Wednesday, April 23, 1997
Ontrack Data International announces record first quarter financial resultsOntrack Data International, Inc. (Nasdaq: ONDI) today announced record results for the first quarter ended March 31, 1997.
Revenues increased to $8,070,000 or 46% above revenues of $5,513,000 in the first quarter of 1996. Net income grew 67% to a record $1,245,000 from $745,000 in the same period a year ago. Earnings per share grew 20% to $.12, based on 10,096,057 weighted average shares outstanding, from $.10 in the first quarter of 1996, based on 7,794,457 weighted average shares outstanding.
The increase in revenues came from both the service and software businesses. Service revenues increased 41% to $6,112,000, while software revenues increased 67% to $1,958,000. The company attributed the increase in service revenues to a worldwide increase in the number of data recovery jobs performed during the quarter and to the company's Computer Evidence Services business which was formalized in mid-1996. The increase in software revenues was primarily due to increased sales into the OEM channel of Ontrack Disk Manager software, the company's hard disk drive installation utility software program.
“We are pleased with our first quarter 1997 financial performance,” said Michael Rogers, Chairman and CEO of Ontrack. “We believe that these strong results are a confirmation of our ongoing strategy to expand our global presence, invest in research and development and develop new sales, marketing and service distribution channels. We will continue our efforts to educate potential customers that data recovery is a viable solution to the inevitable occurrence of data loss, and we are convinced that Ontrack remains the best worldwide solution when data loss does occur.”
Ontrack Data International, Inc. is a leading vendor of services and software designed to maximize the integrity and security of hard disk drive data. An Ontrack wholly-owned subsidiary, Ontrack Data Recovery, Inc., specializes in recovering lost or corrupted data from any hard drive or alternative storage device that has fallen victim to a hardware or system malfunction, human error, computer virus, natural disaster or computer crime. Understanding that time is critical, Ontrack offers emergency, weekend, on-site and priority service to help users avoid expensive downtime. Ontrack is headquartered at 6321 Bury Drive, Minneapolis, Minnesota 55346, and can be reached by phone at 800-872-2599 (612-937-5161) and via the Internet at www.ontrack.com. In addition to its Minneapolis location, Ontrack also operates data recovery labs in Los Angeles, Washington, D.C., Tokyo, London and Stuttgart.
Statements in this release concerning the future prospects of Ontrack are “forward-looking statements” under the Federal securities laws. There can be no assurance that future results will be achieved, and actual results could differ materially from forecasts, estimates, and summary information contained in this press release. Important factors that could cause actual results to differ materially are included but are not limited to those listed in the Ontrack Annual Report incorporated by reference into the Form 10-KSB for the year ended December 31, 1996, under the caption "Management's Discussion and Analysis of Financial Condition and Results of Operations -- Forward Looking Statements."