Fortel Reports Third Quarter Fiscal Year 2000 Results
Strong Sequential Revenue Growth, Narrowed Operating Loss Reported for the Quarter
FREMONT, Calif., July 24 /PRNewswire/ -- FORTEL Inc. (Nasdaq: FRTL - news) today announced results for the third fiscal quarter ended June 30, 2000.
Revenue, consisting of software license, maintenance and related services, of $7.8 million increased 113% over comparable revenue in the third fiscal quarter of
1999 and 90% over the second quarter of 2000. Software license revenue of $5.1 million in the current quarter increased 218% over license revenue in the fiscal
1999 quarter and 182% over the second quarter of 2000. Included in revenue in the third quarter of 2000 is software license revenue of $2.87 million from Unisys
Corporation, under a December 1999 software license and reseller agreement.
(Photo: www.newscom.com/cgi-bin/prnh/20000620/FORTELOGO )
Net profit for the quarter, including a $1.0 million one-time gain on settlement of litigation, was $57 thousand or $0.00 per share versus a net loss of $1.8 million, or
$0.08 per share for the same quarter of the prior year. Weighted average shares outstanding were 26,386,000 in the June 2000 quarter compared to 21,930,000
for the third quarter of fiscal 1999. The operating loss for the quarter was $952 thousand as compared with a loss of $1.8 million for the similar period the previous
year.
``I am pleased with the strong license revenue growth generated by our original products and the enthusiastic response to our new product launched May 8. While
we improved our operating results this quarter, we still have significant investment to make growing our sales organization and introducing SightLine(TM),'' stated
Asa W. Lanum, FORTEL Inc. President and CEO. ``We are actively recruiting enterprise-class sales personnel and hired six in June. For the remainder of the year,
we will work to leverage the opportunity for FORTEL's real-time, end-to-end performance management software by making sales calls at customers and prospects,
hiring and training direct sales and support personnel and expanding our indirect sales channels worldwide.''
About FORTEL Inc.
FORTEL provides the first real-time performance management solution that assures the end-to-end service-level goals of eBusiness. FORTEL's SightLine suite is
based on analysis and correlation software that has been applied and tuned for more than 10 years in the systems management performance arena by customers in
finance and banking, defense management, manufacturing, retail services and government. FORTEL counts among its customers many of the world's largest and
most well known organizations and enterprises. The Company is headquartered in Fremont, California, and can be contacted at 510-440-9600 or by visiting its web
site at www.FORTEL.com.
This press release contains projections and other forward-looking statements regarding future events or the future financial performance of the Company. These
statements are only predictions and actual events or results may differ materially. Refer to the documents the Company files from time to time with the Securities and
Exchange Commission. These documents contains and identify important factors that could cause the actual results to differ materially from those contained in the
projections or forward-looking statements in this press release.
Consolidated Financial Summary follows.
NOTE: FORTEL and SightLine are trademarks of FORTEL Inc. All other product names and brand names are trademarks or registered trademarks of their
respective holders.
FORTEL Inc.
CONSOLIDATED SUMMARY OF FINANCIAL STATEMENTS
Consolidated Statements of Operations
(In Thousands Except Per Share Data)
(Unaudited)
Three MonthsEnded Nine Months Ended
6/30/00 6/30/99 6/30/00 6/30/99
Net sales $7,791 $6,318 $ 17,402 $ 16,457
Cost of goods sold 2,421 3,427 5,771 7,100
Research & development
expenses 1,184 749 2,536 2,017
Selling, general and
administrative expenses 5,138 3,920 13,895 11,470
Loss from
unconsolidated company -- -- -- 1,512
Operating loss (952) (1,778) (4,800) (5,642)
Other (income) expense (1,009) 62 (869) 1,037
Net profit (loss) $57 $(1,840) $ (3,931) $ (6,679)
Net profit (loss)
per common share $0.00 $(0.08) $(0.15) $(0.31)
Number of shares used
in per share
calculation 26,386 21,930 25,760 21,739
Consolidated Balance Sheets
(In Thousands)
(Unaudited) (Audited)
June 30, Sept. 30,
2000 1999
Assets
Current assets
Cash and cash equivalents $1,280 $1,670
Accounts receivable 4,717 3,719
Deferred and refundable taxes 204 205
Other current assets 1,296 1,218
Total current assets 7,497 6,812
Fixed assets, net 864 738
Other assets, net 3,729 4,102
Total assets $ 12,090 $ 11,652
Liabilities and shareholders' equity
Current liabilities
Accounts payable $3,408 $2,568
Accrued liabilities 1,314 1,114
Short-term debt 970 --
Deferred revenue 3,491 2,073
Total current liabilities 9,183 5,755
Shareholders' equity:
Preferred stock -- 2,000
Common stock 74,281 71,340
Accumulated deficit (71,374) (67,443)
Total shareholders' equity 2,907 5,897
Total liabilities and
shareholders' equity $ 12,090 $ 11,652
SOURCE: FORTEL Inc.
