Tuesday May 15, 1:00 pm Eastern Time

Company Press Release

North American DataCom Announces Third Quarter Financials: Net Revenues Increased by 113% and Development Expenses Up

IUKA, Miss. - (BUSINESS WIRE) - May 15, 2001 - North American DataCom, Inc. (OTC BB: NADA), the Fiber Optic and Data Storage Company, announced its financials for the nine-months ended March 31, 2001. Reported revenues for the nine-month period were $358,284, an increase of approximately 113% over the prior year's nine-month period of $167,997. Revenues from existing Internet and paging services were $251,866, up approximately 50% over the previous year's nine-month period of $167,997. In addition, the Company also reported its initial revenues of $62,884 from its enterprise data center (EDS) line and $43,534 from its wholesale broadband telecommunications network business line.

"We are pleased to have commenced generating revenue streams from our EDS and wholesale bandwidth businesses," stated Robert Crawford, President of the Company. "The Company projects the dramatic increase in these business revenues once the first segment of our fiber optic network is completed."

While positioning itself tactically and strategically as a state-of-the-art data storage and broad bandwidth service provider, North American DataCom, Inc. reported a net loss of $2,569,433 for the nine-month period ended March 31, 2001, as compared to $865,304 for the same nine-month period one year ago. This loss is directly attributable to increased construction and development expenses incurred in initiating the Company's broadband telecommunications network and enterprise data center business plans.

Cost of services were $157,071 for the nine-month period of the current year, up from $29,742 for the same period in 2000. Approximately $12,000 of the increase is directly related to the Company's sale of fiber optic conduit. The balance resulted from increased telecommunication expenses due to the growth of the Company's customer base for its Internet access service of approximately 500 customers and expansion of our existing bandwidth capabilities.

Selling, general and administrative (SG&A) costs for the nine-month period were $2,245,174, compared with $1,009,792 in 2000. Approximately $450,000 of the increase is directly due to the addition of management and technical staff to develop the fiber optic business. Staffing increased by six employees, for a total of 30 employees on March 31, 2001, compared to 24 employees on March 31, 2000. The balance of SG&A costs, totaling approximately $800,000, resulted from increased legal, engineering and consultant expenses.

The $525,473 for Other Expense compares with $6,223 Other Income for the same period in 2000. This expense is entirely associated with the imputed interest of $540,827 relating to our acquisition agreement for 505 miles rights-of-way and fiber conduit from New Orleans to Jacksonville, Florida.

The Company's fiscal year ends June 30, 2001. With the 5-year strategic plan in place, North American DataCom has positioned itself for a capital investment of more than $500 million to develop seven EDS Centers and a 3000-mile fiber optic network. This network is divided into 6 independent network segments. Segment 1, now under construction, is the 550-mile optic line from Atlanta to Memphis. This Segment will serve 12 of 49 smaller cities with populations of less than 100,000, 3 of 13 mid sized cities with populations between 100,000 and 500,000, and 3 of the major 7 cities in its planned network. The Company anticipates revenues from Segment 1 by the fall of 2001, and projects a positive cash flow by the fall of 2002. These dates are subject to availability of capital to complete Segment 1. Total capital for Segment 1 start-up is approximately $65 million.

The Company entered into a binding Letter of Agreement with IFG Private Equity, LLC, an Atlanta-based institutional investor, in March of 2001. The $25 Million in IFG equity financing carries an option for an additional $25 Million, and can provide a significant portion of the capital to implement Segment 1 of the Company's business plan.

Robert R. Crawford, President North American DataCom, Inc., emphasized that "once Segment 1 is operating, the Company will become a leader in providing application services and high speed bandwidth solutions for the rural Southeastern United States."

Safe Harbor Statement

Statements in this release express management's beliefs and expectations regarding future performance. These statements are forward-looking and involve risk and uncertainties. These risks include, but not limited to, the ability to negotiate venture agreements, properly identify acquisition partners, manage and integrate acquired businesses, react to quarterly fluctuation in results, raise working capital and secure other financing, respond to competition and other rapidly expanding technology, deal with market and stock price fluctuation, and other risks. These risks are and will be detailed, from time to time, in North American DataCom, Inc. Securities and Exchange Commission filings. Actual results may differ materially from management's expectations.

North American DataCom's principal executive offices are located at 751 County Road 989, Building 1000, Iuka, MS 38852. For further information, contact Investor Relations, 662-424-5030, or by e-mail at investorrelations@nadata.com.

 


2003-05-02
North American DataCom, Inc. (NADA), announced today that has halted its operations due a lack of funding.

2003-01-03
North American DataCom Reports Unaudited Fiscal Year 2002 and First Quarter Results

2002-05-21
North American DataCom Reports Nine-Month Results: Debt and Losses Reduced

2002-04-30
North American DataCom Expands Its Operation in Greater China/Shangai

2002-04-25
North American DataCom Announces Bandwidth Agreement

2002-04-23
North American DataCom Expands Board and Announces Revised Business Plan

2002-02-21
North American DataCom Reports Six-Month Results: Revenues Up and Expenses Down

2001-12-04
North American DataCom Announces Expansion of Internet and Data Services Business

2001-11-08
North American DataCom Acknowledges Equity Investment Support

2001-10-31
North American DataCom Reports First Quarter Results: Revenues Up and Expenses Down

2001-10-24
North American DataCom Announces Revised Business Plan

2001-10-16
North American DataCom Reports Fiscal Year 2001 Results: Net Revenue and Development Expenses Up

2001-08-28
North American DataCom, Inc. and Infusion Software Group, LLC Launch GLOBAL PTX

2001-08-07
North American DataCom Announces Management Changes

2001-05-15
North American DataCom Announces Third Quarter Financials: Net Revenues Increased by 113% and Development Expenses Up

2001-03-15
North American DataCom Enters Into Agreement for Up to $50 Million of Equity Financing

2001-03-07
North American DataCom Announces New Lease with State of Mississippi

2001-02-19
North American DataCom Reports Second Quarter Results: Net Revenue and Development Expenses Up

2001-02-15
North American DataCom Announces Interim Business Plan

2000-11-07
North American DataCom Receives Enterprise Data Storage Contract

2000-09-07
North American DataCom Announces Deployment of Microwave Tower and Right of Way Agreement With Local Railroad

2000-09-01
North American DataCom Subsidiary Announces Appointment of Gordon Evans

2000-08-22
North American DataCom Announces Fiber Optic Conduit Agreement

2000-05-12
North American DataCom Receives Certification as a Competitive Local Exchange Carrier -CLEC-

2000-05-11
Broadband Pioneer Makes Tracks With EMC As Core Info Infrastructure

2000-04-07
North American DataCom Changes Trading Symbol

2000-03-24
Pierce International Changes Name To North American DataCom

2000-03-07
Pierce International Names Jerry Buuck to Head Sales for Its Newly Formed Subsidiary North American InfoTech, LLC

1999-12-21
Pierce International Acquires North American Software

1999-05-20
North American Software Acquires Freedom 2000 Internet Service