|
Tuesday
October 16, 12:03 pm Eastern Time
Company Press Release
North
American DataCom Reports Fiscal Year 2001 Results: Net Revenue
and Development Expenses Up
IUKA,
Miss.--(BUSINESS WIRE)--Oct. 16, 2001--North American DataCom,
Inc. (OTC BB: NADA), the Broadband and Data Storage Company,
announced financial results for its fiscal year ended June
30, 2001. The Company reported revenues from its startup ISP
and paging services of $475,426, an increase of approximately
76% over the previous year's six-month period of $269,649.
"While
we are optimistic about this revenue growth, we would emphasize
that these modest revenues are generated primarily by locally
acquired Information Technology businesses and they are planned
to significantly expand as our broadband network is built,''
said Jack Freeman, President, North American DataCom (NAD).
"NAD
is positioning itself as an industry standard for data storage
and broadband services that will provide with our own growing
network backbone. We have a highly experienced staff and remain
focused to implement our business strategies, as discussed
in the Business Plan that was formulated in partnership with
Cap Gemini Ernst & Young that calls for the construction of
a 3,000-mile fiber optic network.''
NAD
recently announced establishment of an Application Service
Provider business to design, develop and implement data warehousing
and data mining applications. Global PTX, LLC, a joint venture
with Infusion Software, LLC, is establishing Private Trade
Exchanges. This venture is focused on "end-to-end'' vendor/customer
supply chain synchronization. Initial development activities
are designed to target Manufacturing and Retail Business Industry
Sector corporations that make up strategic supply chain trading
groups. The objective is reducing enterprise expenses and
providing significant improvement in operating efficiencies
for the entire supply chain group.
The
combination of NAD's data storage and communications network
services and Infusion's PTX business model, software and ASP
expertise will offer customers a compelling solution for global
marketing and product supply requirements,'' said Robert R.
Crawford, Chairman and CEO of NAD. Besides coordinating the
broadband data center operations for Global PTX, NAD is offering
Global PTX customers with High Speed Internet access and other
multi-band services and products.
The
reported net loss for the 2001 fiscal year was $3,569,101
compared with $1,807,686 for the previous year. This loss
is directly attributed to increased expenses due to the startup
costs for the Company's bandwidth and data center system.
About $1,550,000 of the increase of $1,760,000 in expenses
is due to greater selling, general and administrative (SG&A)
costs for the year. The SG&A expenses amounted to $3,293,230
compared with $1,524,923 over the prior period. About $900,000
of this increase is directly due to the significant addition
of management and technical staff to develop the broadband
business. The balance, approximately $650,000, arises from
increased legal, engineering and consultant expenses.
The
remainder of the increase arises from the $220,000 of interest
expense. This expense is primarily associated with the imputed
interest of approximately $540,000 relating to an acquisition
agreement for 505 miles rights-of-way and fiber conduit from
New Orleans to Jacksonville, Florida.
"The
marketplace understands that we are making a large investment
to serve the rural South,'' said Mr. Crawford. The total asset
investment of the Company increased to $17.1 million by year-end.
As the Company announced earlier, it plans to primarily fund
its equity and debt capital needs to continue the first 550-mile
segment of its 3,000-mile network with the private investor
public entity financing with Institutional Finance Group as
the market stabilizes. In the interim the Company has obtained
private capital financing.
Safe
Harbor Statement
Statements
in this release express management's beliefs and expectations
regarding future performance. These statements are forward-looking
and involve risk and uncertainties. These risks include, but
not limited to, the ability to negotiate venture agreements,
properly identify acquisition partners, manage and integrate
acquired businesses, react to quarterly fluctuation in results,
raise working capital and secure other financing, respond
to competition and other rapidly expanding technology, deal
with market and stock price fluctuation, and other risks.
These risks are and will be detailed, from time to time, in
North American DataCom, Inc. Securities and Exchange Commission
filings. Actual results may differ materially from management's
expectations.
North
American DataCom's principal executive offices are located
at 751 County Road 989, Building 1000, Iuka, MS 38852. For
further information, contact Investor Relations, 662-424-5030,
or by e-mail at investorrelations@nadata.com.
|
