CRANBURY, N.J., April 26 /PRNewswire/ -- Ariel Corp. (Nasdaq: ADSP) today
reported net sales for the three months ended March 31, 2000 of $2,072,221 as
compared to net sales of $3,073,529 reported for the three months ending March
31, 1999. The net loss for the three months ending March 31, 2000 was
($2,812,977) or ($.24) basic and dilutive loss per share. Comparatively, the
first quarter 1999 net loss was ($3,008,817) or basic and dilutive loss per
share of ($.31).
The decrease in sales is the result of a shift in orders from original
equipment manufacturers (OEMs) to future quarters and a delay in the release
of new RS4200 remote access products.
The Company recorded a backlog of approximately $2 million as of March 31,
2000 as compared to $519,000 as of December 31, 1999.
As a percent of sales, gross margins were 58% for the quarter ending March
31, 2000 as compared to 55% for the first quarter of 1999. Gross margin
percent improvement from 55% to 58% was the result of continued focus on
pricing and inventories.
Operating expenses decreased $758,474 (or 16%) to $4,016,856 from
$4,775,330 for the three months ending December 31, 1999. The decrease in
operating expenses was $687,029 (or 15%) as compared with the same period last
Despite the reduction in revenues, operating losses were reduced by
$471,093 to ($2,813,009) as compared to the quarter ending December 31, 1999.
The operating loss was reduced by $210,945 as compared to ($3,023,954) for the
three months ended March 31, 1999.
On February 24, 2000 the Company completed a private placement resulting
in proceeds of approximately $8 million. Cash as of March 31, 2000 was
$11,122,527 and working capital was $12,871,272 as compared to cash of
$7,088,431 and working capital of $7,827,522 as of December 31, 1999.
"In Q1, we reduced the operating loss and increased backlog. Our new
RS4200 products began shipping and have been well received and the field trial
process for our signaling gateway technology has begun. As a result of the
expense control programs implemented last year, operating expenses were
reduced 15% as compared to the fourth quarter of 1999 and we continue to
aggressively manage expenses and cash", commented CEO and President, Jay H.
Atlas. He added, "While we are not happy with Q1 sales performance, we remain
optimistic about both our OEM and ISP prospects for the mid and long term."
More About Ariel
Ariel Corp. (Nasdaq: ADSP) 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. Email: 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.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
SALES $2,072,221 $3,073,529
GROSS MARGIN 1,203,847 1,679,931
OPERATING EXPENSES 4,016,856 4,703,885
LOSS FROM OPERATIONS ($2,813,009) ($3,023,954)
OTHER INCOME (EXPENSE), NET 32 15,137
INCOME/(LOSS) BEFORE PROVISION FOR
INCOME TAXES ($2,812,977) ($3,008,817)
PROVISION FOR INCOME TAXES 0 0
NET INCOME/(LOSS) ($2,812,977) ($3,008,817)
BASIC PER SHARE DATA:
BASIC WEIGHTED AVERAGE OF
COMMON SHARES OUTSTANDING 11,703,359 9,755,150
BASIC EARNINGS/(LOSS) PER SHARE ($0.24) ($0.31)
CONSOLIDATED BALANCE SHEET
March 31, December 31,
ASSETS 2000 1999
Cash and cash equivalents $11,122,527 $7,088,431
Accounts receivable, net 1,968,415 3,091,362
Inventories 3,104,783 3,303,057
Prepaid Expenses 670,521 775,943
Other receivables 356,993 383,676
Equipment, net 1,460,681 1,387,128
Goodwill, Intangible & Other assets 3,603,867 3,787,475
Total assets $22,287,787 $19,817,072
LIABILITIES & STOCKHOLDER'S EQUITY
Liabilities $6,193,324 $8,819,833
Stockholder's equity 16,094,463 10,997,239
Total liabilities & stockholder's equity $22,287,787 $19,817,072
SOURCE Ariel Corporation