<PAGE> 1
EXHIBIT 99.1
TRICORD SYSTEMS, INC. REPORTS THIRD QUARTER 2000 FINANCIAL RESULTS
MINNEAPOLIS, MN (OCTOBER 25, 2000) - Tricord Systems, Inc. (Nasdaq: TRCD), today
announced financial results for the third quarter and nine months ended
September 30, 2000. Loss from continuing operations for the third quarter was
$3,379,000, or 14 cents per share, compared to loss from continuing operations
of $1,620,000, or 8 cents per share, for the third quarter of 1999 and
$3,146,000, or 13 cents per share, for the second quarter of 2000. Loss from
continuing operations for the nine months ended September 30, 2000 was
$8,762,000, or 38 cents per share, compared to loss from continuing operations
of $5,631,000, or 29 cents per share, for the same period in 1999. The losses
from continuing operations reflect the ongoing development of the Company's
revolutionary new server appliances and the related building of the Company's
infrastructure.
The third quarter net loss, including the discontinued legacy server business,
was $3,363,000 or 14 cents per share, compared to a net loss of $2,073,000, or
10 cents per share, in the third quarter of 1999.
Net loss for the nine months ended September 30, 2000 was $8,662,000, or 38
cents per share, compared to a net loss of $5,610,000, or 29 cents per share,
for the same period in 1999. Cash at September 30, 2000 was $21,380,000, a net
decrease of $3,511,000 compared to $24,891,000 at June 30, 2000 and a net
increase of $18,298,000 compared to $3,082,000 at December 31, 1999.
Tricord is currently completing the development of its initial server appliance
for network-attached storage. The product has been in limited external testing
for the past three months, and the Company expects to enter the next phase of
beta testing within a few weeks. Tricord plans to announce the product in
mid-December 2000, with general availability expected in the second half of Q1,
2001.
ABOUT TRICORD
Tricord Systems, Inc. designs, develops and markets a line of innovative server
appliances that enable critical business services ranging from data storage and
content management to eCommerce. Based on revolutionary distributed file system
technology, these intelligent, single purpose devices feature seamless
aggregation with unprecedented ease of management. Founded in 1987, Tricord is
based in Plymouth, MN, with offices in Colorado, California and Georgia. For
general information, visit the Company's web site at www.tricord.com.
"Safe-Harbor" Statement Under Private Securities Act of 1995: The statements
contained herein that are not historical facts contain forward-looking
information with respect to plans, projections or future performance of the
Company. There is no guarantee or assurance that these plans, projections or
future performance of the Company as indicated will be achieved, and actual
results could differ materially. Factors, certain risks and uncertainties that
could impact the Company's future results include, without limitation, the
ability of the Company to complete development and release commercially its
server appliance products, the ability to enter into OEM relationships or
otherwise develop distribution capabilities, the market acceptance of
Tricord-enabled products, the ability of the Company to protect and enforce its
intellectual property rights, the ability of the Company to raise additional
capital if needed and to maintain its cost structure in accordance with its
operating plan, and other risks and uncertainties detailed in the Company's
filings with the Securities and Exchange Commission.
For more information, please contact:
MEDIA CONTACT: FINANCIAL CONTACT:
Matt Harris, JWT Specialized Communications Tricord Systems, Inc.
314-432-6300 or Investor Relations,
Elizabeth Hersey, 763-551-6402
Tricord Systems, Inc.
763-551-6609
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TRICORD SYSTEMS, INC.
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
(In thousands, except per share data) 2000 1999 2000 1999
-------------- ------------- -------------- -------------
(unaudited) (unaudited) (unaudited) (unaudited)
<S> <C> <C> <C> <C> <C> <C>
Operating expenses:
Research and development (1) $ 1,671 610 3,703 1,847
Sales and marketing (1) 1,355 336 2,337 1,793
General and administrative (1) 559 364 1,442 1,099
Amortization of stock-based compensation 155 357 1,930 1,079
-------------- ------------- -------------- -------------
Total operating expenses 3,740 1,667 9,412 5,818
-------------- ------------- -------------- -------------
Operating loss (3,740) (1,667) (9,412) (5,818)
-------------- ------------- -------------- -------------
Other income (expense):
Interest, net 352 48 644 164
Other, net 9 (1) 6 23
-------------- ------------- -------------- -------------
361 47 650 187
-------------- ------------- -------------- -------------
Loss from continuing operations (3,379) (1,620) (8,762) (5,631)
-------------- ------------- -------------- -------------
Discontinued operations:
Income (loss) from operations of legacy server business - (246) - 228
Gain (loss) on disposal of legacy server business 16 (207) 100 (207)
-------------- ------------- -------------- -------------
Income from discontinued operations 16 (453) 100 21
-------------- ------------- -------------- -------------
Net loss $ (3,363) (2,073) (8,662) (5,610)
============== ============= ============== =============
Loss per share from continuing operations $ (0.14) (0.08) (0.38) (0.29)
============== ============= ============== =============
Income (loss) per share from discontinued operations $ - (0.02) - -
============== ============= ============== =============
Net loss per share $ (0.14) (0.10) (0.38) (0.29)
============== ============= ============== =============
Weighted average common shares outstanding,
basic and diluted 24,308 19,740 22,830 19,265
============== ============= ============== =============
(1) Excludes non-cash, stock-based compensation expense as follows:
Research and development $ 107 125 969 385
Sales and marketing 12 125 168 386
General and administrative 36 107 793 308
-------------- ------------- -------------- -------------
$ 155 357 1,930 1,079
============== ============= ============== =============
Net loss per share $ (0.01) (0.02) (0.08) (0.06)
============== ============= ============== =============
</TABLE>
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TRICORD SYSTEMS, INC.
CONDENSED BALANCE SHEETS
<TABLE>
<CAPTION>
ASSETS
September 30, December 31,
(In thousands) 2000 1999
--------------- ----------------
(unaudited)
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 21,380 3,082
Other current assets 177 73
--------------- ----------------
Total current assets 21,557 3,155
Equipment and improvements, net 1,960 277
--------------- ----------------
Total Assets $ 23,517 3,432
=============== ================
LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities $ 1,637 530
--------------- ----------------
Stockholders' equity:
Common stock 244 202
Additional paid-in capital 114,202 86,604
Accumulated deficit (92,566) (83,904)
--------------- ----------------
Total stockholders' equity 21,880 2,902
--------------- ----------------
Total Liabilities and Stockholders' Equity $ 23,517 3,432
=============== ================
</TABLE>
