NQL Inc. Reports 2000 Fourth Quarter and Year End Results

Apr 02, 2001, 01:00 ET from NQL Inc.

    SANTA ANA, Calif., April 2 /PRNewswire/ -- NQL Inc. (Nasdaq: NQLI), today
 reported financial results for its fourth quarter and year ended
 Dec. 31, 2000.  Additional details will be available in the company's Annual
 Report on Form 10-K, which will be filed today.
     Revenue for the fourth quarter ended Dec. 31, 2000 was $3.3 million,
 compared with revenue of $7.3 million for the comparable quarter ended
 Dec. 31, 1999.  Year over year revenue from NQL's software and IT professional
 services businesses grew by approximately $200,000 and the fourth quarter of
 1999 results included $4.2 million of revenue from the company's managed
 services and computer manufacturing division, which was sold in January 2000.
 The company reported a net loss for the quarter of $4.0 million and a diluted
 net loss of $0.33 per share as compared to a net loss of $10.0 million and a
 diluted net loss of $0.93 per share during the comparable quarter of the
 previous year.  The computation of diluted net loss per share includes
 $772,000 ($0.05 per share) and $811,000 ($0.07 per share) in accretion and
 dividends related to the company's outstanding preferred stock for the
 quarters ended Dec. 31, 2000 and 1999, respectively.
     For the year ended Dec. 31, 2000, the company reported revenue of
 $14.2 million, versus revenue of $34.9 million for the year ended
 Dec. 31, 1999.  Over 91 percent of the decrease in revenue was due to the sale
 of the company's managed services and computer manufacturing division in
 January 2000.  The company reported a net loss for the year ended
 Dec. 31, 2000 of $7.6 million and a diluted net loss of $0.78 per share as
 compared to a net loss of $12.2 million and a diluted net loss of $1.21 per
 share for the year ended Dec. 31, 1999.  The computation of diluted net loss
 includes $3.0 million ($0.22 per share) and $1.9 million ($0.16 per share) in
 accretion and dividends related to the company's outstanding preferred stock
 for the year ended Dec. 31, 2000 and 1999, respectively.
     The year end results also include approximately $307,000 ($0.02 per share)
 of losses related to the operations of the company's managed services division
 and proprietary hardware manufacturing group through Jan. 31, 2000.  Under the
 terms of the purchase agreement, the company retained a deferred revenue
 balance and reclassified it to a deferred gain of $2.7 million that the
 company expected to recognize during fiscal years 2000 to 2002 as the
 contingent contractual obligations lapsed.  Accordingly, in the fourth quarter
 of 2000, the company recognized a gain on the sale of business of $195,000
 ($0.01 per share) and for the year ended Dec. 31, 2000, recognized a gain of
 $1.9 million ($0.14 per share).
     "In 2000, we launched the Network Query Language technology and built the
 company's infrastructure," said Douglas J. Tullio, NQL chairman, chief
 executive officer and president.  "The number of beta testers for our NQL
 ContentAnywhere platform demonstrated the potential market for the product.
 These beta sites, along with market analysts such as IDC and Hurwitz Group
 verify that NQL ContentAnywhere and Network Query Language technology address
 the need for an effective content management system.  The beta program also
 pointed out a longer sales cycle than originally anticipated and provided us
 with valuable input for refining our pricing scheme and revenue projections.
 Accordingly, we are revising our sales and marketing approaches to shorten the
 sales cycle and enhance our pricing model to more quickly penetrate this fast
 growing market."
     Tullio continued, "In 2000, our IT professional services subsidiary, DCi,
 strengthened and restructured its management and sales teams and also became
 an NQL Solution Provider.  As a result of its restructuring, DCi improved its
 top line performance in the last two quarters of 2000 and we anticipate even
 greater growth in 2001."
     The company will broadcast its quarterly results conference call live at
 1 p.m. EST (10 a.m. PST).  The call can be accessed at
 http://www.nasdaq.com/../reference/conf_call_chart.stm.  For those unable to
 attend the live broadcast, a replay will be available beginning approximately
 one hour after the event.
 
