Press Release
For Release On
November 23, 1998
For more information, contact:
Nika Herford
Vice-President, Public Relations
Net Nanny Software Inc.
Telephone: (425) 688-3008
Email: <mailto:NikaH@netnanny.com> PR@netnanny.com
Brad McLean
Investor Relations
Net Nanny Software International Inc.
Telephone: (604) 662-8522
Email: <mailto:IR@netnanny.com> IR@netnanny.com
Revenue Growth Continues
Vancouver, British Columbia, Canada, November 23, 1998 - Net Nanny Software
International Inc. (NNS.V, NNSWF) is pleased to report that revenues from
product sales continue to grow. Due to sales and marketing initiatives
undertaken during the last fiscal year and a rapidly expanding sales
department, revenues for the first quarter rose to US$135,000 - an increase
of $71,000 or 109% over the same quarter last year. Gross profit margins
also improved to 88%.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited - Prepared by Management)
(expressed in US dollars)
FOR THE PERIOD ENDED SEPTEMBER 30, 1998, 1997 AND 1996
1998 1997 1996
Sales 135,603 64,807 6,073
Cost of sales 15,622 11,477 813
Gross margin 119,981 53,330 5,260
Expenses
General and administrative 190,128 107,886
102,597
Marketing and selling 131,613 102,732 61,649
Research and development 47,866 12,009 27,867
Amortization 8,228 3,655 19,742
377,835 226,282 211,855
Loss from operations (257,854) (172,952) (206,595)
Interest income 12,360 1,672 -
Loss for the year (245,494) (171,280) (206,595)
Loss per common share (0.02) (0.01) (0.03)
CONSOLIDATED BALANCE SHEETS
(Unaudited - Prepared by Management)
(expressed in US dollars)
SEPTEMBER 30, 1998 and 1997
1998 1997
Current Assets 1,217,855 617,684
Capital Assets 101,167 43,440
Total Assets 1,319,022 661,124
Current Liabilities 155,828 101,031
Cumulative Translation Adjustment (49,136) -
Share Capital 6,046,146 4,562,300
Deficit (4,833,816) (4,002,207)
Shareholders' Equity 1,163,194 560,093
377,835 226,282
Total Liabilities and Equity 1,319,022 661,124
Complete copies of these interim financial statements may be viewed at the
Company's website: www.netnanny.com.
In addition, last week, the Company announced BioPassword® LogOn for Windows
NT at Fall Comdex 1998. The announcement marks the company's first
implementation of BioPassword®, the Company's unique biometric access
control technology.
"As a first product, BioPassword® LogOn for Windows NT is our response to
the industry's increasing need to improve password security in ways never
before possible," said Gordon Ross, President and CEO of Net Nanny Software
International Inc. "BioPassword® is cost-effective, reliable and designed
to integrate easily with other security technologies. Because passwords are
still the most widely deployed form of user-authentication today,
integrating BioPassword® into the existing password logon for NT makes a
great deal of sense."
Management is also pleased to report that interest in the Company's
proprietary Net Nanny software products continues to surge. Recently, Net
Nanny was the number one selling software product on www.softwarebox.com
<www.softwarebox.com> and in the top ten selling products on Netscape's
portal - software-depot.netscape.com
<http://software-depot.netscape.com/> . The product also featured in the
top ten Internet products on www.beyond.com <http://www.beyond.com> -
another Internet distributor.
"Electronic sales of Net Nanny via the Internet provide the Company with the
highest gross profit margins" stated Mr. Ross. "We are particularly pleased
that our marketing strategy targeting increased distribution through this
exciting medium is demonstrating rapid, strong and consistent growth."
NET NANNY SOFTWARE INTERNATIONAL INC.
In January 1995, Net Nanny Software International Inc. introduced the first
filtering software product of its kind. Today, Net Nanny* and NNPro* for
networks continue to be the preferred choice for parents, schools, and
businesses that want flexible, editable software tools and free databases
for protecting their families, their organizations and their digital data.
The products control more than just the Internet - they are the only tools
that work at the operating system level, monitoring, auditing, and/or
blocking material in every Windows application, online or offline, in real
time. This unique approach allows the products to also patrol the most
potentially dangerous online environments - email, chat rooms and one-on-one
instant messaging programs - in which children tend to be at the most risk.
The Company also holds an exclusive patent on keystroke dynamics, a
biometrics security and access control technology. Totally software-based,
BioPassword* uses a patented process, owned exclusively by Net Nanny
Software International Inc., which utilizes keystroke dynamic technology
developed by top engineers at Stanford Research Institute. It uses
biometric (body characteristic) measurements and a proprietary algorithm to
record an individual's unique typing rhythm. The technology can be used
with any keypad, from computer keyboards to ATM machines to telephones.
For additional information, visit Net Nanny's Web site: www.netnanny.com
<www.netnanny.com> , BioPassword's: www.biopassword.com
<http://www.biopassword.com> or call the Company directly at (425)
688-3008, or (604) 662-8522.
On behalf of the Board of Directors
NET NANNY SOFTWARE INTERNATIONAL INC.
David R. Lewis, B.Eng., C.A.
Director and Chief Financial Officer
Note to Readers
Certain statements identified as "forward looking statements" in this Press
Release are not based on historical facts, but are instead based upon a
number of assumptions concerning future conditions that may ultimately prove
to be inaccurate. Actual events and results may materially differ from
anticipated results described in such statements. The Company's ability to
achieve such results is subject to certain risks and uncertainties,
including but not limited to, adverse business conditions in the industries
served by the Company and the general economy, competition, new laws and
regulations impacting the products that the Company provides, and other risk
factors affecting the Company's business beyond the Company's control.
The Vancouver Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or the accuracy of this Press Release.
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