[May 13, 2004] Farmstead Telephone Group, Inc. Reports First Quarter 2004 Results EAST HARTFORD, Conn., May 13 /PRNewswire-FirstCall/ -- Farmstead Telephone Group, Inc. announced operating results for the first quarter ended March 31, 2004. For the quarter ended March 31, 2004 revenues were $3,406,000, 24% below revenues of $4,504,000, reported for 2003. The net loss for the quarter was $341,000, or $(.10) per share, compared with a net loss of $145,000, or $(0.04) per share, in 2003. George J. Taylor, Jr., Chairman and CEO of Farmstead Telephone, commented, "the operating results for 2004, as compared to the comparable prior year period, are the product of several dynamics affecting the industry in general and Farmstead in particular. First, there is a continuing softness in corporate buying in the telecommunications equipment sector. As a result, we have experienced a decrease in both the number of orders received and their average order size. Although there have been some signs of improvement in our industry as evidenced by improved operating results from some of the key manufacturers, and increased sales quotation activities, customer spending for new telecommunication systems has been below our expectations. Second, there is increased competition in our marketplace, and coupled with the soft economic conditions, has led to continued sales price erosion." Mr. Taylor continued "Our overall strategy during these tough economic times has been to align our operating expenses in relation to current revenue run-rates, while preserving key personnel that are critical to maintaining and growing our business. In light of current conditions, and with no clear indication at this point that sales levels will significantly increase in the near-term, we will be focusing on reviewing all of our strategic business alternatives." About Farmstead Farmstead Telephone Group, Inc. is an Avaya Inc. Gold Business Partner, and an Authorized Remarketing Supplier of Classic Avaya(TM) and new Avaya business communications products. Further information about Farmstead Telephone may be found at http://www.farmstead.com/. Farmstead Telephone Group, Inc. Financial Highlights Quarter Ended March 31, 2004 2003 Revenues $3,406,000 $4,504,000 Net Loss $(341,000) $(145,000) Basic and Diluted Net Loss Per Share $(0.10) $(0.04) Basic and Diluted Weighted Average Shares Outstanding: 3,312,666 3,298,958 This release contains forward-looking statements that involve risks and uncertainties. In addition to historical information, investors should consider carefully the risks associated with an investment in the Company's securities as previously outlined by the Company in its prior filings with the Securities and Exchange Commission. CONTACT: George Taylor, Jr., Chairman and Chief Executive Officer Farmstead Telephone Group, Inc. Voice: 860-610-6006 Fax: 860-610-6001 Farmstead Telephone Group, Inc. CONTACT: George Taylor, Jr., Chairman and Chief Executive Officer ofFarmstead Telephone Group, Inc., +1-860-610-6006 Web site: http://www.farmstead.com/ [ Back To TMCnet.com's Homepage ]