Some of the numbers, commas, etc. were garbled in the one you posted - we'll see if this one comes through ok.
Hartcourt Reports First Quarter 2000 Financial Results
LOS ANGELES, May 16, 2000 (BUSINESS WIRE) -- The Hartcourt Companies Inc.
(OTC:HRCT)(Frankfurt:HCT), www.hartcourt.com, today reported financial results for the first quarter 2000. The company increased revenues, added key managers, and most importantly, according to management, launched their flagship subsidiary Sinobull.com, which already is recognized as one of the top 20 Internet portals in China.
The company expects continued rapid growth from both Sinobull.com and through other Internet related acquisitions. Last week, the company announced that it was selected by China Law Corporation to develop Internet access to the decisions of China's Peoples Supreme Court.
"Hartcourt continues to benefit from the substantial progress and success of Sinobull.com," said Hartcourt Chairman and Chief Executive Officer Dr. Alan Phan. "Upon completion of server upgrades to accommodate rapidly growing site traffic, Sinobull.com plans to host a 'grand opening' celebration launch of the site in Beijing next month, to be attended by Chinese government officials and
other national celebrities."
Financial Results
To provide more meaningful accounting of Hartcourt's present business, the company's reported results include adjustments to eliminate the effect of previous, now unrelated businesses.
Revenues from on-going operations for the quarter ended March 31, 2000, were $348,000 compared to zero for the same period last year. First quarter revenues were derived from sales of financial pages and related Internet and telephone
services.
Hartcourt incurred a net loss of $1.7 million or $0.06 per share for the quarter ended March 31, 2000, compared to a net loss of $249,000 or $0.01 per share for the quarter ended March 31, 1999. The increased net loss is attributable to consulting and legal costs associated with the company's recent and pending acquisitions and expenses incurred in brokerage fees in connection with the issuance of warrants to raise additional capital.
As of March 31, 2000, the company had cash and current assets of $3.3 million and total assets of $11.8 million. Liabilities were $5.0 million and shareholders' equity was $6.6 million.
Recent Developments
During the first quarter, Hartcourt's Chinese subsidiary UAC Online Stock Trading Ltd. signed a contract to provide its online stock trading solution to Guosen Securities of Shenzhen (www.guosen.com.cn) over the UAC 162 network. Thus far, UAC has provided online access to four key branch offices of Hua Xia Securities (China Securities), the second largest brokerage firm in China, two offices of Ziangcai Securities, currently the seventh largest brokerage firm operating in China, and expects to have 85 brokerage offices on the network by year-end. UAC also introduced a new stock trading application for Chinese users of the Palm Operating System and Microsoft's Windows CE enabling Chinese investors to trade stocks online on Hong Kong and Mainland China markets via their PDAs. This development has already contributed to Sinobull.com's increased number of unique visits and overall trading volume.
Over the next several months, Hartcourt expects to close pending agreements with eMPACT Solutions Inc., an E Commerce Systems Management company, and with Shenzhen Sinlan Investment Company, which operates an exclusive cable TV network.
Forward Looking Statements
This news release includes forward looking statements which depend on circumstances which may or may not occur including the performance of the companies now held, the acquisition and performance of new companies and other factors listed in the company's Form 10-KSB for the period ending Dec. 31, 1999. Changes in these factors could alter the company's financial performance and future prospects.
About Hartcourt
The Hartcourt Companies Inc is a holding and development company that is building a network of Internet and telecommunication service companies in The Peoples Republic of China (China), including Hong Kong, in partnership with young Chinese entrepreneurs as well as Chinese government-owned entities. Its mission is to become one of the leading Internet and broadband wireless companies in Asia. It recently participated in the launch of a comprehensive financial Web site portal called Sinobull.com, which is currently generating over 1 million page views per day. Sinobull was developed to deliver real time quotes, charts, research and analysis as well as other collateral information regarding stocks, bonds, currencies and commodities trading on Chinese and other Asian-based markets.
