(BSNS WIRE) CBQ, Inc. Announces Strong Third Quarter Financial Results with
CBQ, Inc. Announces Strong Third Quarter Financial Results with Annualized
Revenues Increasing by 321%
Business Editors/Hi-Tech Writers
WASHINGTON--(BUSINESS WIRE)--Dec. 8, 2000--CBQ, Inc. (OTCBB:CBQI),
a leading provider of e-Business infrastructure solutions for
enterprises and evolving global trading networks, today reported
strong third quarter fiscal 2000 results powered by the expansion of
the company in the mid-Atlantic region as a result of the acquisition
of Quantum Technology Group. Adjusting for the acquisition by Quantum
of DPI Net Solutions in April 2000, the annualized revenue run rate
for CBQ is approximately $13 million.
For the three-month period ending on September 30, 2000, total
revenues from continuing operations increased to $2,754,167, from
$311,690 in the same quarter of the prior year, or by 784%. For the
nine-month period ending on September 30, 2000, total revenues from
continuing operations increased to $7,844,363, from $1,864,905 in the
same period of the prior year, or by 321%. There was a net loss from
overall continuing operations of CBQ, Inc. of $1,022,131 in the third
quarter of 2000, and the net loss from overall continuing operations
of CBQ, Inc. for the nine-month period ending on September 30, 2000,
was $1,772,080, or $.03 per share of common stock.
CBQ's losses resulted from the discontinued operations of Reliance
Technologies, Inc. and Tophernet Inc., two Dallas-based affiliates
that were eliminated in November 2000. Certain losses suffered by
Quantum Technology Group resulted from discontinued operations in the
electronics division, the insurance service division, and the retail
service and repair divisions, all of which were non-core businesses.
Quantum Technology Group, the core business continuing operations,
had income in the third quarter of 4% on an EBITDA basis. "We have now
completed the restructuring of CBQ for success," said Bart Fisher, CEO
and Chairman.
"CBQ, Inc. is a successful business with core competency in the
U.S. Information Technology infrastructure industry. We are extremely
pleased with the performance of CBQ, Inc. in the third quarter of
2000," said Fisher. "Not too many companies in the United States have
had an annual growth rate in their revenues by over 321% in the last
year. During the third quarter of 2000 CBQ restructured around its
focus on the company's core infrastructure business by discontinuing
unprofitable segments of the consolidated business. The addition of
Quantum Technology Group on August 8, 2000, the third largest
e-Business solutions provider in the Baltimore, Maryland area provided
much-needed management depth in software development and network
integration expertise. We are looking forward to a strong fourth
quarter," Fisher said. "What has been particularly encouraging has
been the evolution of CBQ, Inc. into a e-Business solutions provider
with a significant backlog of business even before we begin offering
software solutions and a trading portal from China," Fisher said.
"CBQ's business strategy is to leverage what we believe is our
sustainable competitive advantage in China which in turn will greatly
enhance the marketing of our software development expertise on an ever
broadening scale here in the US. This same competitive advantage will
also aid us in developing a world class Internet portal
(www.1stinchina.com) with which to offer access to goods and services
produced in China. It is our goal to be the business bridge to China
in the twenty-first century," Fisher said.
About CBQ, Inc.
CBQ, Inc. is a full service, end to end E-Business solution
provider. Through its subsidiaries, led by Quantum Technology Group,
Inc., CBQ provides custom web-based software, including web portal
design and development, networking services and security, as well as
many other web-based solutions. The company also provides information
technology outsourcing resources to its clients. For more information
on Quantum Technology Group, visit www.qnettech.com.
ChinaSoft, Inc. is a wholly owned subsidiary of CBQ, Inc. that is
a joint venture partner with CCSoft Technology Developing, Ltd.,
Beijing, China. Its services include Software Development for
Enterprise computing and Internet development. For more information
about CCSoft, visit www.ccsoft.com.
China Partners is a subsidiary that is developing an Internet
portal between the United States and China to facilitate international
trade and investment opportunities between private sector companies as
well as facilitating trade between the private sector and government
owned industries in China.
China Wireless, Inc. is an early stage subsidiary that is
developing telecommunications projects in China.
For more information on CBQ, Inc., visit www.cbq.com.
This news release includes forward-looking statements related to
CBQ, Inc. that involve risks and uncertainties, including, but not
limited to, quarterly fluctuations in results, the management of
growth, market acceptance of certain products and other risks. These
forward-looking statements are made in reliance on the "safe-harbor"
provisions of the Private Securities Litigation Reform Act of 1995.
For further information about these factors that could affect CBQ's
future results, see the company's filings with the Securities and
Exchange Commission (the "Commission").
Prospective investors are cautioned that forward-looking
statements are not guarantees of future performance. Actual results
may differ materially from management expectations.
--30--DS/ph*
CONTACT: CBQ, Inc.
by
Joan Worden Public Relations
Joan Worden, 202/337-5411
KEYWORD: MARYLAND CHINA INTERNATIONAL ASIA PACIFIC
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS E-COMMERCE INTERNET
NETWORKING SOFTWARE EARNINGS
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