INNI: looking good on Release.Still have HYALF too.
Jimbo
(PR NEWSWIRE) DJ: I/NET Reports Strong Sales, Record First Quarter Earning
DJ: I/NET Reports Strong Sales, Record First Quarter Earnings
KALAMAZOO, Mich--(BUSINESS WIRE)--May 11, 1998--I/NET, Inc. (OTC:INNI) today
announced record earnings on a 60 percent increase in net revenues for the
first quarter ended March 31, 1998.
The developer and marketer of Internet- and Intranet-based software
applications for mid-range computers reported net earnings of $33,565 on net
revenues of $432,781 in the first quarter 1998, compared with net earnings
of $24,017 on net revenues of $269,748 in the same period last year. The
1997 results included an extraordinary one-time gain of $97,946 from the
extinguishment of a previously recorded debt. I/NET attributed its second
best ever quarterly revenue results to the further development of its
internet and intranet products and web site services.
"We are pleased to see continued improvement reflected in our first quarter
results," said Stephen J. Markee, president and CEO of I/NET. "The major
thrust of our development efforts have focused on bringing the Netscape
servers to the IBM AS/400 computer. We expect the first server to be
available in the third quarter of 1998."
Markee continued: "Other product launches for I/NET will include a new
version of Webulator, our 5250 emulation software, set to hit the market
this month, and I/NET's Merchant/400 product for two-party credit card
transactions, which has been modified to work with IBM's Net.Commerce
product for internet-based merchandising. These two products should bolster
sales of I/NET logo products and significantly contribute to revenues in the
last half of 1998."
I/NET reported its gross margin (gross profit as a percentage of sales)
decreased to 44 percent for the first quarter of 1998, compared with 51
percent in the first quarter of 1997. I/NET attributed this decrease to its
further investment in additional development personnel and other expenses
relating to its Netscape and IBM initiatives.
Operating income advanced to $51,066 for the quarter ended March 31, 1998,
compared with an operating loss of $47,204 in the prior year first quarter.
I/NET attributed the dramatic improvement to increased revenue and a
reduction in selling, general and administrative (SG&A) expense. I/NET
reduced SG&A expense as a percentage of sales to 32 percent in the first
quarter 1998 from 69 percent in the comparable period last year. The
decline is due to a reduction in administrative personnel and continued cost
containment over operating expenses.
"I/NET is continuing to commit additional resources to product development.
In fact, these investments of capital will be significantly increased during
the second and third quarters of 1998 and are expected to generate
additional revenues for I/NET in the latter part of 1998 and into 1999,"
said Markee.
Established in Kalamazoo, Michigan in 1982 as a contract research and
development firm, I/NET (http://www.inetmi.com) has been a pioneer in the
areas of digital imaging, voice recognition and multimedia. I/NET currently
develops internet computer systems and software for both public and private
sectors, and is a leading research firm specializing in systems planning,
development and implementation of internet security solutions, including
services to provide secure and anonymous financial transactions over the
internet for international banking centers. The Company also provides web
site consulting and security services.
I/NET, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
For The Three Months Ended
March 31,
__________________________
1998 1997
________ ________
Revenues $432,781 $269,748
Cost of Revenues 242,226 130,900
________ ________
Gross Profit 190,555 138,848
Selling, General & Administrative
Expense 139,489 186,052
________ ________
Earnings From Operations 51,066 (47,204)
Interest Expense 17,501 26,725
________ ________
Earnings Before Extraordinary Item 33,565 (73,929)
Extraordinary Item -- 97,946
________ ________
Net Earnings $ 33,565 $ 24,017
________ ________
________ ________
Net Earnings Per Share $ 0.00 $ 0.00
________ ________
________ ________
CONTACT: I/NET Inc.
Stephen J. Markee, 616/344-3017 ext. 104
smarkee@inetmi.com
or
Seyferth & Associates, Inc.
Jeff Lambert or John Vonder Haar, 800/435-9539
SeyferthPR@aol.com
09:07 EDT MAY 11, 1998
*** end of story ***
|
