ProtoSource Announces Year-End Results

Erica Ventley to Fill Vacant Board Seat



Apr 19, 2001, 01:00 ET from ProtoSource Corporation

    FRESNO, Calif., April 19 /PRNewswire/ --
 ProtoSource Corporation (NASDAQ:   PSCO; PSCOW; PSCOZ), a California-based cable
 TV and Internet service provider, announced today its year-end results for
 2000. For the year ended December 31, revenues were $1,609,791 compared to
 $1,125,225 for 1999. Net loss for the period was $5,206,198, or $(2.03) per
 share compared to a loss of $1,293,640, or $(0.72) per share in 1999. The
 increase in operating losses was due to three factors:  (1) an increase in
 amortization of goodwill due to the acquisition of Suncoast Automation, Inc in
 August of 2000; (2) the impairment of the Company's investment in Infosis
 Corp, which was acquired in September 2000 by P2I; and (3) the in increase
 operating expenses due to the acquisitions of Suncoast and MicroNet in late
 1999.
     Mr.Conis, CEO of ProtoSource stated, "2000 was a very disappointing year
 for ProtoSource. Although our revenues grew significantly, we were unable to
 fulfill the promise of our acquisition of Suncoast. Our public offering
 completed in February did not raise sufficient capital for us to proceed with
 the build-out of the nearly 4000 units contracted by our Suncoast division.
 Late in 2000 and early in 2001, we implemented a series of cost cutting
 measures to bring our expenses more in line with our revenues. As we focus on
 our goal of shareholder value, we will explore all our options on a
 going-forward basis."
     Filling the vacancy created by the resignation of Director Seymour Seigel,
 was the appointment of Erica Ventley. Ms. Ventley is currently the Vice
 President of Business Development of eYada Media Group, a company focusing on
 Internet talk radio streaming, content development, syndication of shows on
 terrestrial stations and advertising rep business. Prior to that, she was the
 Vice President of Business Development of Booksonline, the e-commerce group of
 TimeWarner/Bertelsmann joint venture. Prior to her corporate positions,
 Ms. Ventley was an investment banker for over 10 years, first as a Managing
 Director of Veronis, Suhler & Associates, Inc. and then at Convergence
 Capital, Inc. As investment banker, Ms. Ventley participated in over
 40 transactions covering media, communications, entertainment and technology
 industries.  Erica Ventley is a graduate of Harvard University.
     "We are pleased that Erica has joined our Board. With Erica's background
 in the media field, she will bring new insight into exploring our business
 options. Additionally, her finance background makes her an ideal candidate to
 fill the vacancy on our Audit committee created by the departure of
 Mr. Siegel," said Mr.Conis.
 
     About ProtoSource Corporation
     ProtoSource Corporation, a full-service, publicly traded, national cable
 TV and Internet solutions provider, is committed to delivering outstanding
 service and support to its customers, community, employees and shareholders.
 It operates two divisions, Suncoast Automation through which it provides
 customized cable TV and high-speed Internet access to the timeshare industry.
 And psnw.com, through which it offers business and residential DSL, Web site
 design, development and hosting and outsourced technical support for Internet
 Service Providers (ISPs).
     The statements contained in this Press Release contain certain
 forward-looking statements, including statements regarding ProtoSource's
 expectations, intentions, strategies and beliefs regarding the future. All
 statements contained herein are based upon information available to
 ProtoSource's management as at the date hereof and actual results may vary
 based upon future events, both within and without the control of ProtoSource's
 management.
 
 

SOURCE ProtoSource Corporation
    FRESNO, Calif., April 19 /PRNewswire/ --
 ProtoSource Corporation (NASDAQ:   PSCO; PSCOW; PSCOZ), a California-based cable
 TV and Internet service provider, announced today its year-end results for
 2000. For the year ended December 31, revenues were $1,609,791 compared to
 $1,125,225 for 1999. Net loss for the period was $5,206,198, or $(2.03) per
 share compared to a loss of $1,293,640, or $(0.72) per share in 1999. The
 increase in operating losses was due to three factors:  (1) an increase in
 amortization of goodwill due to the acquisition of Suncoast Automation, Inc in
 August of 2000; (2) the impairment of the Company's investment in Infosis
 Corp, which was acquired in September 2000 by P2I; and (3) the in increase
 operating expenses due to the acquisitions of Suncoast and MicroNet in late
 1999.
     Mr.Conis, CEO of ProtoSource stated, "2000 was a very disappointing year
 for ProtoSource. Although our revenues grew significantly, we were unable to
 fulfill the promise of our acquisition of Suncoast. Our public offering
 completed in February did not raise sufficient capital for us to proceed with
 the build-out of the nearly 4000 units contracted by our Suncoast division.
 Late in 2000 and early in 2001, we implemented a series of cost cutting
 measures to bring our expenses more in line with our revenues. As we focus on
 our goal of shareholder value, we will explore all our options on a
 going-forward basis."
     Filling the vacancy created by the resignation of Director Seymour Seigel,
 was the appointment of Erica Ventley. Ms. Ventley is currently the Vice
 President of Business Development of eYada Media Group, a company focusing on
 Internet talk radio streaming, content development, syndication of shows on
 terrestrial stations and advertising rep business. Prior to that, she was the
 Vice President of Business Development of Booksonline, the e-commerce group of
 TimeWarner/Bertelsmann joint venture. Prior to her corporate positions,
 Ms. Ventley was an investment banker for over 10 years, first as a Managing
 Director of Veronis, Suhler & Associates, Inc. and then at Convergence
 Capital, Inc. As investment banker, Ms. Ventley participated in over
 40 transactions covering media, communications, entertainment and technology
 industries.  Erica Ventley is a graduate of Harvard University.
     "We are pleased that Erica has joined our Board. With Erica's background
 in the media field, she will bring new insight into exploring our business
 options. Additionally, her finance background makes her an ideal candidate to
 fill the vacancy on our Audit committee created by the departure of
 Mr. Siegel," said Mr.Conis.
 
     About ProtoSource Corporation
     ProtoSource Corporation, a full-service, publicly traded, national cable
 TV and Internet solutions provider, is committed to delivering outstanding
 service and support to its customers, community, employees and shareholders.
 It operates two divisions, Suncoast Automation through which it provides
 customized cable TV and high-speed Internet access to the timeshare industry.
 And psnw.com, through which it offers business and residential DSL, Web site
 design, development and hosting and outsourced technical support for Internet
 Service Providers (ISPs).
     The statements contained in this Press Release contain certain
 forward-looking statements, including statements regarding ProtoSource's
 expectations, intentions, strategies and beliefs regarding the future. All
 statements contained herein are based upon information available to
 ProtoSource's management as at the date hereof and actual results may vary
 based upon future events, both within and without the control of ProtoSource's
 management.
 
 SOURCE  ProtoSource Corporation