OTGS 1st Q Results:
Tuesday April 25, 5:39 pm Eastern Time
Company Press Release
SOURCE: OTG Software, Inc.
OTG Software Reports Results for First Quarter 2000, with Record Revenues
- Revenues 53% Higher Than for First Quarter 1999 -
BETHESDA, Md., April 25 /PRNewswire/ -- OTG Software, Inc. (Nasdaq: OTGS - news), a provider of interactive data storage management and data access solutions, today announced financial results for the first fiscal quarter of 2000.
For the first quarter ending March 31, 2000, OTG Software achieved record revenues of $8.3 million. The results, a 53% improvement compared with revenues of $5.4 million recognized in the first quarter of 1999, mark the ninth consecutive quarter the Company's revenue has increased quarter to quarter. The Company realized operating income of $54,000 for first quarter 2000 and a loss per share (diluted) of $0.02. For the comparable period in 1999, the Company realized operating income of $106,000, and a loss per share (diluted) of $0.02.
Software license revenues for first quarter 2000 were $6.4 million compared with $3.8 million for first quarter 1999, an increase of 68%. Services revenues for the quarter were $1.9 million compared with $1.6 million for first quarter 1999, an increase of 17%. Operating expenses for the quarter increased to $7.1 million from $4.4 million for first quarter 1999.
In March 2000, OTG Software successfully completed an initial public offering of five million shares of common stock, raising gross proceeds of $95 million. As of March 31, 2000, the Company had cash and cash equivalents of $70.7 million. Besides direct costs of the offering, the Company used some of the proceeds of the offering to retire substantially all of its long-term debt.
In April 2000, the Company acquired xVault, Inc., a leading provider of e-mail solutions, for approximately $6 million, including 160,000 shares of stock, and cash of $1.9 million. This acquisition is expected to close today.
Richard A. Kay, president and CEO of OTG Software, said, ``We are very pleased with our strong financial performance during the first quarter of this important year for OTG. We continue to focus on investing in sales and marketing, and leveraging our core technology to expand our product offerings. |
