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Tinton Falls, NJ, October 15, 1997 |
FOR IMMEDIATE RELEASE |
ECCS Announces Nine Month Results, Revenue Up 46%, Net Income Up 270% |
ECCS, Inc., Tinton Falls, New Jersey, October 15, 1997 -- ECCS Inc. (NASDAQ SmallCap:
ECCS) today reported positive results for the nine months and the third quarter ended
September 30, 1997. Net sales for the nine months ended September 30, 1997 were $26.5
million, an increase of $8.4 million or 46% as compared to $18.1 million in the nine
months ended September 30, 1996.
Net income for the nine months ended September 30, 1997 was $900 thousand or $.12 and $.10
per share on a primary and fully diluted basis respectively. This represents an
improvement of $1.4 million, when compared to the Company's net loss of $530 thousand or
$.16 per share for the nine months ended September 30, 1996.
Net sales for the third quarter ended September 30, 1997 were $8.7 million, an increase of
$3.5 million or 67% as compared to $5.2 million in the third quarter of 1996. For the
third quarter of 1997, ECCS reported a net income of $202 thousand, or $.02 per share on
both a primary and fully diluted basis, an improvement of $357 thousand as compared to the
third quarter of 1996 net loss of $155 thousand or $.05 per share.
This quarter's results reflect an extraordinary charge of $120 thousand which resulted
from our transition of accounts receivable
financing to NationsBank. Net income per share before this extraordinary item for the
third quarter of 1997 represented $.04 and $.03 on a primary and fully diluted basis
respectively. Net income per share before this extraordinary item for the nine months of
1997 represented $.14 and $.11 on a primary and fully diluted basis respectively.
G.M. Azcuy, President and Chief Executive Officer said, "The Company is continuing to
make good and solid progress this year. This is the result of the success of our
innovative products, our new and existing customers, and the efforts of our dedicated
employees. We are continuing to invest in our R&D and Engineering organizations as
reflected by our more than 60% spending increase in this quarter, as compared to the same
quarter last year. We have several new products that are in the final stages of
completion, and I am confident that we have a solid vision for the future of mission
critical and clustered storage in the Windows NT, Unix and Open Systems marketplace. We
have much work ahead of us and we will continue to remain true to our mission of seeking
innovation, growth and profitability in concert."
This release contains forward-looking statements under the Federal Securities Laws. Actual
results could vary materially. Factors that could cause actual results to vary materially
include, but are not limited to: component quality and availability, changes in business
conditions, changes in ECCS' sales strategy and product development plans, changes in the
data storage or network marketplace, competition between ECCS and other companies that may
be entering the data storage host/network attached markets, competitive pricing pressures,
continued market acceptance of ECCS' open systems products, delays in
the development of new technology, changes in customer buying patterns, one-time events
and other important factors disclosed previously and from time-to-time in ECCS' filings at
the U.S. Securities and Exchange Commission.
ECCS, Inc. designs, manufactures, markets and maintains high availability RAID storage devices for both direct bus attach and network attach environments. ECCS products are surrounded by an intuitive Graphical User Interface to tune, monitor, and manage ECCS products. ECCS has been incorporated since 1980, providing high availability solutions for UNIX and NT based computer systems. ECCS is headquartered in Tinton Falls, New Jersey. The company can be reached via phone at (908) 747-6995, via fax at (908) 747-6542, via Internet at http://www.eccs.com.