Ontrack Data International, Inc. announces first quarter results
MINNEAPOLIS, April 25, 2001 - ONTRACK Data International, Inc. (NASDAQ: ONDI), today announced its financial results for the first quarter ended March 31, 2001.
Revenue for the quarter totaled $14.7 million, a 25 percent increase over revenue of $11.8 million in the first quarter of 2000. Net income before amortization of goodwill and terminated merger costs during the quarter increased 17 percent to $1.4 million compared to the first quarter of 2000. Diluted earnings per share excluding goodwill amortization and terminated merger costs also increased 17 percent to 14 cents compared to 12 cents per diluted share in the first quarter of 2000.
First quarter 2001 service revenue totaled $10.5 million, a 28 percent increase compared to $8.2 million in the first quarter of 2000. Ontrack's EIM business increased almost 150 percent to $2.6 million versus the comparable quarter of 2000. Software revenue increased 18 percent to $4.2 million compared to the first quarter of 2000.
"We are extremely pleased to report stronger comparative quarter revenue growth," said Mike Rogers, chief executive officer of Ontrack. "The market for electronic discovery continues to evolve at a rapid rate. As such, we are expanding our marketing focus from solely antitrust cases to also include the much larger civil litigation marketplace and are investing an additional $600,000 - $700,000 in the second quarter for a highly targeted public relations campaign."
Rogers also noted that he is excited about the upcoming expansion of Ontrack’s EIM service operations to the company’s office in Washington, D.C. "Expanding the capabilities of this office will enable our EIM business to have a local presence where a strong part of the legal community resides," Rogers said.
Rogers continued "While I am pleased with the first quarter results of our EIM business, the economic slowdown has affected the EIM marketplace and temporarily decreased the number of available EIM opportunities. We remain confident in our strategy and are investing additional funds to ensure better visibility among our customers and increase the size of the our EIM pipeline."
Because of these factors, Ontrack is forecasting second quarter revenue in the range of $13.5 - $14 million and earnings per diluted share before goodwill amortization of six to nine cents. For the full year 2001, the Company expects revenue of $59 - $60 million and earnings per diluted share before goodwill of 54 to 60 cents."
Ontrack will host a conference call to discuss first quarter results on Wednesday, April 25, 2001 at 4:00 PM Central Time. Investors may access the call by dialing 800-670-3544 or may listen to a replay beginning two hours following the conclusion of the call and available for one week after by dialing 800-633-8284 and entering the code - 18311658. Investors also may access a live Web cast of the conference call at www.ontrack.com.
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. Ontrack also offers award-winning PC utility software programs and services to help prevent critical data loss through a broad line of problem-solving, file-management and productivity utilities. Ontrack can be reached through its World Wide Web site at http://www.ontrack.com or by calling 800-872-2599. In addition to its Minneapolis headquarters, Ontrack operates locations in Los Angeles, Boulder, Colo., Washington D.C., New York, London, Paris and Stuttgart, Germany. 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 Data International, Inc.
Consolidated Condensed Statements of Income
(In thousands, except per share amounts)
|Ended March 31,|
Cost of revenues:
|Total cost of revenues||3,834||2,933|
|Sales and marketing||4,263||3,132|
|Research and development||2,421||2,163|
|General and administrative||2,517||2,073|
|Total operating expenses|
|excluding goodwill and|
terminated merger costs
Operating income excluding goodwill and terminated merger costs
|Amortization of goodwill||442||462|
|Terminated merger costs||-||(579)|
Interest and other income
Income before income taxes
Provision for income taxes
Diluted net income per share excluding goodwill amortization and terminated merger costs
Diluted net income per share
|Weighted average shares used in computation of diluted net income per share||10,360||10,508|
ONTRACK Data International, Inc.
Consolidated Condensed Balance Sheets
|March 31,||December 31,|
|Cash, cash equivalents and short-term|
|Accounts receivable, net||11,047||9,570|
|Prepaid expenses and other current assets||4,611||4,313|
|Total current assets||43,808||42,059|
|Long term investment – cash||2,957||4,868|
|Furniture and equipment, net||6,786||6,464|
|LIABILITIES AND SHAREHOLDERS' EQUITY|
|Total current liabilities||$4,468||$6,017|
|Total shareholders' equity||55,877||54,671|
|Total liabilities and shareholders' equity||$60,345||$60,688|