Wednesday, July 26, 2000
Ontrack Data International announces second quarter resultsONTRACK Data International, Inc. (NASDAQ: ONDI) today announced its financial results for the second quarter and six months ended June 30, 2000.
Total revenues for the quarter were $12,929,000, a 43 percent increase over revenues of $9,065,000 in the second quarter of 1999. Net income increased 31 percent to $1,413,000, or 14 cents per diluted share, compared to $1,077,000, or 11 cents per diluted share, in the same period a year ago. Excluding the amortization of goodwill related to Ontrack's acquisition of Mijenix Corporation, net income per diluted share in the second quarter of 2000 increased 55 percent to 17 cents, compared to 11 cents per diluted share in the second quarter of 1999.
Second quarter 2000 data recovery service and product revenue totaled a record $10,004,000, a 28 percent increase compared to $7,807,000 in the second quarter of 1999. The increase was due principally to growth in the company's Electronic Information Management (EIM) business. EIM revenue for the quarter totaled $2,500,000 compared to $450,000 in the second quarter of 1999. Software revenue of $2,925,000 increased 133 percent compared to the second quarter of 1999. The increase was due primarily to the sales of the company's retail software products.
For the six months ended June 30, 2000, total revenues grew 41 percent to $24,713,000 compared to $17,475,000 in the comparable period of 1999. Net income for the first six months was 26 cents per share on a fully diluted basis versus 20 cents in 1999, an increase of 30 percent. Excluding goodwill, net income per diluted share for the first six months of 2000 was 32 cents, a 60 percent increase over the same period a year ago.
“I am extremely proud of all aspects of our business this quarter. Our revenue and earnings increases show that our team is successfully executing our data availability strategy,” said Mike Rogers, chief executive officer of Ontrack. “I am especially pleased by the outstanding performance of our EIM business. The power of our EIM services has us working with many of the leading law firms across the country and involved with several large corporate transactions. We plan to further grow this business and leverage our expertise in searching, recovering and producing the electronic information necessary to meet legal discovery demands.“We are also excited about our award-winning Ontrack SystemSuite™ software now deliverable via an application service provider (ASP) model. This ASP offering will ease PC maintenance for end users and reduce help desk calls and IT staff trouble shooting.
“We are excited about the growth prospects for our business and about the significant momentum the business has going into the second half of 2000,” said Rogers.
Ontrack, a leading provider of data availability software and service solutions, helps customers protect, manage, recover and discover their valuable data. Using its hundreds of proprietary tools and techniques, Ontrack is able to recover lost or corrupted data from virtually all operating systems and types of storage devices through its do-it-yourself, remote and in-lab capabilities. With its Electronic Information Management business, Ontrack specializes in searching, recovering and analyzing computer information – such as e-mail and user data – for use in legal matters. Ontrack also offers a line of award-winning software tools to help prevent critical data loss through a broad line of problem-solving, file-management and productivity utilities. In addition, Ontrack offers its RapidRecall? line of backup and restore software and services for remote users. 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 other locations in Los Angeles, Boulder, Colo., Washington D.C., New York, London, Paris and Stuttgart. Ontrack also makes its data recovery services available in Tokyo through its strategic alliance with Y-E Data, a company with over 25 years of experience in storage devices.ONTRACK, RAPIDRECALL and ONTRACK SYSTEMSUITE are trademarks or registered trademarks 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 and plans of ONTRACK are “forward-looking statements” under the Federal securities laws. There can be no assurance that expected or projected 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 on Form 10-K for the year ended December 31, 1999, under the caption “ Management's Discussion and Analysis of Financial Condition and Results of Operations -- Forward Looking Statements.”
|ONTRACK Data International, Inc.|
|Consolidated Condensed Statements of Income|
|( In thousands, except share and per share amounts )|
|Three Months||Six Months|
|Ended June 30||Ended June 30|
|Data recovery services and products||$ 10,004||$ 7,807||$ 18,813||$ 14,958|
|Cost of Revenues:|
|Data recovery services and products||2,217||2,070||4,257||3,945|
|Total cost of revenues||2,965||2,250||5,898||4,369|
|Sales and marketing||3,401||2,201||6,533||4,414|
|Research and development||2,218||1,483||4,380||2,920|
|General and administrative||2,211||1,784||4,283||3,361|
|Amortization of goodwill||463||-||925||-|
|Terminated merger costs||-||-||(579)||-|
|Total operating expenses||8,293||5,468||15,542||10,695|
|Interest and other income||349||260||619||520|
|Income before income taxes||2,020||1,607||3,892||2,931|
|Provision for income taxes||607||530||1,187||954|
|Net income||$ 1,413||$ 1,077||$ 2,705||$ 1,977|
|Diluted net income per share||$ 0.14||$ 0.11||$ 0.26||$ 0.20|
|Diluted net income per share|
|excluding goodwill amortization||$ 0.17||$ 0.11||$ 0.32||$ 0.20|
|Weighted average shares used in|
|computation of diluted net income per share||10,346,000||9,732,000||10,427,000||9,732,000|
|ONTRACK Data International, Inc.|
|Consolidated Condensed Balance Sheets|
|( In thousands )|
|June 30||December 31|
|Cash, cash equivalents and short-term investments||$ 29,372||$ 28,705|
|Accounts receivable, net||7,186||6,382|
|Prepaid expenses and other current assets||3,178||2,962|
|Total Current Assets||39,736||38,049|
|Long term investment - cash||1,988||3,323|
|Furniture and equipment, net||6,156||6,002|
|Total Assets||$ 54,968||$ 55,841|
|LIABILITIES AND SHAREHOLDERS' EQUITY|
|Total Current Liabilities||$ 3,028||$ 6,810|
|Total Shareholders' Equity||51,940||49,031|
|Total Liabilities and Shareholders' Equity||$ 54,968||$ 55,841|
Ben Blomberg, 952-516-3617, Ben.Blomberg@krolldiscovery.com