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siliconinvestor.com
Firstwave Technologies, Inc. Releases Earnings for The Fourth Quarter and Year Ended December 31, 2000
ATLANTA, Feb 13, 2001 /PRNewswire via COMTEX/ -- Firstwave Technologies, Inc. (Nasdaq: FSTW chart, msgs) today announced financial results for the Fourth Quarter and Year Ended December 31, 2000.
With respect to year ending numbers, Firstwave reported total software revenues of $2.8 million for 2000, up 16.7% over 1999 total software revenues of $2.4 million. Total revenues for the year were $9.7 million, with a net loss of $3.1 million, or $0.52 per share, as compared to total revenues of $11.2 million in 1999, with a net loss of $2.1 million, or $0.40 per share.
Software revenues for the Fourth Quarter 2000 of $581,000 increased 16.2% over Fourth Quarter 1999 software revenues of $500,000. Total revenues for the Fourth Quarter 2000 were $2.2 million, as compared to $2.5 million for Fourth Quarter 1999. Net loss for the quarter was $719,000, or $0.11 per share, as compared to $362,000 in the Fourth Quarter of 1999, or $0.06 per share.
"General market conditions in 2000, especially in the Fourth Quarter, and the fact that Firstwave is both in the technology sector and a provider primarily for technology customers, contributed to the overall decline in revenues," stated Richard Brock, President and CEO of Firstwave. "The goods news is that despite the poor market performance in the fourth quarter, Firstwave's software revenues increased over Fourth Quarter 1999, showing a growing, albeit, quiet and slow, interest in our web-based technology."
"Also, our UK office, under Russell Loarridge's leadership, has built a good pipeline of business with several large accounts. Based upon my recent visit to our UK office and meetings with customers and prospects, I expect that our UK operation will contribute significantly to our first quarter results. Our US prospects include several companies that delayed making a decision last year but remain viable opportunities this year. As the market jitters settle in the new year, we anticipate that businesses will cautiously resume their technology product purchases, and we believe Firstwave's eCRM product is strategically positioned."
As of December 31, 2000, Firstwave has available cash of $1.3 million and positive working capital of $800,000. Firstwave has implemented several measures in First Quarter 2001 that are expected to reduce the company's annual expenses by more than $1 million based on annualized Fourth Quarter 2000 expense levels. "We believe these cost savings are appropriate given the current economic conditions and do not anticipate these savings having a negative impact on our forecasted revenue goals," stated Mr. Brock.
In addition, Firstwave plans to continue to pursue additional long term equity and/or debt financing. Currently, discussions are being held with several potential sources of equity investment that would provide the Company with the resources needed to expand its sales and marketing capabilities. In order to improve the Company's cash position as it pursues additional sources of financing, and because there is no assurance that such fund raising efforts will be successful, Richard Brock, Firstwave's CEO, loaned the Company $750,000 in February 2001 under the terms of a note due January 15, 2002. In addition, the Company's $1,750,000 line of credit arrangement, which was closed in December 2000 and matures in December 2001, provides for additional availability if the Company's sales levels meet its forecasted results. The Company believes the cost savings measures together with the proceeds from the CEO loan are sufficient to meet the Company's near term working capital requirements. In the event the Company is not able to meet its planned revenue targets, it will need to obtain additional financing and the Company's financial condition and results of operations may be impacted. |
