Eden Prairie, Minn., May 5, 1998 - FieldWorks, Incorporated (NASDAQ: FWRX) today reported first quarter 1998 net sales of $5,385,802, compared to $5,117,168 in first quarter 1997.
Operating expenses for the quarter were $3.0 million, versus $2.3 million in first quarter 1997. These were in line with internal plans to increase engineering resources associated with the development of enhanced and new platforms. Additionally, sales expenses increased as a result of expansion of the direct sales force.
Net loss reported for the quarter was $756,181 or $.09 per share compared to a net loss in first quarter 1997 of $697,926 or $.10 per share.
"Our first quarter results were as anticipated with the exception of lower-than-expected revenue," said Karen Engebretson, Vice President of finance and Chief Financial Officer. "However, we´ve taken actions to address our reduced order situation. These include focused sales efforts and product and pricing initiatives."
"We will announce the new 5000 Series II and the updated 7000 Series offerings shortly. Both feature 200-MHz processors and hard disk drives up to 3.2 GB."
FieldWorks undertook these product development and enhancement efforts to meet the needs of its customers, Engebretson added. FieldWorks has also reduced pricing for the highest-performance standard configuration for both series by seven percent.
Also in the first quarter, FieldWorks announced to the trucking industry that it will offer value-added services including vehicle-service-tool program management, software integration, replacement pools and customer-specific support. FieldWorks has been providing these services to Navistar International Corp. and, as announced today, will begin providing such services to Freightliner Corp.
FieldWorks designs, builds and sells customer-specific computing solutions for demanding field environments. Users include field professionals in transportation, telecommunications, utility, medical, law enforcement and other industries worldwide. FieldWorks products are designed and produced in compliance with its formal quality system, which is certified to the international ISO9001 quality standard.
FieldWorks headquarters are at:
7631 Anagram Drive, Eden Prairie, MN 55344
Internet Address: www.field-works.com
Telephone: (612) 974-7000
Fax: (612) 974-7199
Forward-looking statements in this news release, if any, are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Certain important factors could cause results to differ materially from those anticipated by the forward-looking statements, including the impact of changing economic or business conditions, the impact of competition, the availability of financing, the success of products in the marketplace, other risk factors inherent in the computer industry, and other factors discussed from time to time in reports filed by the company with the Securities and Exchange Commission.