Andrew...have been watching the company for 2 years now and finally bot today...will see how it goes but if growth and other developments continue as below will probably holf for some time and let things develop:
Egan Systems Announces Record 1998 Results
Company Reports Record Sales for Fiscal Year; Future Looks Bright
Heading into 1999
HOLBROOK, N.Y.--(BUSINESS WIRE)--Feb. 8, 1999-- Egan Systems, Inc. (OTC BB: EGNS - news) today released its
annual financial results for 1998. The company reported record sales of $1,802,000--an increase of almost 91% over 1997
sales of $940,000. Additionally, excluding a one-time, non-monetary charge of $1,275,000, the company reported earnings of
$164,000, or $0.01 per share. This compares to a loss of $83,000 in 1997. The charge primarily represents the value of
1,275,000 shares of Egan Systems common stock, granted in exchange for consulting services provided in the U.S. and China
in conjunction with the organization of Tech 2020, and was recorded as an operating expense on Egan's 1998 financial
statements. ''We are extremely pleased with the company's performance in 1998,'' stated Ed Egan, President and CEO of
Egan Systems, Inc. ''This turnaround, and the near doubling of our revenues is a testament to the quality of our products,
personnel and the appropriateness of our marketing direction.''
Egan also commented on the company's strong cash position of over $1,000,000 with zero debt. ''1999 should be a breakout
year for Egan Systems. We are extremely stable financially, and the momentum we've built in 1998 can only enhance our efforts
as we move forward.''
Egan's record growth can be attributed to an increase in the company's core COBOL licensing business, as well as a
substantial increase in revenue derived from the company's software migration and Year 2000 (Y2K) contract activity. Other
contributing factors include Egan's growing success at marketing its products via the Internet, and efforts aimed at expanding
overseas revenues, which now account for approximately 15% of total sales. ''Over the years we've sharpened our
programming skills and developed a niche for our products. 1998 proved to be the year in which we married that existing
expertise to focused marketing activities. Those efforts have started to bear fruit,'' furthered Egan. ''Our presence in China
though the Tech 2020 Ltd. joint venture can only help to further expand these opportunities in 1999.''
Egan Systems, Inc. produces the ICOBOL and VX COBOL software language for use by programmers, as well as tools used
to assist in making these and other programming languages Year 2000 compliant. Egan Systems is also a provider of software
migration and Year 2000 compliance services to companies who prefer to outsource these programming tasks. Egan Systems
owns a controlling interest in Tech 2020 Ltd., which handles Year 2000 compliance issues for companies in China.
Egan Systems, Inc. is a public, fully-reporting corporation headquartered in Holbrook, NY, with research and design facilities
located in Raleigh, North Carolina. Investor information on Egan Systems, Inc. can be found at www.egns.com
Contact:
Egan Systems Inc., Holbrook
Investor Relations, 919/851-2239
www.egns.com
Egan Systems Releases 1st Quarter 1999 Results
Third Consecutive Quarter of Record Growth
Sales Increase by 162%
HOLBROOK, NY--(BUSINESS WIRE)--May 6, 1999--Egan Systems, Inc. (OTC BB: EGNS - news) today released its
financial results for first quarter 1999. For the three months ended March 31, 1999, revenues totaled approximately $651,000,
up from $242,000 for the same period one year ago.
The Company's strong first quarter performance follows an outstanding second-half in 1998, enabling Egan Systems to increase
its investment in new product development, as well as boost staff levels to expand the scope of its professional service
capabilities. New software applications are in development that will allow Egan Systems to remain a leading solutions provider
in its specific field of expertise: COBOL language dialects and professional services which consists of program migration, Year
2000 services, new program creation and existing program enhancement. ''Obviously we are very pleased with our first
quarter performance. The momentum we have gained over the past three quarters will allow us to build on our strengths and
continue to grow,'' stated Ed Egan, President and CEO of Egan Systems, Inc.
Sales increased a record 162% for the quarter through greater exposure to new customers via the Company's internet site; new
revenue sources arising from Egan Systems' Accredited Service Provider agreement with Data General Corp.; and sales of
upgraded Year 2000-compliant versions of its existing COBOL programs. Additional revenue sources were also derived from
services utilizing Egan Systems' Year 2000 suite of tools. Net income for the period rose to $132,716, compared to a loss of
$141,908 for the first quarter of 1998. This strong turnaround resulted in Egan Systems reporting earnings of $0.01 per
common share, compared to a $0.01 per share loss recorded in first quarter 1998. ''These numbers reflect the strengths in our
core licensing products as well as continued growth in our Year 2000 and professional services activities,'' furthered Egan.
''We're optimistic the company has turned a major corner and will see continued growth in sales and profitability throughout
1999 and beyond.''
Egan Systems, Inc. produces the ICOBOL and VX COBOL software language for use by programmers, as well as tools used
to assist in making these and other programming languages Year 2000 compliant. Egan Systems is also a provider of software
migration and Year 2000 compliance services to companies who prefer to outsource these programming tasks. Egan Systems
owns a controlling interest in Tech 2020 Ltd., which handles Year 2000 compliance issues for companies in China.
Egan Systems, Inc. is a public, fully-reporting corporation headquartered in Holbrook, NY, with research and design facilities
located in Raleigh, North Carolina. Investor information on Egan Systems, Inc. can be found at www.egns.com.
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