Things are getting better:
"Dear Investor,
Stockgroup is please to announce our first quarter of 2001. We are extremely pleased with our progress
and look forward to discussing it in more detail with you by contacting us at 800-650-1211 ext 113.
We look forward to continuing to update you on our progress.
Sincerely,
Richard Cushing
Manager of Investor Relations
E-mail: ir@stockgroup.com
STOCKGROUP ANNOUNCES FIRST QUARTER 2001 RESULTS
Vancouver, BC – May 9, 2001- (Business Wire) – Stockgroup.com Holdings Inc., a financial media and
technology company (OTCBB: SWEB) is pleased to announce its results for the first quarter 2001, ending
March 31.
KEY HIGHLIGHTS (All figures in US$)
· Revenue increased by 6.7% to $1.1 million from $1.0 million in Q1 2000
· Operating expenses reduced 57.6%-- from $2.2 million in Q1 2000 to $0.9 million
· EBITDA of ($0.2 million), an 88% decrease from ($1.5 million) in Q1 2000
· EBITDA per share was ($0.02) compared to ($0.19) in Q1 2000, an 88% decrease
· Loss per share ($0.04) compared to ($0.19) in 2000
· Secures $500,000 in new funding
· Secures significant contracts for financial tools
· Product lines expand in Net Solutions for Public Companies and Financial Tools and Content revenue
streams
“We are on track with our strategy to reduce our operating costs in our non-core, low revenue generating
areas, while continuing to grow our revenue through the sale of our leading edge financial tools and content
products and our net solutions for public companies,” stated Marcus New, Chairman and CEO of
Stockgroup. “We believe that, considering the exceptional times that internet media and technology
companies and our client base of public companies have experienced, Stockgroup has fared well. We
began to reposition the company in Q3 of 2000, and are gratified to see the way the results have come
through in this quarter. We continue to develop innovative and economical tools, content and products for
our clients, while ensuring that we maintain our commitment to achieve profitability this year.”
Total operating expenses in the first quarter of 2001 were $0.9 million compared to $2.2 million in 2000, a
decrease of $1.3 million or 57.6%. Stockgroup was able to make significant reductions in all areas of
expenses during the quarter, without reducing its ability to earn revenues. The full effect of cost reductions
initiated to date will be fully realized in subsequent quarters. Stockgroup made a decision to concentrate
on fewer, more competent resources and strategic geographic markets, thus achieving increased economies
in addition to increased effectiveness. Stockgroup expects these ongoing reductions to have a continuing
beneficial effect on costs in future quarters of 2001.
Core Revenue Streams
Financial Tools and Content
Revenue from the Financial Tools and Content unit, created in Q4 2000, represents 10% of sales in the
first quarter of 2001. This is a growing source of revenue that is expected to become a significant unit of
the Company’s business as 2001 progresses. Financial tools deliver public market data including quotes,
charts, portfolio and watch lists and are sold primarily to corporations. Each customer the Company
secures typically signs a twelve-month renewable agreement ranging from $13,500 to $80,500 annually,
providing an on-going revenue stream that is continuously building. At March 31, the Company had signed
18 agreements substantially all of which are with financial services or Fortune 1000 companies. Most of
the revenue from these agreements will be recognized in subsequent quarters.
The Company’s Financial Tools and Content and its Services to Public Companies both benefit from
continuous recurring revenues derived from a common proprietary technology platform.
Net Solutions For Public Companies
Stockgroup continued to grow its product offerings in its Net Solutions for Public Companies business
unit. These products include design, maintenance and marketing products to assist public companies in
their exposure and disclosure requirements online. During Q1, the company began to develop sector
specific information and marketing products for companies. The first of these products is the Energy
Stocks Center, to be followed by others in future quarters.
The IntegratIR™ web-based investor relations tool was introduced and successfully tested with select
clients and launched shortly after the quarter ended. The IntegratIR™ is an ASP software solution that
automates a number of disclosure functions that are preformed by public companies on a daily basis
including updating quotes, charts, news releases, financials, etc. The IntegratIR assists with compliance of
the SEC Regulation FD by providing an automated service. The effect of these product introductions will
begin to be realized in Q2.
E-Business Solutions
E-business revenue for the first quarter of 2001 was mainly derived from work on a financial leasing hub
for the company’s client, OnMark. This is a consortium based projected with Oracle Corp. (Nasdaq:
ORCL) and Viewlocity Inc.
New Funding
Stockgroup secured new funding during the quarter in the amount of US$500,000. This funding came in the
form of a convertible debenture, convertible at a minimum of $0.50 per share and a maximum of $1.00 per
share.
ABOUT STOCKGROUP.COM
Stockgroup.com Holdings Inc. is a financial media and technology company.
As an Application Solution Provider (ASP), the Company develops custom private labeled financial
communities for media, brokerages, and financial services companies. Its proprietary technologies enable
companies to provide news and data streams combined with cutting edge fundamental, technical, and
productivity tools to their customers. Stockgroup.com is also the leading provider of Web site
development and Internet marketing services to small and micro cap companies.
In addition, the Company is a leading online provider of financial news and information services,
disseminated from offices in San Francisco, Toronto and Vancouver. Their Web site,
www.smallcapcenter.com is a state-of-the-art online research center for the small cap investor.
To find out more about Stockgroup (OTCBB: SWEB) visit our website at www.stockgroup.com.
Contact:
Stockgroup.com Holdings Inc.
Marcus New, Chairman and CEO
1.800.650.1211
marcusn@stockgroup.com
This release contains "forward looking statements" within the meaning of Section 27A of the Securities Act
of 1933 and Section 21B of the Securities Exchange Act of 1934. Any statements that express or involve
discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals,
assumptions or future events or performance are not statements of historical fact and may be "forward
looking statements." Forward looking statements are based on expectations, estimates and projections at
the time the statements are made that involve a number of risks and uncertainties which could cause actual
results or events to differ materially from those presently anticipated. Forward looking statements in this
action may be identified through the use of words such as “expects”, “will,” “anticipates,” “estimates,”
“believes,” or statements indicating certain actions “may,” “could,” or “might” occur.
Stockgroup.com Holdings, Inc.
CONSOLIDATED STATEMENTS OF LOSS (UNAUDITED - Expressed in U.S. Dollars)
Unaudited Unaudited
Three Months Three Months
Ended March Ended March
31, 2001 31, 2000 (restated)
------------ ------------
REVENUE
Revenues $ 1,105,359$ 1,036,207
Cost of revenues 426,875 397,066
----------- - -----------
Gross profit $ 678,484 $ 639,141
EXPENSES
Sales and marketing $ 206,823 $ 1,182,636
Product website dev 91,348 161,639
General and admin 645,585 873,424
------------ ------------
$ 940,756 $ 2,217,699
------------ ------------
LOSS FROM OPERATIONS $ (262,272) $ (1,578,558)
Interest income 1,591 16,989
Interest (expense) (96,703) -
Other income (expense) 18,703 554
------------ ------------
LOSS BEFORE INCOME TAXES AND
EXTRAORDINARY LOSS $(338,681) $ (1,561,015)
Income tax provision (recovery) - -
------------ ------------
NET LOSS $ (338,681)$ (1,561,015)
============ ============
EARNINGS PER SHARE (0.04) (0.17)
============ ============
Weighted average shares
Outstanding for the period 8,515,431 8,195,000
============ ============
******"
Later...Gator |
