Quiet period ended today with earnings release:
"
ReSourcePhoenix.com Announces Third Quarter Financial Results
SAN RAFAEL, Calif.--(BUSINESS WIRE)--Nov. 9, 1999--
Company Reports 98% Increase in Year Over Year Revenues;
Total Contract Service Revenues Increase 53% Year Over Year
ReSourcePhoenix.com (Nasdaq:RPCX, news, msgs), a leading provider of financial outsourcing
services including management reporting, accounting management, transaction processing and record
keeping services, today announced its financial results for the quarter ended September 30, 1999.
Total revenues for the three months ended September 30, 1999 were $2,305,000; a 98% increase over
the third quarter of 1998 which had total revenues of $1,166,000. Total third party and affiliate contract
service revenues for the three months ended September 30, 1999 were $1,784,000; a 53% increase
over the third quarter in 1998 which had total contract service revenues of $1,166,000. Total revenues
for the nine months ended September 30, 1999 increased 86% to $6,470,000 from $3,484,000 for
corresponding period a year ago.
Third quarter net loss was $164,000, or $0.02 per share. Without giving effect to a one-time non-cash
adjustment related to stock compensation expense, the loss would have been $3,499,000 or $0.49 per
share compared with a net loss of $1,452,000, or $0.20 per share, for the same quarter a year ago. The
Company's net losses relate to its ongoing strategic investment in client acquisition costs, which
include first-year sales, implementation and systems integration expenses related to the integration
and implementation of new clients.
"As evidenced by the number of new clients we have generated during this quarter, we are effectively
reaching and penetrating our target market," remarked Bryant Tong, President and Chief Operating
Officer. "We are pleased that our additional sales force combined with our new advertising campaign
have significantly increased our sales capability. We are also encouraged both by the number of new
clients as well as the increase in the average expected contract size."
The Company achieved the following milestones during the third quarter 1999:
-- Added contracts from 7 new clients, of which 5 were ReFOCOS
clients and 2 were M.A.R.S. clients. The Company added key
ReFOCOS clients, including Target Discovery, Employee
Services.com and Post Communications, Inc. In addition, the
Company added Kelmoore Investments as its first M.A.R.S. hosted
installation.
-- Hired 9 sales people and opened 6 regional sales offices across
the U.S.
-- Designated a member of the Cisco Powered Network program by Cisco
Systems, Inc.
-- Appointed a member of the SunTone Architectural Committee by Sun
Microsystems, Inc.
-- Signed a favorable lease agreement for 67,000 square feet of
office space in Harbor Bay Isle, Alameda, California to house its
East Bay Operations Center.
-- Completed its initial public offering of 4,000,000 shares which
resulted in net proceeds to the Company of approximately
$29,760,000.
About ReSourcePhoenix.com
ReSourcePhoenix.com is a leading provider of financial outsourcing services including management
reporting, accounting management, transaction processing and record keeping services. RPCX allows
its clients to focus on their core businesses by outsourcing the infrastructure and operations of these
critical back-office functions. RPCX's primary service offerings include: financial and management
reporting; accounting and finance management; transaction processing; financial budgeting and
analysis; implementation, integration and operation of financial and management reporting software,
hardware, network and communications infrastructure; sales tracking; sales force contact
management; and investor services record keeping. RPCX is pioneering the use of the Internet to
integrate leading ERP software applications with the expertise of information technology, finance,
accounting and transaction processing personnel.
This news release contains forward-looking statements that involve risks and uncertainties. These
statements relate to our future plans, objectives, expectations and intentions, and the assumptions
underlying or relating to these statements. These statements may be identified by the use of words
such as "expect," "anticipate," "intend" and "plan." Our actual results may differ materially from those
discussed in these statements. Factors that could contribute to such differences include, but are not
limited to, continued market acceptance of RPCX's Internet-based software applications and service
offerings, potential turnover among RPCX's early stage and middle market client base, difficulties in
attracting qualified professional personnel, the loss of a significant customer, and disruptions with
respect to third-party vendors and suppliers, as well as the factors discussed under "Risk Factors" in
RPCX's registration statement on Form S-1 filed with the Securities and Exchange Commission.
ReSourcePhoenix.com
Selected Financial Highlights
Third Quarter, 1999
Three months ended Three months ended
9/30/99 9/30/98
(unaudited) (unaudited)
REVENUE
Contract service $ 984,000 $ 577,000
Contract service - affiliate 800,000 589,000
Software 521,000 --
-------------- --------------
Total Revenue $ 2,305,000 $ 1,166,000
OPERATING EXPENSES
Cost of providing services $ 1,423,000 $ 1,040,000
Cost of providing
software revenue 231,000 210,000
General and administrative 1,470,000 489,000
Research and development 1,022,000 588,000
Client acquisition 1,384,000 262,000
Depreciation and amortization 251,000 80,000
-------------- --------------
Total Operating Expenses $ 5,781,000 $ 2,669,000
Other income (expense) (23,000) 51,000
Loss From Operations
before stock related
compensation expense $ (3,499,000) $ (1,452,000)
Loss per common share
before Stock-related
compensation expense $ (0.49) $ (0.20)
Stock-related compensation
expense adjustment
to market valuation 3,335,000 --
-------------- --------------
Net Loss $ (164,000) $ (1,452,000)
Loss per common share $ (0.02) $ (0.20)
Common stock shares outstanding 7,200,000 7,200,000
*T
CONTACT: ReSourcePhoenix.com
David Brunton, 415/485-4729 |
