Amigos and All Datapoint Corporation (DPT) had a very strong day today.They did have some news today and technically there buy no means out of the woods yet.Although if today is any indication it looks like interest may start to pick up. They also have some patent issues in litigation against some pretty big companies and have been winning some court cases to further support there claims. May be well worth keeping an eye on. (Sorry about the scrolling necessary I have to used the fixed font so the columns come out good but it screws every thing else up. Anyone know how I can remedy this situation)
Company Press Release
Datapoint Reports Second Quarter Results: Significant
Improvement in Operating Income
SAN ANTONIO, Texas--(BUSINESS WIRE)--March 9, 1998--Datapoint Corporation
(NYSE:DPT - news) today reported operating income of $1,950,000 for its second quarter, which
ended January 31, 1998, compared to an operating loss of $292,000 in its second quarter of last
year. Revenue during the second quarter of 1998 increased $6.2 million or 18 percent to
$40,444,000, compared with the same period of the prior year.
The company reported net income of $2,344,000 on revenues of $40,444,000 for the quarter.
After deducting a provision for preferred stock dividends, basic earnings per share was $.12. This
compares to net income of $295,000 and basic earnings per share after deducting a provision for
preferred stock dividends of $.25 per share on revenues of $34,281,000 for the same period in the
prior year. Included in last year's earnings per share computation is $.24 per share attributable to a
gain on the exchange and retirement of preferred stock.
For the first six months of fiscal year 1998, the company had operating income of $2.6 million and
net income of $1.5 million, compared to an operating loss of $2.2 million and net loss of $1.3 million
for the same period last year.
Included in the non-operating income for the second quarter of fiscal year 1998 are $2 million of
foreign currency transaction gains due to a strong U.S. dollar. This compares to transaction gains of
$2.2 million for the same period last year. These gains on short term intercompany notes and
international subsidiary U.S. dollar denominated cash are offset by translation adjustment to
Stockholders Equity and therefore have no impact on the company's financial position.
Blake Thomas, president and chief operating officer of Datapoint said, ''We are very pleased to
report the significant increase in operating income in our second quarter. Year-over-year second
quarter operating income improved by $2.2 million and for our first half, operating income improved
by $4.8 million. These results continue the positive operating trend that began in the company's third
quarter last year and that has now extended to four consecutive quarters. It is also very pleasing to
report that revenue during the quarter increased $6.2 million or 18 percent and that for the first half
of our year is up $8.3 million or 12.3 percent compared with the same periods last year. All of us at
Datapoint are dedicated, committed, and focused to continuing this trend. We are winning new
business and maintaining and adding to existing business in data, voice, and video communication
solutions.''
Thomas added, ''Datapoint is continuing to actively pursue the enforcement and licensing of its
multi-speed networking and video conferencing patents through negotiation and/or litigation. Our
video conferencing patent trial against PictureTel Corporation is scheduled to begin next week, on
March 16, in Dallas. We believe our patents provide broad coverage in video conferencing and
multi-speed networking technology and present substantial opportunity for significant royalty bearing
licenses. Collection of royalties and enforcement of our patents is a primary strategy of Datapoint.''
With its U.S. headquarters in San Antonio, TX, and international headquarters in Paris, France,
Datapoint specializes in the design, integration, and maintenance of data, voice, and video
communication solutions and markets its products and services in 40 countries worldwide. The
company is known for its superior R&D and as an inventor of many noteworthy technologies,
including distributed video conferencing.
Datapoint Corporation
SUMMARY OPERATING STATEMENTS
(In thousands, except per share data)
(Unaudited)
Quarter Ended
Jan. 31, 1998 Jan. 25, 1997
Revenue:
Sales $ 24,866 $ 18,524
Service and other 15,578 15,757
Total revenue $ 40,444 $ 34,281
Operating costs and expenses:
Cost of sales 19,803 12,936
Cost of service and other 9,941 11,270
Research and development 600 465
Selling, general and administrative 8,098 8,353
Reorganization/restructuring costs 52 1,549
Total operating costs and expenses 38,494 34,573
Operating income (loss) $ 1,950 $ (292)
Non-operating income (expense):
Interest expense (1,475) (1,681)
Other, net 2,063 2,154
Income before income taxes and
extraordinary credit 2,538 181
Income taxes (benefit) 575 (33)
Income before extraordinary credit 1,963 214
Extraordinary credit - debt extinguishment 381 81
Net income $ 2,344 $ 295
Basic Earnings Per Common Share:
Income before extraordinary credit $ .11 $ .01
Preferred stock dividends accumulated (.01) (.01)
Gain on the exchange and retirement of
preferred stock -- .24
Basic earnings per share before
extraordinary credit $ .10 $ .24
Extraordinary credit .02 .01
Net income per common share $ .12 $ .25
Diluted Earnings Per Common Share:
Income before extraordinary credit $ .10 $ .01
Preferred stock dividends accumulated (.01) --
Gain on the exchange and
retirement of preferred stock -- .22
Diluted earnings per share
before extraordinary credit $ .09 $ .23
Extraordinary credit .02 --
Net income per common share $ .11 $ .23
SUMMARY OPERATING STATEMENTS
(In thousands, except per share data)
(Unaudited)
Six Months Ended
Jan. 31, 1998 Jan. 25, 1997
Revenue:
Sales $ 44,369 $ 35,550
Service and other 31,148 31,711
Total revenue $75,517 $67,261
Operating costs and expenses:
Cost of sales 35,232 25,708
Cost of service and other 19,838 22,098
Research and development 1,205 954
Selling, general and administrative 16,567 18,345
Reorganization/restructuring costs 52 2,358
Total operating costs and expenses 72,894 69,463
Operating income (loss) $ 2,623 $ (2,202)
Non-operating income (expense):
Interest expense (3,051) (3,329)
Other, net 2,091 3,346
Income (loss) before income taxes
and extraordinary credit 1,663 (2,185)
Income taxes 688 20
Income (loss) before
extraordinary credit 975 (2,205)
Extraordinary credit - debt
extinguishment 555 903
Net income (loss) $ 1,530 $ (1,302)
Basic Earnings Per Common Share:
Income before extraordinary credit $ .05 $ (.15)
Preferred stock dividends accumulated (.02) (.04)
Gain on the exchange and
retirement of preferred stock -- .25
Basic earnings per share
before extraordinary credit $ .03 $ .06
Extraordinary credit .03 .06
Net income per common share $ .06 $ .12
$ 3,924 $ (414)
$ 1,860 $ (2,088)
Diluted Earnings Per Common Share:
Income before extraordinary credit $ .05 $ (.15)
Preferred stock dividends
accumulated (.02) (.04)
Gain on the exchange and
retirement of preferred stock -- .25
Diluted earnings per share
before extraordinary credit $ .03 $ .06
Extraordinary credit .03 .06
Net income per common share $ .06 $ .12
SUMMARY BALANCE SHEETS
(In thousands)
(Unaudited)
January 31, August 2,
1998 1997
Current assets:
Cash and cash equivalents $10,740 $15,644
Accounts receivable, net 29,551 22,731
Inventories 3,914 3,962
Other current assets 4,075 3,003
Total current assets 48,280 45,340
Fixed assets, net 9,797 11,764
Other assets, net 5,320 5,284
Total Assets $63,397 $ 62,388
Current liabilities $ 53,659 $ 53,679
Long-term debt and other 71,365 72,793
Stockholders' deficit (61,627) (64,084)
Total Liabilities and Stockholders'
deficit $ 63,397 $ 62,388
Joe |
