Exhibit 1
I.I.S. INTELLIGENT INFORMATION SYSTEMS REPORTS FIRST-QUARTER 2001 FINANCIAL
RESULTS
Ramat Gan, ISRAEL, July 9, 2001 - I.I.S. Intelligent Information Systems Ltd.
(NASDAQ: IISL) today announced its financial results for the first-quarter 2001.
For the quarter, IIS recorded revenues of US$75,000 compared to no sales for the
same period last year. The loss for the quarter was US$513,000 or US$0.06 per
share compared to a loss of US$276,000 or US$0.03 per share in the comparable
quarter last year.
This loss reflects the continued focus on R&D for storage networking
applications as well as IIS' share of the losses reported by StoreAge Networking
Technologies, in the amount of US $244,000. IIS' financial statements are no
longer consolidated with StoreAge.
During the past six months, IIS continued to make major efforts in its R&D
activity, developing storage networking applications for the enterprise market,
focusing on iSCSI environment. This past June, IIS announced the availability of
its "SWAT" product suite and the associated iSCSI module, and received positive
feedback from potential customers and reputable experts of the storage
networking community.
SWAT is a testing platform designed to emulate a real working environment.
Equipped with the iSCSI module, SWAT enables storage application developers to
validate and monitor their design in a simulated iSCSI environment. A trial
version of iSCSI SWAT is available for downloading on the product's web site
www.swattest.com.
"The Company continues to increase its efforts in the storage space," said Robi
Hartman, Chairman and CEO of IIS. "The Storage Networking market, both for Fibre
Channel and IP protocols, continues its growth and is becoming one of the most
dynamic market segments in today's industry. The demand for storage
virtualization over SAN infrastructures is escalating, and we believe that
StoreAge is the first company to offer an effective out-of-the-data-path
management product for this market, providing customers with high degree of
scalability for their future computing infrastructures and real TCO reduction.
The IP storage market is yet in its infancy stage and being involved in this
market from its inception provides us with a significant time-to-market
advantage," further commented Mr. Hartman.
"Now that IIS has identified the potential of IP storage networking, in addition
to Fibre Channel storage networking market, we can capitalize on our R&D
expertise in this field while this market is developing. To the best of our
knowledge, IIS is the first-to-market with an iSCSI functional testing platform.
We plan to strengthen our team in R&D and in marketing in order to fully exploit
this window of opportunity," said Danny Shavit, Chief Technology Officer of IIS.
IIS has become a member of the SNIA - the Storage Networking Industry
Association to be higher involved in the definition and standardization of the
iSCSI protocol.
Tomorrow, July 10, 2001 at 1:00 p.m. EST, IIS will hold a conference call to
provide investors with additional information regarding the Company's quarterly
performance. Access number is (800) 406-5356 (domestic) and (913) 981-5572
(international), confirmation code #413109.
About IIS
I.I.S. Intelligent Information Systems Ltd. (IIS) is focused on R&D investments
and operations within the technology sector of Storage Networking. The Company
develops and markets SWAT (www.swattest.com), an innovative line of software
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applications for iSCSI testing and validation. The Company also owns a 39%
interest in StoreAge Networking Technologies, Ltd. (www.store-age.com), a
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provider of SVM(TM) (Storage Virtualization Manager) and a leader in Storage
Virtualization technology, which provides storage networking solutions to the
enterprise market with a focus on Storage Area Network (SAN) architecture.
This release contains historical information and forward-looking statements.
Statements looking forward in time are included in this release pursuant to the
"safe harbor" provision of the Private Securities Litigation Reform Act of 1995.
They involve known and unknown risks and uncertainties that may cause the
Company's actual results in future periods to be materially different from any
future performance suggested herein. Further, the Company operates in an
industry sector where securities values may be volatile and may be influenced by
economic and other factors beyond the Company's control. In the context of the
forward-looking information provided in this release and in other releases and
reports by the Company, please refer to the discussions of risk factors detailed
in, as well as the other information contained in, the Company's filings with
the Securities and Exchange Commission during the past 12 months.
Contact:
IIS, Intelligent Information Systems, Ltd.
Robi Hartman
011-972- 3-751-0007
RFBinder Partners
Magda Gagliano / Magdalena Juszczakiewicz
212-593-6319 / 212-583-2783
IIS Intelligent Information Systems Ltd
SUMMARY OF CONSOLIDATED STATEMENT OF OPERATION
(In thousands except per share amounts)
Three months ended Year ended
March 31, December 31,
2001 2000 2000
Revenues
Sales $ 75 $ -- $ 96
Maintenance Services -- -- --
75 -- 96
Cost of revenues
Sales 22 -- 27
Maintenance Services -- -- --
22 -- 27
Gross profit 53 -- 69
Operating expenses
R&D, net 132 240 925
Selling & Marketing Expenses -- 98 639
General & Administrative Expenses 149 186 891
Amortization of other assets 24 -- 8
Total operating expenses 305 524 2,463
Operating Loss (252) (524) (2,394)
Financial income, net (17) 61 277
Other Income (expenses) -- 21 (12)
Loss before taxes on income (269) (442) (2,129)
Taxes on income -- -- --
Loss After income taxes (269) (442) (2,129)
Minority interest in loss -- 166 740
Equity losses in subsidiary
(minority's interest in losses of
subsidiary) (244) -- --
Net loss $ (513) $ (276) $(1,389)
Loss per share $(0.06) $(0.03) $(0.16)
Weighted AVG.
No of shares outstanding 8,987 8,872 8,901
IIS Intelligent Information Systems Ltd
CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, December 31,
2001 2000 2000
ASSETS
CURRENT ASSETS:
Cash and Cash Equivalents $ 2,785 $ 7,360 $ 3,077
Restricted Cash 600 -- 600
Trade Receivables 33 43
Other Accounts Receivable 160 108 124
Inventories -- --
Total Current Assets 3,578 7,468 3,844
INVESTMENT IN AFFILIATE 1,895 -- 2,127
PROPERTY, PLANT AND EQUIPMENT, NET 77 489 63
OTHER ASSETS 259 -- 283
TOTAL ASSETS $ 5,809 $ 7,957 $ 6,317
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short Term Bank Debt $ 10 $ 218 $ 10
Trade Payables 85 241 177
Other Accounts Payble 1,430 1,729 1,403
Total Current Liabilities 1,525 2,188 1,590
LONG TERM LIABILITIES:
Banks 8 121 11
Convertible Loan 2,837 -- 2,828
Accrued Severance Pay 6 64 6
Total Long Term Liabilities 2,851 185 2,845
MINORITY INTEREST -- 676 --
PREFERRED SHARES OF SUBSIDIARY -- 2,236 --
SHAREHOLDERS' EQUITY:
Share Capital 54 54 54
Additional Paid in Capital 37,448 36,874 37,419
Deferred Compensation (187) -- (222)
Accumulated Deficit (35,882) (34,256) (35,369)
TOTAL SHAREHOLDERS' EQUITY 1,433 2,672 1,882
$5,809 $ 7,957 $ 6,317