Monday February 28, 8:17 am Eastern Time
Company Press Release
Nettaxi.com Reports Record Revenues of $2.1 Million Revenues
Increase 86 Percent Over Third Quarter
CAMPBELL, Calif.--(BUSINESS WIRE)--Feb. 28, 2000--Nettaxi.com (NASDAQ OTC BB: NTXY - news), a community and portal Web site with more than 122 million page views and over 1.6 million unique visitors per month, today released financial results for the fourth quarter ended December 31, 1999.
Revenues for the fourth quarter of 1999 were approximately $2.1 million, compared to $145,000 for the fourth quarter in 1998. This fourteen-fold year-over-year increase was attributable to a significant increase in both advertising and website hosting revenues. The net loss for the fourth quarter of 1999 was $3.1 million, or ($0.14) per share, compared to a net loss of $1.2 million, or ($0.06) per share for the fourth quarter of 1998. Shares used in computing basic and diluted loss per share during the fourth quarter of 1999 were 21.7 million compared to 21.1 million during the fourth quarter of 1998.
Revenues for the year ended December 31, 1999 were $5.0 million, compared to $258,000 for the year ended December 31,1998. Revenues for the year ended December 31, 1999, also included credit card transaction processing fees derived from a contract assumed as a result of the merger with Plus Net, Inc. in May 1999, as well as website hosting fees. The net loss for the year ended December 31, 1999 was $9.9 million, or ($0.46) per share, compared to a loss of $3.1 million, or ($0.20) per share, in 1998. Shares used in computing basic and diluted earnings per share during 1999 were 21.3 million compared to 15.5 million during 1998.
``We are very pleased with our fourth quarter revenue performance and growth over the previous quarter,' said Robert Rositano Jr., Chief Executive Officer, Nettaxi.com. ``It is critical to our success that we continue to expand our content, community and commerce partnerships that enhance our citizens' opportunities at Nettaxi.com, while at the same time more efficiently monetizing our traffic and enhancing shareholder value.'
During the fourth quarter, Nettaxi.com expanded its content and service offerings to its citizens by entering relationships with Spinway.com, which now provides Nettaxi.com citizens free monthly internet access; SurfMonkey.com, with whom we launched a comprehensive kids channel and safety navigation bar; StateConnect.com, which brings a wider range of local content to our citizens; and CareerShop.com, which allows our citizens to search and apply for jobs online.
In November, Nettaxi.com announced a relationship with Solutions Media, Inc.'s (SMI) SpinRecords.com, the leading source for independent music online. Nettaxi.com will integrate its popular Internet tools such as Web-based e-mail, a co-developed fan page builder, its unique collaborative search engine, its proprietary MP3 player, and a unique, beginner-oriented interactive CD-ROM that ``drives' the user around the web, to build a community around the SpinRecords.com independent artists content.
In addition, Nettaxi.com strengthened its management team by hiring Robert Speicher as Executive Vice President of Sales and Marketing. ``We are very excited to bring Bob aboard,' said Robert Rositano, Jr., CEO, Nettaxi.com ``He brings a wealth of experience to Nettaxi and we are pleased to welcome him to our Executive Team. He will play an integral role in helping the company continue to grow.'
About Nettaxi.com
Nettaxi.com, with headquarters in Campbell, Calif., is a developer of commerce-enabled and content-rich communities that offer its citizens a place to build their `home' or business on the Internet. Through its Web site at www.nettaxi.com and its interactive CD-ROM product ``Nettaxi.com The Experience.' Nettaxi.com provides access to news, entertainment, sports, financial, and travel information and services such as free e-mail, personal home pages, chat and messages. In December, Go2Net's 100Hot list ranked Nettaxi.com as the 13th most popular site on the entire Internet.
Safe Harbor Statement
The matters discussed in this news release contain forward-looking statements that are subject to various risks, uncertainties and other factors that could cause actual results to vary materially from the results anticipated in such forward-looking statements. Such risks, uncertainties and other factors include competition, the management of Nettaxi.com's growth, the ability to deliver new products to market on time. Nettaxi.com's limited operating history, significant losses incurred since inception, expected losses for the foreseeable future, the fact that our revenue growth in prior periods is not indicative of future growth, the inability to accurately predict our future revenues and other risks detailed from time to time in Nettaxi.com's filings with the Securities and Exchange Commission. These forward-looking statements represent Nettaxi.com's judgment as of the date of this release. Nettaxi.com disclaims any intent or obligation to update these forward-looking statements. |
