|
Thursday
February 21, 9:55 am Eastern Time
Company Press Release
North
American DataCom Reports Six-Month Results: Revenues Up and
Expenses Down
IUKA,
Miss.--(BUSINESS WIRE)--Feb. 21, 2002--North American DataCom,
Inc. (OTCBB:NADA - news), the broadband data storage company,
announced financial results for its second quarter ended December
31, 2001. For the six-month period, the Company reported revenues
of $244,859, an increase of 57% over the previous year's results
of $156,373.
``The
revenue growth is planned to continue, but we recognize that
significant growth from our operations will not be achieved
until the planned bandwidth network is in place,'' said Robert
Crawford, Chief Executive Officer, North American DataCom.
``In addition, while the Global PTX, LLC revenues of approximately
$100,000 are not included in our consolidated results we are
pleased with the start up success of Global PTX, our joint
venture with Infusion Software Group, LLC,'' said Mr. Crawford.
``The
Company is currently negotiating the formation of other strategic
partnerships that should greatly strengthen Global's private
trade exchange market position,'' said Mr. Crawford. ``These
ventures are building on the combination of the Company's
data storage and communications network services to provide
PTX software and ASP expertise to customers needing solutions
for global marketing and product supply requirements.''
The
reported net loss for the six -month period was $874,692,
compared with $1,802,870 for the same period a year ago. This
51% reduction would have been greater but it includes approximately
$200,000 in one time charges. The reduction is directly attributable
to expense reduction program put in place in June 2001.
Selling,
general and administrative (SG&A) costs for the period
amounted to $995,669 compared with $1,513,954 a year ago.
Other Expenses were reduced from approximately $350,000 a
year ago to $51,808. This year includes the Company's allocation
of the Global PTX startup loss of $51,896. The Other Expenses
last year were largely attributable to the imputed interest
charge treatment of the 505 miles rights-of-way and fiber
conduit from New Orleans to Jacksonville, Florida acquired
in March 2000.
The
Company has reduced its capital budget for the balance of
this fiscal year to approximately $3 million. It is planned
that this budget will be partially funded 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 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 capitol 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,
and by e-mail at investorrelations@nadata.com
|
