ON Technology Long-Term Growth
Larger Resellers and Service Providers
Attracting New Business Opportunities
MA, April 10, 2000 -- ON Technology Corporation
(NASDAQ: ONTC), today announced that its first-quarter
results would not be in line with those reported in
previous periods. The Company is expecting to report
net revenues between $4.0M to $4.3 million and earnings
per share between ($0.20) and ($0.22) for the first-quarter
of 2000. The revenue shortfall is primarily due to an
increased emphasis in attracting larger enterprise customers,
computer OEMs, service providers and value added resellers,
which has pushed the closing of several transactions
past the end of the quarter. The Company also reported
a slow start to the first-quarter with IT executives
decompressing from the Y2K frenzy, as a secondary factor.
The E.P.S. shortfall is a direct result of lower than
expected net revenue.
“The U.S. sales force continues
to strengthen our pipeline with multiple transactions
from large enterprises and recently added significant
new opportunities from service providers and reseller
channels,” said Bob Doretti, CEO of ON Technology.
“Many of these opportunities are presently in
a pilot or proof of concept stage. However, on-going
negotiations are proceeding expeditiously allowing us
to remain optimistic that these delays will translate
into higher sales over the longer term.”
During the quarter, the Company
began negotiations with large service providers and
reselling organizations, who had approached the Company
with interest in reselling the ON Command CCM product
line to their customer base. The Company expects that
these relationships will help to dramatically expand
the presence of ON Command CCM within the marketplace
over the remainder of this year. The Company is also
in talks with some of the largest computer service providers
and a leading computer manufacturer to increase the
rate in which the product is adopted within larger organizations.
“Our efforts to focus the
business on larger prospects has kept the sales cycle
from contracting in the manner we experienced last year,”
said Mr. Doretti. “There was more interest in
the product line than we have resources to accommodate
during the first quarter. Our short-term strategic focus
is to continue to increase our efforts in acquiring
the additional resources required to take advantage
of the larger market opportunities.
Additionally, the Company has scheduled
its first quarter 2000 earnings release for Tuesday,
April 18, 2000 after the close of trading. Management
will conduct a conference call beginning promptly at
4:30 p.m. Eastern Time. Participants should dial 888-243-1119
a few minutes before the conference call.
About ON Technology Corporation
ON Technology empowers IT organizations and service providers to manage the full lifecycle of their computing systems over large-scale corporate networks. Our solutions are used to rapidly and reliably deploy critical applications, operating systems, and content to desktops, mobile PCs, handhelds, servers, retail point-of-sale (POS) terminals and banking workstations. Our customers leverage our solutions to significantly reduce IT costs, improve availability and reliability of business-critical applications, and enhance both IT and end-user productivity. ON’s management solution has been chosen by more than 1,000 enterprises worldwide to manage in excess of 1.2 million networked computer systems. For more information visit ON Technology’s Web site at www.on.com or call 800-767-6638.
Gerald Kimber White
Allen & Caron Inc.
ON Technology, ON Command, and ON Command CCM are registered trademarks, and the ON logo and ON iCommand are trademarks of ON Technology Corporation. Microsoft and Windows are either registered trademarks or trademarks of Microsoft Corporation in the United States and other countries. All other brand names and trademarks are properties of their respective owners.
The statements in this press release that relate to ON Technology’s future plans, events and performance are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements involve a number of risks and uncertainties. Some of the important factors that could cause actual results to differ materially from those indicated by the forward-looking statements are general economic conditions, including the current weakness in the global economy, demand for the Company’s products and services, performance of the Company’s direct and indirect distribution channels, competitive pressures, market acceptance of the Company’s new products and technologies, and the risk factors detailed from time to time in ON Technology’s periodic reports filed with the Securities and Exchange Commission, including without limitation the Company’s Quarterly Report on Form 10-Q for the third quarter of 2003 filed in November 2003. Actual results and performance may differ materially due to these and other factors. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this press release. ON Technology undertakes no obligation to release publicly any updates or revisions to any forward-looking statements contained in this press release that may reflect events or circumstances occurring after the date of this press release.
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