Strong Sequential Revenue Growth, Narrowed Operating Loss Reported for the Quarter
FREMONT, Calif., July 24 /PRNewswire/ -- FORTEL Inc. (Nasdaq: FRTL - news) today announced results for the third fiscal quarter ended June 30, 2000.
Revenue, consisting of software license, maintenance and related services, of $7.8 million increased 113% over comparable revenue in the third fiscal quarter of
1999 and 90% over the second quarter of 2000. Software license revenue of $5.1 million in the current quarter increased 218% over license revenue in the fiscal
1999 quarter and 182% over the second quarter of 2000. Included in revenue in the third quarter of 2000 is software license revenue of $2.87 million from Unisys
Corporation, under a December 1999 software license and reseller agreement.
(Photo: www.newscom.com/cgi-bin/prnh/20000620/FORTELOGO )
Net profit for the quarter, including a $1.0 million one-time gain on settlement of litigation, was $57 thousand or $0.00 per share versus a net loss of $1.8 million, or
$0.08 per share for the same quarter of the prior year. Weighted average shares outstanding were 26,386,000 in the June 2000 quarter compared to 21,930,000
for the third quarter of fiscal 1999. The operating loss for the quarter was $952 thousand as compared with a loss of $1.8 million for the similar period the previous
year.
``I am pleased with the strong license revenue growth generated by our original products and the enthusiastic response to our new product launched May 8. While
we improved our operating results this quarter, we still have significant investment to make growing our sales organization and introducing SightLine(TM),'' stated
Asa W. Lanum, FORTEL Inc. President and CEO. ``We are actively recruiting enterprise-class sales personnel and hired six in June. For the remainder of the year,
we will work to leverage the opportunity for FORTEL's real-time, end-to-end performance management software by making sales calls at customers and prospects,
hiring and training direct sales and support personnel and expanding our indirect sales channels worldwide.''
About FORTEL Inc.
FORTEL provides the first real-time performance management solution that assures the end-to-end service-level goals of eBusiness. FORTEL's SightLine suite is
based on analysis and correlation software that has been applied and tuned for more than 10 years in the systems management performance arena by customers in
finance and banking, defense management, manufacturing, retail services and government. FORTEL counts among its customers many of the world's largest and
most well known organizations and enterprises. The Company is headquartered in Fremont, California, and can be contacted at 510-440-9600 or by visiting its web
site at www.FORTEL.com.
This press release contains projections and other forward-looking statements regarding future events or the future financial performance of the Company. These
statements are only predictions and actual events or results may differ materially. Refer to the documents the Company files from time to time with the Securities and
Exchange Commission. These documents contains and identify important factors that could cause the actual results to differ materially from those contained in the
projections or forward-looking statements in this press release.
Consolidated Financial Summary follows.
NOTE: FORTEL and SightLine are trademarks of FORTEL Inc. All other product names and brand names are trademarks or registered trademarks of their
respective holders.
FORTEL Inc.
CONSOLIDATED SUMMARY OF FINANCIAL STATEMENTS
Consolidated Statements of Operations
(In Thousands Except Per Share Data)
(Unaudited)
Three MonthsEnded Nine Months Ended
6/30/00 6/30/99 6/30/00 6/30/99
Net sales $7,791 $6,318 $ 17,402 $ 16,457
Cost of goods sold 2,421 3,427 5,771 7,100
Research & development
expenses 1,184 749 2,536 2,017
Selling, general and
administrative expenses 5,138 3,920 13,895 11,470
Loss from
unconsolidated company -- -- -- 1,512
Operating loss (952) (1,778) (4,800) (5,642)
Other (income) expense (1,009) 62 (869) 1,037
Net profit (loss) $57 $(1,840) $ (3,931) $ (6,679)
Net profit (loss)
per common share $0.00 $(0.08) $(0.15) $(0.31)
Number of shares used
in per share
calculation 26,386 21,930 25,760 21,739
Consolidated Balance Sheets
(In Thousands)
(Unaudited) (Audited)
June 30, Sept. 30,
2000 1999
Assets
Current assets
Cash and cash equivalents $1,280 $1,670
Accounts receivable 4,717 3,719
Deferred and refundable taxes 204 205
Other current assets 1,296 1,218
Total current assets 7,497 6,812
Fixed assets, net 864 738
Other assets, net 3,729 4,102
Total assets $ 12,090 $ 11,652
Liabilities and shareholders' equity
Current liabilities
Accounts payable $3,408 $2,568
Accrued liabilities 1,314 1,114
Short-term debt 970 --
Deferred revenue 3,491 2,073
Total current liabilities 9,183 5,755
Shareholders' equity:
Preferred stock -- 2,000
Common stock 74,281 71,340
Accumulated deficit (71,374) (67,443)
Total shareholders' equity 2,907 5,897
Total liabilities and
shareholders' equity $ 12,090 $ 11,652
SOURCE: FORTEL Inc.
