SOFN has net cash of $2.555 per share with a book value of $3.037.
Questions are what is the burn rate, dilution & merger possibilities ?
SoftNet Systems, Inc. Reports Fiscal 2001 Year End Results
SAN FRANCISCO--(BUSINESS WIRE)--Dec. 28, 2001--SoftNet Systems, Inc. (NASDAQ:SOFN - news), today announced that revenue from continuing operations for the year ended September 30, 2001 was $4.2 million compared to $9.9 million for the previous year. Net loss per share for the year ended September 30, 2001, from continuing operations was $2.16, versus a net loss of $0.87 per share a year ago. SoftNet had a net loss of $57,647,000, or a net loss per share of $2.31, for the year ended September 30, 2001, compared to a net loss of $232,353,000, or a net loss per share of $9.88, for the year ended September 30, 2000.
As of September 30, 2001, cash and short-term investments totaled $75.4 million, compared to $172.1 million on September 30, 2000. This decrease was primarily caused by the discontinuance of ISP Channel, Aerzone, and corporate restructuring. These costs primarily included settlement of liabilities, severance and contract termination payments, offset by proceeds from the sale of assets.
Discontinued Operations
SoftNet recognized a $4,898,000 loss attributed to discontinued operations for the year ended September 30, 2001, compared to $211,799,000 for the year ended September 30, 2000. For the year ended September 30, 2001, the loss attributable to discontinued operations consisted of a $10,008,000 gain due to the revision of the loss on disposition of ISP Channel, resulting from lower than anticipated costs of closing ISP Channel, and a $14,906,000 loss on disposition of Aerzone, resulting primarily from the reduction of the estimated sales proceeds of Laptop Lane. For the year ended September 30, 2000, the loss attributable to discontinued operations consisted of a loss on disposition of ISP Channel of $97,200,000, a net loss from the operations of ISP Channel of $60,249,000, a loss on disposition of Aerzone of $42,200,000, and a net loss from the operations of Aerzone of $12,150,000.
Continuing Operations
While SoftNet is currently exploring strategic options, SoftNet currently conducts its continuing operations through its wholly owned subsidiary, Intelligent Communications, Inc. (``Intellicom''), which provides two-way broadband satellite connectivity utilizing very small aperture terminal (``VSAT'') technology to a wide variety of business customers. Although Intellicom has grown in the Latin American marketplace, Intellicom has sustained losses since its acquisition on February 9, 1999. In an effort to reduce Intellicom losses, SoftNet initiated an overall cost cutting program and organizational restructuring during the year ended September 30, 2001, which includes the elimination of certain departments and closure of selected offices.
For the year ended September 30, 2001, Intellicom recorded a decrease in consolidated net sales of $5,750,000, or 58%, to $4,177,000 for the year ended September 30, 2001, compared to net sales of $9,927,000 for the year ended September 30, 2000. Net sales from Intellicom's core business of satellite-based Internet services increased $1,373,000, or 122%, to $2,498,000 for the year ended September 30, 2001, as compared to $1,125,000 for the year ended September 30, 2000.
Additionally, SoftNet recognized a gain of $1,326,000 for the year ended September 30, 2001, as a result of the payment made to settle SoftNet's obligations to former Intellicom stockholders.
SoftNet's Future
SoftNet's Board of Directors continues to evaluate options for the future strategic direction of SoftNet. As previously announced, the Board of Directors has expanded the scope of its exploration of strategic options to include merger partners that may not make immediate use of SoftNet's net operating losses.
Acting Chairman Edward A. Bennett said, ``The Board of Directors of SoftNet continues to explore options for the future direction of the Company, and expects to make a decision within the next 90 days. When a decision is made, it will be disclosed to the shareholders, and appropriate actions, including, if necessary, a stockholder vote, will be taken.'' |
