Thursday, July 22, 1999

Ontrack announces second quarter financial results

ONTRACK Data International, Inc.
(NASDAQ: ONDI) today announced its financial results for the second quarter and six months ended June 30, 1999.
Total revenues for the second quarter were $9,065,000, which were approximately the same as the second quarter of 1998. Net income for the quarter was $1,077,000, or $0.11 per share on a fully diluted basis, compared to $1,496,000, or $0.15 per share, in the same period a year ago.
Data recovery service and product revenue for the second quarter totaled a record $7,807,000, 8 percent greater than the second quarter of 1998. This increase was due to increased sales of the company's do-it-yourself data recovery software product and demand for the company's remote data recovery services. As expected, second quarter software revenues of $1,258,000 were 31 percent lower than last year. Software revenues primarily consist of sales to the OEM channel of ONTRACK Disk Manager software, the company's mature hard disk drive installation utility software program.
“Our efforts to build a suite of data availability solutions are beginning to show results. Earlier this year we introduced do-it-yourself data recovery software and expanded our remote data recovery offerings. Now, we have completed the acquisition of Mijenix (a leading supplier of system software products for enhancing the use of Windows and NT-based computer systems) and signed a licensing agreement with Connected (the leader in Internet protocol PC backup and recovery solutions),” said Mike Rogers, CEO of Ontrack. “With the new products and services we are now offering, Ontrack is quickly becoming the world's single source for data availability solutions.”
For the six months ended June 30, 1999, total revenues were $17,475,000, compared to $17,973,000 in the comparable period of 1998. Net income for the first six months was $1,977,000, or $0.20 per share on a fully diluted basis, versus $3,051,000, or $0.30 per share, in the same period a year ago.
Ontrack, a leading provider of data availability software and service solutions, helps customers protect, backup and recover their valuable data. Using its hundreds of proprietary tools and techniques, Ontrack is able to recover lost or corrupted data from all operating systems and types of storage devices through its do-it-yourself, remote and in-lab capabilities. With its acquisition of Mijenix, Ontrack provides award-winning software tools to help prevent critical data loss. Ontrack also licenses Connected Corporation's leading Internet protocol PC backup and restore solutions. 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 data recovery centers in Los Angeles, Washington, D.C., New York, Tokyo, London, Paris and Stuttgart and maintains Mijenix headquarters in Boulder, CO.
ONTRACK is a registered trademark of ONTRACK Data International, Inc. in the United States and/or other countries. All other brands or product names are trademarks or registered trademarks of their respective holders.
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 Form 10-K for the year ended December 31, 1998, under the caption “ Management's Discussion and Analysis of Financial Condition and Results of Operations -- Forward Looking Statements”.