To: LANCE B who wrote (7334 ) 6/18/2000 11:54:00 PM From: TOPFUEL Respond to of 11130
IDCP (NATIONAL DATACOMPUTER INC) National Datacomputer, Inc. designs, manufactures, markets and services rugged, programmable handheld computers, data collection devices and peripherals. IDCP is also a leading developer of tailorable software solutions, such as its Route Service System, for people who need the power of a PC in the field, rather than at a desk. IDCP's shares are traded on the Electronic Bulletin Board. THREE MONTHS ENDED MARCH 31, 2000 COMPARED TO THREE MONTHS ENDED MARCH 31, 1999. Total revenues in the first quarter of fiscal year 2000 were $1,259,703 compared to $1,054,698 in the prior comparable quarter, an increase of 19%. The increase in revenue was attributable to an increase in sales of units of the Company's datacomputers. Cost of sales and services, as a percentage of revenues, decreased in the first quarter of fiscal 2000 to 49% from 57% in the first quarter of the prior fiscal year. The improved gross margin resulted from ongoing cost-control measures in production and the mix of product sales. Research and development expenses as a percentage of revenues for the first quarter of fiscal 2000 decreased to 14% from 23% in the first quarter of the prior fiscal year. Actual research and development spending decreased by 29% in absolute dollars to $173,668 in the first quarter of fiscal 2000, from $242,905 for the same period in 1999. As previously stated in the Company's 10-KSB for the year ended December 31, 1999, the decrease in expenditures reflects the Company's plan to concentrate on allocating a higher percentage of its product development effort to enhance and refine existing hardware and software products. Selling, general and administrative expenses as a percentage of revenues for the first quarter of fiscal 2000 decreased to 29% from 39% in the first quarter of the prior fiscal year. Actual selling, general and administrative spending decreased by 11% in absolute dollars to $364,826 in the first quarter of fiscal 2000, from $407,959 for the same period in 1999. The lower level of costs resulted primarily from a decrease in marketing costs and legal fees. The Company's operating income was $101,958 for the first quarter of fiscal 2000, compared to an operating loss of $197,212 in the first quarter of the prior fiscal year. The increased income was primarily attributable to the decrease in the expenses as discussed above. For further information, contact: Gerald S. Eilberg, Chief Financial Officer NATIONAL DATACOMPUTER, INC. 900 Middlesex Turnpike Billerica, Massachusetts 01821 Telephone: (978) 663-7677 e-mail geilberg@ndcomputer.com