Earnings are out today:
Friday February 21 5:51 PM EDT
The Network Connection Reports 1996 Results
Atlanta, Feb. 21 /PRNewswire/ -- The Network Connection Inc , an industry leading manufacturer of video and multimedia file-server
systems, posted increased revenues and a net loss for the fiscal year ended December 31, 1996, reflecting the Company's increased
investments in research, product and business development and initial project startup activities. The Company reported a net loss of
$3,252,899, or $1.14 a share based on 2,846,715 weighted average shares, on revenues of $4,092,023 for the fiscal year ended December
31, 1996. That compares with a loss of $1,096,477, or 54 cents per share based on 2,036,359 weighted average shares, on revenues of
$3,846,188 for 1995.
Approximately $1 million or 35 cents per share of the loss in 1996 was for charges during the fourth fiscal quarter with no material effect on
cash from returns and allowances and pre-contract expenses associated with initial project development activities.
Wil Riner, Chairman and CEO of TNCX, stated, "The Company successfully transitioned from primarily development activities and achieved
significant milestones during 1996 toward future revenue growth with: (i) the signing of Siemens AG in September to a $3 million minimum
contract over two years for sales of the Company's systems worldwide; (ii) $1.2 million in shipments for 80 schools under a South Korean
Government School Program with up to 1,700 high schools valued at up to $25 million to TNCX over 15 months if fully completed and; (iii)
the first commercial AirView(R) program in August with Allegis Systems, Pty valued at $1.9 million, if fully implemented, for delivery in late
1997; (iv) Interactivo agreement for $4 million, if fully completed, to supply digital video server systems for 80 hotels targeted at the South
American Hospitality Market; (v) a teaming arrangement with Science Applications International Corporation (SAIC), and its Applied
Technology Group (ATG) for the marketing, training services, and systems integration of the Cheetah(R) product line; (vi) an alliance with
Turner Non-Theatrical Services (TNTS) to co-develop and test a Turner Entertainment category to be featured in the fully digital AirView
In-Flight Entertainment System; (vii) an alliance with Lockheed Martin Display Systems to co-produce and market the TNCI AirView(R)
system for interactive In-Flight Entertainment and Cabin Management applications on airplanes.
"Through our development activities in 1996, we greatly expanded our revenue base with a successful entry into the travel and transportation
market with worldwide industry leaders such as Siemens, Lockheed Martin and Turner and established our Cheetah(R) servers as the standard
for interactive educational video/audio on-demand applications with 100 schools installed in the South Korean Government School Program,"
said Riner. "Establishing key strategic alliances and major project customers in several key markets during 1996 demonstrates the effectiveness
of our sales and marketing strategy to leverage vertical markets with strategic partners and focus on long-term, larger system sales, foregoing
short-term operating performance for long-term growth. We believe our sales and marketing investments in 1996 will result in higher revenues
and earnings for 1997."
TNCX, designs, manufactures and distributes the Cheetah(R) family of video server platforms which enable the storage and delivery of video
data to local area networks. Cheetah(R) servers are used to bring interactive, on-demand, full-motion video training, education and
entertainment to the networked client computers in the corporate, home, educational, hotel, aircraft entertainment and transport environments.
Statements in this press release that are not descriptions of historical facts may be forward-looking statements, as that term is defined in the
Private Securities Litigation Reform Act of 1995, that are subject to risks and uncertainties, including economic, competitive and technological
factors affecting the Company's operations, markets, products, services and prices, as well as other specific factors discussed in the Company's
filings with the Securities and Exchange Commission. These and other factors may cause actual results to differ materially from those
anticipated.
For more information, contact: The Network Connection, Inc., 770-751-0889, 800-327-4853 or Fax: 770-751-1884; Internet Address:
tnc.www.com. SOURCE The Network Connection, Inc. |
