TSQD, Picked up some during the sell off @ 4 3/4, then I saw the EPS. Gonna flip this baby at the first sign of any reversal.
Friday August 7, 6:39 pm Eastern Time
Company Press Release
SOURCE: Tech-Squared, Inc.
Tech Squared Reports Second Quarter Results
MINNEAPOLIS, Aug. 7 /PRNewswire/ -- Tech Squared Inc. (OTC Bulletin Board: TSQD -
news) today reported net sales of $9,502,000 for the second quarter ended June 30, 1998, up 12
percent from $8,484,000 in the second quarter last year.
The company reported a second-quarter net loss of $1,043,000, or 9 cents per share, vs. a net loss
of $252,000, or 2 cents per share, last year. These results include a portion of the losses of Digital
River, Inc., an Internet commerce company in which Tech Squared's current effective ownership is
approximately 23 percent. Excluding the company's portion of Digital River's losses, Tech
Squared's net loss in the most recent quarter was $133,000, compared with net income of $44,000
in the second quarter of 1997.
In May, the company introduced a new catalog, Net Direct, which is aimed at developers of
Internet/intranet sites. The company believes the target market for Net Direct is substantially larger
than the market for its established DTP Direct catalog, but there are significant risks associated with
the launch of a new catalog, and therefore its success cannot be assured. The costs associated with
the launch of Net Direct outweighed its contribution to net income for the quarter and will likely
continue to do so for the remainder of 1998.
Sales to DTP Direct catalog customers increased 11.5 percent in the second quarter from the same
period in 1997. Sales through the company's distribution business increased 7.3 percent from last
year's second quarter.
For the six months ended June 30, 1998, net sales were $18,095,000, compared with
$18,448,000 in the first half of 1997. The company's net loss was $1,548,000, or 14 cents per
share, compared with $503,000, or 5 cents per share, last year.
Tech Squared, based in Minneapolis, is a national marketer and distributor of mid- to high-end
microcomputer hardware, software and peripherals primarily to businesses in the desktop
publishing, graphic arts and pre-press industries, as well as an emerging customer base of Internet
and intranet site developers.
Except for historical financial information, the information contained in this release is
forward-looking and subject to certain risks as described in the company's filings with the Securities
and Exchange Commission, including the company's annual report on Form 10-K for the year
ended Dec. 31, 1997. Actual results may differ significantly based on such risks.
TECH SQUARED INC.
Consolidated Statements of Operations
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
1998 1997 1998 1997
Net sales $9,502,285 $8,484,181 $18,095,013 $18,448,039
Cost of sales 8,309,159 7,422,079 15,815,384 16,295,646
Gross profit 1,193,126 1,062,102 2,279,629 2,152,393
Selling &
marketing 763,645 466,898 1,283,994 943,390
General &
administrative 544,565 559,519 1,047,080 1,111,963
Total operating
expenses 1,308,210 1,026,417 2,331,074 2,055,353
Income (loss)
from operations (115,084) 35,685 (51,445) 97,040
Interest expenses,
net (18,374) (26,595) (41,506) (53,170)
Investment income -- 34,638 4,611 34,638
Equity in losses
of Digital River (909,553) (295,335) (1,459,178) (581,130)
Net loss $(1,043,011) $(251,607) $(1,547,518) $(502,622)
Net loss per
common share $(0.09) $(0.02) $(0.14) $(0.05)
Weighted average
shares
outstanding 11,001,020 10,374,870 10,776,464 10,374,870
SOURCE: Tech-Squared, Inc. |
