Earnings for the second quarter of fiscal 2001 were $209,000, or five cents per share basic and diluted, compared with $309,000, or seven cents per share basic and diluted, for the same period in fiscal 2000. Current quarter earnings were impacted by the company’s taking a one time charge of $262,000 for a pending tax matter.
Michael J. Mellinger, DRA President and CEO, stated that without this charge earnings for the second quarter would have been $471,000, or ten cents per share basic and diluted.
Mellinger further noted that hardware revenues increased to $617,000 from $435,000 and software revenues increased to $1.5 million from $1.3 million in the current quarter from the comparable quarter last year. The strength in these revenue components is due to increased activity in migrating existing customers to Taos. Service and other revenue declined slightly from $5.2 million in the second quarter of fiscal 2000 to $5.1 million in the current quarter. An increase in maintenance, the major component of service and other revenue, was offset by a decline in business internet revenue.
At the end of our last fiscal year, Mellinger continued, we announced that we expected most of our revenue for fiscal 2001 to be derived from the migration of existing customers to Taos. This was the case in the second quarter, and we continue to anticipate that this will be true for the third and fourth quarters as well. Based on historical seasonal patterns of our business, the last two quarters of the fiscal year have traditionally been stronger in terms of both revenues and earnings for DRA than the first two quarters.
DRA continued purchasing the company’s stock on the open market during the quarter ended March 31. During the quarter the company purchased 127,200 shares for $791,531, or $6.22 per share. The company maintained a strong cash position with $18.7 million in cash and short-term investments at March 31, 2001.
