|
Friday
January 3, 9:00 am Eastern Time
Company Press Release
NORTH
AMERICAN DATACOM Reports Unaudited Fiscal Year 2002 and First
Quarter Results
December
31, 2002– North American DataCom, Inc. (NADA), the Application
Service and Data Storage Company, announced today that ,due
to unforeseen delays with the Company’s audit firm,
the Company has been unable to timely file its 10K for the
period ending June 30, 2002 or its 10Q for the period ending
September 30, 2002.
The Company’s
unaudited financial results for these periods are available.
The Company generated revenues of $469,244 in fiscal 2002,
a decrease of 1% over the previous years’ revenue of
$475,426. For its first quarter ended September 30, 2002 the
Company had revenues of $194,036, an increase of 40% over
the prior year’s results of $138,923, and a net loss
$212,907 that is 32% lower than 2001results.
“Due to the
dramatic weakness of the financial markets and telecommunications
sector in the past 2 years the Company changed the direction
of its Business Plan,” said Robert Crawford, President
of NADA. NADA is now developing revenue-producing application
services and existing data storage services, and is delaying
any capital intensive network development and installation.
The Company is currently providing superior quality and secure
broadband communications in connection with its existing application
services and data storage service business lines. The Company
is actively developing these business lines both domestically
and internationally.
NADA provides application
services including Internet access services and digital and
alphanumeric paging services plus data storage and application
development. The Company also operates a 5,000 square foot
Data Storage Center at its Iuka facility that enables it to
archive data. The Company’s 150-mega byte per second
(mbs) broadband fiber optic and redundant wireless connectivity
into its headquarters in Iuka, Mississippi supports its services.
In collaboration
with its Global PTX affiliate, NADA has expanded its Application
Services. Global PTX, LLC is a joint venture with SB Consulting.
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 makeup 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
Company will announce strategic international partnerships
that should greatly strengthen Global’s private trade
exchange market position once the 10k is filed,” said
Robert R. Crawford. “The combination of the Company’s
data storage, the communications network services and Global
PTX software and ASP expertise provide a wide solution for
global marketing and product supply requirements."
The fiscal 2002
application service revenues increased 15.4% to $405,471.
Application Development and Data Storage revenues decreased
to $56,663 or 22.3 as a result of completion of a contract
The Company's cost of services was reduced by 38% to $139,683
in fiscal 2002 as the result of an incremental costs control
and other cost reduction efforts. The 2002 gross profit in
was $329,561 compared with $249,507 in fiscal 2001, an increase
of 32%.
The Company’s
fiscal 2002 selling, general and administrative expenses were
$2,306,205 compared with $3,293,230 in fiscal 2001, a decrease
of approximately 30%. This decrease was primarily attributed
to the expense reduction program enacted in June 2001, which
decreased labor expense by $1,096,000, professional fees by
$700,000, and travel expenses by $94,000. These savings were
partially offset by the recording of the potential loss due
to litigation with Portal Software of $505,345. As a result,
the Company's operating loss decreased from $3,043,723 in
fiscal 2001 to $1,976,644 in fiscal 2002, reflecting a decrease
of 35%.
In
2002 the Company had $427,358 in other income compared with
$525,378 in 2001 other expense. The other income resulted
from a non-operating gain of $721,109 from the one-time sale
of fiber optic assets to Qwest Communications in February
2002.
For the fiscal
year 2002 the Company reduced its net loss by 50.4% to $1,799,286
compared to a net loss of $3,569,101 for the same period of
the prior year. As discussed the net loss reduction is due
to the expense reduction program and the non-operating gain.
The net loss for
the first quarter ending September 30, 2002 was $212,907 compared
with $312,568 for the previous year. This 32% reduction is
directly attributable to the continuation of expense reduction
program.
Selling, general
and administrative (SG&A) costs for this quarter amounted
to $330,323, compared with $421,198 a year ago. Other Expenses
were $46,323 compared to a modest income level of $42 a year
ago. The Other Expenses are largely attributable to the net
equity loss of the Global PTX venture startup. The Company’s
Form10Q, when filed, will provide more detail.
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 go to our website, www.nadata.com, or
contact Investor Relations, 662/424-5030, and by e-mail at
investorrelations@nadata.com.
|
