Tuesday, July 21, 1998
Ontrack Data International announces second quarter financial resultsOntrack Data International, Inc. (Nasdaq: ONDI) today announced its financial results for the second quarter and six months ended June 30, 1998.
Total revenues for the second quarter increased to $9,066,000 or 11% above total revenues of $8,145,000 in the second quarter of 1997. Net income grew 20% to $1,496,000, from $1,247,000 in the same period a year ago. Diluted net income per share grew to $.15 from $.12 in the second quarter of 1997.
For the six months ended June 30, 1998 total revenues increased to $17,973,000, or 11% above revenues of $16,215,000 for the comparable period of 1997. Net income for the first six months of 1998 grew 22% to $3,051,000, from $2,492,000 in the same period a year ago. Diluted net income per share grew to $.30 from $.25 in the first half of 1997.
Second quarter 1998 service revenues increased 19% to $7,235,000 due to a worldwide increase in the number of data recovery jobs performed during the quarter and an increase in the average revenue per job . Although second quarter 1998 software revenues of $1,831,000 declined 11% compared to the prior year, the amount was in line with the Company's expectations for the quarter. Software revenues consist primarily of sales into the OEM channel of Ontrack Disk Manager software, the company's hard disk drive installation utility software program.
Ontrack (NASDAQ: ONDI), the world leader in data recovery, specializes in services and software that help computer users access and recover their valuable data. Using hundreds of proprietary tools and techniques, Ontrack is able to recover lost or corrupted data from all operating systems and types of storage devices. Ontrack can be reached through its World Wide Web site at http://www.ontrack.com or by calling 800-872-2599 (612-937-5161). In addition to its Minneapolis headquarters, Ontrack operates customer service centers in Los Angeles, San Jose, Washington, D.C., New York, Tokyo, London, Paris 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-K for the year ended December 31, 1997, under the caption “ Management's Discussion and Analysis of Financial Condition and Results of Operations -- Forward Looking Statements”.