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Lake Forest, IL (February 1, 1996) --- SoftNet Systems, Inc. (AMEX: SOF), today reported revenue for the first quarter ended December 31, 1995 of $9,872,000 compared to $4,601,000 for the same period in 1994. The Company reported a net loss from continuing operations of $323,000 (or $.06 per share of common stock) for the first quarter ended December 31, 1995, compared to a net loss from continuing operations of $71,000 (or $.02 per share of common stock) for the same period last year.
The Company stated that the increase in sales was principally a result of the acquisition of Micrographic Technology, Inc. (“MTC”) in September 1995, and higher sales volume through the Company’s telecommunications and document management division. The prior year results have been restated to reflect the Company’s acquisition of Kansas Communications, Inc. in September 1995, which was accounted for as a pooling of interest. The Company reported income from continuing operations of $61,000 for the first quarter ended December 31, 1995, compared to $149,000 for the same period last year. Included in the first quarter 1995 results are increased costs for depreciation and amortization related to the fiscal 1995 acquisitions, expenses necessary to merge the operations of the newly acquired companies, increases in certain other costs which are necessary for the growth and development of the business and substantial engineering costs related to the development of key new products at MTC "We are pleased with our results to date," stated John J. McDonough, SoftNet's Chairman of the Board, “but we certainly have a long way to go. For the first time in SoftNet’s history we have posted a profit from continuing operations before interest. We have made a number of organizational changes as we merge the businesses and expect to see the results over the coming year.” John I. Jellinek, President and Chief Executive Officer, added, “Its good to see the results of our efforts begin to pay off. A lot of effort was put into the formation of this Company and we believe we have a solid foundation for our future. This is the time that we need to invest in our business to ensure that the right people and infrastructure is in place.” Mr. Jellinek also announced that SoftNet has recently hired John T. Doherty as vice president of operations and president of the Company’s integrated solutions group. Mr. Doherty, __, was most recently a Practice Manager with Oracle Corporation in their Process Manufacturing Service Line. Prior to joining Oracle Corporation, Mr. Doherty held various management positions at Digital Equipment Corporation. Mr. Doherty received his Masters of Business Administration from Boston University. SoftNet develops, markets, installs and services electronic information and document management system that allows customers to electronically request and electronically receive information. The Company’s hardware and software systems allow the electronic capture, indexing, storage and retrieval of information through the integration of telecommunications and the following media: magnetic disk, optical disk, microfilm, and paper. SoftNet’s fully integrated information storage and retrieval systems allow users to re-engineer their information management processes to access information on a cost-effective basis and to achieve immediate cost savings through productivity increases. |