Mike,
Well, it certainly seems as if you were onto something...
Maybe news on what's been happening earnings wise...
NET SHEPHERD ENDS 1999 IN STRONG POSITION - SUBSTANTIAL IMPROVEMENTS IN CASH POSITION AND STRATEGIC GROWTH
Wednesday, February 23, 2000, 2:21 PM EST
Calgary, Alberta --
Net Shepherd Inc. (CDNX: WEB) today announced their financial results for 1999.
"1999 was a very good year for Net Shepherd", said President & CEO Don Sandford in a statement released today. "We ended the year in much stronger financial position than we began it."
"Our cash and short-term investments now stands at $6.2 million (all figures are Canadian dollars), compared with only $369,000 at the end of 1998", continued Sandford. "Our assets have grown to $10.3 million from $2.6 million at the beginning of the year and shareholder equity stood at $9.6 million, growing from $2 million twelve months previously."
"Revenue for the year was $3.3 million as compared with $4.5 million the previous year. Most of the change is attributable to our traditional systems integration business, which is transitioning into an Internet business strategy consultancy and solutions implementation operation. We have formed a company that will be managed independently of Net Shepherd as a standalone business", explained Sandford. "What is important is that the revenue from the work done by our Community and core proprietary technology - the Internet Community Management System ("ICMS") - accounts for an increasing proportion of our revenues and grew to 55% of Net Shepherd's revenues in 1999. This is where the long-term future value of Net Shepherd lies. The loss of $5.0 million in 1999 vs a profit of $25,000 in 1998 is the result of the significant investment that Net Shepherd made in "ICMS" and the establishment of high value applications companies (AppCos), such as Answers.com and K Pulse.com."
"We are realising increased value for our shareholders though these AppCos," continued Sandford. "These are US-based companies that we have set up, and will continue too establish and acquire. Each AppCo is licensed to sell particular applications of our technology in specific markets. Each of them has the potential of annual business-to-business sales of over US $50 million. They are offering paradigm-breaking services in terms of speed, cost and quality and we plan to take each of them to an IPO. We are attracting very high quality people to these AppCos. For example, the President of Answers.com is Mike Morrison, the founder of HomePage.com. Kpulse.com is headed up by Dave Herman, who joined us from Dun & Bradstreet, where he was Partner for Global Business Development."
"Our experience in 1999 coupled with strong market demand clearly points to the need for additional software development resources to speed up the pace at which we can bring our technology to market. We also need capital for development and for funding the AppCos' go-to-market strategies. The proposed Enhanced Business Transactions with ClickChoice and the Vanenburg Group, announced on November 29, 1999 (and expected to close on March 21, 2000) will meet these needs and will bring a number of additional benefits", continued Sandford. "In total, they will:
1. Dramatically change our delivery capability, providing access to capital and proven software development resources in India that will enable us to bring products to market much faster.
2. Provide capital for the go-to-market strategies of the AppCos in the US marketplace.
3. Increase revenue generation through new business opportunities with other Vanenburg Group companies.
4. Repatriate our core technology under one corporate roof, removing restrictions on use.
5. Give us an increased US presence through business operations in high tech regions.
6. Bring an association with the Vanenburg group of companies around the world, which will enhance our ability to raise new capital and to forge new relationships with tier one financiers and a wide range of business and technology partners, such as Web-enabled ERP software.
7. Enable us to combine Net Shepherd's Business Intelligence and ClickChoice's Consumer Intelligence offerings and launch them quickly into the marketplace using ClickChoice's established personnel.
8. Bring organisational efficiencies in the areas of project management, marketing, sales, operations and senior management.
9. Provide additional injections of new capital in the future.
"These Enhanced Business Transactions will take Net Shepherd to the next level", said Sandford. "I believe that they will enable our technology to become industrial strength and to be delivered quickly into the market; to adequately fund the launch of our AppCos and achieve our 2000 revenue forecast of C$20 million."
"I welcome the chance to talk to our shareholders about our commercial results, the Enhanced Business Transactions and other matters", concluded Sandford. "We have therefore arranged a Net Shepherd Investor Forum teleconference at 2.30 pm Calgary time on Thursday the 24th of February. Shareholders and analysts will be able to join in this by calling 1 800 273 9672. They will also be able to listen in to the call via our website. I hope that people will be able to join us."
A full set of financial figures is being mailed to shareholders. The information is also available on the Net Shepherd website.
Background Notes:
Net Shepherd Inc (NSI) has proprietary technology and know-how that allows businesses to collect information and perform work by using communities of people connected to the Internet. NSI commercializes its technology and know-how primarily through subsidiary application companies (AppCos). The AppCos serve business customers with information services that represent significant speed and cost advantages over competitive solutions. NSI's business plan is to acquire and develop AppCos that leverage its technology platform and then spin-off the AppCos through public financial markets. NSI currently supports three AppCos: Answers.com, K Topia.com and ClickChoice2000.com.
e-newsservices.com
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Denise. |
