you knew this could not be far behind
UOL Publishing, Inc. Completes Sale of HTR Knowledgeworks for $1.5 Million
Strengthens Liquidity and Sharpens Online Focus
McLEAN, Va., June 29 /PRNewswire/ -- UOL Publishing, Inc. (Nasdaq Small Cap: UOLP) announced today that it has completed the sale of its HTR-Knowledgeworks business for $1.5 million in cash and notes receivable to CourseFactory.com, LLC. The planned sale was announced in late 1998 as part of the Company's strategy to divest all non-online legacy businesses.
The Knowledgeworks business, which UOL had acquired during its fourth quarter 1997 acquisition of HTR, focused on custom print materials in support of training in the information technology industry. For the year ended December 31, 1998, Knowledgeworks accounted for approximately $1.6 million of revenues and $100,000 in operating losses. Management expects the sale, effective June 30, 1999, to have no significant impact on earnings in terms of write-offs for the second quarter ended June 30, 1999.
"We are pleased to complete this transaction as forecasted before the end of our second quarter of 1999," said Nat Kannan, Chairman and Chief Executive Officer of UOLP. "The sale will enhance further our overall liquidity, which has been boosted in recent weeks with a $3 million Equity Line of credit with Hambrecht and Quist, and the $2.5 million in convertible debentures announced last week, which convert at a fixed price of $5.55 per share and gives the Company total flexibility to redeem if market price is lower than $5.55. From this improved financial position, we will continue to fund UOL's operating needs, support growing online sales and increase our marketing efforts."
Mr. Kannan continued, "With these deals, the Company has access to sufficient cash in the next six to eight months to support its race to profitability with growth. We have more work to do, but the Company is in a much more solid position compared to a year ago," said Mr. Kannan. "We have a winning business model, many satisfied customers, and a growing online base of users of the VCampus platform."
UOLP's core mission is to build the world's largest Web-based training and education Company. VCampus is the Company's proprietary full-service, centrally hosted, totally scalable distance education platform. It allows for the registration, enrollment, teaching, tracking, testing, grading and certification of distance learners. UOL Publishing, Inc. develops, manages, and hosts Internet-based training and education for corporations, government agencies and academic institutions through VCampus. With a courseware library of more than 1,100 web-based courses and more than 230,000 courses delivered to date, VCampus is the clear industry leader in web-based learning. UOL is headquartered in McLean, Va.
For more information, call 800-915-9298, or visit the VCampus web site at vcampus.com . |
