To: LastShadow who wrote (24077 ) 10/31/1999 9:34:00 AM From: AlienTech Respond to of 43080
Premiere Technologies Reports $116 Million Third Quarter Revenue Late Q3 Cost-Cutting Initiatives Expected to Yield Annualized Savings of $13.5 Million ATLANTA, October, 28, 1999 – Premiere Technologies, Inc. (NASDAQ: PTEK; www.premtec.com) today announced that the company's revenues totaled $116.2 million for the third quarter of 1999, up nearly $2 million over the prior quarter. For the first nine months, revenues totaled $343.5 million compared to $327.9 million for the same period a year ago . The Company's Corporate Enterprise Solutions (CES) business unit's primary product lines were up sequentially and accounted for $86.1 million, or 74%, of Premiere's total revenues for the third quarter. The Emerging Enterprise Solutions (EES) business unit accounted for the balance. Networked Voice and Data Messaging and Orchestrate® subscribers grew sequentially, but overall revenues for EES were essentially flat due to continued softness in the retail calling card business and the initial effects of the introduction of flat-rate pricing for certain voice messaging customers. The company's gross margins remained strong at 71.5% . Excluding certain non-cash expenses and one-time charges, operating cash flow as measured by earnings before interest, taxes, depreciation and amortization (EBITDA) totaled $9.6 million for the third quarter, down $1.4 million from the second quarter . The decrease in EBITDA was due primarily to continued softness in the retail calling card business, increased research and development expenditures related to the Orchestrate 2000 platform being developed pursuant to the Company's relationship with Sun Microsystems and the initial effects of flat-rate pricing for certain voice messaging customers. Cost-savings initiatives implemented in late Q3, primarily related to staff reductions and facility consolidations, are expected to yield annualized savings of approximately $13.5 million. These savings, which include significant reductions in corporate overhead, will be reflected in the Company's results of operations beginning in Q4 1999. Premiere announced earlier today its plans to sell its retail calling card business and to pursue plans to spin off its Web-related assets in order to enhance shareholder value. “We continue to be pleased with the progress we've made with our Web-enabling strategies, providing a strong foundation for our announced strategic plan,” said Jeffrey A. Allred, Premiere Technologies' president and COO. “We remain confident in our remaining legacy services, both in terms of market demand and profitability, and we will continue to invest in these services and drive their operating efficiencies.” Zack's Report: PTEK: EPS Surprise of -1.54 % reported on 10/28/99. Actual primary EPS from continuing operations before all non recurring items was -0.66 for quarter ending 09/99. The consensus estimate for the quarter was -0.65.