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LEAP Business Editors CHICAGO--(BUSINESS WIRE)--March 13, 2000-- Internet Revenue Growth Climbs with 165% Increase for the Year Leapnet, Inc. (NASDAQ: LEAP), today reported results for its fiscal fourth quarter and twelv months ended January 31, 2000. For the quarter, revenues increased 12% to $9.1 million, compared to revenues of $8.1 million in the same period last year. The Company reported a net loss for the quarter of $1.3 million or $0.09 per share, compared to a net loss of $1.8 million or $0.13 per share in the same period last year. Internet revenue growth for the quarter increased 225% over the prior year's quarter and was driven by Quantum Leap Communications, Leapnet's Internet development and marketing company, and Eagle Technology Partners, Leapnet's e-business consulting and systems integration company. Internet revenue growth for the fiscal year increased 165% over the prior year. During the fiscal year ended January 31, 2000, Leapnet made a strategic decision to shift the focus of its business to Internet e-commerce from traditional advertising. For the fiscal year, revenues increased 1% to $36.3 million, compared to $35.9 million in the comparable year-ago period. The Company reported a net loss of $311,000 or $0.02 per share, compared to a net loss of $18.3 million, or $1.34 per share, for the year-ago period, which included a $16.8 million one-time write off of goodwill and a charge associated with establishing a reserve against a deferred tax asset reported earlier in that year. Frederick A. Smith, Leapnet Chairman and CEO, stated, "I am pleased that our Internet revenue growth of 165% exceeded our original goal of 100% Internet revenue growth for the year. We have been transforming our business throughout the year to focus on providing end-to-end Internet services and identified and addressed obstacles such as capitalization, facilities and, most importantly, bench strength. Given our commitment to growth, we made significant investments and I am pleased that we ended the year very close to break-even." At the end of the fiscal fourth quarter, Leapnet announced it had executed a definitive agreement to acquire SPR Inc. (NASDAQ: SPRI), a company that provides IT consulting and project based services focused on maximizing the value of existing systems, pending stockholder approval. |
