INSCI Reports Poor 3Q Results, Will Refocus
Thursday, February 15, 2001
WESTBOROUGH, MA (February 14, 2001)....insci-statements.com, Corp. (Nasdaq: INSI), doing business as INSCI, a provider of scalable digital document repository solutions that provide high-volume document capture, warehousing and delivery functions, announced today results for its fiscal third quarter and first nine months ended December 31, 2000. Revenues in the fiscal 2001 third quarter were $2.7 million with a net loss applicable to common shareholders of $1.3 million, or a $0.09 loss per share. This compares to revenues in the third quarter of last fiscal year of $3.1 million and a net loss applicable to common shareholders of $2.9 million, or a loss per share of $0.29. Sequentially, this fiscal year’s third quarter revenues rose more than seven percent from revenues of $2.5 million in the second quarter of this fiscal year. Additionally, at the end of the 2001 third quarter, the Company had a meaningful increase in the number and value of booked orders that can generate revenue in upcoming quarters. Gross profit as a percent of revenues improved to 66 percent for this fiscal year’s third quarter, compared to 60 percent for the same period last year and 53 percent for the second quarter of this fiscal year. Lori R. Frank, INSCI President and CEO, commented, “While the third quarter was challenging on all fronts, I believe we made important headway in a number of key areas. We took the difficult steps needed to refocus the Company, strengthened our management team, raised additional financing and launched our new strategy. And, even though it’s too early to say we have reversed the downward trend in revenues the Company experienced earlier this fiscal year, it is important to note that fiscal 2001 third quarter revenues did increase over the second quarter of this fiscal year, in spite of all the changes that occurred in the third quarter. In addition, with the expansion of our sales staff, the prospect pipeline for future business appears to be growing nicely, and we now have a number of good-sized orders in house that should turn into revenue in the next few months.