EXHIBIT 99.1
ION LOGO PRESS RELEASE
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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
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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
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Total assets $3,241,912 $4,281,390
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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
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Total current liabilities $ 2,661,419 $2,705,959
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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)
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Total stockholder's equity 529,955 1,496,163
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Total liabilities and stockholders' equity $3,241,912 $ 4,281,390
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ION Networks, Inc and Subsidiaries
Consolidated Statement Of Operations
(Unaudited)
Three Months
Ended Three Months, Ended
March 31, March 31,
2003 2002
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Net sales $ 765,119 $ 2,076,197
Cost of sales 243,988 961,085
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Gross Margin 521,131 1,115,112
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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
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Loss from operations (877,086) (1,209,459)
Interest income 9,543 22,924
Interest expense (7,369) (6,647)
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(874,912) (1,193,182)
Loss before income taxes
Income tax expense - 24,364
--------------- ------------------
Net loss $ (874,912) $ (1,217,546)
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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