     About NQL Inc.
     NQL Inc. is a global business-to-business infrastructure company that
 through its patent-pending Network Query Language(TM) technology develops and
 deploys the next generation of enabling software solutions.  NQL enables
 organizations of all sizes to locate, capture and deploy information from any
 source into intelligent solutions.  The company's clients consist of Fortune
 1000 companies, solution providers and web portals including companies such as
 Jubii of Denmark, London-based Sitelynx, Microsoft, and the World Bank Group,
 among others.  The company's wholly owned subsidiary, DCi, provides
 professional services including Internet and intranet consulting, network
 design, and onsite support for customers located primarily in the northeastern
 U.S.  DCi provides information technology services and products to vertical
 markets such as financial institutions, "Big 5" accounting firms, major
 healthcare providers, pharmaceutical companies and educational institutions.
 For more information, please see the company's prospectus on file with the
 SEC, visit the company's web site at www.nqli.com or call 888.785.3370.
 NQL(R) is a registered trademark of NQL Inc.  Network Query Language(TM), NQL
 ContentAnywhere(TM), and all names of NQL Inc.'s other services or products
 are trademarks of NQL Inc. in the U.S. and certain other countries.   All
 other trademarks are the property of their respective owners.
 
     Certain statements in this press release are considered "forward-looking
 statements" within the meaning of the Private Securities Litigation Reform Act
 of 1995.  Such forward-looking statements involve known and unknown risks and
 uncertainties, including (i) the actual potential market for NQL technology
 (ii) the company's ability to shorten the sales cycle and penetrate the market
 more quickly (iii) the continued improved performance of the company's DCi
 subsidiary (v) the company's ability to manage personnel and external
 resources (vi) undiscovered competition in the area of intelligent agent
 development and (vii) the company's ability to continue developing technology
 that is competitive according to industry standards along with other factors
 which may cause the actual results, performance or achievements of the
 company, or industry results, to be materially different from any future
 results, performance, or achievements expressed or implied by such forward-
 looking statements.  Readers are cautioned not to place undue reliance on
 these forward-looking statements, which speak only as of the date hereof, and
 the company undertakes no obligation to update these forward looking
 statements.
 
 
                                    NQL Inc.
                         (Formerly Alpha Microsystems)
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                     (In thousands, except per share data)
 
                                                     Three Months Three Months
                         Year Ended     Year Ended      Ended         Ended
                         December 31   December 31, December 31,  December 31,
                            2000           1999         2000           1999
                                                     (unaudited)   (unaudited)
     Net sales:
       IT Services          $13,465       $30,399       $3,168        $6,349
       Product                  732         4,491          120           913
         Total net sales     14,197        34,890        3,288         7,262
 
     Cost of sales:
       IT Services           10,842        23,608        2,658         5,672
       Product                  427         3,424           43           792
         Total cost of sales 11,269        27,032        2,701         6,464
 
     Gross margin             2,928         7,858          587           798
 
     Operating expenses:
       Selling, general
        and administrative   11,976        11,858        4,644         3,640
       Engineering, research
        and development         732         1,290          159           341
       Impairment of
        long-lived assets        --           196           --            --
         Total operating
           expenses          12,708        13,344        4,803         3,981
 
     Loss from operations    (9,780)       (5,486)      (4,216)       (3,183)
 
     Other expense (income):
       Interest income         (400)          (72)         (90)          (12)
       Interest expense          25           186            1            53
       (Gain) loss on
        dispositions
        of businesses        (1,865)        6,506         (195)        6,509
       Other (income)
        expense, net             (6)           52           20           245
         Total other
          (income) expense   (2,246)        6,672         (264)        6,795
 
     Loss before taxes       (7,534)      (12,158)      (3,952)       (9,978)
     Income tax expense          21            46            (1)          (4)
     Net loss                (7,555)      (12,204)      (3,951)       (9,974)
     Accretion on
      redeemable
      preferred stock          (463)         (333)        (117)         (268)
     Dividends on
      redeemable
      preferred stock        (2,567)       (1,556)        (655)         (543)
     Net loss attributable
      to common
      stockholders         $(10,585)      (14,093)     $(4,723)     $(10,785)
 
     Basic and diluted
      net loss per share     $(0.78)       $(1.21)      $(0.33)       $(0.93)
     Number of shares
      used in computing
     basic and diluted
      per share amounts      13,574        11,610       14,192        11,656
 
     For further information please contact: Robert O. Riiska,
 Chief Financial Officer, 714-338-1610, rriiska@nqli.com, or Tamara Yanito,
 Director, Investor Relations, 714-338-1606, tyanito@nqli.com, both of NQL Inc.
 
