Global DataTel Reports Third Quarter/Nine Month Results - 3rd qtr 1999, nine months 1999 - Company Financial Information

Cambridge Telcom Report, Nov 15, 1999

Global DataTel, Inc. (OTCBB: GDISE) announced Wednesday that for the third quarter of 1999, ending September 30, 1999, its OnLine Services Division, which operates the Latin American Internet Service Provider and portal, eHOLA.com, recorded its first revenues and decreased its operating loss by 27 percent from the preceding quarter.

For the quarter ending September 30, 1999, Global DataTel, Inc., on a consolidated basis reported revenue of $2,279,982 and a net loss of $711,559 or $.03 per share. For the nine months ending September 30, 1999, consolidated revenue was reported at $9,583,440 with a net loss of $1,982,596 or $.08 per share.

The Information Services Division recorded sales of $2,261,140 , a decrease from sales of $5,621,769 recorded in the similar quarter one year ago. On a nine month basis, sales were $9,564,598, a decrease of 60 per cent from sales for this division one year ago. This is attributed primarily to the company's decision in the second and third quarters of this year to operate on a commission basis with the company's major supplier, reflecting a conservative approach to the political climate of Latin America at that time. During the third quarter, the company returned to limited direct sales in Latin America.

According to the company's third quarter filing, the reduction in the loss of the OnLine Services Division was a result of both increased revenue as well as operating efficiencies instituted during the quarter. Revenue for the OnLine Services Division was $18,842, with a loss of $609,000.

Richard Baker, President and Chief Executive Officer of Global DataTel, Inc. noted that the third quarter OnLine Services Division revenues do not take into account the expected increase in subscribers to eHOLA.com as a result of the IBM Aptiva PC pre-load or the introduction of Planet Web-enabled devices into the Latin American market. Both of these key agreements are expected to be reflected more fully in the fourth quarter of 1999.

Global DataTel, Inc. is a Latin American leader in medium to large system integration projects. A First Tier IBM Business Partner, Global distributes Compaq, Dell, Hewlett-Packard and Cisco hardware as well. Global is also a Microsoft Solution provider, Lotus Premier Team Provider and a distributor of JBA International E.R.P. company.

It's wholly-owned subsidiary, eHOLA.com Online Service Network (www.ehola.com) offers integrated Internet access in Spanish or Portuguese to individuals in North, Central and South America, providing consumer and business dial-up and dedicated Internet access to 305 cities throughout Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, El Salvador, Guatemala, Mexico, Paraguay, Peru, the United States and Venezuela.