Farmstead Telephone Group, Inc. Reports Year-End and Fourth Quarter Results
March 26 2004 - 8:00AM
PR Newswire (US)
Farmstead Telephone Group, Inc. Reports Year-End and Fourth Quarter
Results EAST HARTFORD, Conn., March 26 /PRNewswire-FirstCall/ --
Farmstead Telephone Group, Inc. announced operating results for the
year and fourth quarter ended December 31, 2003. For the year ended
December 31, 2003 revenues were $14,680,000, 23 percent below
revenues of $19,150,000 reported for 2002. The net loss for the
year was $709,000, or $(.21) per share, compared with a net loss of
$2,530,000, or $0.77 per share, in 2002. The Company reported an 11
percent decrease in revenues for the fourth quarter, totaling
$3,193,000, compared with revenues of $3,593,000 reported for the
fourth quarter of 2002. For the quarter, the Company reported a net
loss of $283,000 or $(.09) per share, compared with a net loss of
$1,285,000, or $0.39 per share, during the same period in 2002. The
net loss for the fourth quarter and full year 2002 included
$889,000 in non-cash charges, consisting of $455,000 to provide a
full valuation reserve against deferred tax assets, $333,000 in
inventory valuation charges, and a $101,000 charge to write off all
goodwill arising from the acquisition of InfiNet Systems LLC. The
Company attributed the declines in revenues to continued softness
in corporate buying in the telecom equipment sector. George J.
Taylor, Jr., Chairman and President of Farmstead Telephone,
commented, "as our financial results indicate, our revenues
continued to decline, although at a much slower rate. We attribute
the revenue decline primarily to continued softness in corporate
buying in the telecommunications equipment sector. Many
corporations, faced with a sluggish economy and a downturn in their
own financial performance, simply reduced their capital
expenditures. These events triggered a defensive strategy on our
part, with particular emphasis placed on margin and cost
containment as we attempted to restructure the Company to drive
down its cost of operations at reduced revenue run rates. As a
result of our efforts, despite a 23% decline in 2003 revenues from
2002, we managed to reduce our comparative net loss by 72%." Mr.
Taylor continued, "Farmstead has chosen to focus on three core
areas - -Avaya parts, Avaya systems and associated applications,
and Avaya services -- all wrapped into an e-commerce framework.
While stability is not assured given the uncertainties of business
and the economy today, we have made every effort to manage the cost
and margin sides of our business. We expect these effortsto put us
on a path of growth and profitability in the years ahead." About
Farmstead Farmstead Telephone Group, Inc. is an Avaya Inc. Gold
Business Partner, and an Authorized Remarketing Supplier of Classic
Avaya(TM) and new Avaya business communications products. Further
information about Farmstead Telephone may be found at
http://www.farmstead.com/. CONTACT: George Taylor, Jr., Chairman
and Chief Executive Officer Farmstead Telephone Group, Inc. Voice:
860-610-6006 Fax: 860-610-6001 Farmstead Telephone Group Financial
Highlights Quarter Ended December 31, Year Ended December 31, 2003
2002 2003 2002 Revenues $3,193,000 $3,593,000 $14,680,000
$19,150,000 Net Loss (283,000) (1,285,000) (709,000) (2,530,000)
Basic and Diluted Net Loss Per Share$ (.09) $(0.39) $(.21) $(0.77)
Basic and Diluted Weighted Average Shares Outstanding: 3,311,601
3,298,958 3,305,439 3,288,748 This release contains forward-looking
statements that involve risks and uncertainties. In addition to
historical information, investors should consider carefully the
risks associatedwith an investment in the Company's securities as
previously outlined by the Company in its prior filings with the
Securities and Exchange Commission. DATASOURCE: Farmstead Telephone
Group, Inc. CONTACT: George Taylor, Jr., Chairman and Chief
Executive Officer of Farmstead Telephone Group, Inc.,
+1-860-610-6006 Web site: http://www.farmstead.com/
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