Wednesday, April 26, 2000
ONTRACK DATA INTERNATIONAL ANNOUNCES FIRST QUARTER RESULTSONTRACK Data International, Inc. (NASDAQ: ONDI) today announced its financial results for the first quarter ended March 31, 2000.
Total revenues for the quarter were $11,784,000, a 40 percent increase over revenues of $8,410,000 in the first quarter of 1999. Net income was $1,290,000, or 12 cents per diluted share, compared to $900,000, or nine cents per diluted share, in the same period a year ago. Excluding the amortization of goodwill related to Ontrack's acquisition of Mijenix Corporation, net income per diluted share in the first quarter of 2000 was 15 cents compared to nine cents per diluted share in the first quarter of 1999.
First quarter 2000 data recovery service and product revenues totaled $8,809,000, a 23 percent increase compared to $7,151,000 in the first quarter of 1999. All services and products, which include in-lab data recovery services, remote data recovery services, data recovery software and Electronic Information Management services, showed increases over the first quarter of 1999. Software revenues of $2,975,000 increased 136 percent compared to the first quarter of 1999. The increase was due principally to the sales of the Company's retail software products.
“We are pleased with the strong top-line growth achieved by our data recovery and software business areas,” said Mike Rogers, chief executive officer of Ontrack. “These gains reflect the growing recognition that Ontrack is receiving in the marketplace for the quality and innovation of its offerings.
“To support our growth, we continue to add to our infrastructure to ensure we maintain the high standard of excellence our customers have come to expect from us. We also benefited in the quarter from a $579,000 reimbursement, the equivalent of four cents per share on an after tax basis, from Legato Systems, Inc., of costs incurred in 1999 by Ontrack during the proposed merger of the two companies that was terminated in January.”
Ontrack, a leading provider of data availability software and service solutions, helps customers protect, manage, recover and discover their valuable data. Using its hundreds of proprietary tools and techniques, Ontrack is able to recover lost or corrupted data from virtually all operating systems and types of storage devices through its do-it-yourself, remote and in-lab capabilities. With its Electronic Information Management business, Ontrack specializes in searching, recovering and analyzing computer information – such as e-mail and user data – for use in legal matters. Ontrack also offers a line of award-winning software tools to help prevent critical data loss through a broad line of problem-solving, file-management and productivity utilities. In addition, Ontrack recently introduced its RapidRecall line of backup and restore software and services for remote users.
Ontrack can be reached through its World Wide Web site at http://www.ontrack.com or by calling 800-872-2599 (612-937-5161). In addition to its Minneapolis headquarters, Ontrack operates other locations in Los Angeles, Boulder, Colo., Washington D.C., New York, London, Paris and Stuttgart. Ontrack also makes its data recovery services available in Tokyo through its strategic alliance with Y-E Data, a company with over 25 years of experience in storage devices. # # # ONTRACK and RAPIDRECALL are trademarks or registered trademarks of ONTRACK Data International, Inc. in the United States and/or other countries. All other brands or product names are trademarks or registered trademarks of their respective holders.
Statements in this release concerning the future prospects and plans of ONTRACK are “forward-looking statements” under the Federal securities laws. There can be no assurance that expected or projected results will be achieved, and actual results could differ materially from forecasts, estimates and summary information contained in this press release. Important factors that could cause actual results to differ materially are included but are not limited to those listed in the ONTRACK Annual Report on Form 10-K for the year ended December 31, 1999, under the caption “ Management's Discussion and Analysis of Financial Condition and Results of Operations -- Forward Looking Statements.”
|ONTRACK Data International, Inc.|
|Consolidated Condensed Statements of Income|
|( In thousands, except share and per share amounts )|
|Ended March 31|
|Data recovery services and products||$ 8,809||$ 7,151|
|Cost of Revenues:|
|Data recovery services and products||2,033||1,876|
|Total cost of revenues||2,933||2,120|
|Sales and marketing||3,132||2,213|
|Research and development||2,163||1,437|
|General and administrative||2,073||1,577|
|Amortization of goodwill||462||-|
|Terminated merger costs||(579)||-|
|Total operating expenses||7,251||5,227|
|Interest and other income||270||260|
|Income before income taxes||1,870||1,323|
|Provision for income taxes||580||423|
|Net income||$ 1,290||$ 900|
|Diluted net income per share||$ 0.12||$ 0.09|
|Diluted net income per share excluding goodwill amortization||$ 0.15||$ 0.09|
|Weighted average shares used in|
|computation of diluted net income per share||10,508,388||9,732,094|
|ONTRACK Data International, Inc.|
|Consolidated Condensed Balance Sheets|
|( In thousands )|
|March 31||December 31|
|Cash, cash equivalents and short-term investments||$ 30,237||$ 28,705|
|Accounts receivable, net||6,505||6,382|
|Prepaid expenses and other current assets||3,154||2,962|
|Total Current Assets||39,896||38,049|
|Long term investment - cash||1,000||3,323|
|Furniture and equipment, net||6,130||6,002|
|Capitalized software, net||913||1,190|
|Total assets||$ 54,816||$ 55,841|
|LIABILITIES AND SHAREHOLDERS' EQUITY|
|Total Current Liabilities||$ 4,367||$ 6,810|
|Total Shareholders' Equity||50,449||49,031|
|Total Liabilities and Shareholders' Equity||$ 54,816||$ 55,841|