itemus Posts Solid Second Quarter Results
Internet Operating Company builds revenue, investment potential
TORONTO, Aug. 23, 2000 - itemus inc. (TSE: ITM, OTCBB: ITMUF), today announced its consolidated
results for the second quarter ended June 30, 2000. The financial figures in this release are reported in
US dollars, in accordance with Canadian GAAP.
For the three months ended June 30, 2000, revenue was $0.3 million, up from $0.1 million for the first
quarter. The loss from continuing operations was $2.3 million ($0.01 per share) for the second
quarter, compared to $1.4 million ($0.01 per share) for the previous quarter. The total net loss, after
adjustments for discontinued operations, was $2.2 million for Q2 2000, compared to $20.0 million for
Q1 2000. itemus launched in mid-February.
"Our performance reflects a solid second quarter in line with our continued steady build-out, which is
likely to continue for two more quarters,” said itemus President and CEO Jim Tobin. “We believe we can
produce self-sustaining results in 2001 as an Internet Operating Company."
The second quarter saw the launch of itemus’ service units, with the appointment of Jim Burns as
itemus Solutions’ chief executive and Chris Scatliff as head of itemus’ Business Acceleration unit . Mr.
Burns is a former Chief Information Officer of Goldman Sachs and Chief Operating Officer of SHL
Systemhouse. Mr. Scatliff is former President and Chief Executive Officer of UUNet Canada.
Mr. Tobin added: "These service launches provided additional resources to manage investments,
important for pursuing the more attractive valuations available now given stock market corrections,
and the better quality deal flow we are seeing as itemus’ Internet Operating Company model gains
acceptance in the venture community."
In the second quarter, itemus invested more than $35 million in cash and common shares for two
acquisitions and 10 minority stakes. itemus filed its final prospectus for the Company’s March financing
on August 21st. Its balance sheet remains strong, with $18 million cash on hand as of August 15,
2000 on top of the approximately $50 million of investments booked to date. Additional information
and commentary on these results is available in the Q2 Letter to Shareholders, available online at
www.itemus.com.
Q2 call and Webcast
itemus will host a conference call and Webcast to discuss the Q2 report, beginning today at 4:15 p.m.
EASTERN (1:15 p.m. PACIFIC). Investors can listen to the Webcast through www.itemus.com, using
Windows Media Player or Real Audio software. Those who wish to ask questions during the call should
dial 1-800-478-9326 or 416-695-5801 from Toronto or overseas. Participants should then ask to be
connected to the "itemus conference call."
About itemus
itemus inc. is an Internet Operating Company that seeks to create value for shareholders by building
and investing in companies with leading applications and revolutionary business models for the
Internet. The company operates through wholly-owned itemus Solutions, providing services and
applications in the areas of security, network infrastructure, application management and rich media.
itemus inc. also focuses on identifying and investing in promising
Internet technology and content companies. itemus is positioned as a value-add investor, offering
ideaPARK R&D Environments and Acceleration Services to its investee companies in order to accelerate
their growth and development. For more information, please visit the company's Web site at
www.itemus.com
Some of the above statements are forward-looking and may involve risks and uncertainties,
including, without limitation, changes in market and competition, technological and competitive
developments, and potential downturns in economic conditions generally. Additional information on
these and other potential factors that could affect the company's financial results are included in
documents filed with the Ontario Securities Commission, and with the Securities and Exchange
Commission.
For further information: investors should contact Susan Wilson, Investor Relations, toll free at
1-888-894-9911 or by email at investors@itemus.com; Media should contact Mark Blanchard,
Counsellor, Cohn & Wolfe at (416) 924-5700 x. 4052, or by email at:
mark_blanchard@ca.cohnwolfe.com. |
