Front Porch Digital Announces Record First Quarter 2004
biz.yahoo.com
Monday May 17, 5:00 am ET
Improving Fundamentals and New Financing Position Company For Long-Term Global Growth
MT. LAUREL, N.J., May 17 /PRNewswire-FirstCall/ -- Front Porch Digital Inc. (OTC Bulletin Board: FPDI - News) will report financial results for the first quarter of 2004, ended March 31, 2004, in its Form 10-QSB to be filed today. The Company achieved quarterly records in revenues from continuing operations and new orders, made gains in operating margins and is progressing toward cash flow break-even.
"Front Porch continues to execute against its business plan, and we are pleased with the results for first quarter of this year," said Front Porch CFO Matt Richman. "Through disciplined management of our operation, we believe costs are firmly under control. We are well on track to surpass 2003 revenue totals from continuing operations, and with our recently announced financing, Front Porch now has an improved balance sheet and sufficient operating capital to sustain long-term global growth."
Following is an overview of Front Porch financial results for first quarter:
-- Revenues from continuing operations for the first quarter of 2004
reached an all-time high of $1.6 million. This figure represents a 60
percent increase over the $1.0 million achieved in the fourth quarter
of 2003, and an 85 percent increase over the $846,000 achieved in the
comparable first quarter period of 2003.
-- Overall gross margin for the first quarter of 2004 reached 72 percent.
This represents a five percent improvement over the 67 percent gross
margin reported for the fourth quarter of 2003.
-- Operating losses for the Company narrowed to $181,000, the lowest
levels in the Company's history. This figure also represents a 56
percent improvement over the $414,000 operating loss reported in the
comparable period of first quarter 2003.
-- Operating cash flow performance shows significant improvement, as well.
The Company reported a loss of $58,000 from cash flow from operating
activities in the first quarter of 2004, compared to a loss of $526,000
during first quarter of 2003, representing an improvement of 89
percent.
New business performance showed gains as well, as contracts signed for future delivery achieved a record high of $1.7 million. This represents a 13 percent increase over the $1.5 million in new orders achieved in fourth quarter of 2004, and the third consecutive quarter of increasing orders As of March 31, 2004, the Company reported a backlog of $2.3 million.
"The first quarter results met our expectations and demonstrate the Company's new focus has the potential for significant growth," said Tom Sweeney, Chairman of the Board of Front Porch. "I'm pleased by the growth in new business and deliveries, and believe we are positioned to continue to improve our top line results. At the recent NAB trade show, we had great visibility in high-traffic partner booths, and our sales team has identified the next generation of global opportunities that will be decided in the next 12 to 18 months. No doubt there will be competitive challenges ahead, but Front Porch is better prepared to meet them than ever before."
About Front Porch Digital: Front Porch Digital Inc. (www.fpdigital.com) is transforming the digital world by developing unique software and services that convert audio, video, images, text and data into digital formats that enable searching, browsing, editing, storage and on-demand delivery of content in nearly any other digital format through a single capture. Front Porch is the number one provider of archive management software in Europe and Asia.
Front Porch Digital Forward Looking Statements: This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which reflect Front Porch Digital's current views with respect to future events and financial performance. Such statements are subject to certain risks and uncertainties that could cause actual events or results to differ materially from those indicated from such forward-looking statements. The potential risk factors include Front Porch Digital's limited operating history and experience in the data and video digital conversion business, Front Porch Digital's ability to achieve operating profits and positive cash flow, and risks associated with expansion. Additional risk factors are set forth in Front Porch Digital's reports and documents filed with the Securities and Exchange Commission.
Contact:
Mike Knaisch, Chief Executive Officer
Front Porch Digital, Inc.
(303) 440-7122
mike.knaisch@fpdigital.com
Source: Front Porch Digital Inc. |
