ConnectInc.com Announces First Quarter
Results Which Reflect Continued Growth
and Bottom Line Improvement
Wednesday April 14, 9:04 am Eastern Time
Company Press Release
SOURCE: ConnectInc.com
ConnectInc.com Announces First Quarter
Results Which Reflect Continued Growth
and Bottom Line Improvement
MOUNTAIN VIEW, Calif., April 14 /PRNewswire/ -- ConnectInc.com (Nasdaq: CNKT - news) today announced
results for its first quarter ended March 31, 1999. Net income for the quarter ended March 31, 1999, was $274,000 or
.02 per share, on revenues of $2,026,000. This compares with revenues of $1,438,000 in the fourth quarter of 1998, or
41% quarter over quarter growth, and fourth quarter net income of $39,000 or $0 per share, which is a 603%
improvement quarter over quarter.
Craig Norris, ConnectInc.com's President and CEO said, ''I am proud of our achievements in the first quarter of 1999.
I believe the most accurate reflection of our progress is to look at this quarter compared to the fourth quarter of 1998,
when we announced our shift in strategic direction. We believe these results demonstrate 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 have now produced consecutive profitable quarter over quarter improvements. We are optimistic
about our performance capabilities in future periods.''
Norris continues, ''We also just announced the company's flagship MarketStream(TM) 2.0 solution, which brings
together the technology platform and application software for buyers and sellers in supply chain communities to interact
and carry out e-business on the Internet via the digital exchange economy. MarketStream(TM) 2.0 delivers rich
functionality to the new breed of Internet value chain communities, such as infomediaries, micro-markets, and vertical
portals to develop state-of-the-art e-commerce Websites that enable multiple buyers and sellers to come together under
one roof to carry out e-business transactions. We already have commitments from existing customers to move to this
new release, and have signed several new customers who are currently under development on MarketStream(TM) 2.0.''
''We have made significant progress on many fronts over the last six months, but important additional work needs to be
completed. MarketStream(TM) 2.0 currently runs on Unix and Windows NT, and during the second quarter we are
developing a completely native Microsoft version of the software. We are also focusing on our sales and marketing
functions, and will be putting more muscle there as we look to continue our revenue growth,'' concluded Norris.
About ConnectInc.com
ConnectInc.com provides solutions to enable Internet-based electronic commerce and uses its MarketStream(TM)
application software, its Connected Internet Methodology and supply chain integration experience to implement supply
chain communities. ConnectInc.com's unique combination of software, technology architecture and Web-time driven
implementation capabilities enable companies to build open e-business solutions that allow them to compete effectively
in the digital economy. ConnectInc.com is a member of the IBM Solution Developer Program. For more information,
telephone 800-262-2638 or access the ConnectInc.com World Wide Web site at connectinc.com.
The statements made in this press release that are not historical facts contain forward-looking information that involves
risks and uncertainties that may cause results to differ. Such risks include, but are not necessarily limited to, those
detailed in the Company's Securities and Exchange Commission filings.
On January 14, 1999, the Company's Board of Directors approved a proposal to conduct business under the name of
''ConnectInc.com, Co.'' The Company's stockholders will consider a proposal to officially change the Company's name
from ''Connect, Inc.'' to ''ConnectInc.com, Co.'' at the Company's upcoming annual meeting, which is currently
scheduled to be held on June 4, 1999.
Condensed Statement of Operations
(in thousands, except per share data)
Three months ended
March 31,
1999 1998
Unaudited
Revenue:
License $675 $1,025
Service 1,351 1,227
Total revenue 2,026 2,252
Cost of Revenue:
License 60 178
Service 843 1,402
Total cost of revenue 903 1,580
Operating Expenses:
Research and Development 221 1,311
Sales and Marketing 35 1,440
General & administrative 667 736
923 3,487
Income (loss) from operations 200 (2,815)
Other income (expense), net 74 (135)
Income (loss) before income taxes 274 (2,950)
Provision (benefit) for income taxes -- --
Net Income (Loss) $274 $(2,950)
Basic net income (loss) per share $0.02 $(0.73)
Shares used in computing basic net
income (loss) per share 14,398 3,987
Condensed Balance Sheets
(in thousands)
March 31, December 31,
1999 1999
Unaudited
Current assets:
Cash and cash equivalents $6,707 $3,965
Accounts receivable, net 1,412 613
Prepaid and other current assets 247 212
Total current assets 8,366 4,790
Property and equipment, net 569 609
Other assets 47 54
Total Assets $8,982 $5,453
Current Liabilities:
Accounts payable & accrued expenses $1,590 $2,557
Current portion of long-term obligations 897 290
Deferred revenue 74 415
Total current liabilities 2,561 3,262
Long-term obligations 192 245
Stockholders' Equity 6,229 1,946
Total liabilities and
stockholders' equity $8,982 $5,453
SOURCE: ConnectInc.com
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