A second major Joint Venture with Beijing-based Innostar HiTech Enterprises is preparing to start a national Internet Service Provider and IP phone service in China utilizing satellite for wireless data and voice transmission to computers, mobile phones, PDAs, pagers and cable television set-top boxes. Detailed information on Hartcourt can be obtained via the company's Web site, www.hartcourt.com.
The Financial Relations Board, Inc. serves as financial relations counsel to this company and is acting on the company's behalf in issuing this bulletin and receiving compensation therefor. The information contained herein is furnished for information purposes only and is not to be construed as an offer to buy or sell securities.
THE HARTCOURT COMPANIES INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
For the three months
ended March 31,
2000 1999
Net sales $ 348,228 $ --
Cost of sales 116,541 --
Gross profit 231,687 --
Operating expenses
Selling, general and
administrative 1,804,237 241,775
Depreciation and amortization 105,228 --
Total operating expenses 1,909,465 241,775
Loss from continuing operations 1,677,778 241,775
Other income (expense):
Equity in earnings (loss) of
unconsolidated subsidiaries -- (28,298)
Interest expense (38,249) --
Interest income 8,231 20,095
Other 9,007 --
Total other income (expenses) (21,011) (8,203)
Loss from continuing operations
before minority interest 1,698,789 249,978
less: loss in subsidiary attributed
to minority interest 27,651 --
Net loss before income taxes 1,671,138 249,978
Income taxes -- (800)
Net loss $ 1,671,138 $ 249,178
Basic and fully diluted loss per
common share $ (0.06) $ (0.01)
Weighted average number of shares
outstanding 26,330,688 19,073,049
THE HARTCOURT COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
Unaudited
March 31, Dec. 31,
2000 1999
ASSETS
Current assets:
Cash and cash equivalents $ 1,366,654 $ 331,057
Accounts receivable, net 62,732 37,626
Inventory 132,527 127,091
Note receivable 228,800 228,800
Prepaid expenses and other 81,431 129,114
Due from related parties 1,422,641 108,222
Total current assets 3,294,785 961,910
Property and equipment, net 817,209 815,085
Investments 5,512,993 5,554,644
Intangibles, net 2,149,468 2,206,033
Total assets $ 11,774,455 $ 9,537,672
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 119,676 $ 152,709
Deferred revenue 89,572 78,477
Note payable - current portion 547,088 649,998
Accrued expenses and other
current liabilities 734,404 4,073,504
Payables to related parties 2,444,246 2,457,497
Total current liabilities 3,934,986 7,412,185
Notes payable, net of current portion 597,375 608,184
Total liabilities 4,532,361 8,020,369
Commitments and Contingencies
Minority Interest 592,332 661,634
Shareholders' Equity
Preferred stock:
Original preferred stock, $0.01
par value, 1,000 authorized, issued
and outstanding $ 10 $ 10
Common stock, $0.001 par value,
50,000,000 shares
authorized; 27,562,584 shares and
23,832,152 shares issued and
outstanding at March 31, 2000 and
Dec. 31, 1999 27,563 23,833
Stock subscription receivable (1,000,000) --
Treasury stock, at cost (1,778,916
shares and 1,524,364 shares at
March 31, 2000 and
Dec. 31, 1999) (1,918,634) (1,680,928)
Additional paid in capital 47,595,067 38,895,860
Accumulated Deficit (38,054,244) (36,383,106)
Total shareholders' equity 6,649,762 855,669
Total liabilities and shareholders'
equity $ 11,774,455 $ 9,537,672
CONTACT: The Hartcourt Companies Inc., Los Angeles
Dr. Alan Phan, 310/410-7290
or
The Financial Relations Board, Los Angeles
310/442-0599
Morgan Fry (general information)
Kristen Kopay (investors/analysts)
Ashley Piggot (media)
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