 

SOURCE NQL Inc.
    SANTA ANA, Calif., April 2 /PRNewswire/ -- NQL Inc. (Nasdaq: NQLI), today
 reported financial results for its fourth quarter and year ended
 Dec. 31, 2000.  Additional details will be available in the company's Annual
 Report on Form 10-K, which will be filed today.
     Revenue for the fourth quarter ended Dec. 31, 2000 was $3.3 million,
 compared with revenue of $7.3 million for the comparable quarter ended
 Dec. 31, 1999.  Year over year revenue from NQL's software and IT professional
 services businesses grew by approximately $200,000 and the fourth quarter of
 1999 results included $4.2 million of revenue from the company's managed
 services and computer manufacturing division, which was sold in January 2000.
 The company reported a net loss for the quarter of $4.0 million and a diluted
 net loss of $0.33 per share as compared to a net loss of $10.0 million and a
 diluted net loss of $0.93 per share during the comparable quarter of the
 previous year.  The computation of diluted net loss per share includes
 $772,000 ($0.05 per share) and $811,000 ($0.07 per share) in accretion and
 dividends related to the company's outstanding preferred stock for the
 quarters ended Dec. 31, 2000 and 1999, respectively.
     For the year ended Dec. 31, 2000, the company reported revenue of
 $14.2 million, versus revenue of $34.9 million for the year ended
 Dec. 31, 1999.  Over 91 percent of the decrease in revenue was due to the sale
 of the company's managed services and computer manufacturing division in
 January 2000.  The company reported a net loss for the year ended
 Dec. 31, 2000 of $7.6 million and a diluted net loss of $0.78 per share as
 compared to a net loss of $12.2 million and a diluted net loss of $1.21 per
 share for the year ended Dec. 31, 1999.  The computation of diluted net loss
 includes $3.0 million ($0.22 per share) and $1.9 million ($0.16 per share) in
 accretion and dividends related to the company's outstanding preferred stock
 for the year ended Dec. 31, 2000 and 1999, respectively.
     The year end results also include approximately $307,000 ($0.02 per share)
 of losses related to the operations of the company's managed services division
 and proprietary hardware manufacturing group through Jan. 31, 2000.  Under the
 terms of the purchase agreement, the company retained a deferred revenue
 balance and reclassified it to a deferred gain of $2.7 million that the
 company expected to recognize during fiscal years 2000 to 2002 as the
 contingent contractual obligations lapsed.  Accordingly, in the fourth quarter
 of 2000, the company recognized a gain on the sale of business of $195,000
 ($0.01 per share) and for the year ended Dec. 31, 2000, recognized a gain of
 $1.9 million ($0.14 per share).
     "In 2000, we launched the Network Query Language technology and built the
 company's infrastructure," said Douglas J. Tullio, NQL chairman, chief
 executive officer and president.  "The number of beta testers for our NQL
 ContentAnywhere platform demonstrated the potential market for the product.
 These beta sites, along with market analysts such as IDC and Hurwitz Group
 verify that NQL ContentAnywhere and Network Query Language technology address
 the need for an effective content management system.  The beta program also
 pointed out a longer sales cycle than originally anticipated and provided us
 with valuable input for refining our pricing scheme and revenue projections.
 Accordingly, we are revising our sales and marketing approaches to shorten the
 sales cycle and enhance our pricing model to more quickly penetrate this fast
 growing market."
     Tullio continued, "In 2000, our IT professional services subsidiary, DCi,
 strengthened and restructured its management and sales teams and also became
 an NQL Solution Provider.  As a result of its restructuring, DCi improved its
 top line performance in the last two quarters of 2000 and we anticipate even
 greater growth in 2001."
     The company will broadcast its quarterly results conference call live at
 1 p.m. EST (10 a.m. PST).  The call can be accessed at
 http://www.nasdaq.com/../reference/conf_call_chart.stm.  For those unable to
 attend the live broadcast, a replay will be available beginning approximately
 one hour after the event.
 
