ROMT -
Here is the news release for ROMT
Romtech Announces Second Quarter Revenues Up 170% Compared to
PR Newswire - January 14, 1998 17:31
LANGHORNE, Pa., Jan. 14 /PRNewswire/ -- RomTech, Inc. (Nasdaq: ROMT)
today announced unaudited results for the second quarter and six months ended December 31, 1997. Revenues for the quarter ended December 31, 1997 were $2,856,000 versus revenues of $1,058,000, for the same period a year ago, an increase of 170%. Net income and net income per share for the current period were $601,000 and $0.06
versus a net loss of $(736,000) or $(0.12) per share for the three months ended December 31, 1996. Revenues for the six months ended December 31, 1997 were $4,391,000 versus $2,129,000 for the comparable year ago period, a 106% increase. Net income for the period was $662,000 or $0.07 per share versus a loss of $(1,143,000) or $(0.18) per share for the six months ended December 31, 1996. The Company's income or (loss) per share for the quarters ended December 31, 1997
and 1996 and the six months ended December 31, 1997 and 1996, were negatively impacted since certain convertible preferred securities issued by the Company contained "in the money" conversion features accounted for in a manner similar to a preferred stock dividend. The accrual of this "in the money" feature decreased the net income or increased the net (loss) attributable to Common Stock by $86,858 for the three months and six months ended December 31, 1996, respectively, and by $12,550 and by $117,991 for the three months and six months ended December 31, 1997, respectively. Future quarters will not be burdened with any further charges related to the issuance of these
securities.
Joseph A. Falsetti, Chief Executive Officer of RomTech, said, "The second quarter was a breakout quarter. Second quarter results were ahead of our expectations due to the success of the Galaxy Series branding strategy and the strong retail sell-through results. Revenues for the first half of this year exceeded revenues for all of fiscal 1997. Our challenge in the second half of fiscal 1998 will be to build upon the retail sell-through momentum that we are currently enjoying. As long as we continue gaining market share in the value line
category we should expect to realize greater distribution of our products and more promotional opportunities." Mr. Falsetti also stated, "The successful launch of Galaxy Online(TM) during the second half of fiscal 1998 will be a key part of continuing our success in fiscal 1999. Galaxy Online will provide buyers of certain RomTech's Galaxy of Games(TM) titles access to unlimited free Internet game play. A recent report published by Cowles/Simba Information, a Stamford, CT based market research firm, predicts that online games
services, a $59 million business in 1997, will reach $670 million in 2001. We believe that the success of the Galaxy Series branding strategy will position Galaxy Online to realize a significant share of the online games market growth." RomTech, headquartered in Langhorne, PA develops, publishes, markets and resells a diversified line of personal computer ("PC") software primarily for consumer and business applications. The Company promotes the Galaxy of Games(TM), Galaxy of Home Office Help(TM) and Galaxy Deluxe(TM) brand names (the "Galaxy Series") in order to generate customer loyalty, encourage repeat purchases and differentiate the Galaxy Series products to retailers and consumers. The Company targets the market of home and small business personal computer users. The Company's sales are primarily made through a large national distributor that sells to large national retail chain stores.
RADAR |
