Nice 4th quarter for VERA, .05 vs (.05).
PITTSFORD, N.Y., Feb 17, 2004 (BUSINESS WIRE) -- Veramark Technologies, Inc.
(OTCBB:VERA), today announced financial results for the fourth quarter and year
ended December 31, 2003.
Veramark reported sales of $2,844,153 for the fourth quarter, an increase of 3%
from $2,761,933 for the same quarter of 2002. For the year ended December 31,
2003, the Company reported sales of $11,463,867; also representing a 3% increase
from sales of $11,141,507 for the year ended December 31, 2002.
Veramark reported a net profit of $465,935, or $0.05 per diluted share, for the
fourth quarter of 2003, a significant improvement from the net loss of $413,415,
or loss of $0.05 per share, incurred for the fourth quarter of 2002. For the
year ended December 31, 2003, Veramark earned a net profit of $294,934, or $0.03
per diluted share, which compared with a net loss of $2,008,443, or loss of
$0.24 per share for the year ended December 31, 2002.
David G. Mazzella, Veramark's President and CEO, commenting on the results
stated, "We are pleased with the progress we have made on a number of fronts
this past year. Our strategy of investing in the development of a new enterprise
product suite while continuing to invest in enhancements of existing products,
and at the same time improving our liquidity position, has begun to show
positive results. For the year ended December 31, 2003, sales of core call
accounting products and services increased 14% from the prior year.
Additionally, initial shipments of our enterprise product, VeraSMART 1.0,
released late in the second quarter of 2003, accounted for 9% of fourth quarter
revenues, which is very encouraging.
"Despite the difficulties encountered in the last several years, we continue to
move forward with new development projects and believe this strategy has
positioned us well. In the coming year, we remain committed to investing
development resources into both eCAS and VeraSMART. Although we are pleased with
the progress eCAS has made since its introduction in 2002, we see new
opportunities for this solution in the small to mid-sized marketplace. We
believe our ongoing efforts on the VeraSMART platform, which when complete will
be the next generation replacement of the current Quantum Series enterprise
product suite, will provide us with a distinct competitive advantage in the
large enterprise market. Additionally, the expansion of the VeraSMART platform
will broaden our outsourced services capabilities, an identified key growth area
for the company."
For the three and twelve months ended December 31, 2003 the company capitalized
software development costs of approximately $470,000 and $682,000 respectively,
and amortized approximately $103,000 and $455,000 of development costs
capitalized in prior years. For the year ended December 31, 2002 there were no
development costs capitalized and approximately $915,000 of amortization expense
recorded.
Commenting further, Mr. Mazzella said, "While we are encouraged by the year's
results, we remain cautious in the face of current economic conditions. We have
seen positive signs in certain segments of the economy, but still have not seen
a consistent and sustainable upward trend in capital spending throughout our
markets. We will continue to drive our revenues, and develop new products, while
carefully controlling our expenses."
Veramark Technologies, Inc. provides premises-based and outsourced telecom
network cost control and productivity solutions for small to large enterprises.
Our products include: call accounting; tie-line reconciliation; phone bill
consolidation and validation; asset and facilities management; cable management;
work order/trouble ticket and service order processing; directory lookup; and
call detail record collection and processing for IP-telephony and traditional
PBX and Centrex environments.
VERAMARK TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS DATA
(Unaudited)
Fiscal Year Ended
December 31,
2003 2002
---- ----
Sales $11,463,867 $11,141,507
------------- -------------
Income (Loss) Before Taxes $294,934 $(2,008,443)
------------- -------------
Income Taxes $
$
------------- -------------
Net Income (Loss) $294,934 $(2,008,443)
------------- -------------
Net Income (Loss) Per Diluted Share $0.03 $(.24)
============= =============
Diluted Weighted Average
Number of Shares Outstanding 9,061,134 8,343,155
============= =============
Fourth Quarter Ended
December 31,
2003 2002
---- ----
Sales $2,844,153 $2,761,933
------------- -------------
Income (Loss) Before Taxes $465,935 $(413,415)
------------- -------------
Income Taxes $
$
------------- -------------
Net Income (Loss) $465,935 $(413,415)
============= =============
Net Income (Loss) Per Diluted Share $0.05 $(.05)
============= =============
Diluted Weighted Average
Number of Shares Outstanding 9,625,106 8,361,150
============= =============
This report may contain forward-looking statements as defined in the Private
Securities Litigation Reform Act of 1995. A variety of factors could cause
actual results to differ from the anticipated results expressed in such
forward-looking statements. These may include but are not necessarily limited to
changes in general economic conditions in the United States and overseas,
technological changes in the telecommunications or computer industries, the
impact of competition or changes in the marketing strategies of major
distributors.
SOURCE: Veramark Technologies, Inc.
CONTACT: Veramark Technologies, Inc.
David G. Mazzella, 585/381-6000
dmazzella@veramark.com
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Copyright (C) 2004 Business Wire. All rights reserved.
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KEYWORD: NEW YORK
INDUSTRY KEYWORD: TELECOMMUNICATIONS
E-COMMERCE
INTERNET
EARNINGS
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