ZiaSun Reports Record Net Sales and Strong Profits for the Nine-Month
Period Ending Sep 30, 1999...
SOLANA BEACH, Calif.--(BUSINESS WIRE)--Nov. 9, 1999--
-- Record sales of $17.8 million in fiscal 1999 YTD with $3.8
million gross profit and $0.15 EPS EBIT 3rd quarter fiscal 1999 sales
increased 11-fold to $7,932,685 from 3rd quarter fiscal 1998 --
ZiaSun Technologies, Inc (OTC BB:ZSUN), a profitable Internet
holding company, today reported very favorable financial results for
the three and nine-month periods ended September 30, 1999.
Net sales for the third quarter fiscal 1999 increased more than
11-fold to $7,932,685 from $674,125 in the third quarter fiscal 1998.
Third-quarter gross profit increased nearly seven-fold year-over-year
to $2,485,045 with a solid 31.3% gross profit margin. Third-quarter
fiscal 1999 results were profitable with income before taxes of
$1,562,406, or $0.06 per share EBIT, compared to a loss of $(63,913)
for the third quarter 1998.
Record net sales for the first nine months of fiscal 1999 also
increased more than 11-fold to $17,831,876 from $1,547,701 in the same
period of fiscal 1998. Gross profit for the period increased more than
six-fold over the same nine-month period in 1998 to $6,836,344 with a
38.3% gross profit margin. Net income for the nine months ended
September 30, 1999 was $2,509,470, or $0.10 per share, up from a loss
of $(68,284) during the same period of fiscal 1998.
On a nine-month ended September 30, 1999 pro forma basis,
including the operations of OIA from January 1 to September 30, 1999,
the Company had sales of $22,458,103 as compared to the nine months
ended September 30, 1998 actual revenue of $1,547,701. The increase in
sales over 1998 on a pro forma basis is $20,910,402, or 1,251%.
As of September 30, 1999, the Company had $6,224,254 in cash and
receivables, total current assets of $7,734,953 and $23,986,729 in
total assets. The increase in current assets at September 30, 1999
over December 31, 1998 is due primarily to the increase in cash from
$517,781 to $5,127,718, an increase of $4,609,937 or 890%. ZiaSun also
reported a current ratio of 4.7 to 1, no long-term debt and
$22,336,034 in total stockholders' equity at the close of the third
quarter fiscal 1999.
"We achieved a tremendous profit turnaround year-over-year for
both the three and nine-month periods ended September 30th," commented
ZiaSun Chairman Scott Elder. "Top-line growth was reported across the
board, with the first-quarter acquisitions of Asia4Sale and Online
Investors Advantage (OIA) greatly enhancing both our financial
position and operating results."
"Since expanding our global online trading and financial services
divisions in the past two months, we expect to rapidly improve top and
bottom line performance for fourth-quarter fiscal 1999 and throughout
fiscal 2000," Elder added. "For example, during the three months ended
September 30, 1999, OIA expanded its operations to Australia, New
Zealand, and Canada. The sales attributable to these new markets were
$1,269,832". "We will also continue targeting acquisition candidates
who can add positive value to our operating strategy and growth
objectives, and help maximize shareholder returns."
During the three months ended September 30, 1999, ZiaSun filed
its Form 10-SB with the Securities and Exchange Commission (SEC) to
become a fully reporting company, and launched several new products
and services through its wholly-owned subsidiaries.
OIA (www.i-advantage.com) initiated the global expansion of its
online investing education program by holding workshops in Australia
and New Zealand. Momentum Internet began offering the web-based email
service PINmail (www.pinmail.com) free to all Internet sites in return
for banner ad space. Asia4Sale introduced its www.asia4sale.com online
mall specializing in Asian products and secured multi-currency credit
card processing from First Ecom. This subsidiary also launched its
AuctionAsia (www.auctionasia.net) site for large ticket commercial
items, a joint venture that is expected to generate between $5 million
and $8 million in gross annual sales.
Following the close of the third quarter fiscal 1999, the Company
reported that its subsidiary OIA won a 'Small Business of the Year'
award. OIA also furthered its worldwide growth with more workshops
scheduled in Australia and New Zealand, a new office in Sydney, and
entry into the Canadian market with attendance at initial workshops
far exceeding projections.
The Company also reported expansion of its Swiftrade
(www.swiftrade.com) online trading subsidiary with the SwiftradeUSA
(www.swiftradeusa.com), SwiftradeHK (www.swiftradehk.com) and
SwiftradeUK (www.swiftradeuk.com) trading systems rolled out in
October and November.
Through contracts executed during October with two of the world's
dominant financial data providers, the Company also expanded the
selection of information sources available to subscribers of its
financial portals. Swiftrade added Reuters' real-time financial
information services, and ZiaSun's international financial news
website (www.mfinance.com) renewed its contract for data on Asian,
European and U.S. stock markets from AFX-Asia - a venture of Agence
France Presse (AFP) and The Financial Times of London.
-0-
*T
Condensed Consolidated Balance Sheet
September 30, 1999 December 31, 1998
Unaudited Audited
ASSETS
Cash & receivables $6,224,254 $1,417,660
Total current assets $7,734,953 $2,250,933
Total equipment and
other assets $16,251,776 $2,513,627
Total assets $23,986,729 $4,764,560
LIABILITIES & STOCKHOLDERS' EQUITY
Total current liabilities $1,650,695 $600,013
Long-term debt $0 $0
Total liabilities $1,650,695 $600,013
Total stockholders' equity $22,336,034 $4,104,547
Condensed Consolidated Statement of Operations (Unaudited)
For the For the For the For the
three months three months nine months nine months
ended ended ended ended
Sep. 30, Sep. 30, Sep. 30, Sep. 30,
1999 1998 1999 1998
Net sales $7,932,685 $674,125 $17,831,876 $1,547,701
Cost of goods sold $5,447,640 $318,332 $10,995,632 $516,850
Gross Margin $2,485,045 $355,793 $6,836,344 $1,030,851
Income Before Taxes $1,562,406 $(63,913) $3,792,645 $65,945
Net income (loss) $1,175,255 $(63,439) $2,509,470 $(69,294)
EPS - basic - EBIT $0.06 $(0.00) $0.15 $(0.00)
Weighted average
number of shares
outstanding 27,055,000 20,930,000 25,756,250 20,930,000
*T
ZiaSun Technologies, Inc. is a leading Internet holding company
focused on e-commerce and specialized online support services within
Asia and other international markets. The Company's Internet offering
includes Swiftrade (www.swiftrade.com), Momentum Finance
(www.mfinance.com), MediaHits (www.mediahits.com), PINmail
(www.pinmail.com), ServiceLive (www.servicelive.com), Search Dragon
(www.searchdragon.com) and Online Investors Advantage
(www.i-advantage.com).
Note: Any statements released by ZiaSun Technologies, Inc that
are forward-looking are made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. Editors and
investors are cautioned that forward-looking statements invoke risks
and uncertainties that may affect the Company's business prospects and
performance. These include economic, competitive, governmental,
technological and other factors discussed in the statements.
--30--gk/bos*
CONTACT: ZiaSun Technologies
Mark Harris
858-350-4060
mark@pinmail.com
www.ziasun.com
or
OTC Financial Network
Geoff Eiten
800-230-3519/781-444-6100 ext. 13
geiten@otcfn.com
www.otcfn.com/zsun
|
