I/NET Reports First-Quarter Results
Highlights include new telematics effort, NASA contract
and increased web-development work
KALAMAZOO, Mich., May 15 I/NET, Inc.
(OTC Bulletin Board: INNI) today announced financial and operating results for
the first quarter, marked by increased investment in new technologies for the
vehicle telematics market and the National Aeronautics and Space
Administration (NASA).
The Kalamazoo, Mich.-based developer of software products, web sites and
telematics solutions reported a net loss of $121,199 on net revenues of
$381,168 in the first quarter ended March 31, 2001, versus net earnings of
$48,003 on net revenues of $409,901 in the same period of 2000.
I/NET attributed the 7 percent decrease in revenues to lower sales of its
web software for mid-range computers versus the year-ago period. The decrease
in software revenues was offset partially by a new contract to provide
development services to NASA, which began contributing revenues in March 2001,
and increased website development and consulting work. The Company said
increased investments in research and development and the establishment of a
new Chicago office contributed to higher cost of revenues and increased
selling, general and administrative (SG&A) expense in the 2001 first quarter.
"Our results in the first quarter of 2001 reflect our aggressive pursuit
of new technologies and new markets for I/NET," said Stephen J. Markee, I/NET
president and chief executive officer. "We made several important strides in
the quarter, including the hiring of several top scientists and securing a
two-year contract with NASA. Additionally, we made significant progress in
developing new conversational interface technology for the burgeoning
telematics marketplace, and have had several meetings with one of the Big
Three automakers about deploying our conversational interface technology."
A conversational interface allows a person to interact with a computer or
control system using normal, conversational language. Unlike voice
recognition systems that simply substitute sound for typed commands, a
conversational interface provides a natural, intuitive dialogue between people
and computing systems. Potential applications range from heavy industry to
space missions to the automotive Internet market (known as telematics).
"The growth of telematics and interactive vehicle systems is spurring the
national debate about driver distraction," said Will Fitzgerald, chief
technology officer of I/NET. "Conversational interface technology provides a
safe, efficient and simple solution for vehicle telematics and, more globally,
can redefine how people interact with computers."
In addition, I/NET continues to focus on its growth plan, including the
development of strategic alliances and increased sales of its Internet
software products for the IBM AS/400 computer. The Company said it will be
seeking additional North American and European distribution for its software.
"We remain committed to selling and supporting i Series (AS/400) software,
but need to re-energize our distribution in North America and Europe to
maximize the value of our products and services, which are well-known in the
i Series community," Markee said. "We also remain committed to executing on
our strategic plan, including maximizing our opportunities to build
shareholder value through alliances, mergers and acquisitions."
I/NET provides software and services to small businesses and Fortune 500
corporations. Established in 1982 as a contract software development firm,
I/NET has been a pioneer in the areas of digital imaging, voice recognition
and multimedia. Visit http://www.inetmi.com .
This news release contains forward-looking statements that are made
pursuant to the "safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements involve risks and
uncertainties, and actual results may differ substantially from these
statements. For a more complete disclosure of these risk factors, please
refer to the Company's quarterly Form 10-Q and Form 10-K filings with the
Securities and Exchange Commission.
I/NET, INC.
2001
QUARTERLY
COMPARATIVES
MARCH 31, 2001
(UNAUDITED)
QUARTER QUARTER
ENDED ENDED
03/31/2001 03/31/2000
REVENUES $381,168 $409,901
COST OF REVENUES $332,458 $209,393
GROSS PROFIT $48,710 $200,508
S,G&A $160,015 $143,678
(LOSS) EARNINGS FROM OPERATIONS $(111,305) $56,830
INTEREST EXPENSE- NET $9,894 $8,827
GAIN ON SALE OF SUBSIDIARY STOCK $ - $28,199
NET (LOSS) EARNINGS $(121,199) $48,003
(LOSS) EARNINGS PER SHARE $0.00 $0.00
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