Technical Analysis: Applied Digital Solutions (NSD : ADSX)
STOCKSCORE FOR 3/16/04 1:51:00 PM MARKET CLOSE: 28
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Today's Trading (as of 3/16/04 1:51:00 PM)
Open $ 0.32 Change -0.02
High $ 0.33 % Change -6.33
Low $ 0.29 Volume 24,374,600
Close $ 0.30 # of Trades N/A
$ Value Volume $ 7,312,380
Stock Scores
Stock Score 28
Rating Bearish
Smoothed Stockscore 31
40 Day High None
40 Day Low None
FINANCIALS: Applied Digital Solutions (NSD : ADSX)
Earnings Announcements
Earnings Release 12/12/03
Year End 12/31/02
Dividend Information
Annual Dividend N/A
Yield % N/A
Payout Ratio (TTM)% N/A
Financial Strength
Current Ratio (MRQ) 0.600
Quick Ratio (MRQ) 0.391
LT Debt/Equity (MRQ) 0.321
Total Debt/Equity (MRQ) 0.768
Valuation Ratios
Price/Earnings (TTM) N/A
Price/Sales (TTM) 1.330
Price/Book (MRQ) 6.875
Price/Cash Flow (TTM) N/A
Per Share Data
Earnings (TTM)$ -0.150
Sales (TTM)$ 0.293
Book Value (MRQ)$ 0.057
Cash Flow (TTM)$ -0.164
Cash (MRQ)$ 0.015
Share Related Items
Market Cap (Mil) 121.948
Shares Outstanding (Mil) 406.492
Float (Mil) 402.300
Management Effectiveness
Return On Equity (TTM) N/A
Return On Assests (TTM) -40.652
Return On Investment (TTM) -197.017
Profitability
Gross Margin (TTM)% 29.728
Operating Margin (TTM)% N/A
Profit Margin (TTM)% -59.212
Other
Employees 419
Beta 1.669
Mar 15, 2004 9:19:00 AM
March 15, 2004--
Current year audit opinion does not contain a
"going concern" explanation
Applied Digital Solutions, Inc. (Nasdaq: ADSX), an advanced technology development company, today released financial results for the fourth quarter and year ended December 31, 2003. The Company's consolidated financial results include the balance sheets, operating results and cash flows of its majority owned subsidiaries, Digital Angel Corporation (AMEX: DOC) and InfoTech USA, Inc., formerly SysComm International Corporation (OTC: IFTH).
Fourth quarter revenue from continuing operations was $25.5 million, representing a 17% increase compared with the $21.8 million for the year-earlier period. For the three-months ended December 31, 2003, the Company reported a loss from continuing operations of $25.2 million, or $(0.06) per share, a sharp reduction from a loss from continuing operations of $64.0 million, or $(0.23) per share for the three-months ended December 31, 2002. The loss from continuing operations in the fourth quarter of 2003 included $8.7 million of non-cash charges in connection with the conversion of the IBM-related debentures.
Revenue from continuing operations in 2003 was $95.3 million, a 5% decrease from the $100.2 million recorded in 2002. For 2003, the Company reported income from continuing operations of $3.5 million, or $0.01 per share, compared to a loss from continuing operations of $113.9 million, or $(0.42) per share, for 2002.
"We ended 2003 a dramatically different Company than when we began the year," said Scott R. Silverman, Applied Digital Solutions' Chairman and Chief Executive Officer. "When we began the year, the Company's very survival was in jeopardy. Today, we have begun to demonstrate that our model of pairing technology with a complementary operating company that has long-standing revenue works. We have executed on most of our key objectives this year. We have paid off IBM, grown revenue of VeriChip and improved the operating results of our wholly owned subsidiaries significantly. While we did not see that improvement at Digital Angel, we believe we have taken the necessary measures at Digital Angel, through the installation of a new management team, to position the Company to possibly capitalize on potential opportunities in livestock tracking."
Some of the highlights of 2003 included:
-- Improved Balance Sheet. The Company eliminated approximately
$100 million in debt and increased stockholders' equity by
over $68 million as a result of the Company's repayment of
IBM.
-- Current year audit opinion does not contain a "going concern"
explanation. The improved financial status of the Company, and
management's future plans, have overcome the need for the
Company's auditors to include a going concern explanation in
the auditors' opinion on our financial statements for the year
ended December 31, 2003. For the prior four years, the
Company's auditors' opinions contained "going concern"
language.
-- Sales of VeriChip Corporation Continue to Grow. During the
fourth quarter, revenues of VeriChip Corporation more than
doubled versus the previous quarter, increasing from $123,000
to $275,000.
