AAC:
Ableauctions Reports One of Its Strongest Quarters, Posting Solid Gains and
Raising Outlook
Business Editors/High-Tech Writers
FIFE, Wash.--(BUSINESS WIRE)--Nov. 14, 2003--Ableauctions.com Inc.
(AMEX:AAC) (the "Company") today announced the results of operations
for the quarter ended September 30, 2003, posting one of its strongest
quarters to date.
For the third quarter, the Company reported revenue of $235,700
and net income of $40,902, compared to revenue of $96,621 during the
same period in 2002 (and $163,645 in the last quarter), and net loss
of $457,322 during the same period in 2002 (and net income of $32,531
in the last quarter).
The increase in revenue and profitability is attributed to the
growth of the Company's business and its acquisition of Rapidfusion
Technologies Inc. on September 1, 2003. The Company expects revenue to
grow in the fourth quarter as it adds revenue streams and continues
to:
(a) Deploy its technology and related services to auction houses,
enabling them to broadcast auctions over the Internet
(www.ableauctions.com/technology);
(b) Broadcast its clients auctions on eBay Live Auctions through
its wholly owned subsidiary iCollector.com Technologies Ltd.
and providing them with related auction services
(www.icollectorlive.com/services.aspx);
(c) Operate its liquidation stores and sell inventory it owns
through live and simultaneously broadcast auctions over the
Internet; and
(d) Sell and support its Point-Of-Sale (POS) software and build,
support and maintain auction websites, custom hardware and
network configurations through its newly acquired subsidiary
Rapidfusion Technologies Inc.
(www.rapidfusion.com/technology).
The gross profit margin for the quarter was 55% compared to 76% in
the last quarter, and 70% for the same period in 2002. Gross profit
margins vary considerably from each revenue stream and as the Company
defines additional revenue streams, the gross profit margin is
expected to stabilize around 40%, reflecting the weighted average of
all revenue streams.
The Company increased shareholder's equity, defined as the value
of our assets minus our liabilities, to $4,515,297 (from $1,969,889 as
of June 30, 2003) and increased its cash reserves to $3,304,169 (from
$814,163 as of June 30, 2003), primarily as a result of the private
placement of our securities and the exercise of stock options.
With the objective of further expanding, the Company is currently
negotiating the potential acquisition of an auction service provider
and a liquidator. The Company believes these acquisitions, if they are
made, will enhance its operations significantly. The Company is also
in the process of finalizing auction-broadcasting agreements with
various prominent auction houses, details of which the Company expects
to announce as and when the agreements are signed and approved.
About Ableauctions.com
Ableauctions.com is a high-tech auctioneer that conducts auctions
live and simultaneously broadcasts them over the Internet. With the
experience of 3,000 auctions, the Company has developed its own
technology to broadcast auctions over the Internet
(www.ableauctions.com/technology) and currently provides the
technology and related services to auction houses, enabling them to
broadcast auctions over the Internet. For a comprehensive Corporate
Update and prior releases, visit www.ableauctions.com. For more
information, contact Investor Relations at
investorrelations@ableauctions.com.
About iCollector.com
iCollector.com is a wholly owned subsidiary of Ableauctions and is
the independent connection to the world's auction houses. Founded in
1994, it was the first company dedicated to trading antiques, fine art
and premium collectibles on the Internet. Today iCollector.com
represents some of the world's leading auction houses. Since January
2001, its alliance with eBay Live Auctions has resulted in hundreds of
Live Auctions being broadcast in real-time, directly to the salesroom
as the auction happens, selling tens of thousands of lots to many
thousands of users online. With its unparalleled understanding and
expertise in this sector, iCollector can help you to maximize your
opportunities to find, buy or sell art, antiques and collectibles
online.
This press release contains forward-looking statements,
particularly as related to the business plans of the Company, within
the meaning of Section 27A of the Securities Act of 1933 and Sections
21E of the Securities Act of 1934 and are subject to the safe harbor
created by these sections. Such forward-looking statements involve
known and unknown risks, a reliance on third parties for information,
uncertainties and other factors that may cause our actual results,
performance or achievements, or developments in our industry, to
differ materially from the anticipated results, performance or
achievements expressed or implied by such forward-looking statements.
Factors that could cause actual results to differ materially from
anticipated results include risks and uncertainties related to the
performance of our auction houses, our ability to implement our
inventory procurement strategy, general economic conditions, our
ability to license our software to other auction houses, our ability
to acquire profitable companies and integrate them into our business
successfully and other factors that are detailed in our Annual Report
on Form 10-KSB filed with the Securities and Exchange Commission. The
Company disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. Actual results may differ materially from
the Company's expectations and estimates.
--30--CA/se*
CONTACT: Ableauctions.com
Thorsten Bonn, 604-521-3369
KEYWORD: WASHINGTON
INDUSTRY KEYWORD: RETAIL E-COMMERCE INTERNET EARNINGS
SOURCE: Ableauctions.com Inc.
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Nov-14-2003 14:02 GMT
Symbols:
DE;AA7 DE;AA7F US;AAC
Source BW Business Wire
Categories:
MST/I/NET MST/I/RTB MST/I/SVC MST/R/US/WA MST/S/ERN TGT/BWN |
