-priced games and the successful introduction of new titles under the Game Master™ and Galaxy of Arcade™ product lines during the current fiscal year. RomTech is also benefiting from its growing share of the value-priced gaming software market, the fastest growing segment of the consumer software market.
Net income for the current quarter rose 41% to $847,000, or $0.09 per diluted share, versus net income of $601,000, or $0.06 per diluted share, for the three months ended December 31, 1997. On a per share basis, earnings grew 50%. This increase is attributable to strong top line revenue growth combined with the Company's ability to increase its margins. For the second quarter ended December 31, 1998 gross margins and operating margins were 69% and 25%, respectively, compared to 64% and 22% for the same quarter a year earlier.
SIX MONTH RESULTS
Sales for the six months ended December 31, 1998 increased 39% to $6,117,000, versus sales of $4,391,000, for the same period a year earlier. Net income for the current period grew 89% to $1,250,000, or $0.13 per diluted share, versus net income of $662,000, or $0.07 per diluted share, for the six months ended December 31, 1997. On a per share basis, earnings increased 86%.
Earnings for the first six months of fiscal 1999 have already exceeded the $0.12 fully diluted per share earnings reported for full year fiscal 1998 reflecting the effective implementation of the Company's focused business strategy.
During the first half of fiscal 1999, RomTech continued to expand its product offerings. As of December 31, 1998, the Company offered 42 Galaxy Software games for sale, up significantly from the 28 titles available at the end of fiscal 1998.
MANAGEMENT'S COMMENTS
''We are very pleased with our strong sales growth, our significantly increased profitability and the substantial progress we have made in introducing exciting new products to the marketplace. We are currently one of the fastest growing casual gaming software companies both in terms of dollars and units sold, a position we intend to maintain going forward,'' said Jerry Klein, President and CEO of RomTech.
''The cornerstone of our success has been the establishment of the Galaxy Software brand as one that consumers recognize and remember. Also, we continue to implement other elements of our business strategy including the expansion of our domestic and international reach, both through creating new strategic relationships and aggressively implementing our Internet strategy,'' stated Mr. Klein.
''Where our products were only available in five countries at this time last year, we are now available through retail distribution in more than twenty-one countries. Importantly, RomTech's international sales grew 400% to $1,259,000 and now represent 21% of overall sales, up from 6% at this time last year,'' said Mr. Klein.
''With respect to our on-line capabilities, our eGames2000.com home page and our accompanying e-commerce strategy make our software products accessible to any software gaming enthusiast with a computer and a modem. Last week's announced distribution and marketing agreement with Digital River, the leader in electronic software delivery (ESD), puts us on the cutting edge of the Internet revolution. This means that consumers can now purchase any of our games online and begin playing them within minutes,'' continued Mr. Klein.
''As a result of our strong first half results and the Company's competitive strengths going forward, our objective for fiscal 1999 is to increase sales by 50% and to double our earnings from the year ago period,'' concluded Mr. Klein.
RomTech's Board of Directors approved a $1 million stock buyback program on October 26, 1998. To date the Company has repurchased 161,900 shares at an average price of $1.67 per share.
RomTech, headquartered in Langhorne, Pa., develops, publishes and markets a diversified line of personal computer software primarily for consumer entertainment and small office/home office applications. RomTech promotes the Galaxy of Games™, Galaxy of Home Office Help™, Game Master Series™ and Galaxy of Arcade™ brand names (''Galaxy Software'') in order to generate customer loyalty, encourage repeat purchases and differentiate the Galaxy Software products to retailers and consumers.
This press release contains certain forward-looking statements, including without limitation, statements regarding RomTech's market share in the value-priced category, RomTech's position as one of the fastest growing casual gaming software companies, RomTech's business strategy and the success of RomTech's Galaxy branding strategy and Game Master Series products. The actual results achieved by RomTech, and the factors that could cause actual results to differ materially from those indicated by the forward-looking statements, are in many ways beyond RomTech's control. RomTech cautions readers that the following important factors, among others, could cause RomTech's actual results to differ materially from those expressed in this press release: the allocation of adequate shelf space for RomTech's products in major chain retail stores; successful sell-through results for RomTech's products at retail stores; downward pricing pressure; the timeliness and success of developing and selling products; the acceptance by the market of the Game Master and other Galaxy products; access to and control over distribution channels; consumers' continuing demand for value-priced software; competition; the ability to create successful strategic partnerships and implement its Internet strategy; and various other factors, many of which are beyond the Company's control, described in RomTech's reports, including Form 10-KSB, dated June 30, 1998, filed by RomTech with the Securities and Exchange Commission.
RomTech, Inc.
Consolidated Statements of Operations
(Un-audited)
Three months ended Six months ended
December 31, December 31,
1998 1997 1998 1997
Net sales $ 3,611,126 $2,855,626 $6,117,326 $4,391,184
Cost of sales 1,136,731 1,022,828 2,017,308 1,636,624
Gross profit 2,474,395 1,832,798 4,100,018 2,754,560
Operating expenses:
Product development 236,965 52,967 442,632 139,538
Selling, general and
administrative 1,318,861 1,153,823 2,298,503 1,810,108
Total operating
expenses 1,555,826 1,206,790 2,741,135 1,949,646
Operating income 918,569 626,008 1,358,883 804,914
Interest expense, net (13,632) (12,584) (24,281) (24,010)
Income before taxes 904,937 613,424 1,334,602 780,904
Provision for taxes (57,967) - (84,267) (1,165)
Net income 846,970 613,424 1,250,335 779,739
Accretion of beneficial
conversion feature on
preferred stock -- (12,550) -- (117,991)
Net income attributable to
common stock $846,970 $600,874 $1,250,335
$661,748
Net income per common share
- basic $0.09 $0.07 $0.13 $0.08
Net income per common share
- diluted $0.09 $0.06 $0.13 $0.07
Weighted average common
shares outstanding
- basic 9,469,031 8,965,224 9,455,680 8,106,082
Dilutive effect of common
stock equivalents 189,156 658,183 171,234 1,401,752
Weighted average common
shares outstanding
- diluted 9,658,187 9,623,407 9,626,914 9,507,834
RomTech, Inc.
Consolidated Balance Sheet
(Un-audited)
As of
December 31,
1998
ASSETS
Current assets:
Cash and cash equivalents $282,142
Restricted cash 17,039
Accounts receivable, net of $333,031 allowances 4,104,277
Inventory 1,241,035
Prepaid expenses 181,692
Total current assets 5,826,185
Furniture and equipment, net 391,356
Other assets 571,885
Total assets $6,789,426
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable $234,680
Accounts payable 1,514,472
Accrued expenses 792,788
Capital lease obligations 23,209
Total current liabilities 2,565,149
Capital lease obligations 40,130
Notes payable 222,725
Convertible subordinated debt 150,000
Total liabilities 2,978,004
Stockholders' equity:
Common stock, no par value (40,000,000 shares authorized;
9,361,300 issued, net of 144,900 treasury shares) 8,142,292
Additional paid in capital 1,148,550
Accumulated other comprehensive income 969
Accumulated deficit (5,480,389)
Total stockholders' equity 3,811,422
Total liabilities and stockholders' equity $6,789,426
|
