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ESOFT ANNOUNCES PRELIMINARY RESULTS FOR SECOND QUARTER 1999; SECOND
RELATED SYMBOLS: (ESFT)(HWP)
BROOMFIELD, Colo., Jul 23, 1999 /PRNewswire via COMTEX/ -- eSoft Inc.
(Nasdaq: ESFT), the company that develops and markets Linux-based
Internet access solutions for small businesses, today announced its
preliminary, unaudited financial results for the quarter ending June
30, 1999.
Preliminary, unaudited revenue for the second quarter is anticipated to
be approximately $1,425,000, a 167% increase over revenue of $533,000
in the first quarter of 1999 and a 27% increase over revenue of $1,121,
008 in the second quarter of 1998. eSoft reported preliminary,
unaudited net loss for the second quarter of approximately ($2,572,000)
or ($.28) per share, compared with a net loss of ($2,729,000), or
($.39) per share, in the first quarter of 1999. The results include
one-time, merger-related expenses associated with the Apexx Technology
transaction of approximately $800,000. eSoft reported that it had
increased the number of TEAM Internet value added resellers (VARs) to
over 600 during the second quarter, from less than 100 in the first
quarter of 1999.
"We accomplished a great deal during this past quarter," said Jeff
Finn, eSoft's president and CEO. "The acquisition of Apexx was
completed, the sales force and marketing efforts have been integrated
and we have begun to see solid, sustained growth and momentum in our
TEAM Internet sales. We have signed agreements with Sprint and Covad
Communications for bundling their telecom services with our products
and we are offering a more comprehensive solution for our resellers and
customers.
"Additionally, our recent signing of a letter of intent to acquire
Technologic, a privately held company with advanced firewall, VPN and
security offerings, solidifies our goal of acquiring companies which
will integrate seamlessly into our current product line, reduce time to
market and accelerate our revenue growth.
"Regarding eSoft's new redphish program," Finn added, "We have seen a
significant level of interest in our redphish Linux licensing program.
We completed the Hewlett Packard project and are in detailed
discussions on additional redphish agreements. Linux continues to gain
momentum in key markets and we are very well positioned to capitalize
on the increasing demand for Linux-based server solutions."
STATEMENT OF OPERATIONS
(Unaudited)
FOR THE THREE MONTHS FOR THE SIX MONTHS
ENDED JUNE 30, ENDED JUNE 30,
1998 1999 1998 1999
Revenues $1,121,008 $1,425,447 $1,854,940 $2,630,
385
Cost of Goods Sold 424,796 818,144 698,540 1,524,
841
SG&A 1,191,012 3,004,068 1,896,860 6,888,
675
Amortized Software
Costs 53,220 41,826 102,093 83,
652
Operating Profit (548,020) (2,438,591) (842,553) (5,866,
783)
Other Income
(Expenses) 15,341 (133,737) 14,633 (119,
629)
Net Loss $(532,679) $(2,572,328) $(827,920) $(5,986,
412)
Average Shares
Outstanding 5,374,930 9,059,169 4,249,592 8,829,
565
Basic and Dilutive
Loss Per Share $(.10) $(.28) $(.19)
$(.68)
eSoft, Inc. Balance Sheet
June 30, 1999
ASSETS
Cash $1,765,000
Other Current Assets 3,834,000
Total Current Assets 5,599,000
Other Assets 1,529,000
Total Assets $7,128,000
LIABILITIES AND STOCKHOLDERS
EQUITY
Total Current Liabilities $3,038,000
Total Liabilities 4,816,000
Stockholders Equity 2,312,000
Total Liabilities and
Stockholders Equity $7,128,000
NOTE: The June 30, 1999 period ending results reflect the combined,
consolidated financials for eSoft and Apexx Technology, Inc., while the
prior periods reflect eSoft only.
About eSoft Inc. eSoft Inc. was founded in 1984 with headquarters in
Broomfield, Colo. eSoft provides a family of Internet appliances and
services that enable small to medium-sized business to harness the full
power of the Internet. The TEAM Internet family of products is designed
for businesses with up to 200 workstations and provides low-cost,
LAN-to-Internet connectivity and includes a range of features,
including e-mail, Web browsing, ICSA certified firewall security, a Web
server, remote access and virtual private network (VPN) functionality.
Contact eSoft at 295 Interlocken Blvd., #500, Broomfield, Colo., 80021,
USA; 303-444-1600 phone; 303-444-1640 fax; www.esoft.com. TEAM Internet
is a registered trademark of eSoft Inc.
This press release contains "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements often can be identified by the use of terms such as "may,"
"will," "expect," "believe," "project," "estimate" or words of similar
meaning. Readers should not place undue reliance on these
forward-looking statements, and eSoft will not necessarily update these
statements to reflect subsequent developments. In addition, these
forward-looking statements are subject to risks, uncertainties and
important factors that may cause actual results to differ materially
from those anticipated. These factors include adverse economic
conditions, entry of new and stronger competitors, inadequate capital,
unexpected costs, failure to gain product approval in foreign
countries, failure to capitalize upon access to new markets, the
possibility that a competitor will develop a more comprehensive or less
expensive TEAM Internet solution and delays in the market awareness of
eSoft and its products. Readers should review these factors and others,
which are discussed in reports that eSoft files with the Securities and
Exchange Commission.
SOURCE eSoft Inc.
(C) 1999 PR Newswire. All rights reserved.
prnewswire.com -0-
CONTACT: Robyn Phipps, robyn@metzger.com, or Casy Jones,
cjones@metzger.com, both of Metzger Associates,
303-786-7000, for eSoft Inc.;
or Amy Beth Hansman, Investor Relations of eSoft Inc.,
303-444-1600,
ahansman@esoft.com
WEB PAGE: esoft.com
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