Chronicle Communications, Inc. Announces Results On Form 10KSB for the Period Ending
September 30, 1999
TAMPA, Fla.--(BUSINESS WIRE)--Jan. 26, 2000--Chronicle Communications Inc., (OTCBB:CRNC - news), (http://www.chronicleinc.com) announced
Wednesday that it has filed Form 10KSB for its fiscal year ended September 30, 1999. The Company had a slight growth in revenue for the 1999 fiscal year
compared to the 1998 fiscal year of approximately 10% or $186,474. Gross profit for the same period rose to $229,923 for the 1999 fiscal year compared to
1998 fiscal year of $57,005 or an improvement of 9% when compared to revenues for the reported periods. Net loss per share dropped to $.51 for the current
period from $.70 for fiscal year ended September 1998 on a fully diluted basis.
The Company experienced an increase in general and administrative expenses for the 1999 fiscal year compared to the 1998 fiscal year of $2,366,640. The increase
is largely related to stock compensation to officers of $1,049,492, stock compensation to others of $308,798, consulting expenses of $599,275, legal expenses of
$166,416 and accounting expenses of $130,834. The Form 10KSB can be obtained from various Internet Web-Sites or by contacting the Company.
During the first quarter of the fiscal year ending September 30, 2000, management has vigorously been working to eliminate and rectify ongoing administrative and
operational matters in order to more efficiently proceed with our ongoing efforts to strengthen the Company. These items include the resolution of several outstanding
litigation matters, employment contracts and property belonging to discontinued operations. Additionally, with the finalization of the bankruptcy proceedings for
Bright Now, Inc d.b.a. United Printing and Publishing within the next 120 days, the Company expects to eliminate substantially all of the long-term debt, primarily
composed of notes that are in default and litigation, currently reflected on our balance sheet. However, this debt will be replaced with a mortgage of approximately
$2,125,000.00 for our new corporate headquarters and long-term equipment loan of approximately $589,000.00 for a new state of the art printing press. This
property and equipment will add approximately $3,250,000.00 in assets to the balance sheet. Moreover, the company expects the new facility and press will allow
us to improve our operational and administrative efficiencies and further develop our product lines and market.
The Company's stock began trading today with the ''E'' designation. The Company has received confirmation from the NASD that the Company's stock will trade
without the ''E'' designation on Friday, January 28, 2000. With respect to the Company's December 31, 1999 Form 10QSB, the Company expects it to be filed
before February 15, 2000. Due to funds raised during that quarter, the Company expects to reflect resolution of some of its pending litigation reported in the
September 30, 1999 Form 10KSB. With respect to the Company's March 31, 2000 Form 10QSB, the Company has set the following targets for its financial
performance: revenue in the range of $550,000 to $650,000 and gross profit in the range of $165,000 to $195,000. These are the Company's targets, not
predictions of actual performance. Historically, the Company's performance has deviated, often materially, from its targets as of the beginning of the quarter. Given
that the Company's sales occur disproportionately in the final weeks of a quarter, the Company often does not know whether it will achieve its targets until late in the
quarter or even after the quarter has ended. Accordingly, the Company will not report on its progress during the quarter, or comment on them to analyst or investors,
until after it has closed the books on the quarter. Any statement by persons outside the Company speculating on the progress of the quarter will not be based on
internal Company information and should be assessed accordingly by investors.
Special Note: Management believes certain statements in this press release may constitute ''forward-looking statements'' within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements are made on the basis of management's views and assumptions regarding future events and business performance
as of the time the statements are made. Actual results may differ from those expressed or implied. Such differences may result from actions taken by the company
prior to its current fiscal year end, as well as from developments beyond the company's control, including changes in global economic conditions that may, among
other things, affect the performance of the company's anticipated acquisitions or future business. In addition, changes in domestic competitive and economic
conditions may also affect performance of all significant company businesses.
Contact:
Chronicle Communications, Inc., Tampa
David E. Salmon, Investor Relations Officer |
