EX-99.1 3 doc2.txt EXHIBIT 99.1 ION LOGO PRESS RELEASE =============================================================================== FOR IMMEDIATE RELEASE CONTACTS Investors: Joseph Zappulla Wall Street Investor Relations Corp. 212-714-2445 investor-relations@ion-networks.com Press: Jonathan Brown ION Networks, Inc. 732-529-0024 Jonathan.brown@ion-networks.com ION NETWORKS REPORTS FINANCIAL RESULTS FOR FIRST QUARTER ENDED MARCH 31, 2003 PISCATAWAY, N.J May 12, 2003--ION Networks Incorporated (OTC: IONN), a provider of security and management solutions that protect critical infrastructure from internal and external security threats, today announced results for its first fiscal quarter ended March 31, 2003. Net sales for the quarter ended March 31, 2003 were approximately $765,000 compared to approximately $853,000 in the previous quarter ended December 31, 2002. Net sales were approximately $2,076,000 in the quarter ended March 31, 2002. The Company incurred a net loss for the quarter ended March 31, 2003 of approximately $875,000 or $0.04 per share. This compares with a net loss of approximately $2.2 million or $0.10 per share for the previous quarter and approximately $1.2 million or $0.06 per share for the quarter ended March 31, 2002. -------------------------------- ------------------------------------ Three months Ended (Unaudited)* 3/31/03 3/31/02 Net sales $765 $2,076 Operating Loss $(877) $(1,209) Net loss $(875) $(1,218) Net loss per share $ (0.04) $ (0.06) Basic and diluted shares 23,512,668 18,890,609 -------------------------------- --------------- -------------------- *In 000s except "per share" amounts For the quarter ended March 31, 2003, gross margins were 68 percent, compared to 40 percent for the previous quarter and 54 percent for the quarter ended March 31, 2002. CONFERENCE CALL ION Networks will host a conference call at 5 p.m. (EST) today, Monday, May 12, to discuss the Company's financial results for the quarter. The conference call can be accessed by dialing 800-621-5346 and providing the following reservation number: 21144003. It is recommended that participants call at least 10 minutes before the call is scheduled to begin. ABOUT ION NETWORKS ION Networks, Inc. is a provider of security and management solutions that protect critical information and infrastructure from internal and external security threats. The ION Secure suite helps customers protect critical infrastructure and maximize operational efficiency while lowering operational costs. ION Networks' customers include AT&T, Bank of America, British Telecom, Citigroup, Entergy, Fortis Bank, Oracle, Sprint and the U.S. Government. Headquartered in Piscataway, New Jersey, the Company has installed tens of thousands of its products worldwide. More information can be obtained from www.ion-networks.com. ION Networks(TM) and ION Secure(TM) are trademarks of ION Networks, Incorporated. All other trademarks and registered trademarks in this document are the properties of their respective owners. Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein are based on current expectations, but are subject to a number of risks and uncertainties. These statements include, but are not limited to, statements regarding the Company's plans to secure additional capital and the Company's ability to gain further market recognition. The factors that could cause actual future results to differ materially from the forward-looking statements include the following: fluctuations in customer demand; changes in the Company's sales force and management; fluctuations in spending on technology generally and security solutions in particular; insufficiency of operating capital; general economic conditions (both domestic and abroad); the rapid technological change which characterizes the Company's markets; the risks associated with competition; the risks associated with the expansion of the Company's sales channels; the risk of new product introductions and customer acceptance of new products; the risks associated with international sales as the Company expands its markets; and the ability of the Company to compete successfully in the future, as well as other risks identified in the Company's Securities and Exchange Commission Filings, including but not limited to those appearing within the Company's most recent Form 10-KSB and amendments thereto, and form 10-QSB, respectively filed with the Securities and Exchange Commission on August 21, 2002 and November 14, 2002. ***** Financial Tables Follow ***** ION Networks, Inc and Subsidiaries Consolidated Balance Sheets (Unaudited)
March December 31, 31, 2003 2002 2003 ASSETS (Unaudited) 2002 --------------- ---------------- Current assets Cash and cash equivalents $ 397,185 $ 865,684 Accounts receivable, less allowance for doubtful accounts of $90,799, and $90,521, respectively 453,985 561,762 Inventory, net 1,174,182 1,259,268 Prepaid expenses and other current assets 121,549 203,934 --------------- ---------------- Total current assets 2,146,901 2,890,648 Restricted cash - 125,700 Property and equipment, net 418,694 485,735 Capitalized software, less accumulated amortization of $4,083,247 and $3,920,223, respectively 672,202 764,429 Other assets 4,115 14,878 --------------- ---------------- Total assets $3,241,912 $4,281,390 =============== ================ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Current portion of capital leases $ 89,033 $ 87,057 Current portion of long-term debt 5,890 4,004 Accounts payable 1,099,265 1,195,023 Accrued expenses 1,044,974 906,154 Accrued payroll and related liabilities 128,461 185,358 Deferred income 129,384 155,021 Sales tax payable 73,381 84,025 Other current liabilities 91,031 89,317 --------------- ---------------- Total current liabilities $ 2,661,419 $2,705,959 --------------- ---------------- Long term portion of capital leases 50,538 73,551 Long term debt, net of current portion - 5,717 Commitments and contingencies Stockholders' Equity Preferred stock - par value $.001 per share; authorized 1,000,000 shares at March 31, 2003, and December 31, 2002; 200,000 shares designated Series A at March 31, 2003 and December 31, 2002; 166,835 shares issued and outstanding at March 31, 2003 and December 31, 2002 167 167 Common stock - par value $.001 per share; authorized 50,000,000 shares at March 31, 2003 and December 31, 2002; 24,875,500 shares issued and outstanding at March 31, 2003 24,875,500 shares issued and outstanding at December 31, 2002 24,876 24,876 Additional paid-in capital 44,585,740 44,680,740 Notes receivable from officers (480,658) (473,405) Deferred compensation - - Accumulated deficit (43,597,858) (42,722,946) Accumulated other comprehensive income (2,312) (13,269) --------------- ---------------- Total stockholder's equity 529,955 1,496,163 --------------- ---------------- Total liabilities and stockholders' equity $3,241,912 $ 4,281,390 =============== ================ =============== ================
ION Networks, Inc and Subsidiaries Consolidated Statement Of Operations (Unaudited)
Three Months Ended Three Months, Ended March 31, March 31, 2003 2002 --------------- ------------------ Net sales $ 765,119 $ 2,076,197 Cost of sales 243,988 961,085 --------------- ------------------ Gross Margin 521,131 1,115,112 --------------- ------------------ Research and development expenses 137,399 171,116 Selling, general and administrative expenses 1,026,703 1,714,159 Depreciation and amortization expenses 234,115 439,296 --------------- ------------------ Loss from operations (877,086) (1,209,459) Interest income 9,543 22,924 Interest expense (7,369) (6,647) --------------- ------------------ (874,912) (1,193,182) Loss before income taxes Income tax expense - 24,364 --------------- ------------------ Net loss $ (874,912) $ (1,217,546) =============== ================== Per share data Basic and diluted $ (0.04) $ (0.06) Weighted average number of common shares outstanding Basic and diluted 23,512,668 18,890,609