10K announced. Better.
NRI Announces $4.9 Million in Revenue and Improved Operating Results for 1998
TAMPA, Fla., March 24 /PRNewswire/ -- The National Registry Inc. (NRI)
(Nasdaq: NRID) today reported total revenue of $4.9 million for the year ended
December 31, 1998, representing an increase of $3.3 million (210%) over total
revenue of $1.6 million for 1997. The Company further reported a net loss
attributable to common stockholders of $1.7 million ($0.23 per share) for the
year ended December 31, 1998 -- an improvement of $7.6 million (82%) over a
net loss attributable to common stockholders of $9.2 million ($1.57 per share)
for the previous year.
Net loss attributable to common stockholders of $1.3 million ($0.17 per
share) for the three months ended December 31, 1998 decreased $976,000 (44%)
from the $2.2 million ($0.37 per share) net loss attributable to common
stockholders for the same period in 1997. Revenue for the three months ended
December 31, 1998 increased $135,000 (34%) to $536,000 from $401,000 for the
same period in 1997.
Net loss before preferred stock dividends of $1.4 million for the year
ended December 31, 1998 improved 81% over a net loss before preferred stock
dividends of $7.4 million for the year ended December 31, 1997. Net loss
before preferred stock dividends of $1.2 million for the three months ended
December 31, 1998 improved 37% over the net loss before preferred stock
dividends of $1.9 million for the same period in 1997.
The Company ended the year with cash and cash equivalents of $1.7 million
compared to $298,000 at the end of 1997, reflecting the December 30, 1998
receipt of a $2.0 million capital contribution. This capital contribution was
made by RMS Limited Partnership and Francis M. Santangelo in connection with
their December 1998 purchase and immediate conversion of all of the previously
outstanding shares of the Company's Series C Preferred Stock.
James W. Shepperd, Chief Financial Officer, stated that "the year-over-
year improvement in operating results is primarily due to a $3.2 million
reduction in operating expenses largely achieved by a cost reduction plan
implemented in late 1997 coupled with income generated by the previously
announced Value Added Reseller (VAR) contracts entered into with XL Vision,
Inc. during the second quarter of 1998, while the improvement in fourth
quarter results is primarily due to a $742,000 operating expense reduction."
The year ended December 31, 1997 also included a one-time charge of
$1.5 million for the deemed dividend attributable to the Series C Preferred
Stock. "The conversion of the remaining Series C Preferred Stock will benefit
the Company and its stockholders by eliminating the dilution risks associated
with the Series C floating rate conversion feature and by eliminating
preferred dividends that reduced net income available for common stockholders
by $278,000 in 1998," said Shepperd.
"1998 was a record year for both revenues and operating results and we are
very optimistic about our prospects for 1999", said Jeffrey P. Anthony,
Chairman and Chief Executive Officer of The National Registry Inc. "The
recent industry reviews and awards for our SAF software have been very
encouraging and we intend to bring these packaged products to the masses
through OEM's and broad channel distribution beginning this year. We want to
capture a significant share of this developing market, create strong brand
recognition, and report continued improvement in our financial performance as
biometrics become main-stream for consumers and enterprises," said Anthony.
The Company also announced today that its Board of Directors decided, at a
meeting held on March 19, 1999, to defer action on the previously announced
intention to formally change the name of the Company to SAFLINK Corporation.
The Board believes that the Company can realize the benefits of building the
SAF brand identity by continuing to market its products through its
subsidiary, SAFLINK Corporation, while preserving the value of the National
Registry name and its association with past business initiatives.
The National Registry Inc. and SAFLINK Corporation, based in Tampa,
Florida, bring the Power of Biometric Identificationa to enterprise networks
and the Internet. The Company provides cost-effective multi-biometric
software solutions to verify individual identity, to protect business and
personal information, and to replace passwords and PINs in order to safeguard
and simplify access to electronic systems and enable new online services for
customers. The Company's Secure Authentication Facility (SAF(TM)) suite of
multi-biometric network security products delivers enterprise-level secure
access control to a range of software platforms and network applications,
including Microsoft(R) Windows NT(R) and Internet Information Server(R),
Novell Netware(TM), as well as Computer Associates' Unicenter(R) TNG(TM) and
its Single Sign-On(TM) option. Further information is available through the
Company's World Wide Web Site (http://www.saflink.com).
SAF and SAFLINK are trademarks of The National Registry Inc. All other
brands and products referenced herein are acknowledged to be trademarks or
registered trademarks of their respective holders.
THE NATIONAL REGISTRY INC.
CONDENSED BALANCE SHEETS
December 31, December 31,
1998 1997
(Unaudited)
(Dollars in thousands)
ASSETS
Current assets
Cash and cash equivalents $1,736 $298
Accounts receivable 149 450
Inventories 37 362
Prepaid expenses 270 272
Other 26 39
Total current assets 2,218 1,421
Furniture and equipment, net 361 1,052
Investment 106 105
$2,685 $2,578
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $189 $677
Accrued expenses 222 956
Deferred revenue 305 174
Total current liabilities 716 1,807
Stockholders' equity
Preferred stock, $.01 par
value convertible
Authorized -- 1,000,000 shares
Issued and outstanding:
Series A -- Liquidation
preference $100 per share,
100,000 shares issued and
outstanding 1 1
Series C -- Liquidation
preference $20 per share 0
and 259,750 shares issued and
outstanding as of December 31,
1998 and 1997, respectively --- 3
Common stock, $.01 par value
Authorized --
25,000,000 and 75,000,000
shares as of December 31, 1998
and 1997, respectively
Issued and outstanding -
16,676,981 and 6,355,776 as of
December 31, 1998 and 1997,
respectively 167 64
Additional paid-in capital 47,138 44,378
Accumulated deficit (45,337) (43,675)
1,969 771
$2,685 $2,578
Share and per share amounts restated for May 27, 1998 1 for 6 reverse
stock split.
THE NATIONAL REGISTRY INC.
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except share and per share data)
Quarter ended December 31, Year ended December 31,
1998 1997 1998 1997
Post contract
services revenue $157 $ 154 $ 538 $535
Net product and
service revenue 379 247 4,382 1,050
Total revenue 536 401 4,920 1,585
Cost of products
and services sold 330 329 1,122 744
Gross profit 206 72 3,798 841
Operating expenses:
Product development 309 280 1,282 2,221
Sales and marketing 363 892 1,558 2,810
Royalties 125 105 500 500
General and
administrative 451 713 1,950 2,923
Total operating
expenses 1,248 1,990 5,290 8,454
Other income (loss) (148) 42 108 189
Net income (loss) (1,191) (1,876) (1,384) (7,424)
Preferred stock dividend 60 350 278 1,820
Net income (loss)
attributable to
common stockholders $(1,250) $(2,226) $(1,662) $(9,244)
Basic and diluted
earnings (loss)
per share $(0.17) $(0.37) $(0.23) $(1.57)
Weighted average
number of
common shares
outstanding 7,327,000 6,036,000 7,216,000 5,874,000
Certain prior period amounts have been reclassified to conform with the
current period presentation of such items.
SOURCE National Registry Inc.
Web Site: saflink.com
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