ZiaSun Reports Record Net Sales and Strong Profits
for the Nine-Month Period Ending Sep 30, 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 --
SOLANA BEACH, Calif.--(BUSINESS WIRE)--Nov. 9, 1999-- 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.
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
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.
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 |
