1998 Year-End Results Reflect 359% Revenue Growth as Reported by Galaxy Enterprises, Inc.
Investment in New Product Development and Acquired Technology Continues
OREM, Utah--(BUSINESS WIRE)--April 5, 1999-- Galaxy Enterprises, Inc. (OTC BB:GLXY), an established e-commerce provider and operator of the popular 1900-storefront Galaxy Mall, MatchSite search engine, and Banner Source advertising network, today reported results for its fourth quarter and twelve months ended December 31, 1998 which reflected a 359% increase in revenues for the year and a 18% increase in the fourth quarter compared to prior year periods.
In conjunction with aggressively growing sales, the Company launched two new products, tendered an offer to acquire a marketing product company, and has invested extensively in upgrading its four e-commerce sites and the company's infrastructure.
Revenues for the year ended December 31, 1998 increased 359% to $11,448,392, as compared to $2,495,096 reported for the prior year. Net income for the year was $35,375, or $0.007 per basic and diluted share, as compared to net income of $87,328, or $0.017 per basic and diluted share reported a year ago.
Revenues for the fourth quarter ended December 31, 1998 increased 18% to $2,933,424 as compared to $2,482,762 reported for the prior year period. Net loss for the quarter was $98,557, or ($0.019) per basic and diluted share, as compared to net income of $112,731, or $0.021 per basic and diluted share, reported for the fourth quarter last year.
The increase in revenues for the year and fourth quarter were primarily due to a significant increase in sales of the Company's Internet training seminars, Web site development fees, Web hosting, and banner advertising fees. The decrease in net income for the year and the loss in the fourth quarter was attributable to increased expenses related to a broader direct-response marketing campaign, expanded administrative and operations facilities, and additional personnel to support the dramatic increase in customers. Employees totaled approximately 60 at 1997 year-end and 80 in 1998.
Jay Poelman, President and CEO of Galaxy Enterprises, commented on the Company's significant performance saying, ''Our sales growth in 1998 was clearly a notable accomplishment. Equally important, was our investment in marketing research, product development, and technology which yielded the launch of two timely e-commerce products--MatchSite and Galaxy Center--which should provide sources of new revenue for continued growth. Investments in these new products, the marketing campaigns to draw customers to them, and the technical and human infrastructure to support the growth is critical to remain competitive and build for the Company's future. While these investments impact profitability in the short-term, we believe that they will enable profitability in the long-term.''
Looking forward, Poelman added, ''While we are quite pleased with our performance last year we are even more optimistic about growth prospects for Galaxy in 1999 as we see increasing use and market acceptance of our new products and expanding visibility of our electronic mall and banner advertising network. Our technological upgrades and newly added features to existing products should enable us to remain extremely competitive and maintain brand loyalty. We expect to see similar success in developing new customers from our unique off-line marketing campaigns in the current year.''
Statements in this news release that relate to future plans, financial results or projections, events or expected performance in future periods are forward-looking statements and fall within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results and performance for such periods may differ materially. While management wishes to provide readers with reasonable opinions and viewpoints with respect to the Company's progress, marketplace acceptance, business opportunities, and fiscal performance, such statements, opinions and viewpoints are forward-looking and involve risks and uncertainties, including risks of changing conditions in the overall economy, the capital markets, the internet and e-commerce industries, as well as risks of changing consumer demand and the success of the Company's business strategies and other factors detailed in the Company's Form 10-KSB filed with the Securities and Exchange Commission.
About Galaxy Enterprises
Galaxy Enterprises is an e-solutions provider, trainer and facilitator of Internet-based businesses, an operator of an electronic mall, an e-commerce Web site builder, and a broad-based Web search engine. Galaxy Mall Inc. (http://www.galaxymall.com), a wholly owned subsidiary, is one of the fastest growing malls on the Internet with approximately 1,900 storefronts and 10 million hits monthly. Galaxy Center (http://www.galaxycenter.com), a Web-based, Web site builder program, allows individuals and business owners to create and maintain their own fully functional e-commerce Web site.
MatchSite (http://www.matchsite.com) is Galaxy's new revolutionary broad-based search engine that queries other major search engines simultaneously which eliminates the need for multiple queries. Banner Source (http://www.bannersource.com), is a clearing house for Web banner advertisements which currently has access to a network of over 20,000 sites and markets in excess of 1 million dynamic impressions over the Internet daily.
GALAXY ENTERPRISES, INC.
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