NEW PR/NEWS RELEASE
biz.yahoo.com
Friday September 11, 10:33 am Eastern Time
Company Press Release
Enhanced Services Announces
Zulu-Media Audited Results
LOS ANGELES--(BUSINESS WIRE)--Sept. 11,
1998--Enhanced Services Company, Inc. (Nasdaq Small Cap: ESVS - news), who reported
yesterday that it had completed the acquisition of the assets of Zulu-tek, Inc., in a transaction
valued at $30 million in convertible and redeemable preferred shares of ESVS, today also
announced that it was releasing audited financials for Zulu-Media, Inc (formerly SoftBank
Interactive Marketing, Inc., or ''SIM'') for the twelve months ended December 31, 1997 and
would file the complete financial statements on Form 8-K with the Securities and Exchange
Commission.
SIM's accountants indicated that the audit had taken several months to complete due to the need
to understand the historical transactions at the company since its inception in 1996. SIM incurred
write downs and losses totaling over $27.0 million on gross revenues of $32.8 million and net
revenues of $6.37 million for the year. The deficit resulted primarily from the decision to write
off over $9.50 million in good will, ammortization, and to fully reflect the liabilities incurred by
SIM during the period.
Enhanced Services said that it believes that with the newly acquired assets from Zulu-tek, the
Company can achieve monthly sales of $2.0 million by the end of 1998. ''The majority of the
SIM restructuring and re-tooling took place in the first half of 1998. In the past, SIM had
pursued non-productive business models. We believe that the Zulu-tek team has streamlined
operations and developed a focus and strategy that can lead to a profitable operations strategy.
Zulu-tek has tried to learn from SIM's mistakes, and has carefully reviewed the company's focus
as compared to its peers and competitors, including Doubleclick, 24/7 and others. By integrating
the Zulu-Media sales and marketing structure with the advanced technology obtained from Echo
Media, we are now well positioned to provide the broad based Internet solutions we are
assembling.''
The combination of Enhanced Services and Zulu-tek, and their anticipated acquisitions, represent
the convergence under one umbrella of diverse services focused specifically on the Internet as a
communications and transaction medium creating a new specialty in the technology arena. The
combined enterprise believes it can attain a unique, forerunning position as it answers the full
range of business demands that result from a skyrocketing commercial reliance on the Internet.
Forward looking statements in this release concerning trends or anticipated operating results are
made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of
1995. These forward-looking statements are not guarantees of future performance and are subject
to risks and uncertainties related to the Company's operations. These risks and uncertainties
include, but are not limited to, competitive factors (including the possibility of increased
competition or technological development, competitors and price pressures); legal factors (such
as limited protection of the Company's proprietary technology and changes in government
regulation); and the Company's dependence on key personnel and significant customers.
Contact:
Enhanced Services & Zulu-tek
Investor Relations, 310/397-3003
or
Sitrick And Company
Tom Ekman/Anita-Marie Hill, 310/788-2850
More Quotes and News:
Enhanced Services Company, Inc (Nasdaq:ESVS - news)
Related News Categories: computers, internet
Help
Copyright c 1998 Business Wire. All rights reserved. All the news releases provided by Business Wire are
copyrighted. Any forms of copying other than an individual user's personal reference without express written
permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to,
posting, emailing, faxing, archiving ina public database, redistributing via a computer network or in a printed
form.
See our Important Disclaimers and Legal Information.
Questions or Comments? |
