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Lake Forest, IL (November 27, 1995) --- SoftNet Systems, Inc. (AMEX: SOF),
today reported revenue for the fourth quarter ended September 30, 1995 was
$6,137,000 compared to $2,241,000 for the same period in 1994. The Company
reported a net loss from continuing operations of $7,096,000 (or $1.33 per
share of common stock) for the fourth quarter ended September 30, 1995,
compared to a net loss from continuing operations of $272,000 (or $.07 per
share of common stock) for the same period last year.
The fourth quarter results include the revenue, operating expenses and related goodwill amortization of Communicate Direct, Inc. (“CDI”), which SoftNet acquired in October 1994. In addition, the results of the fourth quarter include non-recurring charges of $6,318,000 (or $1.18 per share of common stock). The non-recurring charges are principally due to the write-off of in-process unproven technology acquired in connection with the merger between SoftNet Systems, Inc. and Micrographic Technology Corporation, transaction costs related to the merger between SoftNet Systems, Inc. and Kansas Communications, Inc. and the write off of certain leasehold improvements. For the twelve months ended September 30, 1995, revenue was $21,277,000 compared to $9,629,000 for the same period in 1994. SoftNet had a net loss from continuing operations of $8,568,000 (or $1.97 per share), compared to a net loss from continuing operations of $1,313,000 (or $.35 per share) for the same period the previous year. Fiscal 1994 included a non-cash charge of $514,000 (or $.21 per share) to write off a senior note discount. On September 15, 1995, the merger between SoftNet Systems, Inc. and Kansas Communications, Inc. was completed. The transaction was structured as a pooling-of-interest for accounting purposes. Accordingly, the reported financial statements reflect the combined operating results for the two companies for the given time periods. Also on September 15, 1995, the merger between SoftNet Systems, Inc. and Micrographic Technology Corporation was completed. The transaction was structured as a purchase for accounting purposes. Accordingly, the financial statements reflect the operating results for Micrographic Technology Corporation since September 15, 1995. SoftNet also announced that on November 20, 1995, it sold Utilization Management Associates, Inc., a medical cost containment business, back to its original investor group. The Company recorded a $644,000 loss (or $.12 per share) related to this disposition. The Company’s financial statements have been restated to reflect the disposition of Utilization Management Associates, Inc. Sales from the discontinued operation were $860,000 and $695,000 for the fiscal years ended September 30, 1995 and 1994, respectively. Losses from the discontinued operations were $419,000 (or $.10 per share) and $115,000 (or $.03 per share) for the fiscal years ended September 30, 1995 and 1994, respectively. 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. |