[ION NETWORKS INC. LOGO] NEWS RELEASE
Contacts: Stephen B. Gray, CEO
ION Networks, Inc.
732-529-0100
FOR IMMEDIATE RELEASE Ken Dennard, Managing Partner
Easterly Investor Relations
713-529-6600
[email protected]
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ION NETWORKS ANNOUNCES PRELIMINARY
FISCAL 2001 FIRST QUARTER REVENUE ESTIMATES
JUNE 28, 2000 - PISCATAWAY, NEW JERSEY - ION Networks, Inc. (NASDAQ:IONN), THE
PROACTIVE NETWORK MANAGEMENT COMPANY SM , today announced preliminary revenue
estimates for the three months ending June 30, 2000.
Estimated revenues for the first quarter of fiscal 2001 should be
approximately $2.0 million, compared with revenues of $4.9 million recorded in
the first quarter of last year.
"While we are still in the process of finalizing our revenues for the
first quarter, our preliminary review shows that our revenues will be
significantly lower than anticipated," stated Stephen B. Gray, President and
Chief Executive Officer of ION Networks. "Contributing to the sluggish
performance in the first quarter were decisions by many of our larger customers
to delay purchases, a shift in the release date for our new PRIISMS Manager TM
from June to an expected second quarter release, and a longer than expected ramp
up period for our new sales personnel that have recently joined the Company."
In response to market conditions and internal growth initiatives, the
Company also announced today it is restructuring its worldwide sales
organization, which will be led by Mr. Gray on an interim basis. "We believe we
have developed a strong product platform that meets the needs of our customers,"
added Mr. Gray. "Our sales organization is being restructured as part of our
continuing efforts to provide the highest level of customer service and to
enhance the predictability of our quarterly financial performance.
"While the past few months have presented us with significant challenges,
we remain highly enthusiastic regarding the Company's ability to capitalize on
the attractive opportunities created by the rapid broadband convergence of
voice, data and video; increased environmental
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systems monitoring; the significant market roll out of optical transmission
infrastructure equipment; and the mission-critical role that secure network
management and monitoring plays in the future of network infrastructure
spending," concluded Mr. Gray.
ION Networks is a leading developer and manufacturer of software and
hardware-based solutions for Internet security, application performance
management as well as network management and monitoring for voice, video and
data communications networks. Based in Piscataway, NJ, the Company has installed
systems worldwide, with six direct sales offices in the U.S., wholly owned
subsidiaries in Livingston, Scotland and Antwerp, Belgium, a division in
Fremont, California and distribution networks on four continents. Visit the ION
Networks web site at www.ion-networks.com. We keep an EYE ON NETWORKS SM .
This press release contains information that may constitute forward-looking
statements made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements may be affected
by certain risks and uncertainties described in the Company's filings with the
Securities and Exchange Commission. The Company's actual results could differ
materially from such forward-looking statements. Unless otherwise required by
applicable securities laws, the Company assumes no obligation to update any such
forward-looking statements, or to update the reasons why actual results could
differ from those projected in the forward-looking statements.
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