"While we are pleased by these accomplishments, we know there are many new challenges ahead of us," continued Mr. Silverman. "Our existence is no longer in jeopardy, and with our businesses now on much more solid-footing, we have the opportunity to create real value for our shareholders. This is why I am pleased to announce today that we will effectuate a 1 for 10 stock split with a record date of April 5, 2004. We do this not because we are required to do so today by the Nasdaq, as we have until July to meet its listing requirements, but because our businesses have matured to the extent that we can now attract quality institutional investors seeking a company that is capable of generating earnings in the future. Our improved capital structure, now that we no longer have to issue shares to satisfy preexisting obligations to previous management or creditors, will allow investors to evaluate the Company's prospects without fear that we will have to issue equity under those adverse conditions. I am excited about the prospects for 2004, as we now have all of the pieces in place, including the right management team, capital structure and technology mix to pursue sustainable, long-term value for our shareholders."
The Company will hold a conference call and webcast today at 10 a.m. ET. Mr. Silverman, Evan McKeown, Chief Financial Officer, and Michael Krawitz, General Counsel, will host the call. Interested participants should call 800-472-8309 when calling within the United States or 706-643-9561 when calling internationally. Please reference Conference I.D. Number 6081841. There will be a playback available until midnight, March 22, 2004. To listen to the playback, please call 800-642-1687 when calling within the United States or 706-645-9291 when calling internationally. Please use pass code 6081841 for the replay. This call is being webcast and can be accessed at Applied Digital Solutions' web site at www.adsx.com until March 22, 2004.
About Applied Digital Solutions, Inc.
Applied Digital Solutions is an advanced technology development company that focuses on a range of early warning alert, miniaturized power sources and security monitoring systems combined with the comprehensive data management services required to support them. Through its Advanced Wireless unit, the Company specializes in security-related data collection, value-added data intelligence and complex data delivery systems for a wide variety of end users including commercial operations, government agencies and consumers. For more information, visit the company's website at http://www.adsx.com.
Statements about the Company's future expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties and are subject to change at any time, and the Company's actual results could differ materially from expected results. The Company undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances. -0- T
APPLIED DIGITAL SOLUTIONS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET DATA
(In thousands, except par value)
ASSETS December 31,
------------------
2003 2002
------------------ CURRENT ASSETS
Cash and cash equivalents $10,161 $5,818
Restricted Cash 765 --
Accounts receivable and unbilled receivables
(net of allowance for doubtful accounts of
$1,035 in 2003 and $1,263 in 2002) 14,531 16,548
Inventories 9,490 6,409
Notes receivable 1,658 2,801
Other current assets 2,803 2,920 --------------------------------------------------------------------- TOTAL CURRENT ASSETS 39,408 34,496 PROPERTY AND EQUIPMENT, NET 9,365 9,822 NOTES RECEIVABLE, NET 504 758 GOODWILL, NET 63,331 67,818 OTHER ASSETS, NET 1,654 4,339 ---------------------------------------------------------------------
$114,262 $117,233
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) CURRENT LIABILITIES
Notes payable and current maturities of long-
term debt $6,136 $81,879
Accounts payable 13,710 9,761
Accrued interest -- 10,149
Other accrued expenses 22,616 19,145
Put accrual 200 200
Net liabilities of Discontinued Operations 9,545 9,368 --------------------------------------------------------------------- TOTAL CURRENT LIABILITIES 52,207 130,502 LONG-TERM DEBT AND NOTES PAYABLE 2,860 3,346 OTHER LONG-TERM LIABILITIES 3,430 1,055 --------------------------------------------------------------------- TOTAL LIABILITIES 58,497 134,903 --------------------------------------------------------------------- COMMITMENTS AND CONTINGENCIES --------------------------------------------------------------------- MINORITY INTEREST 23,029 18,422 --------------------------------------------------------------------- PREFERRED STOCK, COMMON STOCK AND OTHER STOCKHOLDERS'
