yes another profitable Qtr
here's the press release
Data Systems Network Corporation Announces Third Quarter 1999 Earnings
FARMINGTON HILLS, Mich.--(BUSINESS WIRE)--Oct. 21, 1999--Data
Systems Network Corporation (OTC BB:DSYS) announced today third
quarter 1999 net income of $30,341 or $.01 per share, compared to net
income of $151,220 or $.03 per share, during the same quarter one year
ago. For the nine months ended September 30, 1999 net income was
$794,712 or $.16 per share, compared to a net loss of $936,917 or
19 per share for the nine months ended September 30, 1998, which
represents an improvement of $1,731,629.
Revenue totaled $12.0 million in the third quarter of 1999,
compared to $24.4 million during the same quarter a year ago. The
majority of the decrease was the result of the expiration of the
Company's blanket product purchase order with the State of Michigan on
September 30, 1998. The Company has realigned the geographical sales
structure to focus on growing its core lines of business. It also
completed several non-recurring projects, and is concentrating on
higher margin service revenues and cost reduction strategies to
improve overall profitability.
Michael Grieves, CEO, stated, "The Company's commitment is to
the growth of the profitable service business, where we add
significant value and realize higher margins. In conjunction with
changing the product/service revenue mix, the Company's cost
reductions have set the basis for continued improvement. Our objective
is to focus on growth in the service area, while shedding product
sales that do not meet our profit criteria."
Michael Jansen, CFO, stated, "We are satisfied with the quarter's
performance. With a combination of revenues that shifted into the next
quarter and costs that were carried in this quarter in anticipation
of our recently terminated merger with Information Architects
Corporation, we were profitable in a soft quarter and greatly improved
on a year to date basis."
Data Systems provides computer network services and products that
enable the control of complex distributed computing environments,
allowing companies to capitalize on their investments in technology
and people. Data Systems also provides a wide range of network
integration services including installation, consultation, technical
support and training to governmental and corporate accounts.
This press release contains certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, which are intended to be covered by the safe harbors created
hereby. Forward-looking statements are subject to a number of
uncertainties and risks. Such uncertainties and risks include, among
others, government regulation, general economic and business
conditions. Actual events, circumstances, effects and results and
economic and business conditions in the computer network services and
products industry may be materially different from the results,
performance or achievements expressed or implied by the
forward-looking statements. Consequently, the forward looking
statements contained herein should not be regarded as representations
by Data Systems Network Corporation, or any other person, that the
projected outcomes can or will be achieved.
DATA SYSTEMS NETWORK CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended For the Nine Months Ended
September 30, September 30,
Unaudited Unaudited Unaudited Unaudited
1999 1998 1999 1998
----------- ------------ ------------ ------------
REVENUES:
Product revenue $ 7,076,828 $ 18,258,545 $ 24,296,691 $ 52,846,174
Service revenue 4,925,682 6,123,205 15,269,461 16,681,298
----------- ------------ ------------ ------------
Total revenues 12,002,510 24,381,750 39,566,152 69,527,472
COST OF REVENUES:
Cost of products 6,005,935 15,699,190 19,558,779 43,423,438
Cost of services 3,971,725 4,733,627 11,960,840 14,211,756
----------- ------------ ------------ ------------
Total cost of
revenues 9,977,660 20,432,817 31,519,619 57,635,194
GROSS PROFIT 2,024,850 3,948,933 8,046,533 11,892,278
OPERATING EXPENSES:
Selling expenses 1,109,725 2,588,608 4,295,658 7,578,460
General and
administrative
expenses 971,136 1,167,788 3,623,913 4,908,937
----------- ------------ ------------ ------------
Total operating
expenses 2,080,861 3,756,396 7,919,571 12,487,397
INCOME (LOSS)
FROM OPERATIONS (56,011) 192,537 126,962 (595,119)
OTHER INCOME (EXPENSE):
Shareholder Settlement - - 1,137,500 -
Loss on Sale of
Equipment - - (385,419) -
Interest income
(expense) (122,753) (181,097) (311,689) (515,326)
Other income
(expense) 209,105 139,780 227,358 254,278
----------- ------------ ------------ ------------
86,352 (41,317) 667,750 (261,048)
Income (Loss) from
continuing
operations 30,341 151,220 794,712 (856,167)
TAXES:
Income Taxes - - - -
----------- ------------ ------------ ------------
Income (Loss) before
discontinued
operations 30,341 151,220 794,712 (856,167)
Loss from
operations of
Unified Network
Services - - - (80,750)
----------- ------------ ------------ ------------
NET INCOME (LOSS) $ 30,341 $ 151,220 $ 794,712 $ (936,917)
----------- ------------ ------------ ------------
----------- ------------ ------------ ------------
Income (Loss)
per common share -
basic and diluted
Continuing
operations 0.01 0.03 0.16 (0.18)
Discontinued
operations - - - (0.01)
----------- ------------ ------------ ------------
Net gain (loss)
per common share $ 0.01 $ 0.03 $ 0.16 $ (0.19)
----------- ------------ ------------ ------------
----------- ------------ ------------ ------------
Weighted average
shares outstanding 5,509,224 4,859,224 5,102,081 4,859,224
----------- ------------ ------------ ------------
----------- ------------ ------------ ------------
CONTACT:
Data Systems Network Corporation
Michael Jansen, 248/489-8700, 800/544-2086 |
