Pro-forma net loss per common share, which excludes non-cash charges related to the accounting for Series E Preferred Stock, for the first quarter 2001 was $5.6 million, or $0.23 per share. These non-cash charges include a beneficial conversion charge of $0.2 million and $0.1 million representing the accrual of the 4.75% annual premium on the Series E Preferred Stock. Charges for both of these items will continue to be incurred while the Series E Preferred Stock is outstanding.
Total operating expenses for first quarter 2001 were $6.0 million, an increase of $0.7 million from fourth quarter 2000. This increase is due primarily to headcount additions and increased expenditures related to sales and marketing efforts of the Company to increase market awareness and develop demand for its initial Lunar Flare(TM) Network-Attached Storage (NAS) server appliance and Illumina(TM) aggregation software.
Net cash used by the Company, excluding financing activities, during the first quarter 2001 was $6.8 million compared to $4.6 million in fourth quarter 2000. As previously announced in February, the Company completed a private placement of $25.0 million in Series E Convertible Preferred Stock resulting in net proceeds to the Company of $23.4 million. Cash on hand at March 31, 2001 was $33.5 million.
During the first quarter, we made significant progress on all fronts, including the continued development and testing of Lunar Flare NAS, stated Joan Wrabetz, president and chief executive officer of Tricord Systems. We have worked hard preparing for delivery of our initial Lunar Flare NAS server appliance, including the build-out of our infrastructure to market, sell and deliver the product. Over the last 30 days, we have continued this progress, announcing the signing of initial channel partners and recent delivery of product in limited availability. We are very excited about the prospects for Lunar Flare NAS and the strong value proposition we are bringing to the marketplace.
SOURCE: COMPANY PRESS RELEASE
