Ashton 10Q
Ashton Technology Reports Year-End Financial Results
PHILADELPHIA--(BUSINESS WIRE)--June 7, 2000--The Ashton Technology Group, Inc. (NASDAQ: ASTN) today announced net income for the fourth quarter of its fiscal year ended March 31, 2000 totaled $123,608 compared to a net loss of $3,098,715 in the same quarter of its prior fiscal year. For the year ended March 31, 2000, the net loss applicable to common stock totaled $7,947,480, or $0.32 per common share, compared to $19,693,644, or $1.80 per share, for 1999.
During the third quarter ended December 31, 1999 Gomez Advisors, Inc. completed two closings of Series C Preferred Stock sale. The sale of preferred stock by Gomez Advisors reduced Ashton's ownership percentage in Gomez Advisors to below 50%.
As a result, Ashton began accounting for its remaining investment in Gomez Advisors under the equity method of accounting rather than the consolidation method as of December 31, 1999. Ashton recorded a gain of $5,568,475 due to the change in accounting for its investment in Gomez Advisors. Ashton also realized a gain of $2,550,000 during the fourth quarter on the redemption of 500 shares of its Series A Preferred Stock by Gomez Advisors.
Ashton's volume-weighted average price trading system
("eVWAP(TM)"), which was launched as a facility of the Philadelphia Stock Exchange in August 1999, currently enables users to trade in 50 of the most highly capitalized stocks listed on the New York Stock Exchange. Ashton is continuing to enter into key client relationships which are expected to produce the majority of the system's volume and to negotiate partnerships with vendors of trading order management systems to allow users additional flexibility to route orders directly to the eVWAP trading system.
Arthur J. Bacci, Ashton's President and Chief Operating Officer said, "We believe we have made significant progress during 1999 to reduce the company's expenses while investing in the development of new products, services and our affiliated companies. We are well positioned for the upcoming year with approximately $25 million of cash and securities. We fully expect our financial results next year to reflect strong revenue growth from our intelligent matching systems."
The Ashton Technology Group is an evolving network of affiliated companies that develop and market technology-based products and services to enable businesses and consumers to execute better-informed transactions within global electronic marketplaces. Ashton utilizes advanced telecommunication, computing, data and information security, and Internet technologies, to develop electronic transaction and distribution systems and products for the global financial services industry.
The forgoing press release contains forward-looking statements based on current management expectations. A variety of important factors could cause results to differ materially from such statements. Factors that could cause actual results to differ from current expectations include the Company's ability to achieve expected future levels of revenue; dependence on proprietary technology; ability to successfully deploy Ashton's volume-weighted average price trading system ("eVWAP(TM)"); technological changes and costs of technology; industry trends; and competition. These and other risks are described in greater detail in the Company's filings with the Securities and Exchange Commission including those on forms 10-KSB and 10-Q.
THE ASHTON TECHNOLOGY GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED SELECTED FINANCIAL DATA
For the Year Ended March 31, 2000
Year Ended March 31,
----------------------------------
2000 1999
--------------- ----------------
Revenues $3,869,084 $1,434,438
Loss from operations (15,193,112) (14,597,526)
Other income (expense) (416,632) 133,222
Gain on deconsolidation
of Gomez 5,568,475 -
Gain on redemption of
Gomez preferred stock 2,550,000 -
--------------- ----------------
Net loss from continuing
operations (6,231,648) (14,317,488)
Net loss applicable to
common stock $(7,947,480) $(19,693,644)
=============== ================
Net loss per common share from
continuing operations $ (0.32) $ (1.80)
Net loss per common share from
discontinued operations $ - $ -
--------------- ----------------
Net loss per common share $ (0.32) $ (1.80)
=============== ================
Weighted average number of
common shares outstanding 24,929,977 10,953,818
=============== ================
March 31,
----------------------------------
2000 1999
--------------- ----------------
Cash and cash equivalents $15,365,439 $2,667,347
Securities available-for-sale 9,906,220 -
Total assets 31,023,911 5,653,737
Total liabilities 861,304 1,208,759
Minority interest 5,000,000 -
Total stockholders' equity 25,162,607 4,444,978
CONTACT:
Ashton Technology Group, Inc.
Ashton Investor Relations Contact
Fraser P. Seitel, 201/784-8880
Telefax: 201/784-1446.
www.ashtontechgroup.com.
KEYWORD: PENNSYLVANIA
BW1261 JUN 07,2000
6:17 PACIFIC
9:17 EASTERN |
