"EZENET ANNOUNCES RECORD YEAR END RESULTS
Revenues Increased by 37% and Cash Flow by 50%"
_____________
Press release:
ezenet.net
------------------------------
EZENET ANNOUNCES RECORD YEAR END RESULTS
Revenues Increased by 37% and Cash Flow by 50%
TORONTO, ONTARIO (May 1, 2000) - EZENET CORP, (CDNX: EZE) a leading software and IT provider to Financial Institutions today announced record results for the year ended December 31, 1999. EZENET generated revenues of $3.2 million, an increase of 37% over the previous year's results, while cash flow from operations reached $926,000 ($0.09 per share), an increase of 50% over the prior year. Net earnings after taxes were $262,000 or $0.04 per share, after writing off $180,000 in R & D expenses.
In its first year as a publicly traded company, EZENET continued to build on its profitable business model. During fiscal year 1999, EZENET added new clients in the financial services sector, expanded its services to existing clientele, completed integration to IBM RISC 6000 processors, and enhanced its already comprehensive list of software solutions. Additionally, EZENET successfully launched InstaBase, a unique and powerful Internet software program, for which it established worldwide contacts and distribution channels. During the last quarter of the year, EZENET commenced the expansion of its banking services with significant additions of research and development employees as well as the purchase of equipment necessary to support this effort.
"We are particularly pleased to report that we have now delivered three straight years of record revenue growth, as we continue to expand our already profitable business model. During the 1999 fiscal year, EZENET invested heavily in Research and Development with internally generated funds and funds from the private placement of Common Shares completed early in 1999. In 1999 our aggressive investments in Research and Development, particularly those in the fourth quarter, positions EZENET for significant growth which culminated with the raising of $50 million in Special Warrant financing in March 2000," stated Haron Ezer, EZENET's Chairman and CEO. EZENET will utilize these proceeds to develop front-end wireless solutions for banks and financial services companies that complement Ezenet's existing back end infrastructure, for development of enhanced security software, for marketing and sales force expansion into the United States; and to develop Linux Financial applications.
Mr Ezer continued "EZENET is now well prepared for significant growth and expansion in all facets of our business. Our strategic development expenditures in 1999, combined with our strong management team, and the addition of new financing, will enable the company to further strengthen its position as a technological leader for the financial services industry as we enhance our financial solutions across wireless and Internet technologies. EZENET has already begun this expansion by initiating our U.S. expansion, furthering our development, and hiring key employees. EZENET will continue to move rapidly forge ahead and continue our growth as we take our innovative solutions and generate new revenue streams and enhance shareholder value."
FINANCIAL HIGHLIGHTS
Details Year Ended 31/12/1998 Audited Year Ended 31/12/1999 Audited
Revenues $2,345,708 $3,206,448
Net Earn. A/Taxes $278,544 $261,734
Earnings Per Share 9.0 cents 4.0 cents
Cash Flow/Share 10.0 cents 14.0 cents
Net Income/Sales 11.9% 8.2%
The full financial results are available on the SEDAR web site at www.sedar.com and on the company's web site at www.ezenet.com.
Ezenet's fourth quarter of 1999 was heavily influenced by the company's decision to begin ramping up operations in anticipation of the planned expansion in 2000. Revenues for the 4th quarter of 1999 were $909,063 compared to $599,014 in 1998. Costs for the quarter were $1,098,678 compared with $693,143 in 1998. In the 4th quarter of 1999, the company instituted a policy of writing off Deferred R&D expenses for the first time and the charge in the 4th quarter was $181,400. The company will follow a policy of writing off all R&D expenses as incurred in the coming year. During the quarter, significant costs and resources were committed to the execution and testing of EZENET's hardware and software to ensure Y2K compliancy. The company added programming staff and infrastructure in both the Banking operations and in PC software development. These expenses were funded from internally generated cash flow. The company also began the process of obtaining new equity funding, for future expansion, which resulted in the closing of a Special Warrant offering of $50 million that closed on March 24, 2000.
On December 31, 1999, the company had cash on hand of $170,469, continuing our policy of maintaining a strong cash position from internally generated funds. Current Assets were $529, 272. Current liabilities were $140,401 at December 31, 1999. The Working Capital Ratio was 3.8:1. EZENET remained and continues to remain debt free. With the change of the company from a private to public company in 1999, the charge for future income taxes increased significantly over 1998.
About EZENET
Ezenet is a Toronto based Information Technology Company providing full service technology and software solutions for the financial and banking industry including online software, network services, full Internet capabilities and enhanced security. Ezenet's technology and software solutions are currently deployed in major financial institutions across Canada. Ezenet has many Canadian financial institutions as clients including some of Canada's largest banks and several of Canada's Trust and Insurance companies. Ezenet's software expertise also allowed for the development of InstaBase, a unique, powerful, yet simple Internet software program, which is currently in distribution worldwide.
For further information visit the Corporation's website at ezenet.com.
This press release is not intended for dissemination into the United States.
The Canadian Venture Exchange has neither approved nor disapproved the information contained herein.
For further information, contact:
Daniel Ezer,
VP Marketing, Ezenet Corp.
Phone: (416) 482 - 3037
Fax (416) 482 - 0707
E-Mail - daniel@ezenet.com
Internet - www.ezenet.com For Investor Relations information contact:
Gary Perkins
Phone: (905) 889 - 1711
Toll Free 1-800-225-2744
Fax: (905) 889 - 2511
E-Mail - investorrelations@ezenet.com
- 30 -
|
