First Ecom Reports Cash Reserves of US$ 40 Million
HONG KONG, Aug 9, 2000 (BUSINESS WIRE) --
Substantial Cash Reserves Will Enable Company to Maintain Aggressive
Roll-Out Plans for Global E-Payment Infrastructure Resulting in
Long Term Growth and Profitability
First Ecom.com (Nasdaq:FECC, BSX:FECC, FECC BH), a global provider of electronic
payment processing solutions, today announced that its current cash reserves
stand at approximately US$ 40 million. Management anticipates these reserves
will be sufficient to take the Company to the point where recurring revenue
becomes sufficient to support ongoing operations.
"Over the last few weeks we have received a growing number of inquiries from
shareholders and other interested parties as to the financial state of the
Company," said Harold Hutton, President and Chief Executive Officer of First
Ecom. "We believe that these inquiries and concerns are based on the growing
number of deferred or cancelled equity financings affecting Internet oriented
companies, and the speculation as to which companies will run out of cash before
they reach profitable levels of operations. While our 10Q filing for the quarter
ended June 30, 2000 is expected to be filed imminently, we thought we should
comment on our current financial position in light of general market concerns
and the number of inquiries we have been receiving."
"Our cash position of US$ 40 million is strong. We have a current operating loss
of approximately $ 850,000 per month and believe our cash reserves are more than
sufficient for First Ecom to reach levels of revenue that will at least sustain
ongoing operations," added Mr. Hutton.
About First Ecom.com
As a global provider of electronic payment processing, First Ecom.com provides
secure, easy-to-implement and low-cost online payment processing services to
banks and their merchants worldwide. Through strategic partnerships with banks,
ISPs, e-commerce product suppliers, system integrators and storefront solution
providers, First Ecom.com will process credit card transactions made over the
Internet in multiple currencies, either domestically or offshore in a
tax-neutral jurisdiction.
For more information, visit firstecom.com or contact First Ecom.com
at +(852) 2801-5181 or by e-mail at info@firstecom.com.
Certain statements contained herein are "forward-looking" statements (as such
term is defined in the Private Securities Reform Act of 1995). Because such
statements include risks and uncertainties, actual results may differ materially
from those expressed or implied by such forward-looking statements.
CONTACT: Davis.Comm, Inc. (for First Ecom.com)
Jeff Davis or Kevin Manniko, 415/837-3939
jdavis@daviscomm.com
kmanniko@daviscomm.com
or
Investor Relations, 888/305-8233
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KEYWORD: INTERNATIONAL ASIA PACIFIC
INDUSTRY KEYWORD: INTERNET
BANKING
E-COMMERCE
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