News
Wareforce.com Reports 66% Net Sales Increase in 1999
Company Continues Transition to Technology Services and E-Business Solutions
LOS ANGELES--(BUSINESS WIRE)--April 12, 2000--Wareforce.com, Inc. (OTCBB:WFRC - news), a leading provider of information technology (IT) systems, technical services and e-commerce solutions, today announced results for the year ended December 31, 1999.
Revenue increased 66.8% to $148.3 million in 1999 from $88.9 million in 1998. Net sales increases for 1999 were primarily a result of the acquisitions of Kennsco in March 1999 and Impres Technology in September 1998. Net loss decreased from $3.2 million, or $0.38 per share in 1998, to $2.5 million, or $0.23 per share, in 1999. Start-up costs related to the development of uMember.com (OTCBB:UMEM - news) comprise $0.6 million of 1999's loss.
``We are seeing improvements in our financial performance,' stated Orie Rechtman, Wareforce.com Chairman and CEO, ``and we continue to make investments to grow our business. We are constantly expanding our offerings by building our systems and networking design, implementation and maintenance services capabilities. We are also investing in our e-business infrastructure to enhance connectivity with our business partners. On an operational basis, with 50% of our workforce now dedicated to higher margin technical services and e-commerce solutions, we believe our business plan positions us for further earnings improvements in 2000.'
About Wareforce.com
Wareforce.com, with headquarters in El Segundo, California, is a leading provider of IT systems, technical services and e-commerce solutions to government organizations, educational institutions, and small, middle-size and Fortune 1000 companies.
Wareforce.com has integrated its $2 billion virtual warehouse featuring 140,000 computer-related products with the Commerce One MarketSite(TM) Global Trading Portal, the U.S. portal for exchanging goods and services among businesses worldwide. This allows customers immediate access to one of the most comprehensive online inventories of IT products available today. Wareforce.com is committed to provide B2B e-commerce solutions using open industry standards. By adopting XML as the standard interface with internal ERP systems, Wareforce.com provides a complete, seamless integration with leading online procurement technologies. Wareforce.com is located on the World Wide Web at www.wareforce.com.
WAREFORCE.COM, INC.
SELECTED CONSOLIDATED FINANCIAL DATA
(in thousands, except per share data)
Year Ended December 31,
------------------------
1999 1998
Statement of Operations Data:
Consolidated
Net Sales $148,261 $88,895
Cost of Goods Sold 130,885 80,138
------- -------
Gross Profit 17,376 8,757
Selling, General & Administrative
Expenses 19,544 11,325
------- -------
Loss from Operations (2,168) (2,568)
Interest Expense (753) (692)
Interest Income 152 141
Other Income (Expense) 246 (842)
------- -------
Loss Before Taxes (2,523) (3,961)
Provision (Benefit) for Income Taxes 3 (771)
------- -------
Net Loss ($2,526) ($3,190)
======= =======
Net Loss Per Common Share ($0.23) ($0.38)
Shares used to compute basic and diluted
net loss per share 10,750 8,491
This news release contains 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. Such statements are subject to risks and uncertainties that could cause actual results to vary materially from those projected in the forward-looking statements. The Company may experience significant fluctuations in future operating results due to a number of economic, competitive and other factors, including, among other things, the size and timing of customer contracts, new or increased competition, changes in market demand, and seasonality of purchases of the Company's products and services. For the past several years, the Company has experienced net operating losses and may experience future net operating losses. These factors and others could cause operating results to vary significantly from those in prior periods, and those projected in forward-looking statements. Additional information with respect to these and other factors that could materially affect the Company and its operations are included on certain forms the Company files with the Securities and Exchange Commission. |
