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Neoware Delivers Record Revenues and Earnings in Q2
WEDNESDAY, JANUARY 29, 2003 4:01 PM
- PrimeZone
KING OF PRUSSIA, Pa., Jan 29, 2003 (PRIMEZONE via COMTEX) -- Neoware Systems, Inc. (NWRE) , the leading supplier of award-winning software, services, and education for the thin client appliance computing market, today reported record revenue and earnings for its fiscal 2003 second quarter ended December 31, 2002.
FINANCIAL HIGHLIGHTS
- Revenues for the quarter ended December 31, 2002 increased 123% to $14,713,778, from $6,595,133 in the prior year quarter.
- Pretax income for the quarter increased 382% to $2,943,258, or $0.20 per fully diluted share, from $610,568, or $0.06 per fully diluted share, in the prior year quarter.
- Net income for the quarter increased 208% to $1,883,685, or $0.13 per fully diluted share, after an income tax provision of $1,059,573, from $610,568 or $0.06 per fully diluted share, in the prior year quarter, which had no income tax provision. As a result of tax loss carryforwards and current deductions, there were no federal income taxes payable for the current quarter.
"Neoware is delivering record revenues, earnings, and cash flow as more customers embrace the cost savings and return on investment that Appliance Computing brings," stated Michael Kantrowitz, Neoware's Chairman and CEO. "Demand for Neoware's products is increasing and we are very well positioned to capitalize on this opportunity."
ADDITIONAL FINANCIAL HIGHLIGHTS
- Cash flow from operations increased to $3,792,927 for the current quarter from $1,803,334 in the prior sequential quarter and from a negative $504,836 in the prior year quarter.
- Gross margin increased to 44% from 42% in the prior sequential quarter and 43% in the prior year quarter as a result of initial sales of software to IBM customers, cost reductions, and a favorable product mix.
- Cash increased to $23,995,453 from $20,062,339 in the prior quarter, primarily as a result of positive cash flow from operations.
- Net operating margin was 19% as a result of increased sales, increased gross margins, and a reduction in operating expenses as a percentage of revenue.
CUSTOMER WINS AND MARKET DATA
- Specific customers sold during the quarter included Art Van Furniture, Belk Stores, Centres Leclerc, Discount Tire, Dixon Stores, GE Capital, Harley Davidson, Haverty's Furniture, Ikea, Lloyds UDT, Panalpina, Platt Electric Supply, Reed Insurance Services, Seattle Housing Authority, Spring Industries, and Wal-Mart.
- According to the most recent industry report on the thin client market, Neoware gained more market share than any other supplier; more than doubled its market share compared to one year ago, grew at more than eight times the market's rate, and is now the number two supplier of thin client appliances and software worldwide.
"We are especially pleased with the initial results of our IBM alliance, and believe that we are very well positioned to continue to gain market share in large enterprise accounts through this partnership," Mr. Kantrowitz continued. "Our sales with IBM are growing, and our pipeline of opportunities with IBM has increased significantly as we have begun to implement joint marketing and sales programs."
"Neoware is very well positioned to continue to deliver significant increases in revenues and earnings. We have exactly the right products and message for today's cost-constrained IT spending climate. The fact that Neoware's products save money - both up-front and in total ownership cost - is resonating with our customers and partners and driving our growth," Mr. Kantrowitz concluded.