(COMTEX) B: BOUNDLESS CORPORATION: Boundless Corporation reports four
B: BOUNDLESS CORPORATION: Boundless Corporation reports fourth quarter and
fiscal 1998 results
MAR 9, 1999, M2 Communications - Boundless Corporation has reported
earnings for its fourth quarter and fiscal year ended 31 December 1998.
Revenues for the quarter ended 31 December 1998 were $21,853,000,
compared with revenues of $26,898,000 for the quarter ended 31 December
1997. Net income available to common shareholders was $2,208,000, or
$0.49 per basic and diluted share, compared with net income available
to common shareholders of $3,079,000, or $0.60 per basic share, or
$0.58 per diluted share for the quarter ended 31 December 1997.
For the fiscal year ended 31 December 1998, the Company reported
revenues of $90,202,000, compared with revenues of $98,271,000 for the
fiscal year ended 31 December 1997. Net income available to common
shareholders was $4,411,000, or $0.90 per basic and diluted share,
compared with net income available to common shareholders of
$4,386,000, or $0.89 per basic share or $0.86 per diluted share for the
fiscal year ended 31 December 1997.
Results for the quarter and year ended 31 December 1997 were
positively affected by taking into account of net operating loss carry
forward tax benefits, totaling approximately $1,481,000, or $0.30 per
basic share. Results for fiscal 1998 include an approximate $372,000,
or $0.08 per basic share benefit due to the net release of certain
income tax reserves.
J. Gerald Combs, Chairman and Chief Executive Officer of Boundless
Corporation, stated, "1998 was another year of progress at Boundless.
Thin-client revenue increased over 160% year-over-year in our Viewpoint
line of Windows-based terminals, confirming the increased acceptance of
server-based computing. Boundless also continued its focus on improving
its business model during the year by maximising the efficiency of its
operations and decreasing costs. Tangible results of our efforts
include an increase in yearly gross margin as a percentage of revenue
from 25.2% to 28.8%, improved yearly earnings, and a 28% reduction in
outstanding debt.
"Boundless also achieved several important product milestones in
1998. With the introduction of Capio, Boundless shattered the price
performance barrier of Windows-based terminals. At the end of 1998, we
completed the development of our unique, next generation software
management tool, Viewpoint Administrator 2.0. These products greatly
simplify and reduce the cost of remote management and control of all
Boundless thin-clients on the corporate network," continued Combs.
Other Boundless achievements this year included:
The product launch of Capio, the price performance thin-client leader
- Boundless again set the industry pace, expanding its Viewpoint family
of thin-clients with the introduction of Capio, the fast, easy,
affordable Windows-based terminal. Capio has an end-user list price
starting at $499 and is powered by a powerful Cyrix MediaGX CPU
operating at 180MHz, making it the lowest priced, highest performance
Windows-based terminal in its class. Boundless also offers the
industry's first "non-obsolescence" 10-year warranty for just $139,
reinforcing the recognition that Boundless Windows-based terminals
provide a much longer and useful life than other thin-clients,
Windows-based terminals and PCs.
A newly organised management team - To better enable the company to
capitalise on the growth opportunities in its markets, Boundless
expanded its management team with the additions of a new board member,
Steve Maysonave, and a new vice president of sales, Jim Tillinghast,
formerly of Informix Corporation.
A results-driven marketing effort - To position itself for growth in
1999, Boundless implemented an aggressive, results-oriented marketing
and sales campaign. The company also launched its successful VARiety
Access ProgramSM designed to expand the efforts of Valued-Added
Resellers ("VARs") to provide thin-client solutions to their customers.
To date, over 250 VARs have signed up in the USA and Canada.
Mike Stebel, executive vice president of marketing and corporate
strategy at Boundless, commented, "The market for server-based
computing continues to gather momentum, albeit at a slightly slower
than expected pace. We believe Microsoft's new pricing and licensing
structure directly address and reaffirm its commitment to reducing the
costs of information access, the fundamental objective of thin-client,
access-based computing. This new level of affordability combined with
new thin-client products and technologies supplied by leading strategic
technology providers, including Citrix Systems, will continue to drive
increased end-user interest and adoption. Boundless remains committed
to furthering its industry leading position through its existing
Windows-based terminal products, Viewpoint and Capio, as well as
forthcoming products which take the ease of information access to new
levels, using new system platforms, new access technologies and the
Internet."
Mr. Combs concluded, "I am pleased to report that the momentum in
thin-client sales has continued into 1999 as early first quarter sales
have been particularly strong. Currently, thin-client revenue has
exceeded fourth quarter 1998 results and is on track to surpass first
quarter 1998 levels.
"As Boundless enters 1999, we are excited about the potential to
build on the developments of the previous year with an improved
financial position and experienced management team. Despite an overall
decline in market demand for traditional General Display Terminals,
particularly for proprietary systems such as our VT and Dorio product
lines, the increasing acceptance of server-based computing in a large
number of markets including government, manufacturing, healthcare,
transportation and retail, both domestically and internationally,
provides many opportunities for growth. Boundless expects to continue
executing on its business plan and achieving many new milestones.
Foremost among these milestones are our commitment to continuing
profitability, the development of new marketing and sales channels,
growing thin-client market share, expanding the value of our product
offerings and, of course, revenue growth."
ABOUT BOUNDLESS
Boundless Corporation, through its wholly owned subsidiary, Boundless
Technologies, Inc, is the largest U.S. manufacturer and marketer of
Windows-based and text terminal solutions. With an installed base of
over five million terminals and thin-client devices, the company's
family of thin- clients provides server-based computing solutions with
PC-like capabilities, where applications reside on a server and are
accessed by users on demand. Boundless' solutions are available through
leading distributors, systems integrators and certified resellers. In
addition, products are marketed under original equipment manufacturers'
labels world-wide, including IBM, AT&T, NCR, Lucent Technologies,
Digital Equipment Corp. (now part of Compaq), Tandem and Olivetti.
Boundless Technologies headquarters are located in Hauppauge, New
York, where it also has a manufacturing facility. In addition,
Boundless has business offices in Austin, Texas, European headquarters
in the Netherlands, and additional sales and distribution offices in
Europe, Asia, Australia and Latin America. For more information, visit
the Boundless web site at boundless.com, or call +31 (0) 345
56 56 56.
All product names and brand names are trademarks or registered trade
names of their respective owners.
Except for the historical information herein, the matters discussed
in this news release include forward-looking statements that may
involve a number of risks and uncertainties. Actual results may vary
significantly based on a number of factors, including, but not limited
to, risks in product and technology development, market acceptance of
new products and continuing product demand, the impact of competitive
products and pricing, changing economic conditions an other risk
factors detailed in the Company's most recent annual report and other
filings with the Securities and Exchange Commission.
-0-
(C)1994-99 M2 COMMUNICATIONS LTDCONTACT: Paul Dobson/Nikki Murrell,
AxiCom
Tel: +44 (0)181 600 4600
Fax: +44 (0)181 600 4620
e-mail: pauld@axicom.com
e-mail: nikki@axicom.com
*M2 COMMUNICATIONS DISCLAIMS ALL LIABILITY FOR
INFORMATION PROVIDED WITHIN M2 PRESSWIRE. DATA
SUPPLIED BY NAMED PARTY/PARTIES.*
*** end of story ***
|
