RE: CYAA. Updating your tout sheet?-> AXIA Announces Revised Earnings Forecast
SALT LAKE CITY--(BUSINESS WIRE)--Dec. 13, 2000--AXIA Group Inc. (OTCBB:AXIA) has revised its earnings forecast for the fiscal year end 2000, announcing that it expects earnings to be flat for the period or even below those realized in the prior year.
Last year the company reported earnings of $3.624 million or $1.14 a share. The company had previously reported that it appeared to be on track for record earnings based on the pace of earnings set in the first three quarters of the year. However, revenue has slowed considerably in this fourth quarter.
AXIA believes that several factors have contributed to a decrease in revenues, including widespread instability in the equity markets and a general slowdown in the demand for financial consulting services.
The fourth quarter has been plagued by uncertainty related to the U.S. Federal Reserve's stance on interest rates in a slowing economy and the ongoing struggle for resolution of the U.S. presidential election.
The recent uncertainties have generally lead to severe fluctuations in stock values. Several securities held by the company have dropped significantly in value in what could lead to a permanent markdown in the value of these securities.
Although securities received in payment for consulting services are often discounted to market, the company believes that the intrinsic value of many of the securities held has dropped below the value booked on receipt.
Rather than expose the value of these securities to further deterioration, the company has decided to offset losses created by the disposition of securities that have decreased in value against earnings realized in the first three quarters of this year.
The anticipated outcome of this action will preserve valuable cash flow by limiting the company's potential tax liability through the liquidation of securities whose value will most likely not be recouped in 2001.
AXIA is a diversified holding company whose specialty is investing in and developing undervalued real estate and providing financial consulting services to public and private companies.
For more information on AXIA's real estate holdings please visit www.cyaa.com. For more information on AXIA's consulting services please visit www.hudsonconsult.com. AXIA strongly encourages the public to read the above information in conjunction with its Form 10KSB for Dec. 31, 1999, and 10QSB for Sept. 30, 2000. The above documents can be viewed at www.sec.gov.
A number of statements contained in this press release are forward-looking statements which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements involve a number of risks and uncertainties, including the timely development, and market acceptance of products and technologies, competitive market conditions, successful integration of acquisitions and the ability to secure additional sources of financing.
The actual results that AXIA may achieve could differ materially from any forward-looking statements due to such risks and uncertainties.
CONTACT:
AXIA Group Inc., Salt Lake City
Richard Surber, 801/575-8073
Fax: 801/575-8092
KEYWORD: UTAH
BW0399 DEC 13,2000
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