For Immediate Release November 5, 1997
| Contact: | Ted Prince INSCI Corp (508) 870-4015 tprince@insci.com |
Roger Kuhn INSCI Corp (508) 870-4014 rkuhn@insci.com |
Allen & Caron Inc Mark Alvino (investors) (212) 698-1360 Owen Daley (media) (714) 252-8440 |
Windows NT products introduced in early October
WESTBOROUGH, MA - November 5, 1997.... INSCI Corp (Nasdaq:INSI), today announced that revenues for the second fiscal quarter ended September 30, 1997 were $1,897,000 compared to revenues of $2,085,000 for the quarter ended September 30, 1996. Net loss for the second quarter was $774,000 as compared to a net loss of $878,000 for the same quarter in 1996. Net loss applicable to common shares, after preferred stock dividends, was $996,000 or a loss of 22 cents per share, for the quarter ended September 30, 1997, compared to a loss of $1,076,000 or a loss of 27 cents per share, for the same quarter last year.
For the six months ended September 30, 1997 revenues were $3,700,000 compared to revenues of $5,021,000 for the six-month period ending September 30, 1996. Net loss for the six-month period ending September 30, 1997 was $1,937,000 compared to a loss of $781,000 for the comparable 1996 period. Net loss applicable to common shares, after preferred stock dividends, for six months ended September 30, 1997 was $2,403,000, or a loss of 55 cents per share, compared to a loss of $1,178,000 or a loss of 30 cents per share for the same 1996 period.
The Company said that revenues have decreased primarily because its new NT-based products, COINSERV for Windows NT, were introduced subsequent to the end of the quarter. Dr. E. Ted Prince, INSCI Chairman & CEO, commented, “Although the market for archiving software is growing strongly, the principal growth is occurring in tandem with the very rapid growth of Windows NT. We have just released COINSERV for Windows NT, our new archiving software, since initial feedback is very positive, and we believe it will begin to capture market share and increase our sales For the last six months, however, the only products we had available for sale were our UNIX-based software, for which demand has slackened due to the ascendancy of Windows NT. ”
“We expect revenues from COINSERV for Windows NT to begin increasing over the next several quarters,” Prince said. He added that INSCI is also increasing its product flow through indirect sales channels, which are well-suited to the Windows NT product line; a primary emphasis is to work with sales partners such as Unisys Corp and Xerox Corp. He said that the Company's transition period is expected to taper down as COINSERV for Windows NT is introduced into the market and to the entire sales channel.
INSCI Corp develops, markets, and supports software for the automated document factory. The Company markets its products through a combination of direct sales force and marketing relationships with companies including Unisys and Xerox Corporation.
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.
INSCI Corp.
STATEMENT OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three months ended Six months ended
Sept. 30, Sept. 30,
1997 1996 1997 1996
Revenue
Product $ 632 $ 980 $ 1,390 $ 2,479
Services 1,265 1,105 2,310 2,542
Total Revenue 1,897 2,085 3,700 5,021
Cost of revenue
Product 576 371 987 759
Service 562 714 1,233 1,397
Total cost of
revenue 1,138 1,085 2,220 2,156
Gross margin 759 1,000 1,480 2,865
Expenses
Sales and marketing 736 792 1,744 1,670
Product development 440 547 918 992
General and
administrative 405 552 849 1,004
Total expenses 1,581 1,891 3,511 3,666
Income (loss) from
operations (822) (891) (2,031) (801)
Interest income (expense)
Interest income 49 16 96 24
Interest expense (1) (3) (2) (4)
Interest income
(expense) net 48 13 94 20
Net income (loss) (774) (878) (1,937) (781)
Preferred stock dividend (222) (198) (466) (397)
Net income (loss) applicable
to common shares $ (996) $(1,076) $(2,403) $(1,178)
Net income (loss) per common
share $ (0.22) $ (0.27) $ (0.55) $ (0.30)
Weighted average common
shares outstanding 4,495 3,982 4,394 3,946
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