Exhibit 1
I.I.S. Intelligent Information Systems Reports Second-Quarter
2001 Financial Results
RAMAT GAN, Israel, Oct. 30 /PRNewswire/ -- I.I.S. Intelligent Information
Systems Ltd. (Nasdaq: IISL - news) today announced its financial results for the
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second-quarter 2001. For the quarter, IIS recorded revenues of US$84,000
compared to no revenues in the same period last year. The loss for the quarter
was US$544,000 or US$0.06 per share compared to a loss of US$305,000 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 and the Company's participation in the losses of StoreAge,
amounting to $160,000. IIS's financial statements are no longer consolidated
with StoreAge.
During the past six months, IIS continued to place major emphasis on its R&D
activity, developing storage networking applications and testing tools for the
enterprise market, with a focus on the IP storage environment.
This past July, IIS introduced the iSWAT software solution
(http://www.swattest.com), an IP storage networking-enabler and a powerful
testing and validation tool for the iSCSI environment. With iSWAT, vendors can
integrate IP storage support (based on the industry standard iSCSI protocol)
into their storage product offerings, and storage developers can test, monitor
and analyze IP storage networking applications in a simulated iSCSI environment.
"The iSWAT technology solution provides vendors with both a testing environment
and an iSCSI-enabling driver," explained Robi Hartman, Chairman and CEO of IIS.
"It enables real end-to-end connectivity of SCSI over IP in storage networks,
designed for any storage vendor wishing to integrate native iSCSI support in its
storage product line. Implementing an iSWAT testing environment provides for
simulation of an iSCSI network. It also provides a tool for storage vendors to
test internally and demonstrate externally iSCSI functionality in their
products."
iSWAT is being demonstrated and tested this week at the second iSCSI Plugfest
held in the Interoperability Laboratory at University of New Hampshire. This
Plugfest gives IIS the opportunity to interoperate with other iSCSI vendors and
effectively demonstrate a real life solution for iSCSI storage networks.
During this past quarter, StoreAge Networking Technologies ("StoreAge"), a 39%
held subsidiary of IIS, strengthened its management team and US presence by
hiring Mark Spowart, former VP of Sales and Customer Service at QLogic
Corporation, as President. StoreAge also
opened a sales office in California in order to increase revenues and take
advantage of the high demand for the Company's Virtualization technology in the
Storage Area Network market.
"StoreAge had major business developments take place during the past six months,
in terms of its relations with OEM partners," added Mr. Hartman. "Some of the
Company's recent deals include an agreement with Robert Bosch GmbH for
StoreAge's SVM(TM) deployment in Bosch's European computing centers, and Spain's
Telecinco (TV5) equipping its Video Editing System with StoreAge's technology."
StoreAge was chosen by these OEMs because of its significant technological
advantages. The initial phase of Bosch's project includes the networking of over
100 servers with over 15TB of storage in a fully redundant high availability
configuration; and the StoreAge "out of band" solution was able to provide a
uniform and centralized management view of the enterprise's installed disk
systems supplied by a number of different manufacturers.
Telecinco found that StoreAge's "out of band" virtualization technology, enabled
the aggregation of not just the capacity of the storage devices but also the
performance of several RAID controllers at a fraction of the cost of alternative
solutions which had to include extremely powerful RAID devices.
"StoreAge is also involved in additional large installations of SAN worldwide,"
he concluded.
Today, October 30, 2001 at 12:00 PM EST, IIS will hold a conference call to
provide investors with additional information about the Company's quarterly
performance. Investors can call the conference center (approximately 15 minutes
prior to conference time) at (800) 406 - 6465 (domestic), or (913) 981 - 5574
(international). Please refer to the code #585543.
Investors can also participate via the Internet. Please refer to Company's web
site (http://www.iislf.com) for details on on-line participation.
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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 (http://www.swattest.com), an innovative line of
software applications for iSCSI testing and validation. The Company also owns a
39% interest in StoreAge Networking Technologies, Ltd.
(http://www.store-age.com), a provider of SVM(TM) (Storage Virtualization
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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.
IIS Intelligent Information Systems Ltd
CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30,
------------------------ December 31,
2001 2000 2000
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Unaudited
ASSETS
CURRENT ASSETS:
Cash and Cash Equivalents $ 2,487 $ 6,515 $ 3,077
Restricted Cash -- -- 600
Trade Receivables 32 -- 43
Other Accounts Receivable 263 358 124
Total Current Assets 2,782 6,873 3,844
SEVERANCE PAY FUND 2 2 32
INVESTMENT IN AFFILIATE 1,743 -- 2,127
PROPERTY, PLANT AND EQUIPMENT, NET 87 572 63
WORK FORCE, NET 235 -- 283
TOTAL ASSETS $ 4,849 $ 7,447 $ 6,349
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short Term Bank Debt $ 10 $ 83 $ 10
Trade Payables 85 359 177
Other Accounts Payable 829 1,708 1,403
Total Current Liabilities 924 2,150 1,590
LONG TERM LIABILITIES:
Banks 6 100 11
Convertible Loan 2,846 -- 2,828
Accrued Severance Pay 11 43 38
Total Long Term Liabilities 2,863 143 2,877
MINORITY INTEREST -- 550 --
PREFERRED SHARES OF SUBSIDIARY -- 2,236 --
SHAREHOLDERS' EQUITY:
Share Capital 54 54 54
Additional Paid in Capital 37,586 36,874 37,435
Receivables on account of shares -- -- (16)
Deferred Compensation (152) -- (222)
Accumulated Deficit (36,426) (34,560) (35,369)
TOTAL SHAREHOLDERS' EQUITY 1,062 2,368 1,882
$ 4,849 $ 7,447 $ 6,349
IIS Intelligent Information Systems Ltd
SUMMARY OF CONSOLIDATED STATEMENT OF OPERATION
(In thousands except per share amounts)
Three months ended Six Months ended
June 30, June 30, Year Ended
----------------------- ----------------------- December 31,
2001 2000 2001 2000 2000
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Unaudited
Revenues
Sales $ 84 $-- $ 159 $-- $ 96
Maintenance Services -- -- -- -- --
84 -- 159 -- 96
Cost of revenues
Sales 3 -- 25 -- 27
Maintenance Services -- -- -- -- --
3 -- 25 -- 27
Gross profit 81 -- 134 -- 69
Operating expenses R&D, net 183 138 315 378 925
Selling & Marketing Expenses 7 120 7 218 639
General & Administrative Expenses 234 243 383 429 891
Amortization of other assets 24 -- 48 -- 8
Total operating expenses 448 501 753 1,025 2,463
Operating Loss (367) (501) (619) (1,025) (2,394)
Financial income (expenses), net (18) 71 (35) 132 277
Other Income (expenses) 1 (1) 1 20 (12)
Loss After income taxes (384) (431) (653) (873) (2,129)
Minority interest in loss -- 126 -- 292 740
Equity losses in subsidiary (160) -- (404) -- --
Net loss $ (544) $ (305) $(1,057) $ (581) $(1,389)
Loss per share $ (0.06) $ (0.03) $ (0.12) $ (0.07) $ (0.16)
Weighted AVG
No. of shares outstanding 9,028 8,903 9,008 8,887 8,901