For further information contact:
David McCaffrey, CEO
James Geiser, CFO, Secretary
Global MAINTECH Corporation
7578 Market Place Drive
Eden Prairie, MN 55344
Phone: (612) 944-0400
FAX: (612) 944-3311
Web Site: www.globalmt.com
Global MAINTECH Reports Record First Quarter Sales and Reports
Pro-Forma Sales
Minneapolis, MN - May 17, 1999
Global MAINTECH Corporation announced today First Quarter revenue of $2,580,000 up 44% from $1,796,000 in the First Quarter of 1998. First Quarter of 1999 showed a loss of ($174,582) compared to a profit of $237,136 in the First Quarter of 1998. Additionally, MAINTECH reported pro-forma revenue of $11,780,000 which includes results from Breece Hill Technologies Inc. which was acquired effective April 1, 1999 as if it were acquired on January 1, 1999.
Growth in revenue is reflective of increased interest in MAINTECH's suite of data center systems, and the loss is due to increased sales and marketing expense, resource allocation to the acquisition of Breece Hill and increased amortization. Earnings before depreciation and amortization of $510,000 were level with the prior year of $521,000.
The focal point of MAINTECH's suite of systems and network management software products for data centers is its Virtual Command Center (VCC). The VCC is a master console that provides simultaneous control, operation and monitoring for mainframe, midrange, UNIX, Microsoft NT and networks; it can provide efficient consolidation of consoles for delivery of software provided by other companies in the enterprise management market. The VCC is able to respond to messages, events and alerts of a computer enterprise at a single location. MAINTECH's Singlepoint Systems subsidiary sells system services and event notification software, the Magnum Technologies subsidiary sells proprietary network and systems management software, and the Breece Hill subsidiary sells proprietary tape storage libraries for mass storage in data centers.
Forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risk and uncertainties, including without limitations, continued use of the Company's services, and the continued availability of labor resources.
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Global MAINTECH Quarter Ended March 31, 1999...Page 2
Years Ended March 31, 1999 and 1998:
1999 1998 % Change
Revenue $2,580,216 $1,756,400 147%
Operating income with accounting change $43,400 $232,924 (81%)
Net income (loss) $(174,582) $237,136 N/A
Net income (loss) per share $(0.011) $0.014 N/A
Net income (loss) per share-assuming dilution $(0.011) $0.012 N/A
Shares used in calculations:
Basic 19,026,839 16.625,070
Diluted 19,026,839 19,784,645
Selected Balance Sheet Data as of March 31, 1999 and December 31, 1998:
(in 000's)
1999 1998
Cash $ 2,260 $ 664
Total Current Assets 7,248 4,057
Total Assets 12,777 9,133
Total Current Liabilities 3,211 1,990
Long-term debt 1,625 1,700
Net Stockholders' Equity 7,942 5,443
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