(JAVELIN-SYSTEMS)(JVLN) Javelin Systems Reports Record Third Quarter and Nine
Months Revenues; Record-Breaking Revenues and Earnings
(Business Wire; 04/24/98)
IRVINE, Calif.--(BUSINESS WIRE)--April 24, 1998--Javelin Systems Inc.
(Nasdaq: JVLN), a designer of innovative, touchscreen computers, Friday
announced record breaking revenues for its fiscal 1998 third quarter and nine
months ended March 31, 1998.
Revenues for the quarter increased 523 percent over last year's comparable
quarter to $10.6 million while revenues for the nine months were $18 million, a
317 percent increase over last year's comparable period. Revenues for last
year's comparable periods were $1.7 million and $4.3 million respectively.
Net income for the third quarter was $353,366, or an earnings per share of
$0.09, compared with last year's third quarter which posted a net loss of
$57,426, or a loss per share of $0.02. Net income for the nine-month period
was $467,116, or an earnings per share of $0.02. Net income for the nine-month
period was $467,116, or an earnings per share of $0.13.
This compares with last year's applicable nine-month period with a net
loss of $849,643, or a loss per share of $0.33. This loss included a non-cash,
non-recurring interest expense of $636,000, or a $0.25 loss per share.
According to Javelin Systems President and Chief Executive Officer Richard P.
Stack, gross margins for the quarter improved almost five points, from 22.5
percent to over 27 percent.
Stack commented: "We have enjoyed four consecutive quarters with solid
revenue growth and increased profitability. Our acquisitions, CCI Technical
Services and POSNET Computers, had an immediate positive impact on both
revenues and earnings. Their combined revenues contributed over 59 percent of
the total revenues reported for the third quarter.
"To maintain our growth as we enter the fourth quarter," Stack continued,
"We intend to release new products into our core market as we expand our
efforts in the retail and industrial markets. During the next several quarters
we will increase market awareness as we exhibit at strategic technology
expositions and utilize a variety of advertising media directed to our target
markets. As we move forward, we anticipate that international revenues will
become more significant because of increased product demand, particularly in
According to Javelin Systems Chief Financial Officer Horace M. Hertz, the
company has a strong balance sheet with working capital in excess of $3
million, a current ratio of 1.39:1 and no long-term debt.
Javelin Systems designs, engineers and markets open-system, touchscreen
computers through Original Equipment Manufacturers (OEMs) and a network of
systems integrators. The company's innovative computers integrate
substantially all of the functionality of a standard desktop PC into a small
footprint, network-ready package utilizing industry standard operating systems,
such as Microsoft's DOS, Windows, Windows95 and WindowsNT. -0-
The statements in this news release that relate to future results,
markets, growth plans or performance are forward-looking and involve certain
risks and uncertainties associated with demand for products and services, and
development of markets for the company's products and services as well as other
risks identified in the company's SEC filings. Actual results, events and
performance may differ materially. Readers are therefore cautioned not to
place undue reliance on these forward-looking statements, which speak only as
of the date of this news release. Javelin Systems undertakes no obligation to
release publicly the result of any revisions to these forward-looking
statements that may be made to reflect events or circumstances after the date
hereof or to reflect the occurrence of unanticipated events. -0-