Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : DSSI/DATA Systems & Software -- Ignore unavailable to you. Want to Upgrade?

To: Creditman who wrote (523)	3/31/1998 9:28:00 PM
From: thomas johnson	Read Replies (1) \| Respond to of 1061

%DATA-SYSTEMS-SOFTWARE DSSI %NEW-JERSEY %COMPUTERS %ELECTRONICS %COMED %EARNINGS V%BW P%BW -------------------------------------------------------------------------------- MAHWAH, N.J.--(BUSINESS WIRE)--March 31, 1998--Data Systems & Software Inc. (NASDAQ/NNM:DSSI) today announced results for the year ended December 31, 1997. Although the Company continued to have effective control of Tower Semiconductor Ltd. ("Tower"), as a result of a change in its voting control of Tower's shares, the Company's statement of operations for the year ended December 31, 1997 reflect the results of Tower on the equity method, while the statement of operations for the year ended December 31, 1996 reflects the results of Tower on a fully consolidated basis. The results for 1996 and 1997 are therefore not directly comparable. Comparative information for the year ended December 31, 1996, other than net income, has been adjusted to exclude Tower's activities. Sales for 1997 increased by 18.0% to $40.0 million, compared with $33.9 million in 1996, due primarily to increased computer hardware sales by the Company's Databit subsidiary and increased help desk product sales. Gross profit for 1997 increased by 4.8% to $7.6 million, compared with $7.2 million in 1996. Gross profit for 1997 was net of a $1.7 million writedown of previously capitalized PHD and CybrCard software development costs. Operating loss in 1997 was $12.0 million compared with $5.3 million in 1996. The increased operating loss was primarily attributable to a $6.5 million increase in expenses associated with the development and marketing of the Company's PHD and CybrCard products. The Company had a net loss for 1997 of $9.9 million, or $1.35 per share, compared with a net loss of $2.0 million, or $0.28 per share, in 1996. The increased net loss was primarily attributable to the writedowns and increased expenses related to PHD and CybrCard, and the recognition of tax expense of $3.0 million resulting from an increased valuation allowance against certain tax benefits. George Morgenstern, Chairman and CEO of DSSI, commented: "During 1997, we continued to invest heavily in product development and marketing. We also significantly increased the resources devoted to our development and marketing of data communications systems for the utility market. With our recent acquisition of new assets and technology in this area and the formation of our Comverge subsidiary, we look forward to further exploiting the opportunities in this exciting market in 1998." This press release includes forward-looking statements which are subject to risks and uncertainties, including risks associated with the Company's (i) entry into new markets and development and introduction of new products and (ii) the Company's need to finance costs related thereto. Actual results may vary from those projected or implied by such forward-looking statements. A more complete discussion of risks and uncertainties which may affect the accuracy of these statements and the Company's business generally, is included at "Business -- Factors Which May Affect Future Results" in the Company's most recent Annual Report on Form 10-K as filed by the Company with the Securities and Exchange Commission. Data Systems & Software Inc. is a provider of computer consulting and development services and packaged software products and is an authorized direct seller and value added reseller of computer hardware. In addition, the Company, through Tower, manufactures integrated circuits on silicon wafers using its advanced production capability and the proprietary designs of its customers. DATA SYSTEMS & SOFTWARE INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (dollars in thousands, except per share data)