Pretty decent earnings report. Surprised SKYM sold off today.
"Our revenues in the fourth quarter decreased due to the elimination of unprofitable promotions we ran last year, but our overall profitability improved as we eliminated the expense of these promotions and significantly improved our gross margin," said Robert Worsley, founder and CEO.
Total operating expenses in the fourth quarter of 2000 totaled $11.6 million compared to total operating expenses of $18.3 million in the fourth quarter of the prior year, a decrease of 37%. General and administrative expenses, the most significant part of total operating expenses, decreased to $4.3 million in the fourth quarter of 2000 as compared to $10.1 million in the fourth quarter of 1999, a decrease of 57%. General and administrative expenses in the fourth quarter of 2000 also reflected a decrease of 8% from the $4.7 million reported in the third quarter of 2000.
"We have worked diligently over the last nine months to achieve profitability in the fourth quarter and are pleased with our progress," continued Mr. Worsley. "Our fourth quarter results reflect the execution of the decisions we made in the second quarter of this year to eliminate unprofitable promotions and programs, as well as dramatically reduce our costs. Most importantly, however, we have shown that the business model that was the foundation of our profitable operations for the four years prior to our recent investment spending phase is viable and can serve as our platform for future growth." |
