To: Rande Is who wrote (2082 ) 1/19/1999 3:55:00 PM From: Bucky Katt Read Replies (1) | Respond to of 57584
RomTech Announces EPS Gain of 50% on Strong Revenue Growth of 26% In the Fiscal 1999 Second Quarter Earnings for First Six Months of Fiscal 1999 Exceed Full-Year Fiscal 1998 Results LANGHORNE, Pa., Jan. 19 /PRNewswire/ -- RomTech, Inc. (Nasdaq: ROMT - news), the leading provider of Family Friendly™, value-priced computer software games for players of all ages, today announced record results for the second fiscal quarter and six months ended December 31, 1998. Sales for the quarter ended December 31, 1998 increased 26% to $3,611,000 versus sales of $2,856,000 for the same quarter a year ago. This increase is primarily attributable to the continued popularity of the Company's family friendly, value-priced games and the successful introduction of new titles under the Game Master™ and Galaxy of Arcade™ product lines during the current fiscal year. RomTech is also benefiting from its growing share of the value-priced gaming software market, the fastest growing segment of the consumer software market. MANAGEMENT'S COMMENTS ''We are very pleased with our strong sales growth, our significantly increased profitability and the substantial progress we have made in introducing exciting new products to the marketplace. We are currently one of the fastest growing casual gaming software companies both in terms of dollars and units sold, a position we intend to maintain going forward,'' said Jerry Klein, President and CEO of RomTech. ''The cornerstone of our success has been the establishment of the Galaxy Software brand as one that consumers recognize and remember. Also, we continue to implement other elements of our business strategy including the expansion of our domestic and international reach, both through creating new strategic relationships and aggressively implementing our Internet strategy,'' stated Mr. Klein. ''Where our products were only available in five countries at this time last year, we are now available through retail distribution in more than twenty-one countries. Importantly, RomTech's international sales grew 400% to $1,259,000 and now represent 21% of overall sales, up from 6% at this time last year,'' said Mr. Klein. ''With respect to our on-line capabilities, our eGames2000.com home page and our accompanying e-commerce strategy make our software products accessible to any software gaming enthusiast with a computer and a modem. Last week's announced distribution and marketing agreement with Digital River, the leader in electronic software delivery (ESD), puts us on the cutting edge of the Internet revolution. This means that consumers can now purchase any of our games online and begin playing them within minutes,'' continued Mr. Klein. ''As a result of our strong first half results and the Company's competitive strengths going forward, our objective for fiscal 1999 is to increase sales by 50% and to double our earnings from the year ago period,'' concluded Mr. Klein. RomTech's Board of Directors approved a $1 million stock buyback program on October 26, 1998. To date the Company has repurchased 161,900 shares at an average price of $1.67 per share. romt.com