PR Newswire - January 26, 1999 17:17
MOUNTAIN VIEW, Calif., Jan. 26 /PRNewswire/ -- ConnectInc.com (Nasdaq: CNKT) today announced its fiscal 1998 fourth quarter results. Net Income for the fourth quarter was $39,000, or $.00 per share, on revenues of $1,438,000, compared to a net loss of $3,068,000, or ($.80) per share, on revenues of $2,273,000 for the fourth quarter of 1997. Net loss for the twelve months ended December 31, 1998 was $7,904,000, or ($.74) per share, on revenue of $6,479,000 compared to a net loss of $14,585,000, or ($3.85) per share, on revenue of $9,362,000 for the fourth quarter of 1997. The net loss for the year ended 1998 includes approximately $1.1 million in one-time charges and write-offs resulting from the Company's decision to focus its business on providing software and services for Internet systems integration. These charges primarily include a write down of fixed assets and staff reductions.
Craig Norris, ConnectInc.com's President and CEO, said, "I am proud of our achievements in this quarter. We believe that it reflects that we are on the right track in positioning ConnectInc.com as a solutions provider for the Internet, with component software in our toolkit. After years of losses, we finally achieved a profitable quarter, and we will work hard to continue improving our performance in future periods.
"Now, our objective is to become a leading Internet solutions provider by focusing on three opportunities: 1) Web integration services for e-commerce using best-of-breed technologies; 2) Extranet software and implementation services to support the growing demands of corporations to use the power of the Internet to integrate with their customers, suppliers and partners; 3) Infomediary software and implementation services, targeted to emerging Internet or e-commerce companies where time-to-market is a critical success factor."
Norris continued, "With our recent equity financing of $4.0 million, we now have a strong balance sheet, with approximately $8 million in cash. I am optimistic about our future business prospects and personally very excited about the opportunities for the company in 1999 and beyond."
About ConnectInc.com
ConnectInc.com provides integration solutions to enable Internet-based electronic commerce and build the "Connected Corporation" from any link in the emerging network supply chain. ConnectInc.com's Web time-driven professional services enable Connected Corporations to build open, multi-vendor e-business solutions that help them to compete effectively in the digital economy using best-of-breed technologies. For more information, telephone 800-262-2638 or access the ConnectInc.com's World Wide Web site at connectinc.com.
Except for the historical information contained herein, this news release contains forward-looking statements, including, without limitation, statements containing the words, "believes," "anticipates," "expects" and words of similar import. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of ConnectInc.com, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others: variability of operating results; potential inability to maintain business relationships; competition in the Internet-based electronic commerce industry; the importance of attracting and maintaining key personnel; management of the Company's growth; future capital needs; Year 2000 compliance; potential dilution to stockholders; possible volatility of stock price; government regulation and legal uncertainties; and other factors referenced in ConnectInc.com's annual report on Form 10K and quarterly reports on Form 10Q as filed with the Securities and Exchange Commission.
On January 14, 1999, the Company's Board of Directors approved a proposal to conduct business under the name of "ConnectInc.com." The Company's stockholders will consider a proposal to officially change the Company's name from "Connect, Inc." to "ConnectInc.com" at the Company's upcoming annual meeting, which is currently scheduled to be held in mid-1999.
Condensed Statement of Operations (in thousands, except per share data)
Three months ended Twelve months ended
December 31, December 31,
1998 1997 1998 1997
Unaudited Unaudited
Revenue:
License $ 220 $636 $1,828 $3,131
Service 1,218 1,637 4,651 6,231
Total revenue 1,438 2,273 6,479 9,362
Cost of Revenue:
License 0 208 415 753
Service Consulting 906 1,728 4,334 8,312
Total cost of revenue 906 1,936 4,749 7,129
Operating Expenses:
Research
& development 0 1,263 3,153 4,990
Sales & marketing 0 1,367 3,050 7,194
General & administrative 501 656 2,262 2,632
Nonrecurring charges 0 0 1,098 0
Total operating expenses 501 3,286 9,563 14,816
Income (loss) from operations 31 (2,949) (7,833) (14,518)
Other income (expense), net 8 (119) ( 70) 66
Income (loss) before
income taxes 39 (3,068) (7,904) (14,585)
Benefit for income taxes -- -- -- --
Net Gain/Loss $39 ($3,068) ($7,903) ($14,585)
Basic and Diluted net
loss per share $0.00 $(0.80) $(0.74) $(3.85)
Weighted common shares
outstanding 12,890 3,784 9,909 3,784
Condensed Balance Sheets
(in thousands)
December 31, December 31,
1998 1997
Unaudited
Current assets:
Cash and cash equivalents $3,965 $9,644
Accounts receivable, net 614 2,298
Prepaid and other current assets 212 895
Total current assets 4,971 12,837
Property and equipment, net 609 2,442
Other assets 53 85
Total Assets $5,453 $15,364
Current Liabilities:
Accounts payable & accrued expenses $1,722 $3,476
Current portion of long-term obligations 1,122 1,246
Deferred revenue 416 681
Total current liabilities 3,260 5,403
Long-term obligations 247 10,593
Stockholders' Equity (Deficit) 1,946 (632)
Total liabilities and stockholders' equity $5,453 $15,364
SOURCE ConnectInc.com
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