"IMHO, many of ZSUN’s press releases were designed to stretch the truth and mislead the readers. Let us revisit the 1999 EPS announcement made on March 27, 2000: "
By: frisky $$$
Reply To: None Sunday, 2 Jul 2000 at 7:18 PM EDT
Post # of 23397
IMHO, many of ZSUN’s press releases were designed to stretch the truth and mislead the readers. Let us revisit the 1999 EPS announcement made on March 27, 2000:
ZiaSun Reports Record Net Sales, Earnings and Profits for 1999
Record Sales of $27 Million in Fiscal 1999 with over $10 Million in Earnings and $0.49 EPS EBIT;
1999 Sales Increased 35 Times Over Fiscal 1998
SOLANA BEACH, Calif. --(BUSINESS WIRE)-- March 27, 2000-- ZiaSun Technologies Inc. (OTC BB: ZSUN.OB - news) (www.ziasun.com), a profitable Internet-technology holding company, today reported exceptional 1999 audited financial results.
ZiaSun's net sales for fiscal 1999 increased more than 35 times to $27,220,240 from $769,320 in fiscal 1998 with very substantial fiscal 1999 EBIT earnings of $10,681,207, which provided a tenfold increase of $0.49 per share EBIT for ZiaSun's shareholders of record, compared to $0.045 per share EBIT for fiscal 1998.Plus, total year-end assets were $20,242,896 of which $11,651,307 is cash assets. ZiaSun's condensed, consolidated financial statements will be posted on its Web site (www.ziasun.com) in the near future.
In addition, Year-to-date, first-quarter performance is exceeding expectations at all of the company's subsidiaries, and ZiaSun expects to announce some new strategic business relationships in the near future, which will further bolster its objective to achieve yet another record-breaking performance for fiscal 2000.
``Everyone involved with ZiaSun has worked very hard to achieve this tremendous year-over-year growth for the company, and we want to thank all the ZiaSun shareholders for their commitment to the company,'' said Chairman D. Scott Elder. ``We expect to continue improving performance throughout 2000 so we can preserve and further increase the shareholder's equity,'' Elder added.
``The company's business model to selectively acquire, develop and sell or hold new entities as appropriate has already demonstrated its validity as a major contributor to corporate revenue with positive earnings. Given this, management will continue targeting acquisition candidates, who can add positive value to ZiaSun's operating strategy and growth objectives, and help maximize shareholder returns,'' Elder commented.
…
Comment:
(1) ZSUN did not indicate that sale of 1998 was revised from $2,289,158 to $769,320. They revised down the figure then used the lower figure to BS tenfold increase.
(2) ZSUN did not indicate that 85% of revenues in 1999 was from OIA. They tried to compare an apple with an orange.
(3) The .49 EBIT was obtained by dividing $10,681,207/21,769,583. The denominator was the weighted-average outstanding shares of common stock for basic EPS. The contingent shares to be issued to former OIA shareholders were completely ignored. According to 10sb version 7, we knew that ZSUN had 22,205,018 shares outstanding as of December 31, 1999. We later found out that the total contingent shares for former OIA shareholders were 21,820,125 as of 3/31/2000. ZSUN used the weight of ¾ of 1,150,000, the real shares issued to former OIA share holders on 3/31/99, for calculating the weighted-average outstanding shares for EBIT. First, no sane person would use EBIT to value a company in Wall Street. Second, the contingent shares for the sole profit and the major revenue contributor were excluded.
(4) ZSUN did not indicate that half of the EBIT or $4,778,596 was from the sale of Asia4sale.com Ltd. to Taiwanese suckers. Another $584,980 EBIT was from owning and trading of BB shares that they exchanged with its related parties in 1998. Those were non-recurring items
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