How about this one-->Hitsgalore Reports Dismal 3rd Quarter, Projects Robust Fourth
By Peter Lim
Published by OTCNN.com
11/16/2000 09:52 AM CST
The bad news for Hitsgalore.com, Inc. (OTCBB: HITT) is that third quarter revenues were way down. The good news is that the business-to-business Internet search engine expects the upcoming fourth quarter to be its best quarter of the year.
The company’s third quarter revenues, ending Sept. 30, amounted to a mere one hundredth of its revenues for the same period last year. In its SEC 10-Q filings, Hitsgalore reported that the company “had net revenues of $148,799 and $30,849 for the nine months and three months ended September 30, 2000, respectively, compared with $4,633,647 and $2,947,178, respectively, for the corresponding 1999 periods.”
A Hitsgalore representative declined an interview with OTCNN, saying company executives had to seek the advice of their legal counsel before speaking to reporters.
In a news release yesterday, the company attributed the dramatic decline to the costs of overhauling its Web site and business model, which leads to the good news; the overhaul was painful but necessary and apparently, thus far, successful measure taken by the company to accelerate growth and boost revenues. The company recorded 400 percent growth in its membership base during the first 10 days of introducing its newly designed Web site that features a Bid by Impression model and offers Rich Media Data Descriptions.
“We knew that revenues and earnings for the third quarter would reflect the cost of re-designing the web site and implementing the company’s new Bid by Impression model and Rich Media Data Descriptions” Hitsgalore CFO, Robert Thompson was quoted in the news release. “While costly, the new Web site and business model are expected to generate future revenues and profits far in excess of those reported thus far.”
Hitsgalore chairman and CEO, Dorian Reed added: “The overhaul of our Web site and business model was massive, and in a word was, arduous. We knew that we could not continue to sell what was to soon be an outdated product, and at the same time, it was almost impossible to sell products that were not ready. While Media Rich Data Description was generating a lot of excitement, it's the kind of product best sold when seen. Our 3rd quarter sales were down because these were the conditions and issues that we had to deal with.”
Having already increased its membership base from 4,000 to 12,000 in less than two weeks, the company further expects its membership to double in the next 10 days, and projects the large membership will attract, “more active sponsors to promote the company’s site.”
Hitsgalore’s good news apparently outweighed the bad on the OTCBB yesterday. The company’s stock rebounded from its 52-week low of $0.032 on Monday to close at $0.055 yesterday, up 41 percent after trading 1,823,100 shares, more than eight times its average volume. The company reports 48.8 million shares outstanding, 13.2 million of which are in float.
Headquartered in Rancho Cucamonga, CA, Hitsgalore.com has a business model of giving away free banners, lifetime banner placement, and other portal services. The company believes its business model compares favorably with other Internet portals and search engine companies. The company generates revenue from its Keyword Bid & Rank program, sponsorships of portal services. Hitsgalore.com is also the innovator of Bid by Impression and incorporating Media Rich Data Descriptions in its search engine result pages. Hitsgalore.com strives to provide porn-free searching and does not accept or encourage any porn or adult-content listings on its site.
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