VDOT. Earnings.
VirtualSellers.com Announces First Quarter Results
Business Editors and High-Tech Writers
VANCOUVER, British Columbia--(BUSINESS WIRE)--June 22, 1999--
VirtualSellers.com, Inc. (OTC BB:VDOT) today announced its financial
results for the fiscal first quarter ended May 31, 1999.
Operating revenues for the first quarter of the 1999 fiscal year
were $218,865, an increase of 146 percent compared to revenues of
$88,629 from the first quarter results in 1998. The company reported
total revenues and other income of $1,668,289, of which $29,560 were
from exchange gains, $1,391,325 were from extra ordinary revenues, and
$28,539 were from gains on forgiveness of debt.
The company also reported net income of $1,065,987, or $.01 per
share for the first quarter ended May 31, 1999, versus a net loss of
$318,052, or $.01 per share for the first quarter ended May 31, 1998.
The company reduced direct costs for the quarter ended May 31, 1999
from $82,168 to $30,916 for the quarter ended May 31, 1998. The
company also increased its current asset position to $2,581,863 for
the quarter ended May 31, 1999 versus $775,603 from the quarter ended
1998. The company decreased its long-term debt to $136,075, a decrease
of $586,857 over the quarter ended May 31, 1998. All denominations are
expressed in Canadian dollars.
On April 20, 1999, the company announced that it received a
settlement of $975,000 U.S. from Triton PCS Operating Company LLC, an
independent affiliate of AT&T Wireless Network (NYSE:T), for the
rights to the SUNCOM trademark and trade name. "Selling the SUNCOM
name provided us with a timely opportunity to consummate the company's
transformation into a total e-commerce provider. We selected the name
VirtualSellers.com, Inc. because it best reflects the company's
dedicated e-commerce business strategy," said Dennis Sinclair, Ph.D.,
president and CEO of VirtualSellers.com.
The explosive growth in Internet-based sales, now projected by
Forrester Research, a leading market research firm, is expected to
reach $3.2 trillion in 2003 -- representing nearly 5 percent of all
sales globally. Mr. Sinclair said, "We are uniquely positioned because
VirtualSellers.com can provide immediately available, customized,
secure and complete e-commerce transaction processing and customer
service so that small and medium-sized businesses can retail their
products over the Internet."
Safe Harbor Statement
Included in this release are "forward-looking statements" within
the meaning of Section 27A of the U.S. Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. There are certain important factors that could cause results
to materially differ from those described in the statements made
above. These factors include, but are not limited to, the performance
of VirtualSellers.com, Inc. and its subsidiaries; the success of the
company's strategic plans; the vigor of Internet commerce in general;
fluctuations in worldwide economic conditions; and others. Although
the company believes that the expectations reflected in such
forward-looking statements are reasonable it can give no assurance
that such expectations will prove to have been correct.
VirtualSellers.com provides turnkey electronic commerce
transaction processing services to small and mid-size companies
wishing to grow their businesses and expand market reach by offering
their products for sale over the Internet. Through recent strategic
acquisitions, VirtualSellers.com has created a state-of-the-art
service bureau geared to launch merchants safely and quickly into the
world of e-commerce. VirtualSellers.com offers a variety of secure
transaction processing services to assist merchants with their
e-commerce requirements, including integrated on-line marketing,
product ordering, billing and payment collection. For more
information, visit their Web site at www.virtualsellers.com.
VIRTUALSELLERS.COM, INC.
(formerly SUNCOM Telecommunications, Inc.)
Consolidated Balance Sheets as of May 31, 1999 and 1998
(Expressed in Canadian Dollars)
Unaudited
31-May 31-May
1999 1998
ASSETS
Current Assets
Cash and cash equivalents 1,616,399 738,353
Accounts receivable 96,518 33,500
Prepaid expenses and advances 868,946 3,750
2,581,863 775,603
Capital Assets 263,013 157,957
Loans receivable 71,696 --
Restricted cash held in trust 384,796 2,291,662
Less trust accounts payable and
accrued liabilities 384,796 2,374,315
Total Assets $ 2,916,572 $ 850,907
LIABILITIES AND SHAREHOLDERS'
EQUITY (DEFICIENCY IN ASSETS)
Current Liabilities
Accounts payable and accrued
liabilities 164,657 99,103
Current portion of long term
debt -- 186,754
Long term debt 164,657 285,857
Employee obligation -- 434,000
Shareholders' Equity (deficiency
in Assets)
Share Capital 14,071,176 9,818,356
Deficit (11,455,336) (10,410,238)
2,615,840 (591,882)
Total Liabilities and
Shareholders' Equity
(Deficiency in Assets) $ 2,916,572 $ 850,907
Consolidated Statements of Operations and Deficit
March 1 through May 31, 1999 and 1998
(Expressed in Canadian Dollars)
Unaudited
31-May 31-May
1999 1998
Revenue $ 218,865 $ 88,629
Loss before other income (expenses) 383,437 318,052
Other income (expenses)
Foreign exchange gains (losses) 29,560 --
Extra ordinary income 1,391,325 --
Gain on forgiveness of debt 28,539 --
1,449,424 --
Income (loss) for the period 1,065,987 (318,052)
Deficit, beginning of period (12,521,323) (10,092,186)
Deficit, end of period $(11,455,336) $(10,410,238)
Income (loss) per share $ 0.01 $ (.01)
--30--jh/sf*
CONTACT: VirtualSellers.com, Inc.
Cary Berman, 312/920-9999 (Investor Relations)
or
Market Pathways
Shannon T. Squyres, 949/955-1860 (Media & Investor
Relations)
KEYWORD: INTERNATIONAL CANADA
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS COMED TELECOMMUNICATIONS
INTERACTIVE/MULTIMEDIA/INTERNET EARNINGS
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BW0110 JUN 22,1999
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