EX-99.2 4 c70959exv99w2.txt PRESS RELEASE-FINANCIAL RESULTS FOR 2ND QUARTER TRICORD REPORTS SECOND QUARTER 2002 FINANCIAL RESULTS MINNEAPOLIS, MN - (AUGUST 2, 2002) - Tricord Systems, Inc. (Nasdaq: TRCD) today announced financial results for the second quarter ended June 30, 2002. Revenues for the second quarter of 2002 totaled $67,000 compared to revenues of $94,000 for the second quarter of 2001. Net loss applicable to common shares for the second quarter, which includes non-cash charges related to the accounting for Series E Convertible Preferred Stock, was $7.0 million, or $0.28 per common share, compared to a net loss of $6.8 million, or $0.28 per common share, for the second quarter of 2001. Net loss, which excludes the non-cash charge related to the accounting for Series E Preferred Stock, for the second quarter 2002 was $6.1 million, or $0.24 per share, compared to a net loss of $6.0 million, or $0.25 per share, for the second quarter of 2001. The non-cash charges related to the Series E Preferred Stock for the quarter ended June 30, 2002 include a beneficial conversion charge of $607,000 and $297,000 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. Restructuring charges for the second quarter 2002 were $1.1 million, including $500,000 related to a workforce reduction of 21 employees and $600,000 related to exit costs associated with the Company's leased facility in Colorado. The Company implemented an additional workforce reduction on August 1, 2002, which is not included in the restructuring charges for the second quarter. ABOUT TRICORD SYSTEMS Tricord Systems, Inc. designs, develops and markets clustered server appliances and software for content-hungry applications. The core of Tricord's revolutionary new technology is its patented Illumina(TM) software that aggregates multiple appliances into a cluster, managed as a single resource. Radically easy to deploy, manage and grow, Tricord's products allow users to add capacity to a cluster with minimal administration. Appliances are literally plug-and-play, offering seamless growth and continuous access to content with no downtime. The technology is currently designed for applications including general file serving, virtual workplace solutions, digital imaging, and security. Tricord is based in Minneapolis, MN. For more information, visit www.tricord.com. "Safe-Harbor" Statement Under Private Securities Litigation Reform 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 effect of the Company's bankruptcy filing, impact of any settlement discussions that the Company may engage in with RGC International Investors, future findings and rulings by the Delaware Chancery Court and the United States Bankruptcy Court, the development of discovery by either RGC or the Company of facts material to the litigation, the ability of the Company to locate additional investors or buyers for the Company on a timely basis, and the other risks and uncertainties detailed in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to update any forward-looking information. # # # INVESTOR CONTACT: Investor Relations 763-551-6402 TRICORD SYSTEMS, INC. STATEMENTS OF OPERATIONS

TRICORD SYSTEMS, INC. CONDENSED BALANCE SHEETS ASSETS

LIABILITIES AND STOCKHOLDERS' EQUITY Total current liabilities $ 2,199 $ 2,320 Capital lease obligation 18 64 Convertible, redeemable preferred stock 13,553 11,781 Stockholders' equity: Common stock 250 247 Additional paid-in capital 126,145 127,688 Unearned compensation (250) (524) Accumulated deficit (131,794) (121,130) --------------- ---------------- Total stockholders' equity (5,649) 6,281 --------------- ---------------- Total Liabilities and Stockholders' Equity $ 10,121 $ 20,446 =============== ================

TRICORD SYSTEMS INC /DE/ 8-K