Tuesday October 16, 12:03 pm Eastern Time

Company Press Release

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

IUKA, Miss.--(BUSINESS WIRE)--Oct. 16, 2001--North American DataCom, Inc. (OTC BB: NADA), the Broadband and Data Storage Company, announced financial results for its fiscal year ended June 30, 2001. The Company reported revenues from its startup ISP and paging services of $475,426, an increase of approximately 76% over the previous year's six-month period of $269,649.

"While we are optimistic about this revenue growth, we would emphasize that these modest revenues are generated primarily by locally acquired Information Technology businesses and they are planned to significantly expand as our broadband network is built,'' said Jack Freeman, President, North American DataCom (NAD).

"NAD is positioning itself as an industry standard for data storage and broadband services that will provide with our own growing network backbone. We have a highly experienced staff and remain focused to implement our business strategies, as discussed in the Business Plan that was formulated in partnership with Cap Gemini Ernst & Young that calls for the construction of a 3,000-mile fiber optic network.''

NAD recently announced establishment of an Application Service Provider business to design, develop and implement data warehousing and data mining applications. Global PTX, LLC, a joint venture with Infusion Software, LLC, is establishing Private Trade Exchanges. This venture is focused on "end-to-end'' vendor/customer supply chain synchronization. Initial development activities are designed to target Manufacturing and Retail Business Industry Sector corporations that make up strategic supply chain trading groups. The objective is reducing enterprise expenses and providing significant improvement in operating efficiencies for the entire supply chain group.

The combination of NAD's data storage and communications network services and Infusion's PTX business model, software and ASP expertise will offer customers a compelling solution for global marketing and product supply requirements,'' said Robert R. Crawford, Chairman and CEO of NAD. Besides coordinating the broadband data center operations for Global PTX, NAD is offering Global PTX customers with High Speed Internet access and other multi-band services and products.

The reported net loss for the 2001 fiscal year was $3,569,101 compared with $1,807,686 for the previous year. This loss is directly attributed to increased expenses due to the startup costs for the Company's bandwidth and data center system.

About $1,550,000 of the increase of $1,760,000 in expenses is due to greater selling, general and administrative (SG&A) costs for the year. The SG&A expenses amounted to $3,293,230 compared with $1,524,923 over the prior period. About $900,000 of this increase is directly due to the significant addition of management and technical staff to develop the broadband business. The balance, approximately $650,000, arises from increased legal, engineering and consultant expenses.

The remainder of the increase arises from the $220,000 of interest expense. This expense is primarily associated with the imputed interest of approximately $540,000 relating to an acquisition agreement for 505 miles rights-of-way and fiber conduit from New Orleans to Jacksonville, Florida.

"The marketplace understands that we are making a large investment to serve the rural South,'' said Mr. Crawford. The total asset investment of the Company increased to $17.1 million by year-end. As the Company announced earlier, it plans to primarily fund its equity and debt capital needs to continue the first 550-mile segment of its 3,000-mile network with the private investor public entity financing with Institutional Finance Group as the market stabilizes. In the interim the Company has obtained private capital financing.

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