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Tuesday August 14, 6:30 am Eastern Time
Press Release
SOURCE: Category 5 Technologies, Inc.
Category 5 Technologies, Inc. Files 8-K/A Reports Pro-Forma Results Related To ePenzio Acquisition Provides Fiscal 2002 Guidance
SALT LAKE CITY, Aug. 14 /PRNewswire/ -- Category 5 Technologies, Inc. (OTC Bulletin Board: CFVT - news) today announced the filing of an 8-K/A yesterday with the SEC containing audited financial statements for its first acquisition, ePenzio, Inc., and its combined pro forma financials for the third fiscal quarter, ended March 31, 2001. During the three months ended March 31, 2001, the Company reported $3.6 million in total revenues, compared to $5.0 million for the same period in 2000. Category 5 pro forma net income for the third quarter of 2001, which includes the results of ePenzio, was $186,238, or $0.19 per diluted share, compared to third quarter 2000 pro forma net income of $322,836, or $0.32 per diluted share.
For the twelve months ended December 31, 2000, ePenzio had total revenues of $20.1 million and pro forma net income of $1.1 million.
``Category 5 continues to be profitable in spite of the sluggish economic conditions,'' said Mitchell Edwards, Chief Financial Officer. ``Augment this by the fact that the first three months of the year are traditionally slow in our industry. We believe that our solid financial position and operating excellence will afford us the opportunity to rapidly expand our product and service offerings. Additionally, moving forward, we plan to aggressively pursue revenue growth organically and through strategic acquisitions.
``With the acquisition of ePenzio, Category 5 has taken its first step in becoming an emerging leader focused on providing proprietary marketing tools and commerce-enabling services and technologies to small- and medium-size enterprises. We believe the prospects in this targeted market are practically limitless,'' concluded Edwards.
Business Outlook
Currently, the Company anticipates that total revenue from ePenzio for fiscal year 2002, ending June 30, 2002 will be in the range of $23-27 million, with net income in the range of $4-5 million. The Company believes that revenues could be significantly higher if it is successful in acquiring and integrating product and technology companies that are synergistic with its core business discipline of marketing, transaction, and communications for small- and medium size businesses globally.
About Category 5 Technologies
Category 5 Technologies is a leading provider of sophisticated technology and services to small- and medium-sized businesses in the United States and internationally. From e-commerce platforms, web sites, shopping carts, merchant accounts and payment plug-ins, to communications and promotions tools, Category 5 enables both brick and mortar as well as Internet businesses to operate more efficiently and profitably, and to gain and retain new customers. Category 5 continues to seek synergistic companies, technologies and platforms for acquisition.
About ePenzio, Inc.
ePenzio is a leading provider of e-commerce, merchant account, payment and other services to small and medium-sized businesses throughout the United States. ePenzio is a wholly owned subsidiary of Category 5 Technologies, Inc.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, including, without limitation, statements regarding Category 5's confidence in upcoming financial periods, market acceptance of our products and services, continued success in our business expansion initiatives, and progress toward its long term financial model. These statements reflect management's current expectations. However, actual results could differ materially as a result of unknown risks and uncertainties, including but not limited to, risks related to Category 5's limited operating history. For a more detailed description of these and other risks and uncertainties affecting Category 5's performance, please refer to the Company's recent amended 8-K dated August 10, 2001. Category 5 assumes no obligation to update the forward-looking information contained in this press release.
SOURCE: Category 5 Technologies, Inc. |
