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Vodavi Technology, Inc. Reports Year-End and Fourth Quarter Results
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SCOTTSDALE, ARIZ. - (BUSINESSWIRE) - March 1, 1999 -Vodavi Technology Inc. (NASDAQ:VTEK)
today announced operating results for the fourth quarter and year ended December 31, 1998.
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For the year ended December 31, 1998, revenue was $48.0 million, a slight increase over
revenue of $47.7 million reported for the previous year ended December 31, 1997. Net
earnings for the year were $984,000, or $.23 per share, including a $.10 per share tax
credit. Net earnings for 1997 were $215,000, or $.05 per share. Excluding a one-time
pre-tax restructuring charge of $819,000, the earnings for the year ended December 31,
1997 would have been $748,000, or $.17 per share.
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Revenue for the quarter ended December 31, 1998 was $10.6 million, a decrease of 7.8% from
revenue of $11.5 million for the fourth quarter in 1997. Net earnings for the quarter
ended December 31, 1998 totaled $319,000, or $.07 per share, including a $.10 per share
tax credit. The Company reported a net loss for the quarter ended December 31, 1997 of
$821,000, or $.19 per share. Excluding the pre-tax restructuring charge, the loss in the
fourth quarter of 1997 would have been $288,000, or $.07 per share.
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According to Greg Roeper, President and Chief Operating Officer, "We are pleased with
our year-end performance and with the fact that we are on target to achieve the corporate
objectives we instituted in mid-1998 when the new management team assumed the helm of the
Company. Strategic initiatives, involving making critical changes in three key areas --
people, processes and products -- have been embraced by the entire Vodavi team - from
those on the Board down to those in our shipping department. Consequently, our collective
efforts are achieving desirable results."
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Continuing, Roeper added, "After carefully evaluating the strengths and weaknesses in
personnel, we have eliminated several unnecessary layers of management, reassigned and
reprioritized areas of responsibility and identified key roles that will be filled
shortly. Further, Vodavi has been working diligently to redefine our relationships with
our major distribution customers - shifting the emphasis from strictly pushing inventory
into their distribution channels via steep discounting programs in favor of assisting them
to more effectively manage the "pull" of our diversified product line through to
the ultimate customers. This strategy has subsequently created enhanced profit margins and
efficient management of cash flow and inventory control. Moreover, the spirit of
partnership that we are fostering among our suppliers has initiated a noteworthy platform
from which to introduce new and aggressive sales and marketing programs for both existing
products and planned product launches."
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Roeper concluded, "During 1998, Vodavi experienced numerous changes in management,
corporate growth philosophies and product innovations. However, the Company suffered few
setbacks -- financial or otherwise -- and is now firmly positioned to aggressively pursue
increased revenue and earnings opportunities in 1999. By perpetuating the considerable
success we have enjoyed with increasing demand for our voice processing system -- sales up
in excess of 50% during the past year -- to introducing new and cutting edge internet
telephony, web-based interactive voice response, and call center products this Summer,
management's primary goal is to enhance stockholder value. We will focus our primary
efforts on building an aggressive and experienced sales and marketing team committed to
gaining increased marketshare for our quality products and technologies. At the end of the
day, this should ultimately translate into enhanced value for our stockholders, while
aiding the Company to evolve into a world class organization. Given our healthy balance
sheet and the growing excitement surrounding our new product launches, we are excited
about the 1999 prospects for Vodavi."
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