Look out below, I had a buy order at 5 3/4 that I just canxed:
Thursday December 28, 5:21 pm Eastern Time
Press Release
SOURCE: Optibase, Ltd.
Optibase Revises Expectations for Q4 2000 and Year 2001
Company Cites Reduced Sales of Legacy Products; MGW2000 Sales to Be Higher in Q4 Than Previously Expected
Optibase Board Authorizes Stock Buy-Back
HERZLIYA, Israel, Dec. 28 /PRNewswire/ -- Optibase, Ltd. (Nasdaq: OBAS - news), a leader in digital streaming solutions over broadband networks, today announced that it expects to report lower than expected sales and earnings for the fourth quarter of 2000 and is restructuring its earnings forecast for the year 2001. The Company said, however, that for the fourth quarter, sales of its new MediaGateway (``MGW'') product, the MGW2000, are expected to be nearly double that which it originally had anticipated.
Optibase also announced today that its Board of Directors has authorized the buy-back of up to 1 million shares of the Company's common stock, commencing immediately.
The Company attributed the shortfall in fourth quarter sales to the decrease in purchases of its legacy products, in addition to weakness in the overall technology sector during the final months of 2000. Optibase expects that sales for the fourth quarter will be between $6.8 million and $7.3 million on a consolidated basis. The Company expects pro forma net income, excluding the effects of acquisitions and stock option charges, to be break-even in the fourth quarter.
Regarding sales of the MGW2000, Optibase expects fourth quarter sales to be approximately $1 million, about twice that which it originally had projected.
For the year 2001, the Company expects its pro forma net income, excluding the effects of acquisitions and stock option charges, to be between $0.05 and $0.25 per share on expected sales of 50 percent to 70 percent higher than those to be reported for year 2000. The Company said earnings in 2001 will be impacted by increases in R&D spending in connection with the Company's plans to grow its MGW family of products.
Ran Eisenberg, President and CEO of Optibase, said, ``Optibase's greatest growth potential rests in our new line of MediaGateway products. As we move toward enhancing our technologies, we believe our focus on the MGW line is imperative to Optibase's competitive edge. Although overall sales for the fourth quarter are lower than anticipated, sales of the MGW2000 in the quarter will be about double our original projection.
``Our Board views a buy-back of our common shares at today's valuation as an attractive investment opportunity. We view this share repurchase to be an excellent use of our cash and it demonstrates our commitment to enhancing shareholder value.''
Mr. Eisenberg continued, ``The technology industry, however, has undergone changes that have resulted in a weakness in both the U.S. and international markets which have affected the sale of our legacy products. Nevertheless, given the success of the MGW2000 to date and the planned introduction of the MGW4000 -- the next step in the evolution of the MediaGateway product line which was unveiled at the Streaming Media West trade show in December -- we are excited about our future and that Optibase is positioned to maintain its leadership position in the digital streaming solutions industry.''
About Optibase
Optibase, Ltd. provides high-quality, cost effective products that enable the preparation and delivery of MPEG-based digital media over broadband networks. Optibase has created a breadth of product offerings used in applications, such as: Video-on-demand, real-time video streaming, digital video archiving, distance learning and business television. Headquartered in Israel, Optibase operates through its fully owned subsidiary in San Jose, California and offices in the U.K., France Japan and China. Optibase products are marketed in over 40 countries through a combination of direct sales, independent distributors, system integrators and OEM partners. For more information, visit www.optibase.com.
This news release contains forward-looking statements concerning our marketing and operations plans. These statements involve a number of risks and uncertainties including, but not limited to, risks related to the evolving market for digital video, competition, our ability to manage growth and expansion, general economic conditions and other risk factors. For a more detailed discussion of these and other risks that may cause actual results to differ from the forward-looking statements in this news release, please refer to Optibase's Registration Statement on Form F-1 filed with the United States Securities and Exchange Commission.
This release and prior releases are available on the Company's Web site at www.optibase.com.
This release and prior releases are also available on the KCSA Public Relations Worldwide Web site at www.kcsa.com.
SOURCE: Optibase, Ltd. |
