C-3D Digital Reports Strong Revenue Gains for Third Quarter
-- Nine Month Performance Up Nearly 9-Fold --
LOS ANGELES--(BUSINESS WIRE)--Feb. 16, 2000--Chequemate International, Inc. (AMEX: DDD - news) d.b.a C-3D Digital, Inc., the world's first 3D television network and 3D Internet media company, today announced strong top-line improvements for the three and nine months ended December 31, 1999.
Revenues rose over 275% to $1,035,292 in the third quarter fiscal 2000 from $275,937 in the same period last year. C-3D's 3D.COM and Hotel Movie Network divisions continued to show strength and were key contributors in the favorable finanical results, as the Company continues to build momentum among cable operators for its C-3D Television Network.
C-3D Digital reported a gross profit of $(1,036,527) in the third quarter fiscal 2000 versus $131,607 in the third quarter fiscal 1999. Gross profit margin declined due to management's reduction of inventory levels of products that have been superceded by improved technology from its suppliers.
Net income was $(3,179,096), or $(0.14) per share, in the third quarter fiscal 2000 as compared to $(568,128), or $(0.03) per share, for the same quarter last year. The accumulation of net loss over the development period has provided the Company more than a $25 million tax carry forward loss until 2014, thus enabling C-3D Digital to use its funds to finance its corporate expansion.
Revenues for nine months ended December 31, 1999 grew nearly 9-fold to $2,644,478 as compared to $299,957 in revenues for the same period a year ago. Net loss was $6,990,687, or $(0.30) per share, in the nine months ended December 31, 1999 versus a loss of $1,881,350, or $(0.12) per share, for the same period last year.
During the quarter, C-3D Digital demonstrated major advancements. At the Western Cable Show in Los Angeles, C-3D Television debuted exciting new programming and sophisticated proprietary techniques in stereoscopic television production and 2 to 3D conversion. 3D.COM previewed its upcoming Virtual Reality Portal', which includes streaming stereoscopic video, online 3D gaming and real-time 3D e-commerce solutions. The Hotel Movie Network announced agreements with Twentieth Century Fox (NYSE: FOX - news) and Time-Warner's New Line Cinema (NYSE: TWX - news) for movie content.
Other highlights of the third quarter fiscal 2000 include:
Retaining the licensing rights to over 1,000 Academy Entertainment film titles to be converted to 3D utilizing C-3D's patented conversion process;
Broadcasting the C-3D Television Network on the GE-3 digital satellite, representing over 70 million homes and further expanding the network's reach worldwide; and
Bundling agreements with major hardware firms that combine 3D.COM's Strata software with computer hardware and peripherals into a premium product.
``The third quarter marked significant achievements for our C-3D Television and 3D.COM divisions,' said J. Michael Heil, chairman and chief executive officer of C-3D Digital. ``We were extremely pleased with the overwhelmingly positive response we received from cable providers at the Western Cable Show in December.'
Heil continued, ``We are poised to continue our top-line growth trend. 3D.COM will create additional revenue streams through e-commerce, software sales, and the forthcoming launch of the world's first 3D virtual reality portal during the latter half of 2000. As C-3D Television Network gains momentum in the channel subscription market, gross profit margins should experience a healthy rebound in fiscal 2001.'
Condensed Balance Sheet
Dec. 31, 1999 March 31, 1999
Audited
ASSETS
Cash and receivables $1,242,687 $1,930,121
Total current assets $3,624,652 $5,244,233
Total assets $8,584,441 $9,683,716
LIABILITIES & STOCKHOLDERS' EQUITY
Total current liabilities $3,454,967 $1,436,526
Total liabilities $6,704,967 $4,626,526
Total stockholders' equity $1,879,474 $5,057,190
Condensed Statement of Operations (Unaudited)
For the For the For the For the
three three three three
months months months months
ended ended ended ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1999 1999 1999 1998
Revenues $1,035,292 $275,937 $2,644,47 $443,313
Cost of sales $2,071,819 $144,330 $2,653,873 $250,575
Gross profit (loss) $(1,036,527) $131,607 $(9,395) $192,738
Total expenses $1,967,940 $691,259 $6,709,758 $1,899,538
Net income (loss) $(3,179,096) $(568,128) $(6,990,687) $(1,881,350)
EPS (loss) - basic $(0.14) $(0.03) $(0.30) $(0.12)
Average no. of
shares out'ing 23,276,928 16,333,630 23,167,071 16,333,630
C-3D Digital is a leading innovator in the manufacture and development of 3D imagery and virtual reality entertainment for television and the Internet. The Company operates several synergistic divisions, including C-3D Television, the world's first and only broadcast network to offer 24-hour, 7 days a week 3D stereoscopic programming; 3D.COM, its Internet subsidiary and home to a forthcoming virtual reality/3-D portal/e-commerce community center on the Web; Strata Software, a leading producer of 3D graphic design software; and the Hotel Movie Network, a private broadcast network focused on the hospitality industry.
The Company's Strata and Internet division combined to form the world's first 3D virtual reality portal. The 3D.COM Virtual Reality Portal(tm) is set to launch in mid-2000 and will feature streaming video over the Internet, real-time online gaming and e-commerce solutions in stereoscopic 3D. For more information, visit www.3d.com.
This news release may contain forward-looking statements made pursuant to the ``safe harbor' provisions of the Private Securities Litigation Reform Act of 1995. While these statements are made to convey to the public the Company's progress, business opportunities and growth prospects, readers are cautioned that such forward-looking statements represent management's opinion. While management believes such representation to be true and accurate based on the information available to the Company, actual results may differ materially from those described. The Company's operations and business prospects are always subject to risk and uncertainties. Important factors that may cause actual results to differ are set forth in C-3D Digital's periodic filings with the U.S. Securities and Exchange Commission.
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