(BSNS WIRE) FutureLink Corp. Announces Third Quarter Results
FutureLink Corp. Announces Third Quarter Results
Business & High Tech Editors
IRVINE, Calif.--(BUSINESS WIRE)--Nov. 18, 1999--
Pro Forma Revenues of $11.4 million, Up 34% Sequentially;
Capital Structure Strengthened
FutureLink Corp. (OTC BB: FLNK), the leading Application Service
Provider (ASP) with the largest installed base of application hosting
platforms, announced today unaudited financial results for the third
quarter ended September 30, 1999.
For the third quarter, FutureLink recorded revenues of $1.6
million compared to $0.6 million for the same quarter last year. Net
loss before interest, taxes, depreciation and amortization was $4.8
million for the quarter, or $0.63 per share, versus a loss of $2.1
million before interest, taxes, depreciation and amortization for the
same quarter last year, or $0.69 per share. Included in the loss
before interest, taxes, depreciation and amortization are non-cash
charges and provisions totaling $1.2 million. The net loss for the
quarter was $7.6 million, or $1.00 per share compared to a net loss of
$3.9 million, or $0.79 per share, for the same period last year.
For the quarter ended September 30, 1999 the Company had $100,000
in application hosting services (ASP revenues), and 11 installed ASP
customers at the end of the quarter.
Subsequent to the close of the quarter, FutureLink completed the
acquisitions of leading server-based computing integrators
(application hosting platforms), Executive LAN Management, Inc.
("Micro Visions") and Computer Networks, Inc. On a pro forma basis,
FutureLink recorded revenues for the third quarter of $11.4 million,
which consisted of $9.8 million related to application hosting
platform integration revenues (server-based computing), $100,000 of
application hosting services (ASP revenues) and $1.5 million related
to information technology products and services. Third quarter pro
forma revenues represent an increase of 34% over the previous quarter.
For the nine months ended September 30, 1999, pro forma revenues were
$27.3 million.
Subsequent to the close of the quarter, the Company closed a $50
million equity investment with a group led by Pequot Capital
Management in connection with which the Company issued 9.1 million
shares of common stock. In addition, the Company issued 8.4 million
shares of common stock as part of the acquisitions of Micro Visions
and Computer Networks. Following the conversion of various convertible
debt instruments totaling over $20 million and the early exercise of
various warrants, all previously issued through Commonwealth
Associates, LP, the Company's shares outstanding increased by an
additional 17.3 million. As a result of these transactions, the
Company's share capital has increased over $70 million since September
30, 1999 and the Company's total number of shares outstanding as of
November 15, 1999 is approximately 44 million compared to 9.2 million,
as of September 30, 1999. Fully diluted shares at November 15, 1999
are approximately 60 million.
The Company has strengthened its executive management team since
the close of the quarter with the promotion of Vincent L. Romano to
the position of Executive Vice President in charge of FutureLink's
Application Hosting Services Division (ASP), and the appointment of
William Botti to the position of Senior Vice President in charge of
the Application Hosting Platforms Division (server-based computing).
FutureLink also named Philip R. Ladouceur Chief Executive Officer in
addition to his role as Chairman following his appointment as interim
Chief Executive Officer in August 1999. The Company also
reincorporated in Delaware from Colorado and relocated its
headquarters to Irvine, CA.
On November 17, 1999 the board accepted the resignation of Robert
J. Kubbernus as a Director. Mr. Kubbernus will maintain his
relationship with Futurelink as a consultant to the Company's
management.
Commenting on the results, Philip R. Ladouceur, Chairman and
chief executive officer said, "Today Futurelink is a significantly
stronger company. We have strengthened our balance sheet and our
management team, and we continue to execute on an acquisition strategy
of adding top server-based computing integrators. As a result, we are
poised to exploit the vast growth opportunities in the emerging
markets for application hosting services and server-based computing."
About FutureLink
FutureLink, The Computer Utility Company(TM), is a founder of the
Application Service Provider (ASP) industry and a founding member of
the ASP Industry Consortium. The company has the largest installed
base of application hosting platforms with thousands of customers
worldwide.
FutureLink's Application Hosting Services Division provides
businesses with off-site, Internet-based computing, allowing
subscribers to escape costly hardware/software upgrade cycles,
precisely control total cost of technology ownership and focus on
their core businesses. The division offers customers an all-inclusive,
trouble-free ASP service at a predictable price and provides computing
service as transparently and reliably as today's utilities deliver
electricity, water and telephone service.
The company's Application Hosting Platforms Division builds
application server farms and provides Citrix application server
software integration services. With Application Hosting Platform
solutions, FutureLink customers manage their own server farms, and
provide ASP services to users with their own IT staff and FutureLink
consultants.
For more information, contact FutureLink toll-free at (877)
216-6001; e-mail: sales@futurelink.net; or visit the FutureLink Web
site at futurelink.net.
Forward-looking statements and comments in this news release are
made pursuant to safe harbor provisions of the Securities Exchange Act
of 1934. Such statements relating to, among other things, the
prospects for the companies to complete the transaction and enhance
operating results, are necessary subject to risks and uncertainties,
some of which are significant in scope and nature. These risks may be
further discussed in periodic reports and registration statements to
be filed by the company from time to time with the Securities and
Exchange Commission in the future.
--30--tia/ny*
CONTACT: FutureLink
Troy Cleland
Investor Relations
877/216-6001
E-mail: invrel@futurelink.net
or
Lippert/Heilshorn
Jody Burfening
212/838-3777
E-mail: jody@lhai.com
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS INTERNET BANKING
SOFTWARE EARNINGS
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