(COMTEX) B: CBQ Announces Year 2000 Financial Results with Annual Rev
B: CBQ Announces Year 2000 Financial Results with Annual Revenues Increasing by
306%
HUNT VALLEY, Md., Apr 17, 2001 (BUSINESS WIRE) -- CBQ, Inc. (OTCBB:CBQI.OB) the
E-Business Infrastructure Company, announced today that its year 2000 annual
revenues increased to $9.45 million, a 306% increase above 1999 revenues. This
figure excludes the first quarter results for Quantum Technology Group, which
would have raised the overall revenue to approximately $12 million for 2000.
Losses for the year 2000 amounted to $4.2 million, or $.05 per share. Losses
associated with discontinued operations were $1.8 million, while losses
associated with continuing operations amounted to $2.4 million. The continuing
operations losses include substantial extraordinary expenses including merger
and acquisition fees, substantial non-recurring G & A expenses, and legal and
accounting expenses. CBQ's losses from discontinued operations included the
losses from 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.
"While CBQ experienced continuing strong revenue growth in 2000, the costs of
acquiring and merging the Quantum Technology Group substantially exceeded our
earlier expectations," said Bart S. Fisher, Chairman and CEO of CBQ, Inc. "We
believe that the losses incurred in 2000 should be eliminated in 2001, due to
the integration of Quantum and our other acquisitions into CBQ, and the
absorption of the one-time acquisition charges associated with the acquisition
of Quantum. Based on our preliminary numbers, it is our view that revenues from
continuing operations, less non-recurring expenses, in the first quarter of 2001
will be profitable."
"We will continue to pursue a two-track strategy to address the cash needs of
CBQ--internal growth and acquisitions--as our path to profitability. The
acquisitions of EasySoft and Technet will strengthen the software capabilities
of CBQ, and permit the marketing of its software development expertise on an
ever-broadening scale. CBQ plans to develop a sustainable competitive advantage
by outsourcing the majority of the programming labor to skilled software
engineers located in China and India. The acquisition of Networkland will
strengthen the hardware, networking, and integration business of CBQ. These
synergistic acquisitions will provide management efficiencies, economies of
scale, and a broader reach into the mid-Atlantic region. In 2000 EasySoft,
Technet and Networkland accounted for over $15 million in gross revenues,
placing CBQ annualized revenue run rate for 2001 of $27 million. The larger
nature of the enterprise should improve the prospects for profitability in
2001," Fisher said.
About CBQ, Inc.
CBQ, Inc. is a full service, end-to-end e-Business solution provider through its
software-outsourcing subsidiary EasySoft International Inc., Beijing, China and
Miami, Fl., provides technology and network Integration engineering services
subsidiary Networkland, Rosslyn, Virginia, software programming and development
subsidiary Technet Computer Services, Inc., India and Tyson's Corner, Virginia,
and network integration subsidiary, CBQ NETSERV, Hunt Valley, MD. The Company
has state-of-the-art offshore software development facilities located in China
that enable it to provide high quality, cost-effective services to clients in a
resource-constrained environment. The Company's services, which may be offered
on a fixed-time frame, fixed-price or time-and-materials basis, include custom
software development, maintenance, testing and re-engineering services as well
as dedicated offshore software outsourcing for certain clients. The company also
provides U.S. based information technology outsourcing resources to its clients.
For more information on CBQ, Inc., visit 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.
CONTACT: Marketex, Coral Springs, Fla.
CBQ Investor Relations:
Gary Swancey, 954/757-0582
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KEYWORD: MARYLAND FLORIDA
INDUSTRY KEYWORD: E-COMMERCE
NETWORKING
SOFTWARE
EARNINGS
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