Kanakaris Reports First Quarter Operating Results; Company Reports Increase in Sales Revenue and Gross Profit for Internet Division
NEWPORT BEACH, Calif., Feb. 15 /PRNewswire/ -- Kanakaris Wireless (OTC Bulletin Board: KKRS) announced today that its sales revenues for the quarter ended December 31, 2000 are up $460,725, or 492%, over its sales revenues for the quarter ended December 31, 1999. Gross profit for the quarter ended December 31, 2000 is up $272,458, or 1,058%, over gross profit for the quarter ended December 31, 1999.
For the first time ever, the Internet division had a quarterly gross profit. In fact, $205,638 of the $298,216 gross profit for the quarter ended December 31, 2000 was derived from the Internet division. Sales revenues for the quarter ended December 31, 2000 are up $193,587, or 53%, over sales revenues for the prior quarter ended September 30, 2000.
Although the quarterly net loss was $2,541,422, approximately $1,870,601, or 74%, of that loss consisted of non-cash expenses. The non-cash expenses included the issuance of common stock and options to purchase common stock in lieu of payment of expenses with cash.
The following summary information is derived from our quarterly report on Form 10-QSB for the quarter ended December 31, 2000, which report was filed with the Securities and Exchange Commission on February 14, 2001:
KANAKARIS WIRELESS AND SUBSIDIARIES
(FORMERLY KNOWN AS KANAKARIS COMMUNICATIONS, INC.)
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
($ in thousands)
(UNAUDITED)
Three Months Ended
Dec 31, Dec 31,
2000 1999
Net sales
Internet $261 $ 1
Modular 293 93
Total sales 554 94
Cost of sales
Internet 55 1
Modular 201 67
Total cost of sales 256 68
Gross profit
Internet 205 --
Modular 93 26
Total gross profit 298 26
Operating expenses
Executive compensation 673 98
Salaries 161 42
Payroll taxes and benefits 7 13
Consulting services 1,071 1,065
Royalties -- 2
Travel and entertainment 68 35
Telephone and utilities 15 13
Marketing, advertising, and investor relations 393 211
Professional fees 176 217
Rent 7 8
Office and other expense 98 18
Equipment rental and expense 1 1
Insurance 18 8
Depreciation and amortization 36 10
Taxes - other 2 2
Bank charges 1 1
Website development 29 -
Total operating expenses 2,756 1,744
Loss before interest and other income (expense) (2,458) (1,718)
Financing and other income (expense), net (83) 2
Net loss (2,541) (1,716)
Net loss per common share - basic and diluted $ (.06) $ (.06)
Weighted average common shares outstanding
- basic and diluted 39,579,807 26,811,483
ABOUT KANAKARIS WIRELESS
For further information on Kanakaris Wireless (www.KanakarisWireless.com) please call Shareholder Relations: Colby Marceau, 714-444-0560. For media interviews only contact 714-235-2539.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995.
With the exception of historical information, the matters discussed in this press release are forward-looking statements that involve a number of risk and uncertainties. The actual future results of Kanakaris Wireless could differ from those statements. Factors that could cause or contribute to such differences include, but are not limited to, our ability to obtain financing as the need arises, the overall state of the Internet and e-commerce industries and the data control console industry, economic conditions generally, the financial health of our customers, market acceptance of new product or service introductions by us or our competitors, the timing of expenditures in anticipation of future sales, returns of our data control console products and the timing and nature of revenues from our Internet and e-commerce businesses and data control console product sales that are recognized during any particular quarter. The inclusion of forward-looking statements should not be regarded as a representation or guarantee by Kanakaris Wireless or any other person that our objectives or plans will be achieved.
SOURCE Kanakaris Wireless
/CONTACT: investors, Colby Marceau, 714-444-0560, or media, 714-235-2539,
for Kanakaris Wireless/
/Company News On-Call: prnewswire.com or fax,
800-758-5804, ext. 121430/
/Web site: kanakariswireless.com |
