Ariel Corporation Reports Preliminary Unaudited Third Quarter Results
CRANBURY, N.J., Nov. 1 /PRNewswire/ -- Ariel Corp. (Nasdaq: ADSP) today reported net sales of $2,869,593 for the three months ended September 30, 1999, a decrease of $310,659 from net sales of $3,180,252 for the three months ended September 30, 1998. Ariel reported a net loss of ($2,983,993) or ($0.31) basic and dilutive loss per share for the three months ended September 30, 1999 compared to a net income of $23,240,144 or basic earnings per share of $2.39 and diluted earnings per share of $2.36 for the three months ended September 30, 1998. 1998 earnings reflect a one-time gain on the sale of Ariel's DSLAM group to Cabletron Systems, Inc. of Rochester, New Hampshire on September 1, 1998. The gain represents approximately $2.80 per share diluted after transaction costs, interest and administrative expenses. Before giving affect to this transaction Ariel's 1998 third quarter loss per share diluted was ($.44). Ariel's net sales for the nine months ended September 30, 1999 decreased 36% to $8,694,254 from $13,568,059 reported for the nine months ended September 30, 1998. The revenue decrease includes a reduction in sales of approximately $4 million to computer equipment suppliers, including $3.2 million to Compaq. Decreases in revenues from 1998 reflect a decline in enterprise demand for high-end communications options -- as anticipated by Ariel's shift to internet service providers (ISPs) and technical original equipment manufacturers Gross margins were $1,736,512 or 61% of sales for the third quarter of 1999, up 18% from the 43% reported for the same period last year. For the nine months ending September 30, 1999 gross margins were $5,039,304 or 58% of sales as compared to $5,617,045 or 41% for the same period last year. The increase in gross margin as a percent of sales reflects a significantly improved mix of sales concentrated in Technical OEMs and end users vs. lower-margin PC equipment business. Losses from operations for the three months ended September 30, 1999 were $2,885,440 as compared to $5,129,992 for the three months ended September 30, 1998. Losses for the three months ended September 30, 1999 included approximately $370,000 of non-recurring expenses. Losses from operations for the first nine months of 1999 decreased $932,585 to $9,190,058 as compared to $10,122,643 for the same period in 1998. Reduced operating losses were the result of improved gross margins rates combined with a reduction in operating expenses. Operating expense reductions were the result of the sale of the DSLAM group and tighter expense controls. Jay H. Atlas, CEO and President, commented, "Third quarter results were in line with our expectations as we continue to establish strategic alliances and transition our products, marketing, and sales programs to more effectively focus on the ISP and Technical OEM markets. Internet industry opinion and initial customer reactions to our PowerPOP(TM) architecture remain positive as we continue to develop our sales channel. The September announcement of our partnership with the Aviation Communications Division for AT&T's ePlane Service(TM) inflight internet service and the recent introduction of our RS4200, a new high-density remote access solution for ISP's, are expected to further strengthen our position in our target markets." More About Ariel Ariel Corp. is a leading provider of high-density remote access plug-in cards for applications such as Internet access, corporate Intranet/Extranet access, on-line services, telecommuting, transaction processing, and unified messaging. Ariel's remote access products make it easy for OEMs and system integrators targeting ISPs, corporate enterprises and other service providers to add high-density remote access to open systems platforms running a variety of popular operating systems, including Windows NT and Linux. Ariel's high-density remote access cards provide V.34, V.90-compatible 56K, and basic rate ISDN remote dial-in, LAN dial-out, and Internet back-haul. Available in ISA, PCI and CompactPCI formats, the cards connect to T1, E1, ISDN, and POTS lines. Ariel's remote access products run Windows NT and Linux out of the box. An SDK is available for OEMs who want to use Ariel's remote access products with other operating systems. For more information on Ariel products, please contact Ariel Corporation at 2540 Route 130, Cranbury, NJ 08512. Phone: 609-860-2900. Fax: 609-860-1155. E-mail: firstname.lastname@example.org. World Wide Web: http://www.ariel.com. Statements contained in this press release that are not historical facts are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements involve risks and uncertainties, including market acceptance of the Company's products by technical original equipment manufacturers and internet service providers, the timely development and acceptance of new products, the impact of competitive products and pricing, changing market conditions and the other risks detailed from time to time in the Company's filings with the SEC. These risks and uncertainties could cause actual results to differ materially from those projected or currently expected. These forward-looking statements represent the Company's judgment as of the date of this release. The Company disclaims, however, any intent or obligation to update these forward-looking statements. ARIEL CORPORATION CONDENSED PRELIMINARY CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Nine months Ended September 30, September 30, 1999 1998 1999 1998 SALES $2,869,593 $3,180,252 $8,694,254 $13,568,059 GROSS MARGIN 1,736,512 1,377,682 5,039,304 5,617,045 LOSS FROM OPERATIONS ($2,885,440) ($5,129,992) ($9,190,058) ($10,122,643) OTHER INCOME (EXPENSE), NET (98,553) 28,738,768 (68,679) 28,554,230 INCOME/(LOSS) BEFORE TAX PROVISION ($2,983,993) $23,608,776 ($9,258,737) $18,431,585 INCOME TAX 0 368,632 0 368,632 NET INCOME/(LOSS) ($2,983,993) $23,240,144 ($9,258,737) $18,062,953 BASIC PER SHARE DATA: BASIC WEIGHTED AVERAGE OF COMMON SHARES OUTSTANDING 9,760,150 9,742,926 9,760,150 9,728,223 BASIC EARNINGS/ (LOSS) PER SHARE ($0.31) $2.39 ($0.95) $1.86 DILUTED PER SHARE DATA: EFFECT OF DILUTIVE OPTIONS 0 123,314 0 74,157 COMMON SHARES OUTSTANDING 9,760,150 9,866,240 9,760,150 9,802,380 BASIC EARNINGS/ (LOSS) PER SHARE ($0.31) $2.36 ($0.95) $1.84 ARIEL CORPORATION CONDENSED PRELIMINARY CONSOLIDATED BALANCE SHEET (Unaudited) September 30, December 31, ASSETS 1999 1998 Current Assets Cash and cash equivalents $6,152,272 $17,996,575 Accounts receivable, net 3,191,526 3,593,709 Inventories 1,978,500 2,857,326 Prepaid Expenses 411,668 449,691 Other receivables 838,344 1,378,781 12,572,310 26,276,082 Equipment, net 1,176,393 1,365,354 Goodwill & Other Intangible Assets 4,065,076 5,341,599 Other assets 618,495 699,345 Total assets $18,432,274 $33,682,380 LIABILITIES & STOCKHOLDERS' EQUITY Liabilities $8,308,766 $13,976,883 Stockholders' equity 10,123,508 19,705,497 Total liabilities & stockholders' equity $18,432,274 $33,682,380
SOURCE Ariel Corporation
More by this Source
Ariel Corporation lanza la aplicación de selección de compresores para móviles.
Jun 25, 2013, 11:19 ET
Ariel Corporation Launches Compressor Selection Mobile App
Jun 12, 2013, 10:38 ET
Browse our custom packages or build your own to meet your unique communications needs.
Learn about PR Newswire services
Request more information about PR Newswire products and services or call us at (888) 776-0942.