Planet City Status as of 04/07/2000:
Regarding our efforts to become a Fully Reporting company:
On March 9, 2000, Planet City's stock symbol was removed from the OTC Bulletin Board system because we were delinquent in filing our audited financials. The delinquency was caused by insufficient data from an inactive subsidiary in Montreal. We have since remedied that problem by returning the subsidiary to private ownership. (see Press Release of 03/07/00). The auditors have modified the financial statements to account for the effect of unwinding the acquisition of that subsidiary.
According to the auditors, preparation of our 1999 financial statements was completed as of 3/23/00. The unwinding of the acquisition required the prior year's (1998) audited financials to be restated by our current auditors. The restated '98 financials are going through a final review by the firm that originally audited them. They have to sign off on the restated numbers. Delivery of the complete set of current '99 financials and restated '98 financials to our lawyers is expected next week. The lawyers will then combine them with the rest of the Form 10-SB information that has been ready for several months, and then electronically file the entire report with the SEC. It will then be up to the SEC to review the filing and ask for more information, or provide a "no comment" letter. After we receive that letter, we can apply for relisting on the OTC Bulletin Board.
Until we are relisted, Planet City will be trading on the "Pink Sheets". Some of the free online quote systems are not licensed to provide stock prices for issues on the Pink Sheets. To get a quote, you may enter "PINC" in the quote box at either of the following sites, among others:
cnbc.com
bloomberg.com
Planet City Software, Inc.'s Web Services Division and Software Services Division are profitable on a month-to-month basis. The Software Sales Division is not yet profitable. We're working on correcting that situation.
Computer Associates delayed their Regional User's Group meeting from late March until sometime in the second quarter. This is disappointing because we had hoped to make some good prospect contacts at that meeting to help jump start our CA resellers' program. We attended a "Build Better Business" conference (www.b3conference.com), and will be attending other conferences that provide similar networking opportunities.
Prospects for ISPW product and services contracts are postponing their purchase decisions until an upgraded version is released by Benchmark Technologies this Summer. The new version is already in Beta Test at three sites, including a large European bank.
Two joint venture possibilities that I was investigating have been tabled for the time being. The up-front cash requirement for one of the ventures was too steep for our current situation, and a negative cash flow for the first several months of startup activities made both the ventures too expensive for us currently.
We continue to review acquisition candidates for a proper fit. There are some very interesting companies out there looking to be acquired. We have a non-disclosure agreement in place with one that looks promising, and I am conducting some in depth analysis.
We are making progress in our efforts to enter the Wireless Personal Digital Assistant (WPDA) marketplace. A partnership with a wireless service provider will be announced at a time appropriate for their business. They will be providing wireless access to applications, and we will be developing the applications for their clients as well as ours. We have also been subcontracted by a separate software services provider to develop a Palm VII version of their clients' applications. And, we are pursuing a project with a financial services firm for which we would provide wireless applications.
We are continuing with our development efforts to produce a base system for future use in the Application Service Provider (ASP) marketplace. In a related activity, we are negotiating with multiple Internet Service Providers (ISPs) to provide the hardware and network access facilities to support our web based applications, as well as share business leads for web site development.
Our Web Services Division manager, Bill Ulrich, was recruited away from us by an established privately held agency which provides web marketing services for Fortune 500 companies. Although we will be losing Bill as a Planet City Software employee, we will not be losing his vision for graphics and web site design. We are working out a partnership arrangement with his new company, where they will provide us web site design services and we will provide them software development services. Planet City will still have access to Bill's creative talents, and have additional opportunities to service a larger client base. We will be searching for a qualified replacement for Bill to manage and grow our Web Services Division. Bill has agreed to assist us through a transition period.
A disclaimer statement follows my sign off.
Regards,
Terry E. Dennis, President & CEO
Planet City Corp (OTC: PINC)
Certain of the statements contained herein which are not historical facts are forward-looking statements with respect to events, the occurrence of which involve risks and uncertainties. Any such forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. In addition to the general difficulties inherent in forecasting future operating results, particularly in a rapidly changing global economy, other factors can affect performance. Those factors include, but are not limited to, competitive forces, fluctuations in operating results, reliance on industry standards, dependence on new products, risks associated with acquisitions, intellectual property protection and disputes, economic fluctuations, staff turnover, and naturally occurring phenomena. |
