FOR IMMEDIATE RELEASE
| Contact: | Ted Prince INSCI Corp (508)870-4015 tprince@insci.com |
Roger Kuhn INSCI Corp (508) 870-4014 rkuhn@insci.com |
Revenues for second half increase by 65% over first half of fiscal 1998
INSCI CORP ANNOUNCES FISCAL 1998 FINANCIAL RESULTS
Westborough, MA - July 1, 1998…. INSCI Corp (Nasdaq;INSI) today reported revenues of $9,805,000 for its fiscal year ended March 31, 1998. This compares to revenues of $11,381,000 for the fiscal year ended March 31, 1997. Net loss for fiscal 1998 was $2,543,000 compared to a loss of $936,000 for the comparable 1997 period. Net loss applicable to common shares, after preferred stock dividends, for fiscal 1998 was $3,390,000, or a loss of 73 cents per share, compared to a loss of $2,479,000, or a loss of 62 cents per share, for fiscal 1997.
Revenues by quarter for fiscal 1997 and 1998 were as follows:
Dr. E. Ted Prince, Chairman and CEO, stated "INSCI has invested significantly in broadening its distribution channels and in the development of advanced NT products. This investment has been at the expense of short term profitability. We are beginning to see the positive impact of these investments and believe we are now well positioned to increase our revenues from the growing market for electronic document archive solutions."
Prince further noted, "I was very pleased with our second half performance. Indirect sales revenues increased by 163% over the first half reflecting the positive impact from our strategic partners including Unisys, Xerox and Moore. The reception to our new products was very strong. More than half the product revenues for the fourth quarter were attributable to our new product offerings. Our flagship product, COINSERV for Windows NT, was recently evaluated by a leading independent software laboratory and achieved the highest score given in seven out of the nine categories reviewed."
CFO Roger Kuhn said that the Company ended fiscal 1998 with current assets of $5.7 million including $2.6 million in cash, current liabilities of $3.5 million, and a current ratio of 1.6 to 1. The Company has no long term debt and stockholders’ equity was $5.1 million.
INSCI Corp is a proven leader in delivering an electronic document repository with integrated Internet, imaging, workflow, print-on-demand, electronic distribution and archive (COLD) software for the enterprise level, high volume production market. INSCI’s software products enable customers to improve their services through electronic access to documents (e.g. invoices, statements, reports, etc.); provide financial savings through elimination of paper and microfiche; and provide the foundation for the digital document "back office" for electronic commerce applications. The Company licenses its products to over 500 customers worldwide, in healthcare, insurance, banking and financial services, and various other industries. The Company’s products are sold in over 100 countries through the INSCI direct sales organization and its marketing partnerships (ie. Unisys, Xerox, Moore, etc.). For more information about INSCI Corp, visit its home page on the Internet at http://www.insci.com.
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The statements in this press release that relate to future plans, events or performance are forward-looking statements that involve risks and uncertainties, including risks associated with uncertainties pertaining to customer orders, demand for products and services, development of markets for the Company’s products and services and other risks identified in the Company’s SEC filings. Actual results, events and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company 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.
TABLE FOLLOWS |
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| FINANCIAL SUMMARY |
||
|
||
1998 |
1997 |
|
Revenue |
|
$11,381 |
Net income (loss) |
|
|
Preferred stock dividend |
(847) |
(1,543) |
Net loss applicable to common shares |
$(3,390) |
$(2,479) |
Net loss per common share - basic |
$(0.73) |
$(0.62) |
Average common shares outstanding |
4,615 |
4,022 |