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Wednesday
October 31, 8:01 am Eastern Time
Company Press Release
North
American DataCom Reports First Quarter Results: Revenues Up
and Expenses Down
IUKA,
Miss.--(BUSINESS WIRE)--Oct. 31, 2001--North American DataCom,
Inc. (OTC BB:NADA), the broadband data storage company, announced
preliminary financial results for its first quarter ended
September 30, 2001. For the three-month period, the Company
reported revenues of $138,923, an increase of approximately
100% over the previous year's results of $69,432.
"We
are pleased about this continued revenue growth, but recognize
that significant growth from our operations will not be achieved
until the planned bandwidth network is in place,'' said Jack
Freeman, President, North American DataCom. "The Company
is very pleased with the early success of Global PTX, our
joint venture with Infusion Software Group, LLC,'' said Mr.
Freeman. "Global is ahead of its business plan with revenues
exceeding $45,000.''
"The
Company plans to announce other strategic partnerships that
should greatly strengthen Global's private trade exchange
market position over the next 60 days,'' said Robert R. Crawford,
CEO of North American DataCom. "Also, the combination
of the Company's data storage and communications network services
and Infusion's PTX software and ASP expertise provide Global
customers a wide solution for global marketing and product
supply requirements.''
The
reported net loss for the three-month period was $312,568,
compared with $869,086 for the same period a year ago. This
64% reduction in the net loss is directly attributable to
expense reduction program put in place in June 2001. The program
has significantly reduced consulting charges and certain network
development costs.
Selling,
general and administrative (SG&A) costs for the period amounted
to $421,198, compared with $715,864 a year ago. Other Expenses
were reduced from approximately $175,000 a year ago to a modest
income level of $42. The Other Expenses last year were largely
attributable to the imputed interest charge treatment of certain
assets associated with the acquisition agreement for 505 miles
rights-of-way and fiber conduit from New Orleans to Jacksonville,
Florida. The Company will shortly file its Form 10Q, which
will provide more detail.
As
the Company discussed in earlier press releases, it plans
to fund its $18 million capital plan for this fiscal year
largely through its funding agreement with IFG Equity Funding
LLC, subject to market conditions. This funding will be augmented
through continued private placements of equity and debt capital.
Discussions with funding sources are presently underway.
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.
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