Neoware Reports Preliminary First Quarter Results
October 05 2005 - 7:00AM
PR Newswire (US)
KING OF PRUSSIA, Pa., Oct. 5 /PRNewswire-FirstCall/ -- Neoware
Systems, Inc. (NASDAQ:NWRE), the leading supplier of enterprise
software, thin client appliances and related services that make
computing more open, secure, reliable, affordable, and manageable,
today reported preliminary results for its fiscal first quarter
ended September 30, 2005. Based upon initial information and
subject to the completion of the Company's financial review,
revenues for the quarter ended September 30, 2005 are expected to
be approximately $26 million or greater, above the Company's prior
guidance of $22 to $24 million, and an increase of approximately
60% or greater from $16.3 million in the prior year September
quarter, representing a record for the Company. Gross profit margin
as a percentage of revenue is expected to be at the low end of the
Company's guidance at approximately 39 to 40 percent, but higher
than expected in absolute dollars due to higher revenues. This is
the result of significant initial shipments of the Neoware e900
thin client, which has average selling prices of approximately
$3,000 per unit, lower gross margins as a percentage of revenues,
and significantly higher gross margin dollars per unit than other
Neoware products. Gross profit margin for other revenue in the
quarter is expected to be in the same range as the past several
quarters. "We expect to report all-time record revenue for the
quarter ending September 30, 2005 as a result of strong demand for
Neoware's thin client solutions and especially strong demand for
our new Neoware e900 products," stated Michael Kantrowitz,
Neoware's Chairman and CEO. "Neoware provides demonstrable
security, cost and manageability benefits to enterprises, and we
have a global organization to support the largest thin client
deployments. According to IDC, our market is experiencing robust
growth, and we believe that this will translate into continued
revenue growth in our current fiscal year." The Company expects its
fully diluted share count to increase to approximately 17 million
shares due to the increase in the Company's stock price and its
effect on calculating dilution from stock options using the
treasury stock method. Neoware will issue its first quarter
earnings release after the close of the market and host a
conference call at 5:00 PM on November 2, 2005. The conference call
will be available live at http://www.vcall.com/ and on the Neoware
website at http://www.neoware.com/. To participate, please go to
the website 10 minutes prior to the call to register, download and
install any necessary audio software. If you are unable to attend
the live conference call, an Internet replay of the call will be
archived and available after the call. The call will also be
accessible by dialing 800-895-1715 for domestic calls and
+1-785-424-1059 for international calls. The conference ID will be
NEOWARE. A replay of the call will be available through January 1,
2006 by dialing 1-888-566-0148 domestically and +1-402-220-9184
internationally. A copy of the press release announcing the
Company's earnings and other financial and statistical information
about the period to be presented in the conference call will be
available at the section of the Company's website entitled "News"
at http://www.neoware.com/. About Neoware Neoware is a leading
provider of enterprise software, thin client appliances, and
related services that make computing more open, secure, reliable,
affordable and manageable. Neoware was recently ranked America's
eighth fastest-growing company by Fortune Magazine. By leveraging
open technologies and eliminating the obsolescence that is built
into standard PC architectures, Neoware enables enterprises to
leverage server-based computing architectures to increase security,
flexibility and choice, as well as lower up-front and total costs.
Neoware's software products enable enterprises to gain control of
their desktops, stream software on-demand, and to integrate
mainframe, midrange, UNIX and Linux applications with Windows(R)
environments and the web. Neoware's thin client appliances and
software enable enterprises to run applications on servers and to
display them across wired or wireless networks on secure, managed,
reliable appliances that cost as little as one-fourth the price of
today's typical business PC. Neoware's global development,
services, and support provide customers with customized solutions
that facilitate their specialized computing needs. Neoware's
products are available worldwide from IBM, as well as from select,
knowledgeable resellers. More information about Neoware can be
found on the Web at http://www.neoware.com/ or via email at .
Neoware's global headquarters is in King of Prussia, PA. This press
release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, including
statements regarding the anticipated revenues and gross profit
margin for the quarter ended September 30, 2005, strong demand from
customers for our thin client solutions and our e900 thin client
product line, and our expectation of continued strong revenue
growth in our current fiscal year. These forward- looking
statements involve risks and uncertainties. Factors that could
cause our actual results to differ materially from those predicted
in such forward- looking statements include: the timing and receipt
of future orders; our timely development and customers' acceptance
of our products; pricing pressures; rapid technological changes in
the industry; growth of overall thin client sales through the
capture of a greater portion of the PC market, including sales to
large enterprise customers; our dependence on our suppliers; our
continued ability to sell our products through IBM and Lenovo to
their customers; increased competition; our ability to attract and
retain qualified personnel, including the former employees of the
businesses we acquired; the economic viability of our suppliers and
channel partners; adverse changes in customer order patterns; our
ability to identify future acquisitions and to successfully
consummate and integrate recently completed and future acquisitions
(including the TeleVideo acquisition); adverse changes in general
economic conditions in the U. S. and internationally; risks
associated with foreign operations; and political and economic
uncertainties associated with current world events. These and other
risks are detailed from time to time in Neoware's periodic reports
filed with the Securities and Exchange Commission, including, but
not limited to, its report on Form 10-K for the year ended June 30,
2005. Neoware is a trademark of Neoware Systems, Inc. All other
names products and services are trademarks or registered trademarks
of their respective holders. DATASOURCE: Neoware Systems, Inc.
CONTACT: Investor Relations, Kevin McGrath of Cameron Associates
for Neoware Systems, Inc., +1-212-245-8000 x 203, ; or Keith
Schneck, CFO of Neoware Systems, Inc., +1-610-277-8300, Web site:
http://www.neoware.com/ http://www.vcall.com/
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