Friday March 10, 1:53 pm Eastern Time
Company Press Release
E-Sync Networks, Inc. 4th Quarter 1999 Revenues Increase 23%
TRUMBULL, Conn.--(BUSINESS WIRE)--March 10, 2000--E-Sync Networks, Inc. (OTCBB:ESNI - news; www.e-syncnet.com), a leading global provider of managed e-business-to-business applications and services, today announced results for the fourth quarter and year ended December 31, 1999.
Last year, the Company changed its fiscal year end from October 31 to December 31. Therefore, the following prior-year comparisons are to the twelve months ended December 31, 1998 and not to the twelve months ended October 31, 1998.
Revenue for the fourth quarter of 1999 increased 23% to $2.3 million, from $1.9 million in the fourth quarter of 1998. Professional Services revenue increased 41% from $0.9 million in the fourth quarter of 1998 to $1.2 million in the fourth quarter of 1999. Managed Services revenue increased 7% from $1.0 million in the fourth quarter of 1998 to $1.1 million in the fourth quarter of 1999. The Company recorded a net loss of $2.7 million, or ($0.43) per share, for the fourth quarter of 1999, compared to net earnings of $68,600, or $0.02 per share, on a diluted basis, for the same period last year.
For the year ended December 31, 1999, revenue was $7.5 million, which is slightly lower than 1998. The Company recorded a net loss for 1999 of approximately $7.2 million, or ($1.51) per share, compared to net earnings of $0.2 million, or $0.06 per share, on a diluted basis, for 1998. Professional Services revenue grew to $3.9 million in 1999, 21% higher than 1998 revenue of $3.2 million. P. Managed Services revenue declined 17% to $3.6 million in 1999 from $4.3 million in 1998.
``We are successfully executing our strategy to develop TotalChain, our secure, open web platform for end-to-end B2B e-commerce and supply chain management,' states Jonathan Rubin, CEO of E-Sync Networks. ``Although our total revenue is down slightly for the year, we continue to grow the businesses that are within our strategic focus. The losses for 1999 reflect development and infrastructure costs related to the continuing effort to launch TotalChain, which is proceeding according to plan.'
About E-Sync Networks, Inc.
Headquartered in Trumbull, Conn., with offices in New York and the U.K., E-Sync Networks, Inc. (OTCBB:ESNI - news) offers leading web-based e-business applications, web supply chain expertise, IT support and high-performance hosting capabilities to link business partners on the Internet. E-Sync Networks has an extensive corporate client base, including Briggs & Stratton, Ford(TM), Instinet, IVANS, Johnson & Johnson, Pepsi(TM), Ralston Purina, Traveler's Insurance, and USABancShares.com. The company's largest shareholder is New York-based venture fund Commercial Electronics Capital Partnership, LP (CECAP). CECAP (www.cellc.com) is an exclusive partner of TRW, Inc. (NYSE:TRW - news) established solely to create independent businesses founded on TRW technologies in markets outside of TRW's strategic interests. More information can be found on the Internet at www.e-syncnet.com.
Certain of the above statements contained in this press release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the ``Exchange Act'). Actual results, events, and circumstances (including future performance, results, and trends) could differ materially from those set forth in such statements due to various factors, risks, and uncertainties, including, but not limited to, risks associated with the Company's future growth and operating results, the uncertainty of market acceptance of the Company's products, technological change, competitive factors, and general economic conditions. Except as otherwise required to be disclosed in periodic reports required to be filed by companies registered under the Exchange Act by rules of the Securities and Exchange Commission, the Company has no duty and undertakes no obligation to update such statements.
E-SYNC NETWORKS, INC.
Consolidated Statements of Operations
($000 except per share information)
Twelve Months Ended
-------------------
Dec. 31, 1999 Dec. 31, 1998 Oct. 31, 1998
------------- (Unaudited)(a) -------------
--------------
Revenue $7,490 $7,556 $7,584
Cost of services 6,736 4,594 4,637
Operating expenses 7,826 2,664 2,592
Other expenses, net 97 -- --
Interest (income)
expense, net (6) 53 48
Net earnings (loss) $(7,163) $245 $307
Earnings (loss) per share:
Basic $(1.51) $.06 $.08
Diluted $(1.51) $.06 $.07
Weighted average number of shares
used in per share calculation:
Basic 4,752,629 3,863,042 3,838,083
Diluted 4,752,629 4,141,961 4,140,364
(a) Reflects the combination of the results of operations for the
last ten months of the fiscal year ended October 31, 1998 with the
results of operations for the two months ended December 31, 1998.
Three Months Ended
------------------
Dec. 31, 1999 Dec. 31, 1998 Oct. 31, 1998
------------- (Unaudited)(b) -------------
-------------
Revenue $2,334 $1,898 $1,918
Cost of services 2,334 1,095 1,074
Operating expenses 2,684 724 728
Other expenses, net (8) -- --
Interest (income)
expense, net (5) 10 10
Net earnings (loss) $(2,671) $69 $106
Earnings (loss) per share:
Basic $(.43) $.02 $.03
Diluted $(.43) $.02 $.03
Weighted average number of shares
used in per share calculation:
Basic 6,175,927 3,892,128 3,850,617
Diluted 6,175,927 4,099,169 4,063,979
(b) Reflects the combination of the results of operations for the
last month of the fiscal year ended October 31, 1998 with the results
of operations for the two months ended December 31, 1998.
Summary Consolidated Balance Sheet
($000)
Dec. 31, 1999 Dec. 31, 1998 Oct. 31, 1998
(Unaudited)
Total Assets $17,001 $2,731 $2,745
Stockholders' Equity $12,913 $1,444 $1,451
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Contact:
E-Sync Networks, Inc.
Frank Connolly, 203/601-3000
fconnolly@e-syncnet.com
or
Kay Waxman, 888/224-3673
kwaxman@e-syncnet.com |
