NEWS!!!
Monday April 5, 10:33 am Eastern Time
Company Press Release
Hitsgalore.com, Inc. Announces 1st Quarter Revenues and Preliminary
Operating Results
RANCHO CUCAMONGA, Calif.--(BUSINESS WIRE)--April 5, 1999-- Hitsgalore.com, Inc., (OTC BB:HITS - news) has
announced preliminary revenues and expenses for March and for the first quarter of 1999.
Gross sales revenues for March, related to the website at hitsgalore.com, were $243,981. This represents an increase
of 60% over the previous month.
For the first quarter of 1999, the company reports total gross sales revenues of $463,880.
The company reports preliminary expenses for the quarter, before taxes, amortization and depreciation, of $174,385.13 (37.6% of gross sales revenues), resulting in
income from operations of $289,494.87 (62.4% of gross sales revenues).
Hitsgalore.com projects positive cash flow from its unique business model of giving away free lifetime banner placements. The company believes this compares
favorably with other Internet portals and search engine companies that generally report net losses, such as Lycos, Inc. (Nasdaq:LCOS - news), Excite, Inc.
(Nasdaq:XCIT - news), and Infoseek Corporation (Nasdaq:SEEK - news). And unlike Yahoo! Inc. (Nasdaq:YHOO - news), Hitsgalore.com does not rely on
advertisers purchasing space on its website.
For the second quarter, the company has developed an extensive advertising and marketing campaign. Because Hitsgalore.com has so far relied almost exclusively
on word-of-mouth and comparatively inexpensive public releases and articles about the company, expenses in future quarters will increase considerably over the first
quarter. The company believes that the marketing campaign will positively impact revenues and drive further traffic to its website. Internal estimates indicate that even
without extensive advertising the website is taking over 1.5 million hits per month.
Hitsgalore.com, in addition to giving away free lifetime banner placements, generates revenue from its Keyword Bid & Rank program, banner sponsorship, and
Local City Editions featuring local content. Hitsgalore.com strives to provide porn-free searching and does not accept or encourage any porn or adult-content listings
on its site. Hitsgalore.com expects continued revenue growth in its core line products and services, and will bring other services online over time.
In addition, Hitsgalore.com anticipates additional future revenues from its recent acquisition of the Internet Division of Solvere, Inc. The company now has several
innovative projects in the pipeline. Solvere has previously partnered with such industry leading companies as Microsoft (Nasdaq:MSFT - news), MCI
(Nasdaq:WCOM - news), Cisco Systems (Nasdaq:CSCO - news), Compaq Computer (NYSE:CPQ - news), and Hewlett-Packard (NYSE:HWP - news).
The figures reported by the company are internally prepared and have not been subjected to audit. The stated net revenues are before any amortization,
depreciation, or allowance for taxes. Net income for the quarter prepared in accordance with GAAP will be lower, accounting for significant non-cash items
associated with the company's capitalized costs of programming and depreciation on its computers, other equipment and furnishings and leasehold improvements.
Financial statements in this press release other than historical facts are ''forward-looking'' statements within the meaning of Section 27A of the Securities Act of
1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. Hitsgalore.com, Inc.
intends that such statements about the company's future expectations, including future revenues and earnings, and all other forward-looking statements are subject to
the safe harbors created thereby. Since these statements (future operational results and sales) involve risks and uncertainties and are subject to change at any time,
the company's actual results could differ materially from expected results. |