     About NQL Inc.
     NQL Inc. is a global business-to-business infrastructure company that
 through its patent-pending Network Query Language(TM) technology develops and
 deploys the next generation of enabling software solutions.  NQL enables
 organizations of all sizes to locate, capture and deploy information from any
 source into intelligent solutions.  The company's clients consist of Fortune
 1000 companies, solution providers and web portals including companies such as
 Jubii of Denmark, London-based Sitelynx, Microsoft, and the World Bank Group,
 among others.  The company's wholly owned subsidiary, DCi, provides
 professional services including Internet and intranet consulting, network
 design, and onsite support for customers located primarily in the northeastern
 U.S.  DCi provides information technology services and products to vertical
 markets such as financial institutions, "Big 5" accounting firms, major
 healthcare providers, pharmaceutical companies and educational institutions.
 For more information, please see the company's prospectus on file with the
 SEC, visit the company's web site at www.nqli.com or call 888.785.3370.
 NQL(R) is a registered trademark of NQL Inc.  Network Query Language(TM), NQL
 ContentAnywhere(TM), and all names of NQL Inc.'s other services or products
 are trademarks of NQL Inc. in the U.S. and certain other countries.   All
 other trademarks are the property of their respective owners.
 
     Certain statements in this press release are considered "forward-looking
 statements" within the meaning of the Private Securities Litigation Reform Act
 of 1995.  Such forward-looking statements involve known and unknown risks and
 uncertainties, including (i) the actual potential market for NQL technology
 (ii) the company's ability to shorten the sales cycle and penetrate the market
 more quickly (iii) the continued improved performance of the company's DCi
 subsidiary (v) the company's ability to manage personnel and external
 resources (vi) undiscovered competition in the area of intelligent agent
 development and (vii) the company's ability to continue developing technology
 that is competitive according to industry standards along with other factors
 which may cause the actual results, performance or achievements of the
 company, or industry results, to be materially different from any future
 results, performance, or achievements expressed or implied by such forward-
 looking statements.  Readers are cautioned not to place undue reliance on
 these forward-looking statements, which speak only as of the date hereof, and
 the company undertakes no obligation to update these forward looking
 statements.
 
 
                                    NQL Inc.
                         (Formerly Alpha Microsystems)
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                     (In thousands, except per share data)
 
                                                     Three Months Three Months
                         Year Ended     Year Ended      Ended         Ended
                         December 31   December 31, December 31,  December 31,
                            2000           1999         2000           1999
                                                     (unaudited)   (unaudited)
     Net sales:
       IT Services          $13,465       $30,399       $3,168        $6,349
       Product                  732         4,491          120           913
         Total net sales     14,197        34,890        3,288         7,262
 
     Cost of sales:
       IT Services           10,842        23,608        2,658         5,672
       Product                  427         3,424           43           792
         Total cost of sales 11,269        27,032        2,701         6,464
 
     Gross margin             2,928         7,858          587           798
 
     Operating expenses:
       Selling, general
        and administrative   11,976        11,858        4,644         3,640
       Engineering, research
        and development         732         1,290          159           341
       Impairment of
        long-lived assets        --           196           --            --
         Total operating
           expenses          12,708        13,344        4,803         3,981
 
     Loss from operations    (9,780)       (5,486)      (4,216)       (3,183)
 
     Other expense (income):
       Interest income         (400)          (72)         (90)          (12)
       Interest expense          25           186            1            53
       (Gain) loss on
        dispositions
        of businesses        (1,865)        6,506         (195)        6,509
       Other (income)
        expense, net             (6)           52           20           245
         Total other
          (income) expense   (2,246)        6,672         (264)        6,795
 
     Loss before taxes       (7,534)      (12,158)      (3,952)       (9,978)
     Income tax expense          21            46            (1)          (4)
     Net loss                (7,555)      (12,204)      (3,951)       (9,974)
     Accretion on
      redeemable
      preferred stock          (463)         (333)        (117)         (268)
     Dividends on
      redeemable
      preferred stock        (2,567)       (1,556)        (655)         (543)
     Net loss attributable
      to common
      stockholders         $(10,585)      (14,093)     $(4,723)     $(10,785)
 
     Basic and diluted
      net loss per share     $(0.78)       $(1.21)      $(0.33)       $(0.93)
     Number of shares
      used in computing
     basic and diluted
      per share amounts      13,574        11,610       14,192        11,656
 
     For further information please contact: Robert O. Riiska,
 Chief Financial Officer, 714-338-1610, rriiska@nqli.com, or Tamara Yanito,
 Director, Investor Relations, 714-338-1606, tyanito@nqli.com, both of NQL Inc.
 
 SOURCE  NQL Inc.