nStor Technologies Reports First Quarter 2005 Results
10 Mai 2005 - 7:41PM
PR Newswire (US)
nStor Technologies Reports First Quarter 2005 Results 42 Percent
Sequential Revenue Growth CARLSBAD, Calif., May 10
/PRNewswire-FirstCall/ -- nStor Technologies, Inc. (AMEX:NSO), an
innovative developer of storage networking solutions, today
announced operating results for the first quarter ended March 31,
2005. During the first quarter, the company's revenues rose by 42
percent or $933,000 as compared to the corresponding quarter of
2004 and $274,000 or 9 percent from the fourth quarter of 2004. The
company's first quarter net loss available to common stock was
$2,311,000 or $.01 per common share on revenues of $3,181,000
compared to a net loss available to common stock of $2,136,000 or
$.01 per common share on revenues of $2,248,000 during the
corresponding quarter of 2004. Gross margins improved from 23
percent in the first quarter of 2004 to 29 percent in 2005. First
quarter bookings exceeded $4.2 million and backlog at the beginning
of Q2 exceeded $2.2 million. This represents the highest quarterly
bookings and quarter end back log recorded in the company's recent
history. These orders are largely scheduled to ship during the
second quarter of 2005. Todd Gresham, nStor's president and CEO
stated, "nStor's first quarter revenue growth was primarily
attributable to stronger business conditions, initial ramp up of
shipments to new OEM and Solution Integrator customers, as well as
increased spending by our customers in North America. OneStor(TM),
our next generation storage system announced in April, offers
unique, breakthrough technology that empowers customers to do more
with less and has resulted in attracting new customers. Our
industry leading OneStor SAS/SATA product family shows great
promise for the company." He continued to state, "In the past year,
we have worked to stabilize the business and bring new products to
market. And as evidenced by our achievements in Q1, we continue to
increase our focus on new customer acquisitions and global
expansion." Mr. Gresham further commented that the company had
reduced its debt by $9.1 million in the first quarter of 2005. This
was attributable to the conversion of debt to preferred stock by
the company's chairman, H. Irwin Levy. This conversion
significantly improved nStor's shareholders' equity and working
capital. The company's remaining borrowings consist of $3.65
million, including $3.3 million from a company affiliated with Mr.
Levy, maturing in April 2006. Mr. Gresham also commented on the
increased operating expenses during 2005. "In accordance with our
business plan, we have added personnel and increased spending
particularly in sales, marketing and product development in
anticipation of further revenue growth and new product development
during 2005. This contributed to the higher net loss reported
during the first Quarter. The company is currently exploring
alternatives to raise additional capital to fund the further growth
for the remainder of the year. Business Highlights * Introduction
and demonstration of the OneStor family of products, securing
several new customer wins and earning industry attention * Growth
in service and software sales, contributing to continued margin
improvement * Ramp up of initial shipments to new OEMs within key
vertical and server markets * Significant traction of the newly
introduced NexStor 4900 Fibre Channel storage subsystem,
contributing to overall revenue growth * Penetration of Latin
American market with several new customer contracts About nStor
Technologies, Inc. Headquartered in Carlsbad, Calif., nStor
Technologies, Inc. (AMEX:NSO) is a developer of data storage
solutions that are ideally suited for both large enterprises as
well as small to mid-sized businesses. The Company's flagship
controller technology and StorView software form the foundation for
the OneStor and NexStor family of turnkey solutions that support
today's most popular operating environments. Designed for
storage-intensive environments and mission-critical applications,
nStor's products are offered in various architectures including
Fibre Channel, SAS, SCSI and SATA and are focused on addressing
customers' business needs and applications. The Company markets its
storage solutions through a global network of OEM partners and
solutions integrators. For more information, visit
http://www.nstor.com/. This press release includes statements that
may constitute "forward-looking" statements, usually containing the
words "believe," "estimated," "project," "expect," "anticipate," or
similar expressions. These statements are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements inherently involve risks and
uncertainties that could cause actual results to differ materially
from the forward-looking statements. Factors that would cause or
contribute to such differences include, but are not limited to,
insufficient funding, the Company's inability to increase sales to
current customers and to expand its customer base, continued
acceptance of the Company's products in the marketplace, the
Company's inability to improve the gross margin on its products,
competitive factors, dependence upon third-party vendors, outcome
of litigation, and other risks detailed in the Company's periodic
report filings with the Securities and Exchange Commission. By
making these forward-looking statements, the Company undertakes no
obligation to update these statements for revisions or changes
after the date of this release. nStor and StorView are registered
trademarks of nStor Technologies, Inc. nStor Technologies, Inc. and
Subsidiaries Condensed Consolidated Statements of Operations (in
thousands, except per share data) Three Months Ended March 31, 2005
2004 Sales $3,181 $2,248 Cost of sales 2,262 1,740 Gross margin 919
508 Operating expenses: Selling, general and administrative 1,992
1,273 Research and development 1,111 1,011 Depreciation 62 53 Total
operating expenses 3,165 2,337 Loss from operations (2,246) (1,829)
Interest expense (65) (179) Loss from continuing operations (2,311)
(2,008) Income (loss) from discontinued operations 97 (128) Net
loss before preferred stock dividends (2,214) (2,136) Preferred
stock dividends (97) -- Net loss available to common stock $(2,311)
$(2,136) Basic and diluted net loss per common share Loss from
continuing operations $(.01) $(.01) Income (loss) from discontinued
operations -- -- $(.01) $(.01) Weighted average number of common
shares outstanding, basic and diluted 165,098 165,070 nStor
Technologies, Inc. and Subsidiaries Condensed Consolidated Balance
Sheets (in thousands) March 31, December 31, 2004 2003 ASSETS
Current assets: Cash and cash equivalents $327 $1,272 Accounts
receivable, net 1,468 1,805 Note receivable 200 626 Inventories
1,582 1,882 Prepaid expenses and other 324 295 Total current assets
3,901 5,880 Property and equipment, net 462 512 Goodwill, net 1,989
1,989 Note receivable 426 417 $6,778 $8,798 LIABILITIES AND
SHAREHOLDERS' EQUITY Current liabilities: Borrowings - Affiliate
$-- $9,100 Accounts payable and other 2,834 2,543 Total current
liabilities 2,834 11,643 Long-term debt 3,650 3,650 Total
liabilities 6,484 15,293 Shareholders' equity 294 (6,495) $6,778
$8,798 DATASOURCE: nStor Technologies, Inc. CONTACT: Veena Raman of
nStor Technologies, Inc., +1-760-683-2500, Web site:
http://www.nstor.com/
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