EQUITY (DEFICIT)
Preferred shares: Authorized 5,000 shares in
2003 and 2002 of $10 par value; special
voting, no shares issued or outstanding in
2003 and 2002, Class B voting, no shares
issued or outstanding in 2003 and 2002 -- --
Common shares: Authorized 560,000 shares in
2003 and 435,000 shares in 2002 of $.001 par
value; 412,195 shares issued and 411,260
shares outstanding in 2003 and 285,069 shares
issued and 284,134 shares outstanding in 2002 412 285
Additional paid-in capital 443,099 377,621
Accumulated deficit (413,923)(417,066)
Common stock warrants 5,650 5,650
Treasury stock (carried at cost, 935 shares in
2003 and 2002) (1,777) (1,777)
Accumulated other comprehensive income 206 31
Notes received for shares issued (931) (836) --------------------------------------------------------------------- TOTAL PREFERRED STOCK, COMMON STOCK, AND OTHER
STOCKHOLDERS' EQUITY (DEFICIT) 32,736 (36,092) ---------------------------------------------------------------------
$114,262 $117,233
APPLIED DIGITAL SOLUTIONS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS DATA
(In thousands, except per share data)
For the Years Ended December 31,
--------------------------------
2003 2002
-------------------------------- PRODUCT REVENUE $78,649 $80,936 SERVICE REVENUE 16,618 19,276 --------------------------------------------------------------------- TOTAL REVENUE 95,267 100,212 COST OF PRODUCTS SOLD 59,921 59,239 COST OF SERVICES SOLD 6,526 9,323 --------------------------------------------------------------------- GROSS PROFIT 28,820 31,650 SELLING, GENERAL AND ADMINISTRATIVE EXPENSE 56,656 66,450 RESEARCH AND DEVELOPMENT EXPENSE 6,255 4,130 GAIN ON EXTINGUISHMENT OF DEBT (70,064) -- ASSET IMPAIRMENT 5,442 69,382 DEPRECIATION AND AMORTIZATION 1,754 3,929 (GAIN) LOSS ON SALES OF SUBSIDIARIES AND BUSINESS
ASSETS 330 (132) INTEREST AND OTHER INCOME (1,115) (2,356) INTEREST EXPENSE 22,736 17,524 --------------------------------------------------------------------- INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE
PROVISION FOR INCOME TAXES, MINORITY INTEREST,
LOSSES ATTRIBUTABLE TO CAPITAL TRANSACTIONS OF
SUBSIDIARY AND EQUITY IN NET LOSS OF AFFILIATE 6,826 (127,277) PROVISION FOR INCOME TAXES 1,702 326 --------------------------------------------------------------------- INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE
MINORITY INTEREST LOSSES ATTRIBUTABLE TO CAPITAL TRANSACTIONS OF
SUBSIDIARY AND EQUITY IN NET LOSS OF AFFILIATE 5,124 (127,603) MINORITY INTEREST (5,180) (18,474) NET LOSS ON CAPITAL TRANSACTIONS OF SUBSIDIARY 244 2,437 LOSS ATTRIBUTABLE TO CHANGES IN MINORITY INTEREST AS
A RESULT OF CAPITAL TRANSACTIONS OF SUBSIDIARY 6,535 2,048 EQUITY IN NET LOSS OF AFFILIATE -- 291 --------------------------------------------------------------------- INCOME (LOSS) FROM CONTINUING OPERATIONS 3,525 (113,905) INCOME FROM DISCONTINUED OPERATIONS, NET OF INCOME
TAXES OF $0 IN 2001 -- -- CHANGE IN ESTIMATE ON LOSS ON DISPOSAL AND OPERATING
LOSSES DURING THE PHASE OUT PERIOD (382) 1,420 --------------------------------------------------------------------- NET INCOME (LOSS) 3,143 (112,485) PREFERRED STOCK DIVIDENDS AND OTHER ACCRETION OF
BENEFICIAL CONVERSION FEATURE OF REDEEMABLE
PREFERRED STOCK - SERIES C -- ----------------------------------------------------------------------- NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS $3,143 $(112,485) EARNINGS (LOSS) PER COMMON SHARE - BASIC
Income (loss) from continuing operations $0.01 $(0.42)
Income (loss) from discontinued operations -- ----------------------------------------------------------------------- NET INCOME (LOSS) PER COMMON SHARE - BASIC $0.01 $(0.42) EARNINGS (LOSS) PER COMMON SHARE - DILUTED
Income (loss) from continuing operations $0.01 $(0.42)
Income (loss) from discontinued operations -- ----------------------------------------------------------------------- NET INCOME (LOSS) PER COMMON SHARE - DILUTED $0.01 $(0.42) WEIGHTED AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING - BASIC 361,781 269,232 WEIGHTED AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING - DILUTED 372,989 269,232 T
--30--NF/ny
CONTACT: Investors:
CEOcast, Inc.
Ken Sgro or Ed Lewis, 212-732-4300
kensgro@ceocast.com
edlewis@ceocast.com
KEYWORD: FLORIDA
INDUSTRY KEYWORD: SOFTWARE HARDWARE COMPUTERS/ELECTRONICS CONFERENCE CALLS EARNINGS
SOURCE: Applied Digital Solutions, Inc. Today's News On The Net -Business Wire's full file on the Internet