Revenue up, stock down.
ca.biz.yahoo.com
Tuesday August 15, 8:31 am Eastern Time
Press Release
SOURCE: Big Picture Technologies Inc.
BPI's Q2 Revenue Tops $2 Million
CALGARY, Aug. 15 /CNW-PRN/ - Big Picture Technologies Inc. (CDNX:BPI - news) Big Picture Technologies Inc. today released results for the period ending June 30, 2000.
Revenues for the second quarter reached a new record level of $2,179,624, an increase of 65% from the previous quarter -- and surpassing the $2,060,645 in revenue recorded for the
entire 1999 fiscal year. For the six months ending June 30, 2000 revenues totaled $3,501,748, representing a 594% increase over the same period last year and a 70% increase over
the total revenue posted in all of 1999.
``We are excited by the progress the company is making on all fronts,'' said Michael Anthony, Big Picture President and CEO. ``But we are especially pleased that strong product sales
continue to lead the way expanding by 88% during the second quarter alone. As a result, Big Picture has now posted its sixth consecutive quarter of record sales growth.''
In support of this growth, the Company continues to invest heavily in sales and marketing, and product development. Sales and marketing remains the single largest component of
operating expenses, accounting for 44% of the $2,090,770 in operating expenses incurred during the quarter. Product development saw the largest increase for the quarter increasing
93% over the prior quarter, reflecting the company's strategic plans to launch a number of new products in the fall.
``Our investment in sales and marketing continues to yield good gains: for each sales and marketing dollar we spent during the quarter we generated 2.38 dollars of revenue,'' Anthony
added. ``At this point we believe we have become the de facto leader in our product category in the traditional retail software channel, as our products are now stocked in more than
3,500 outlets throughout North America.''
The company continues to post operating improvements: the EBITDA loss for the second quarter of $937,604 is down modestly from $959,188 for the previous quarter. The
improvement of the EBITDA is a result of gross margin increasing to 53% for the quarter versus 42% for the previous quarter and operating expenses declining to 96% of revenue
compared to 114% for the prior quarter. Net loss for the quarter was $1,584,435 or $0.05 per share.
The Company noted that the acquisition of Coollink's web hosting and ecommerce businesses were completed on June 23, 2000 and consequently the results for the second quarter
only reflect seven days contribution from this strategic acquisition.
Anthony added, ``In summary, the second quarter was extraordinary for the company during which we posted record product sales, signed a number of new partners (including IBM
Stores and Futureshop, the first Canadian national partners), nearly doubled our research and development effort to meet our aggressive product plans, and established a US corporate
presence. As a result of these and other initiatives, we are now well positioned to capitalize on the traditional strength of fourth quarter sales which typically account for nearly half of the
year's product revenues. We are optimistic that we will meet or exceed all targets for the current year.''
Big Picture Technologies Inc. (CDNX:BPI - news) is a developer of award winning Internet, e-commerce, and e-service software and is a designer of world class e-business solutions.
The Big Picture website is located at bigpic.com. |
