biz.yahoo.com
Monday March 22, 5:16 pm Eastern Time
Company Press Release
Innotrac Corp. to Report Better-than-Expected First Quarter
Revenues Anticipated to Increase More Than 100%
ATLANTA--(BUSINESS WIRE)--March 22, 1999--Scott Dorfman, Chairman, President and Chief Executive Officer of Innotrac Corporation (Nasdaq/NM: INOC - news), today announced that revenues and earnings for the first quarter ending March 31, 1999, will be substantially better than expected.
As a result of very strong Caller ID volume resulting from a strong promotional period in January and February, Dorfman expects revenues to exceed $57 million for the first quarter, more than double the $22.6 million in revenues reported in the first quarter of 1998. Pro forma earnings per share are expected to be between $0.33 and $0.35 compared with first quarter 1998 EPS of $0.21.
''The first two months of the year have been very strong, far exceeding our initial expectations,'' Dorfman said. ''Sales of Caller ID equipment for BellSouth, our largest telecom client, have increased significantly under the new business model we implemented at the beginning of the year. Sales and fulfillment of promotional giveaways of Caller ID equipment for our other telecom clients also have been better than anticipated.''
On February 4, 1999, the Company reported record results for the fourth quarter and year ended December 31, 1998. Fourth quarter revenues increased 120% to $45.5 million and revenues for the year rose 59% to a record $139.7 million. Gross margin was 15.8% for the quarter and 22.1% for 1998. Pro forma net income increased to $2.0 million for the fourth quarter and rose 173% to $8.2 million for the year. Diluted earnings per share increased to $0.22 for the quarter and increased 117% to $1.00 for 1998.
Innotrac, headquartered in Atlanta, is a full-service provider of customized, technology-based marketing support services, including product and literature distribution, computerized inventory and database management, and customer-initiated (inbound) teleservices. A significant portion of the Company's business is the sale and fulfillment of Caller ID-related telecommunications equipment.
Information contained in this press release, other than historical information, may be considered forward-looking in nature and is subject to various risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. Among the key factors that may have a direct bearing on Innotrac's operating results, performance or financial condition are competition and the demand for Innotrac's services, Innotrac's ability to develop relationships with telecommunications clients, to expand into new markets, and to maintain profit margins in the face of pricing pressures, and numerous other factors discussed in Innotrac's S-1 Registration Statement that is on file with the Securities and Exchange Commission.
----------
The cynic in me wondered why INOC went down recently. The pragmatist in me said buy a little more. Nothing fundamentally has change, look at the RBOC's caller ID growth rate and low but increasing market penetration, lower your cost basis. Not a very liquid stock small position avg. cost 13 now.
|
