Net Shepherd Quarterly Results released –
Net Shepherd Announces Results for First Half of 1999
...revenue up 53% over first half of 1998
CALGARY, Aug. 27 /CNW/ - Net Shepherd Inc. (ASE: WEB) today announced
revenue for the first half of 1999 of $2.3 million, up from $1.5 million during the same period in 1998.
"During the first half of 1999, Net Shepherd has continued to grow," said President and CEO Don Sandford in a Statement published today. "While our revenue is increasing, it would have been even higher if we had completed commissioning our Internet Community Management System. This will happen during Q3, enabling strong revenue growth for the remainder of the year and beyond".
"Net Shepherd's unique ability to combine its Internet-based Virtual Community with the technology to manage the tasks done by that Community has created a platform and business models that will generate annuity-based revenue growth", continued Sandford. "We have spent time and money in developing the Internet Community Management System that enables us to bring these business models to market. We are now nearing the end of this commissioning process, which develops our technology from pilot to production versions. We are therefore now setting up companies to harvest this potential in a number of strategic applications. We have already made public our US-based plans for Answers.com and a Business Intelligence company, each of which have the potential for revenues well in excess of Net Shepherd's previously announced figures."
"In other developments, we are transitioning our systems integration business into a high growth Internet strategy architecture service, which will offer organisations both consultancy advice and business solutions, providing its customers with a cohesive, profitable Internet business process."
"Our investment in technology and new business and the delay to some revenue generation during the commissioning of our Internet Community Management System has both increased our costs and also restricted our
income", said Sandford. "This has resulted in a loss for the quarter of $997,000, up from $129,000 in the same period of last year, but this was expected and we remain confident of strong growth for the remainder of the year."
"For the rest of 1999, we will continue to develop our US-based platform applications companies, as outlined in our recently-published Roadmap", continued Sandford. "We will also benefit from new revenue-generating projects that become possible as our Internet Community Management Systems complete the move from commissioning to production. These projects will be in both North America and also Europe, where the new Net Shepherd Europe organisation is bringing commercial projects forward."
"We will continue to make strategic investments in our technology platform and we will continue to aggressively pursue the best route to NASDAQ, either on our own or in a relationship with another company", said Sandford.
"With the addition of Peter Hunt as our new Vice President, Corporate Affairs, investors can expect to hear much more about the company across a wide range of media", continued Sandford. "One example of this is the Net Shepherd Investor Forum. This is a new series of meetings that will normally be held shortly after the publication of our Quarterly Results. The Forum will take the form of a Teleconference with myself, Peter Hunt and our CFO Ric Charron."
"The first of these events will be held on Tuesday the 31st of August at 2.00 pm Mountain Daylight Time. There will be three ways in which people will be able to participate in this:
1. By phoning 1-888 867 5808. Callers will hear an introduction from myself and will then be able to participate in a Question and Answer discussion session.
2. If people are concerned that they might not get a chance to ask a question, then they can e-mail it to us before the Forum at: investor@netshepherd.com
3. If people want to just listen to the Forum, then they can use an audio feed over the Internet via www.netshepherd.com, which will be available on Tuesday afternoon.
"The discussion will doubtless cover our commercial results, the current status of our major projects (including the transition to NASDAQ and the recent acquisition of Answers.com) and the prospects for the future," concluded Sandford. "I am sure that it will be mutually beneficial and I hope that investors and analysts will be able to join us."
Full details of the 2nd quarter results, can be found on the Net Shepherd website at netshepherd.com
Background Notes:
Net Shepherd helps companies that want to transform the way they do
business and create new opportunities using the Internet. It is a leading provider of Internet-based community solutions to provide the gathering of information and the management of work at the speed of the Internet.
Net Shepherd can also help organizations to develop a complete strategy for the threats and opportunities that the Internet brings. Their Internet Strategy Architects can combine virtual communities, legacy computing systems and I-commerce together into a cohesive business process.
Net Shepherd Inc. is traded on The Alberta Stock Exchange under the symbol WEB.
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